Formal Organizations: Definition, Characteristics & Examples

The formal organization

The formal organization is the type of organizational structure that is characterized by being planned, by having clear objectives, and plans, rules and procedures to achieve them. It is the planned and organized organization, governed by organizational manuals that determine the positions, functions, relationships, and all its operation.

In it, the relationships between individuals are pre-established and its members are chosen according to selection rules. The members receive orders on what to do and what not to do, there are positions, bosses, and subordinates.

It’s the opposite of the informal organization, that derives from social relationships and groups, such as friendships between employees.

The formal organization and the bureaucratic model of Max Weber

Different authors try to explain the characteristics of this type of structure and one of them is the historian and sociologist Max Weber who devised a formal organization model known as the bureaucratic model.

Through the model, the ideal type of organization is devised based on the rationalization of activities through rules and procedures to achieve the greatest possible efficiency. (1)

Characteristics of the formal organization

According to Max Weber, a formal organization has seven fundamental characteristics.

Specialty. It is having the capacity and specialization to do the job.
Professionalism. It is that those who occupy the positions are highly qualified professionals.
Rationality. The organization plans and acts according to guidelines based on logic and efficiency.
Impersonality. The authority depends on the position and not on the person.
Hierarchy. Positions and offices have different ranks, one higher than the other.
Stability. It is the guarantee of permanence within the organization in the exercise of the corresponding positions.
Autonomy. It consists in the fact that individuals can make decisions within the limits of their functions and nature of their activities.

Difference between Formal and Informal Organization

There are two types of structures in an organization, the formal structure, which is the one that is planned and also establishes the type of relationships between individuals. And the informal structure, which is the opposite of being spontaneous and not governed by these rules.

The informal organization is the activities and interactions between its members that are not governed by the requirements, but by the social needs of the people, for example the friendships between workers.

See more: Informal organization

Examples of formal organization

Schools, universities, hospitals, companies, an example of a company could be Google, an organization with goals, plans, procedures and selection rules.

Examples of informal organization

Friendship between workers, the boss goes to a baseball game with her secretary, the director asks her assistant how her grandmother is doing.