Commerce Exam  >  Commerce Questions  >  formal and informal organisations are complem... Start Learning for Free
formal and informal organisations are complementary to each other-explain
Verified Answer
formal and informal organisations are complementary to each other-expl...
Formal and informal structure is complementary to each other. One cannot exist without the other. Managers must, therefore, give due regard to the requirements and needs of both the forms of organization structures.

This can be done in the following ways:
   
1.    Resistance to change and problem of conformity can be overcome by educating employees. Employees should be told (by conducting training programmers) about the need for formal objectives

2.    Role conflict can be reduced by integrating individual goals with organizational goals. Individuals will increase organizational productivity along with personal interests if their goals are coordinated with formal organizational goals.

3.    Formal organization must be flexible so that preferences for individual talents and creativity can be incorporated in the formal structures.

4.    Managers should ensure that group norms are not against formal organizational goals. They should promote efficient attainment of formal goals of the organization.

5.    Managers should understand that workers need to interact with each other doting long working hours and, therefore, recognize their informal relationships.

6.    Informal channels spread information at a fast speed. Manages should use this channel for spreading important, official information. This will prevent spreading of gossips and rumors’.

7.    Managers should allow members to discuss their problems in groups rather than discuss them with their immediate superiors.

8.    Managers should take leaders of informal groups into confidence while making organizational plans and policies. This will promote easy and fast acceptance of plans and policies by transitional members.
This question is part of UPSC exam. View all Commerce courses
Most Upvoted Answer
formal and informal organisations are complementary to each other-expl...
Introduction:
Formal and informal organizations are two different types of organizational structures that coexist and complement each other in achieving the goals of an organization. While formal organizations are created deliberately with a defined structure and hierarchy, informal organizations emerge naturally based on social interactions within the formal structure.

Complementary Nature:
Formal and informal organizations are complementary to each other as they serve different purposes and fulfill distinct needs within an organization. Let's understand how they complement each other:

1. Formal Organization:
- Defined Structure: Formal organizations have a predefined structure with clear roles, responsibilities, and reporting relationships. This structure ensures smooth functioning, coordination, and accountability.
- Efficient Communication: Formal organizations establish formal channels of communication, such as memos, emails, meetings, etc., to ensure effective and timely flow of information.
- Goal-oriented: Formal organizations are designed to achieve specific objectives and goals. They provide guidelines and procedures to enhance efficiency and productivity.
- Legal Framework: Formal organizations operate within a legal framework and are bound by rules and regulations. They ensure compliance with legal and ethical standards.

2. Informal Organization:
- Social Relationships: Informal organizations are based on personal relationships, common interests, and social interactions among employees. They develop naturally and are not formally established.
- Flexibility and Adaptability: Informal organizations are flexible and can adapt quickly to changes in the formal structure. They provide support and facilitate communication among employees.
- Employee Satisfaction: Informal organizations fulfill the social and emotional needs of employees, fostering a sense of belonging, trust, and mutual support.
- Information Sharing: Informal organizations facilitate the sharing of tacit knowledge, experiences, and expertise that may not be formally documented.

Complementary Roles:
- Formal organizations provide a framework for planning, organizing, and controlling processes, while informal organizations contribute to the social and psychological well-being of employees.
- Formal organizations establish authority, set goals, and allocate resources, while informal organizations provide a platform for networking, mentoring, and informal learning.
- Formal organizations ensure compliance with rules and regulations, while informal organizations promote teamwork, collaboration, and innovation.

Conclusion:
Formal and informal organizations are two sides of the same coin, working together to achieve organizational objectives. While the formal structure provides stability, control, and efficiency, the informal structure fosters employee satisfaction, creativity, and adaptability. Recognizing and harnessing the strengths of both structures can lead to a harmonious and successful organization.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Top Courses for Commerce

formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST)
Question Description
formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST) for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST) covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST).
Solutions for formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST) in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST) defined & explained in the simplest way possible. Besides giving the explanation of formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST), a detailed solution for formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST) has been provided alongside types of formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST) theory, EduRev gives you an ample number of questions to practice formal and informal organisations are complementary to each other-explain Related: Chapter 4 - Planning - An Overview, Class 12 CBSE Business Studies (BST) tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev