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 a 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. 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

  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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