6 Principles of Formal Organization

There are lots of principles of formal organization. A formal organization works to achieve some specific goals determined by the management.

For the purpose, some principles are supposed to be followed. These principles are mentioned as follows:

Principles of formal organization

  1. Official nature of the organization: The organization must be legal and official in all the regards in the environment it is operating. It should be recognizable in its respective industry of operating in an official manner.
  2. Authority and Responsibility: The formal organization emphasizes on clear delegation of authority and a specific set of responsibility for a specific authority.
  3. Focus on position: A formal organization focuses on the position of a personnel and its position regarding the organization rather than the personnel himself/herself.
  4. The power delegated by Management: The formal organization management delegates the power regarding every position of personnel and specific power sets for specific authority.

    Principles of Formal Organization

    Principles of Formal Organization

  5. Specific Rules and Policies: The rules and policies regarding a formal organization are specific and should be always followed in terms of performing activates for achieving organizational goals.
  6. Rewards & Penalties: A formal organization has to have a systematic way of rewarding personnel based on their good services and also need to have a penalty system outlined to prevent carelessness and recklessness from the employees.

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