The formal organisation can be better understood by a study of its features which are as follows:

(A) It specifies the relationships among various job positions and the nature of their inter-relationship. This clarifies who has to report to whom.

(B) It is a means to achieve the objectives specified in the plans, as it lays down rules and procedures essential for their achievement.

(C) Independent channels of communication without specified direction of flow of information are developed by group members.

(D) It is deliberately designed by the top management to facilitate the smooth functioning of the organisation.

Which of the following options are correct?

(A), (B) and (D) only

The correct answer is Option (1) → (A), (B) and (D) only.

(A) It specifies the relationships among various job positions and the nature of their inter-relationship. This clarifies who has to report to whom. THIS IS TRUE.

(B) It is a means to achieve the objectives specified in the plans, as it lays down rules and procedures essential for their achievement. THIS IS TRUE.

(C) Independent channels of communication without specified direction of flow of information are developed by group members. THIS IS FALSE. It is a feature of informal organisation not formal organisation.

(D) It is deliberately designed by the top management to facilitate the smooth functioning of the organisation. THIS IS TRUE.

** Formal organisation refers to the organisation structure which is designed by the management to accomplish a particular task. It specifies clearly the boundaries of authority and responsibility and  there is a systematic coordination among the various activities to achieve organisational goals. The structure in a formal organisation can be functional or divisional. The formal organisation can be better understood by a study of its features which are as follows:

(1) It specifies the relationships among various job positions and the nature of their interrelationship. This clarifies who has to report to whom.

(2) It is a means to achieve the objectives specified in the plans, as it lays down rules and procedures essential for their achievement.

(3) Efforts of various departments are coordinated, interlinked and integrated through the formal organisation.

(4) It is deliberately designed by the top management to facilitate the smooth functioning of the organisation.

(5) It places more emphasis on work to be performed than interpersonal relationships among the employees.