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The purpose of this essay is to provide a brief yet insightful look at how most organisations are comprised of formal and informal structures within the one organisation The two types of structure are initially examined and then analysed for the strengths and weaknesses of each of the structures A short history of how the two structures were developed are included to provide the reader with an outline of the thinkers who developed these ideas Robbins Bergman Stagg and Coulter 2000 define formal organisations as work groups established by the senior management in the organisation that have designated work assignments and specific tasks The theory used to establish these formal organisations was derived from the work done by the classical theorists namely Taylor Fayol and Weber The theories were used to structure the formal organisations by outlining principles that should be adhered to when designing formal organisations and showed management how to run the organisation for maximum efficiency Some examples of Formal Groups are Command Groups - These are the basic traditional work groups determined by formal authority relationships and depicted on the organisational chart They typically include a manager and those subordinates who report directly to the manager General Manager Personnel DepartmentAccounting Department Department HeadDepartment HeadDepartment Head A formal organisation is represented by an organisational chart as seen above Cross-functional Teams - These bring together the knowledge and skills of individuals from various work areas in order to come up with solutions to operational problems Cross-functional teams also include groups whose members have been trained to do each others jobs Self-managed Teams - These are essentially independent groups that in addition to doing their operating jobs take on traditional management responsibilities such as hiring planning and scheduling and performance evaluations Task Forces - these are temporary groups created to accomplish a specific task Once the task is completed the group is
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