ORGANISATIONAL

STRUCTURE
FORMAL & INFORMAL
GROUPS
Presented By,
•Arshan Alvi
•Anuj Kushwaha
•Ayush Kumar Gautam
•Fahad Ahmad
•Anish Mishra
Content :
• Organisational Structure

• Formal Organisation

• Informal Organisation
Organisational Structure :
• An organizational structure is a system
that outlines how certain activities are
directed in order to achieve the goals of
an organization.
• The organizational structure also
determines how information flows
between levels within the company.
Features :
• Simplicity
• Flexibility and Continuity
• Proper Deligation of Authority
• Unity of Command and Direction
• Clear line of Authority
Types of Organisational Structure :
• Functional Structure

• Divisional or Multidivisional Structure

• Flatarchy Structure

• Matrix Structure
Formal Organization
Principles of a Formal Org.
 Division of Labor
 Scalar and functional processes
 Structure ensures proper balance
 Span of control

4 pillars of the Formal

Organization
Characteristics
It permits the application of the concept of
Specialization and Division of Labor

 Well defined rules and regulations

 Arbitrary Structure
 Determined Objectives and Policies
 Limitation on the activities of the Individual
 Scalar chain of communication for messages
 Deliberately impersonal
 Based on “Rabble Hypothesis” of nature and human
beings
Disadvantages
 Individuals are ignored in determining the
interactions & Accountability.
 The Ideal relationship assumes that the
rational human beings will stick to rules and
regulations.
 Assumptions that punishment or reward
brings reaction.
 Rules and Regulations are too rigid and not
sensitive to change in time and
circumstances.
Informal Organization
Functions of Informal Org.
 Perpetuate the culture and social values
of one group.
 Provide social status and satisfaction.
 Promote communication among
members to keep the members in form.
 Provide social control by influencing and
regulating behavior inside and outside
the group.
Characteristics
 Evolving constantly and excellent at
motivation.
 Cohered by trust and reciprocity and
difficult to pin down
 Essential for situations that change
quickly
 Collective Decision Making, Dynamic
and Responsive
 Closure co-operation and Highly Morale
Disadvantages
 Resistance to change due to overly
protective of their culture.

 Roll conflict can be observed

 Social conflict promotes and encourages

conformity among informal group
members
THANK
YOU