Question

State any three limitations of formal organisation.

Answer 1

1. The formal communication may lead to procedural delays as the established chain of command has to be followed, which increases the time taken for decision-making.
2. Poor organisational practices may not provide adequate recognition to creative talent, since it does not allow any deviations from rigidly laid down policies.
3. It is difficult to understand all human relationships in an enterprise, as it places more emphasis on structure and work. Hence, the formal organisation does not provide a complete picture of how an organisation works.