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Formal and informal organization

Table of contents:

Anonim

The principles and contingencies of the organizational process, its structural implications, as well as the models and strategies of planned intervention, in the processes of an organization.

Understand the concept of a formal or informal organization, since it is of great importance within the structure of the company. Identify the different elements that make up the position and their relationship with job performance and their relationship with the effectiveness of the organization, to develop productive work systems.

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Formal and informal organization

Formal organization

It is the organization based on a rational division of labor, on the differentiation and integration of the participants according to some criteria established by those who manage the decision-making process. It is the planned organization; the one on paper.

It is generally approved by management and communicated to all through organization manuals, job descriptions, organization charts, rules and procedures, etc.

In other words, it is the formally official organization.

Informal organization:

It is the organization that emerges spontaneously and naturally among the people who occupy positions in the formal organization and from the relationships they establish with each other as occupants of positions.

It is formed from friendly or antagonistic relationships or the emergence of informal groups that do not appear in the organization chart, or in any other formal document.

The informal organization is made up of interactions and social relationships between people located in certain positions of the formal organization.

It arises from the relationships and interactions imposed by the formal organization for the performance of the positions.

The informal organization comprises all those aspects of the system that have not been planned, but that arise spontaneously in the activities of the participants, therefore, for innovative functions not foreseen by the formal organization.

Stages of work organization

Coordination

It is the synchronization of the resources and efforts of a social group, in order to achieve opportunity, unity, harmony and speed, in the development and achievement of objectives.

Division of labour

It is the separation and delimitation of activities, in order to perform a function with the greatest precision, efficiency and minimum effort, giving rise to specialization and improvement at work.

Hierarchy and departmentalization

Hierarchy:

It is the arrangement of the functions of an organization in order of rank, degree or importance, grouped according to the degree of authority and responsibility they possess, regardless of the function they perform.

The hierarchy implies the definition of the structure of the company by means of the establishment of centers of authority that are related to each other with precision.

Rules.

Its observance is essential when ranking.

  1. The hierarchical levels established within any social group must be the minimum and indispensable. The type of authority of each level must be clearly defined (linear, functional and / or staff).

Departmentalization

It is the division and grouping of functions and activities into specific units, based on their similarity.

When departmentalizing, it is convenient to observe the following sequence:

1st List all the functions of the company.

2nd Classify them.

3º Group them according to a hierarchical order.

4th Assign activities to each of the grouped areas.

5º Specify the relationships of authority, responsibility, and obligation between functions and positions.

6th Establish lines of communication and interrelation between the departments.

7th The size, existence and type of organization of a department must be related to the size and specific needs of the company and the functions involved.

According to the specific situation of each company, the most common types of departmentalization are:

  1. Functional.

    It is common in industrial companies; It consists in grouping analogous activities according to their main function.

  1. By product.

It is characteristic of manufacturing companies of different product lines, the departmentalization is based on a product or group of products related to each other.

  1. Geographic or by Territories By clients

It is generally applied in commercial companies, mainly warehouses, and its function is to create units whose primary interest is to serve different buyers or clients.

  1. By Process or Equipment

In industry, grouping equipment in different departments will provide efficiency and time savings; as well as in an automotive plant, grouping by process.

  1. By Sequence

It is used in production companies that work without interruption the three shifts, to control each of the shifts; or when it comes to tasks that handle a large number of numbers or letters.

Organization charts

Also known as Charts or Organization Charts, they are graphic representations of the formal structure of an organization, showing the interrelationships, functions, levels, hierarchies, obligations and authority existing within it.

Organization theory and types

Typology of the Organization

They are the different types, systems or models of organizational structures that can be implemented in a social organism depending on the turn or magnitude of the company, resources, objectives, production, etc.

Advantages and importance.

Linear or Military Organization.

It is characterized because the decisional activity is concentrated in a single person, who makes all the decisions and has the basic responsibility of command, the superior boss assigns and distributes the work to the subordinates, who in turn will report to a single boss.

Advantage:

  1. Easier decision-making and execution No conflicts of authority or leakage of responsibility It's clear and simple Useful in small businesses Discipline is easy to maintain

Disadvantages:

  1. It is rigid and inflexible. The organization depends on key men, which causes disruption. It does not encourage specialization. Executives are saturated with work, which causes them not to dedicate themselves to their managerial tasks, but simply to operating.

Functional or Taylor Organization

It consists of dividing the work and establishing the specialization so that each man, from the manager to the worker, performs the fewest possible functions.

Advantage:

  1. Greater specialization. 2. The highest efficiency of the person is obtained. The division of labor is planned and not incidental. Manual work is separated from intellectual work. The pressure on a single boss is reduced by the number of specialists the organization has.

