FORMAL ORGANIZATION STRUCTURE

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Characteristics and Features of an organization

Complexity

  • Complexity is a factor of the number of sections, departments, individual job functions and titles in an organization.
  • An organization with a tall structure is one with many  different levels of management . This type of structure is often found in large public sector corporations and in some large companies that are trying to meet the demands of a very large market or public service.
  • Flat structures exist in organizations that have few levels of management , so that there may be only two decision makers to negotiate with in order to reach the managing director or boss.
  • The number of levels (i.e. whether the organisation is tall or flat) affects organisational communication.The effectiveness of communication will depend on how well managed the organization is and the extend of horizontal links.



Formalization

  • Formalization in an organization is the existence of firmly structured lines of communication, authority and control within organization.
  • Formalization refers to the standardization of the job, the number of rules and regulations, policies and procedures (written and unwritten). 
  • Low formalization in a job means that employees have a high degree of independence and discretion in the job and a high degree of control over their work.
  • High formalization means that employees have little control or independence and therefore  little power.



Centralization

  • Refers to the degree of decision making power located at the highest level.
  • The effectiveness of communication also depends on where the decisions are made.
  • Some organizations, usually those with tall structures, are highly centralized, with just about all important decisions requiring the approval of senior management. 
  • Many junior managers are unable to make decisions ,so they use email, memos, short reports or submission to ask for a decision. 
  • Other organizations, usually those with flat structures, are decentralized. Decisions are made at lower levels.









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