Define formal organization and also describe its types ?

(i) Introduction

Formal organization is basically goal-oriented entity. It exists to accurate the efforts of individuals. It refers to the structure of jobs and position with clearly defined functions, responsibilities and authorities.

(ii) Types

Followings are types of formal organization:

  • (a) Utilitarian organization
  • (b) Normative organization
  • (c) Coercive organization

(a) Utilitarian Organization

(a-i) Definition

Utilitarian organization is that formal organization in which everyone works for income or is that formal organization, which pays people for their efforts or work.

(a-ii) Explanation

Utilitarian organization can be explained in the following words:

  • (u) Specific material reward
  • (w) Tangible benefit
  • (x) Membership
  • (y) Feeling of connectedness
  • (z) Examples

(u) Specific Material Reward

People join utilitarian organization for some specific material reward. For instance, a business organization generates material reward in the form of benefit for its owner. It also generates material reward in the form of income for its employees.

(w) Tangible Benefit

Utilitarian organization gives tangible benefit to the people.

(x) Membership

People obtain membership of utilitarian organization on contractual basis.

(y) Feeling Of Connectedness

Feeling of connectedness is present in utilitarian organization due to some affinity.

(z) Examples

Colleges and universities are examples of utilitarian organization where students pay fees to gain knowledge.

(b) Normative Organization

(b-i) Definition

Normative organization is that formal organization, which people join not for some income, but to pursue some morally worthwhile goal.

(b-ii) Explanation

Normative organization can be explained in the following words:

  • (u) Voluntary organization
  • (w) Intangible benefit
  • (x) Membership
  • (y) Feeling of connectedness
  • (z) Example

(u) Voluntary Organization

Normative organization is also known as voluntary organization.

(w) Intangible Benefit

Normative organization gives intangible benefit to the people.

(x) Membership

People obtain membership of normative organization on volunteer basis.

(y) Feeling Of Connectedness

Feeling of connectedness is present in normative organization due to shared affinity.

(z) Example

The Red Cross is an of normative organization.

(c) Coercive Organization

(c-i) Definition

Coercive organization is that formal organization in which people are forced to join.

(c-ii) Explanation

Coercive organization can be explained in the following words:

  • (s) Purpose of joining
  • (t) Isolation of people
  • (u) Supervision
  • (w) Corrective benefit
  • (x) Membership
  • (y) Feeling of connectedness
  • (z) Examples

(s) Purpose Of Joining

People are forced to join coercive organization either for punishment or for psychiatric treatment.

(t) Isolation Of People

The people, who are forced to join coercive organization, are isolated for a period of time in order to change their attitudes and behaviour.

(u) Supervision

Coercive organization is supervised by security personnel.

(w) Corrective Benefit

Coercive organization is for coercive benefit of the people, who are forced to join it.

(x) Membership

As people are forced to join coercive organization, therefore its membership is involuntary.

(y) Feeling Of Connectedness

is no feeling of connectedness in coercive organization because people are forced to join it.

(z) Examples

Jail is organization for the prisoner while mental hospital is coercive organization for the patient.

(iii) Conclusion

It can be finally stated that formal organization is that organization, which specifies relationships. It is specified who is superior and who is inferior or who is subordinate to whom. In this way, everyone in the organization knows his role, authority and responsibility.

 

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