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Advantages:

(a) It is easier to fix responsibility since mutual relationships are clearly defined.

(b) It avoids duplication of efforts since there is no ambiguity in the role that each member has to play

(c) It maintains unity of command through an established chain of command

(d) It leads to the accomplishment of goals by providing a framework for the operations to be performed.

(e) It provides stability to the organisation because there are specific rules to guide behaviour of the employees.

Formal Organisation is a consciously and deliberately designed organisational structure by the management to accomplish a particular task.

Advantages:

(a) It is easier to fix responsibility since mutual relationships are clearly defined.

(b) It avoids duplication of efforts since there is no ambiguity in the role that each member has to play

(c) It maintains unity of command through an established chain of command

(d) It leads to the accomplishment of goals by providing a framework for the operations to be performed.

(e) It provides stability to the organisation because there are specific rules to guide behaviour of the employees.

One feature of formal organisation: It is deliberately designed by the top management to facilitate smooth functioning of the organisation.

Functional structure

Divisional structure

It originates within the formal organisation.

Functional structure is suitable when the Size of the organization is large

The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources.

Functional structure is suitable for medium sized firms having a single product or small number of related products.

It refers to the concentration of authority of decision making by top level managers is called centralization.

It refers to the concentration of authority of decision making by top level managers is called centralization.

Divisional structure is suitable when Organization have Centralized authority.

a. Formal communication channel is used. 

b. It is created to achieve predetermined objectives.

An informal organization originates from within the formal organization.

Authority or Responsibility or Accountability.

Informal organization refers to the relationship between the people in the organization based on the personal attitude, prejudices, likes & dislikes etc.

It is easy to fix responsibilities in formal organisation because rules and responsibilities as well as the inter-relationship and job positions are clearly marked out.

Better coordination & Quick decision making.

Formal organization is one which has a system of well defined Positions, Authority, responsibility, Policies, Principles etc.

(a) Functional Structure 

(b) Divisional Structure

Centralisation refers to concentration of authority at top level for decision making with one or few manager.

Authority arises from the established 'scalar chain' which links the various job positions and levels of an organisation.

Because it reduces the workload of a manager.

By exhibiting their talent and skill.

Because it provides the authority to take decision to subordinates.

Functional Structure

This is called Authority

1. This is a formal organisation.

2. The important features are:

• It is deliberately created by the top management to achieve the objectives.
• It is based on division of labour and specialisation.
• It is impersonal – Does not take into consideration emotional aspect of employees.
• It clearly defines the authority and responsibility of every individual.
• The principle of scalar chain is followed informal organisation

Formal organisation

Functional structure

Specialisation:

Since the activities are divided into convenient jobs, and are assigned to a particular employee, it leads to specialisation, more productivity and efficiency.

Organizing is the process of identifying, grouping the work to be performed for the people to work most efficiently together to achieve the objectives (or) defining and delegating authority and responsibility and establishing relationship among them for accomplishment of specific objectives.

Effective administration or Optimum Utilization of resources.

Importance of delegation are as follows: 

1. Effective Management: Delegation enables superiors to assign the routine activities to the subordinates and he can be relived and can concentrate on other important functions. Thus a manager can increase his efficiency.

2. Employee development: The manager delegates the work to subordinates according to the skill, ability & knowledge of the subordinates. This makes the employees to get an opportunity to use their skill and talent to perform the assigned work effectively. 

3. Facilitates growth & Expansion: Delegation of authority is done on the basis of the ability of the employees which provides opportunity for them to perform better. This leads to specialization and increase in the productivity of employees which ultimately results in growth & expansion of the organization. 

4. Better coordination: The systematic assignment of work gives clarity of work to everyone and avoids duplication of work. Delegation of work brings better coordination and help to reach the organization goal effectively.

5. Quick decision making: Delegation saves time by enabling the subordinates to deal with the problems promptly. They can take quick decisions with in their authority. They need not go to their superiors for the day to day routine matters. 

6. Basis for management Hierarchy: Delegation of authority defines who has to report to whom. It creates a chain of superior and subordinate relationship which is the basis for hierarchy of management.

The organizing process involves the following steps: 

1. Identification and Division of work. 

2. Departmentalization 

3. Assignments of duties

4. Establishment of reporting relationships

1. Identification and Division of work: This is the first step in the organizing process. Here the total work of the organization is divided into a number of small units and assigned to achieve the predetermined goals. 

2. Departmentalization: It refers to the process of grouping the activities of similar nature under the same department. The department can be done on the basis of function, on the basis of type of product and on the basis of territory. 

3. Assignment of duties: Here the jobs are assigned to the employees based on their skill and caliber to ensure effective performance. It is more important to balance the nature of job and the capabilities of the employee before assigning the duties. 

4.Establishment of reporting relationships: After assignment of duties, it is necessary to establish an authority between superior and subordinates. The individuals should know from whom they can take the order and to whom they are accountable.