HCM 433 MANGEMENT AND ORGANIZATIONAL BEHAVIOUR.pdf

The common features of a formal Organisation are:
•Pre-planned pattern of authority and influence;
•deliberate allocation of functions;
•existence stated policies, procedure and regulations;
•following of precedent;
•defined activities of individuals and departments or units;
•existence of long-term objectives;
•membership is gained consciously and largely openly.
INFORMAL ORGANISATION
This is also referred to as a spontaneous Organization in the sense that it is not as a result of a
conscious plan. In many businesses, large or small, there is usually a tendency for an informal
Organization to grow up and operate concurrently. This may be to remedy inherent shortfalls in
the organization or to take advantage of a weak manager, anticipate natural changes eventually
requiring the taking of formal action. In the view of R.B. Ayanniyi, informal organizations can
assist in achieving better co-operation and motivation of workers if properly encouraged. Some
elements of informal organizations are:
•They can lead to meritocracy
•Employee reactions in certain situations may become unpredictable
•Planning becomes difficult
•They lead to short-circuiting in the management decision chain.
3.3 PRINCIPLES OF ORGANISATION
The principles of organization as formulated by Henri Fayol are:
1. Division of work: Increase productivity as a result of specialization
2. Authority & Responsibility: The right to give order. This should be commensurate with
responsibility.
3. Discipline: There must respect for and obedience to the rules and objectives of the
organization.
4. Unity of Command: Each subordinate should recome under from and be responsible to one
superior.
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