Formal organisation is a system of well-defined jobs, each bearing a definite measure of authority, responsibility and accountability.
Advantages of formal organisation are:
(i) It makes fixation of responsibility clear and eaiser.
(ii) There is no confusion regarding work to be done by each individual.
(iii) Unity of command is maintained, which avoids confusion and conflicts.
(iv) It helps in achievement of goals by emphasizing systematic working.
(v) It provides stability to the organisation. 

Organising is the process of defining and grouping activities and grouping activities and establishing authority relationships among them.
Importance of Organising
The organising function helps in the growth and survival of an enterprise in a dynamic environment by providing the following benefits:
1. Benefits of Specialisation
It facilitates the systematic allocation of work. This reduces the workload as well as enhances productivity, reduces the workload as well as enhances productivity, as each task is repetitively performed by a worker which helps him to gain experience and attain specialisation.
2. Clarity in working Relationships
The establishment of working relationships clarifies the lines of communication and specifies who is accountable to whom.
3. Optimum Utilisation of Resources
It leads to proper usage of all materials, financial and human resources by proper assignment of jobs. Assignment of jobs to workers reduces duplication of work, prevents confusion, minimises wastages and allows the best possible use of resources.
4. Adaptation to Change
It facilitates modification in organisational structure and revision of inter-relationships among people in order to adapt to environment changes.
It also helps to provide stability and growth, despite of external changes occurring in a business environment.
5. Effective Administration
It gives a clear description of duties and responsibilities of each individual. This helps to avoid confusion regarding work and avoids duplication of activities. Thus, it helps in bringing efficiency in administration.
6. Development of Personnel
It stimulates creativity amongst the managers. Effective delegation allows the managers to reduce their workload by assigning routine jobs to their subordinates.
This helps subordinates to develop newer skills and ability to deal effectively with emerging challenges. Thus, it helps in the development of personnel.
7. Expansion and Growth
It helps in the growth and diversification of an enterprise by adding more job positions, departments and new lines of product.
This helps in increasing sales volume and profits of the enterprise.

The process of organising consists of the following steps:
(i) Identification and division of work.
(ii) Departmentalisation.
(iii) Assignment of duties.
(iv) Establishing reporting relationships.
1. Identification and division of work
The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans. Work is divided into manageable tasks, so that duplication can be avoided and workload can be shared among employees.
2. Departmentalisation
Once, work has been divided into small and manageable activities, then those activities which are similar in nature, are grouped together. This process is called departmentalisation. departments can be created on the basis of products, functions and territory. This brings specialisation in operations.
3. Assignment of Duties
Once the departments are created, each department is placed under the charge of an individual, called department head. Then, each job is allocated to an individual, according to his knowledge and skill. There should be a proper match between the nature of jobs and the ability of an individual.
4. Establishing Reporting Relationships
In the organisation, each employee has some authority as well as responsibility. It is necessary that every individual must know whom he has to take orders from and to whom he is answerable. This creates superior-subordinate hierarchy and helps in coordinating various activities in the organisation.

Delegation of authority is necessary in all types of organizations. Reasons can be seen through the importance.
The importance of delegation of authority may be outlined as follows :
1. Reduced workload of managers : Delegation of authority permits a manager to share his workload with his subordinates. By passing on the routine work to the subordinates, the manager is able to concentrate on more important aspects of his subordinates and is able to concentrate on policy matters and decision-making. This would increase his effectiveness.
2. Effective management : The manager who delegates authority can perform much more than the one who does not. This is because the manager can get some work done by his subordinates and is able to concentrate on policy matters and decision-making. This would increase his effectiveness.
3. Motivation of employees : Delegation implies grant of authority to the subordinates along with responsibility for work. A result, subordinates have a sense of recognition. They are motivated to work for higher performance. They do their job to the best of their abilities and skills.
4. Employee development : As a result of delegation, employees get more opportunities to utilize their talent. It allows to develop those skills which will improve their career prospects. It makes them better leaders and decision makers. Thus, delegation helps by preparing better future managers.
5. Facilitates organizational growth : Delegation helps in the expansion of an organisation by providing a ready work force to take up leading positions in new ventures. Trained and experienced employees are able to play significant roles in the launch of new projects for organizational growth.
6. Quick decision-making : The subordinates are granted sufficient authority to take decisions. They need not go to their superiors again and again for taking decisions concerning the routine matters. This increases the speed of decision-making.

Informal organisation is considered better than formal organisation because:
(i) Communication and feedback is quick, as scalar chain is not followed.
(ii) It provides a sense of belongingness and fulfils social needs of employees.
(iii) It enhances creativity and innovation.
(iv) It helps in fulfilment of goals through cooperation among employees.

The features of formal organisation are:
(i) it is a means to achieve objectives specified in the plans.
(ii) It facilitates interlinking of various departments, levels and people in the organisation.
(iii) It is deliberately designed by the top management.
(iv) It places more emphasis on work rather than on interpersonal relations.

It is a network of personal and social relations, not established or required by the formal organisation but arising spontaneously as people associate with each other. e.g. chit chatting in a canteen, formation of drama group by employees, etc.