What is the nature of the …

Ans. Formal organization is an official setup. It clearly spells out what exactly is the role of each job and position in an organization. Features of formal organization are as follows:

• Defined inter-relationship: It is a sort of arrangement which clearly denes mutual relationship. Everybody knows his or her authority and responsibilities. This clearly shows who will be reporting to whom.
• Based on rules and procedures: It is important to observe all the pre-determined rules and procedures in the formal organization. The objectives laid down under planning are thus achieved.
• Based on division of work: The chief basis of formal organization is the division of work. It is this that connects the efforts of different departments with each other.
• Deliberately created: It is deliberately created in order to achieve the objectives of the organization in an easy manner.
• It is more stable: Changes cannot be introduced because of the needs of individuals and their wishes. Therefore, it is more stable.
  
  In most organisations, there are a few enterprising people who take the initiative and come up with innovative ideas for better functioning and results. These endeavours are encouraged by organisations that believe in collectively taking the organisation forward by introducing efficiency and innovativeness at each stage. New and improved ideas are thus encouraged and introduced. However, when too many ideas come forth, the management chooses the best ones, while clearly communicating to all involved in the process why this is being done and why other ideas have been shelved, so that the spirit is not dampened.