The organization is defined as the backbone of the management or the foundation upon which the whole shape of management is carried out. Generally, there are two types of organizations. They are defined as a formal and informal organization. In this post, we will also talk about various organizational structures. It is important to know the differences between these organizations.
What Is Formal Organization?
The formal organization is carefully and deliberately built by the management team to achieve goals. The formal organization is built based on work specification which has a long lifespan. In comparison to the informal organization, it is slow in adapting the various changes.
What Is Informal Organization?
Similarly, the informal organization is not defined by the management team or organizational structure. We can say that it emerges spontaneously in any workplace where human activities are carried out. Therefore, it is spontaneous i.e. unplanned. The informal organization is built based on work-related needs and desires which have no plans and policies. The membership in the informal organization is voluntary which primary focus is the person. The goals are not defined in the informal organization.
In an organization, there is a certain type of defined structure which has goal-oriented. They are like open systems and use various skills to transform inputs & outputs.
The organization is managed by the leader who performs various functions. Government, unions, political, business, etc. are some of the examples of the organization.
The organizational structures are the framework for the organization to meet the desired goals. There are various types of organizational structures. They are line organization, line & staff organization, functional organization, etc.
Common types of Organizational Structure
Line Organization-In line organization, one employee has only one boss because the unity of command is spread where the line of authority is fixed and direct. The line of authority is fixed between different supervisors and subordinates. It totally gives a right to the manager to perform various activities and setting goals. In line organization, the power authority flows from top to bottom level step by step.
Line and Staff Organization-
In line and staff organization, there is a complete balance between work and line members. There is a presence of a staff specialist in the line and staff organization. The role of line managers is very active. They perform well in achieving the goals. It is called line and staff organization as it combines both line and staff positions dynamically where line position has a decision making power. Similarly, the staff position carries advisory power in this type of organization. Also, there is a presence of legal adviser in line and staff organization which is very helpful in lawmaking decisions and activities.
Functional Organization-
In the functional organization, the various organizational members are classified into different functional departments that focus on specializations. That is, it focuses only on a certain area of marketing, finance, human resource, etc. In a functional organization, every manager focuses on a particular function rather than the basic managerial functions. It is one of the important types of organizational structure as the lower rank staffs have multiple bosses for various functions.