Types of Organization In management

In management there are two types of organizations. But these types of organization are found in organizations. These types of organizations are simply called formal organization and informal organization.

 Formal Organization

A formal organization which is a social system has its roles deliberately created so that the objectives of the organization can be achieved. Consequently there features which are associated with formal organizations are:

1. There must be policies and objectives. These policies must be consciously created. And there must be verifiable objectives which are formulated taking the policies into consideration. These objectives are not only for the entire organization but also for the departments and sections. 
2. The activities of individuals in a formal organization are coordinated. This means that one activity must be linked up with another activity. Through this process the entire activities being carried out in the organization move in the same direction. 
3. The persons in a formal organization must be able to communicate with one another through the appropriate channels which have been created. Consequently, the issue of keeping malice with a fellow worker(s) is ruled out because nothing works in a formal organization without communication taking place. 
4. The employees in a formal organization must share a purpose. And the purpose is the reason why the organization is in existence. Such purpose is usually reflected in the mission statement of the organization.  
5. The workers in a formal organization on the receipt of necessary directive from their manager must be willing to act. But in acting, it should not be on individual level; the whole workers must cooperate with one another in their actions. 

 Informal Organization

The informal organization is a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate or come together. That is why informal organizations exist in a formal organization. From here, we can see the features of an informal organization which are:

1. the association exists merely as social interactions. 
2. there is no common or consciously coordinated joint purpose among members even though they may be contributing to joint result. 
3. compatibility is a major criterion for such grouping. Since the informal groups exist in a formal group they can assist or interfere with the enterprise interests. 
4. the form of punishment that the informal group members can give to an erring member is to ostracize him. This means that members of the informal group will refrain from talking and interacting with the member under punishment until he turns a "new leaf". 

CONCLUSION

In this unit we have looked at various points relating to organizing. We saw what organizing as a managerial function is, including the conditions that should exist for organizing to be efficient and effective. We highlighted the advantages of organizing with the hope that the points raised will provide necessary incentives for managers to regard this function as important and consciously carry it out. Thereafter, we saw that there are two types of organizations, one necessarily existing in the other. We have the formal and informal organization with the informal organization existing in a formal organization. The features of formal and informal organizations were also highlighted.

SUMMARY

This unit has touched on the conditions for organizing, the advantages of organizing, and the definition of organization. It also looked at types of organization and the features of the organization. In our next unit, we will be looking at the ways activities are grouped together and assigned to individuals and groups.