What are the merits of formal organization structure?

Q. What are the merits of formal organization structure?

Ans. A formal organizational structure composes of job descriptions, organization charts, procedures and other written documents which describe and define how individuals should work with each other. A formal organizational structure is the organization as it exist son paper. It is the official sanctioned way of doing things. It tells you who reports to whom and how various problems should be handled.  The merits of a formal organizational structure are as follows:

1. Overall Effectiveness: Overall effectiveness is high because the delegation of work and attainment of the organisational goals and objectives is well defined.
2. Goal Attainment: The organization accomplishes what it sets out to accomplish.
3. Profit Making: A favourable ‘bottom line” which is the main aim of an organization is achieved.
4. Staying within Budget: Due to limited resources and guidelines for budgets and spending the co is a lesser risk of running into losses.
5. Achieving New Goals: A successful organization emphasizes the attainment of new and important goals.
6. Adaptability to change: A well structured organization has good problem solving ability and capacity to change as per the need of the hour.
7. Stability: An organization that is able to maintain its basic charter and size over time is considered to be stable.
8. Quality: High quality of goods and services can be expected of well structured organizations.
9. Growth: There is an increase in factors like work force, plant capacity, assets, sales, profits, market share and no of innovations.
10. Managerial Skills: A well structured organization gives a lot of emphasis on the quality and qualifications of the employees. Professionals/specialist is employed to guide, perform and achieve the organizational goals and objectives. Without competent managers theCo., will not able to survive.
11. Control: The management has a good control over the employees and also inventory which is very essential for the smooth functioning of an organization.
12. Proper management of conflict: An organization may require some conflict to be effective, but too much conflict detracts from effectiveness. In an organized structure people conform to the same code of conduct and conflict is usually held in check.
13. Participation in decision making: The employees are sometimes given a chance to participate in decisions pertaining to them. This also boosts them and keeps them motivated. It gives them a sense of belonging and a sense of loyalty to theCo.
14. Absenteeism:  Since the employees are highly motivated problems like absenteeism etc are minimum.
15. Job satisfaction: The job satisfaction is very high among employees. It induces high morale which in turn leads to high productivity.

Training and Development of employees: Helps in the up gradation and development of the employee and gives him an opportunity to grow within the organization