Explain various Types of the Organization?

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Types of the Organization
1. Formal organization –

a. The establishment and the development of this type of the organization are very formal in the nature.
b. Helps in providing a shape to the various organized activities.
c. The Formal organization is developed for a continuous purpose mainly involving the activities that are repetitive in the nature.
d. This organization looks after the growth and the stability in the business.
e. In the Formal organization, the design is such that that it acts as a great support for the distribution of the authority, creation of the positions, linkage of the various functions etc.
f. The Formal organization is not at all born by itself.
g. Efforts of someone to get the organization established in the order to make it a juridical person are involved in the Formal organization.
h. The Formal organization is registered with some type of the legal provision in the acts as those meant for the shop establishment, the companies, the cooperatives, the trusts, the societies etc, to provide it the legal existence in its own name.

2. Informal organization –

a. Here, the people come together informally through their acquaintance.
b. Informal relations are created within the same organization which may not be formally planned.
c. The Informal organization is born of itself.
d. Whenever there is a formal organization, an informal organization is born.
e. The Informal organization comes up with the help of the social relations such as the trust, the dependence, the liking etc.
f. The position and the problems in the formal structure are given great weight age informally.
g. A different communication channel is created by the informal organization and this is referred to as the grape vine.
h. With the help of the informal communication, the situation in the organization can be sensed in a different way all together.
i. The gossip can be conveyed with the help of the informal communication.

3. Matrix organization –

a. According to the principle of the unity of the command, one person should take the order from only one person.
b. Plurality of the persons giving the orders should not be present.

4. The project organization –

a. One goes for the project with the establishment of the temporary organization with a fixed end in mind.
b. Anything that has a beginning and an end, is referred to as the project organization.
c. The main responsibility of this type of the organization is to handle the complete project in a especial managerial way as the project is not going to be a continuous process at anytime.
d. The specialized, skilled people are required at the different stages and also, in this type of the organization, the replacement of the specialized people can be done depending on the different types of the situations that may arise during the project.

5. Virtual organization –

a. This type of the organization, does not look like to be physically operating but very well works like the one, due to the modern communication equipment which may include the following functions –

I. Digital mail
II. Voice communication
III. Cameras
IV. Projection systems
V. Audio and video conferencing

This article has been written by KJ Singh a MBA Graduate from a prestigious Business School In India
Article Published:June 14, 2011
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  • nayan October 11, 2012 at 11:46 pm

    Nice yar this type of side is very usful for studant …..carry on

  • Tumwine Haningtone August 20, 2013 at 11:45 am

    An organization is the one that fosters unity, intimacy and achievement of a specified goal.

  • geomil george October 26, 2014 at 4:22 am

    yes this is very usefull for students

  • Ayfa November 15, 2014 at 10:36 pm

    It is very useful for me, because am a student

  • jansher August 20, 2015 at 11:44 am

    very productive material

  • Betty kinyata September 19, 2016 at 4:02 pm

    Yes it’s so helpful but there should be some example indicated for those organisations

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