Disadvantages:

  1. Difficulty in locating and establishing responsibility, which seriously affects the discipline and morale of the workers due to apparent or real contradiction of the orders.The principle of unity of command is violated, which causes confusion and conflicts.The unclear definition of authority leads to friction between bosses.

Lineo - Functional Organization

In this, the types of linear and functional organization are combined, taking advantage of the advantages and avoiding the disadvantages inherent to each one, keeping the functional specialization of each activity in a function, and the linear authority and responsibility that is transmitted through of a single boss for each special function.

Organization staff

This type of organization does not enjoy line authority or power to impose decisions, it arises as a consequence of large companies and the advancement of technology, it provides expert information and advice.

Advantage:

  1. It allows expert knowledge to influence the way of solving management problems. It makes possible the principle of responsibility and indivisible authority, and at the same time allows staff specialization.

Disadvantages:

  1. If advisory duties and responsibilities are not clearly delineated through charts and manuals, it can lead to considerable confusion throughout the organization. It can be ineffective due to lack of authority to perform its functions or lack of intelligent support in the application of their recommendations. There may be friction with the departments of the linear organization.

Organization by Committees

It consists of assigning the various administrative matters to a body of people who meet to discuss them and make a decision together.

Classification:

  1. a) Executive; Represents the shareholders of a company. B) Executive; He is appointed by the steering committee to carry out the agreements they make. C) Surveillance; Trusted personnel who are in charge of inspecting the work of the company's employees d) Advisory; Composed of specialists who, based on their knowledge, issue opinions on matters that are consulted.

Advantage:

  1. The solutions are more objective, since they represent the conjunction of several criteria. Responsibility is shared among all those who make up the committee, not falling on a single person. It allows ideas to be founded and criticized. specialized knowledge.

Disadvantages:

  1. Decisions are slow, as deliberations are late. Once the committee is constituted, it is difficult to dissolve it. Sometimes managers disengage from their responsibility and use the committee to take responsibility for their own actions.

Matrix organization

It consists of combining departmentalization by products with that of functions, it is distinguished from other types of organization because the principle of unity of command or of two heads is abandoned.

Advantage:

  1. Coordinates the satisfaction of activities, both to improve the product and to satisfy the schedule and budget required by the department manager. Promotes interdepartmental communication about functions and products. Allows people to switch from one task to another whenever necessary. It favors an exchange of experience between specialists to achieve a better technical quality.

Disadvantages:

  1. There is confusion about who depends on whom, which can lead to flight of responsibilities and lack of delimitation of authority It gives rise to a struggle for power, both from the functional manager and the product manager It works through many meetings, which This is a waste of time Staff may feel that their immediate manager does not directly appreciate their experience and ability There may be resistance to change from staff.

Authority and limits of this

Authority:

"It is the power with which a person is invested within an organization to give orders and demand that they be carried out by his subordinates, to carry out those actions that the person who dictates them considers appropriate for the achievement of the group's objectives"

Types of Authority

  1. Formal.

When it is conferred by the organization, that is, the one that emanates from a superior to be exercised over other people and can be:

  1. a) Linear. When it is exercised by a boss over a person or group. B) Functional. When it is exercised by one or more bosses on different functions. Technical or Staff. It is born from the specialized knowledge of the

    person who possesses it. It originates in the personality of the individual.

Delegation of authority and responsibility

It is the granting of authority and responsibility by a superior to a subordinate.

Advantage:

  1. It enables the manager to dedicate himself to the most important activities, while detailed and routine functions are delegated. Through it, responsibility is shared, becoming more meaningful. Motivates subordinates by involving them in the achievement of objectives. subordinates in certain important decisions.

Requirements to Delegate

  1. Clearly delimit the delegated authority and responsibility, preferably in writing, in order to avoid conflicts, duplication of functions, flight of authority, etc. Clearly specify the goals and objectives of the delegated function Train the staff to whom it will be delegated Establish performance standards in such a way as to foster initiative, creativity and loyalty towards the organization Agree on areas of non-delegation The manager must show interest in the performance of the employee, in relation to the relegated function Recognize good performance and trust subordinates.

CONCLUSION

The evaluation of organizations is, without a doubt, the field in which values, theory and technical criteria converge. All this must be contrasted with the observations.

Saying that an organization is adequate when it is efficient, for example, is not the same as saying that it is adequate when it is effective. Efficiency means taking advantage of resources, and efficiency meeting the proposed objectives regardless of the resources used for it.

For private companies, generally, what is important is profitability and therefore efficiency is one of the main criteria on which any evaluation of their organizations, both formal and informal, should be based. They should not meet production goals regardless of the resources they consume (the goal will be, in any case, to produce as much as possible with the least resources).

BIBLIOGRAPHY

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Formal and informal organization