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. 

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. 

Yes, decentralization is an optional policy, yet it is important in the organization.
It refers to a systematic delegation of authority at all levels of management and in all departments of the organisation to take a decision.
Importance of decentralization
1. Develops Initiative Among subordinates
It helps to promote self-reliance and confidence amongst the subordinates.This is because, lower managerial levels have been given freedom to take their own decisions and they learn to depend on their own judgment. It also helps to identify those executives, who have the potential to become dynamic leaders.
2.Develop Managerial Talent for the future
Formal training along with the experience of handling independent assignments helps to create a reservoir of qualified and capable managers, who can take up more challenging positions in the upcoming ventures of the organization.
3. Quick Decision-Making
Under decentralization, authority to make decisions is placed in the hands of those, who are responsible for executing the decisions. Since decisions are taken at levels nearest to the point of execution, there is no delay or distortion of information.
4.Relief to Top Management
It helps to reduce the amount of direct supervision over subordinates by giving them freedom to take a decision and act on their own. This reduces the workload of top executives and they can devote their time and attention to important policy matters.
5. Facilitates Growth
It provides greater autonomy to lower level managers and departmental heads.
This encourages them to function more efficiently to prove their supremacy, and facilitate expansion and growth of the organization.
6. Better Control
It makes it possible to evaluate performance at each level and making the departments accountable for their own results.Feedback is quick and leads to better control.

Delegation refers to the downward transfer of authority from a superior to a subordinate.
Importance of delegation
1.Effective Management 
By empowering the employees, the managers are able to function more efficiently as they get more time to concentrate on important matters.
2. Employee Development
Delegation provides more opportunities to the employees to utilize their talent and develop latent abilities. It helps to make them better leaders and decision makers, thus, creating future managers.
3. Motivation of Employees
Delegation provides a feeling of status and recognition to subordinates, as it is not only a process of sharing the workload, but also involves trust of the superior on his subordinate. Entrustment of responsibility builds up his esteem and encourages him to perform better.
4. Facilitation of Growth
Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. Trained and experienced employees are able to play a significant role in launching new projects of the organisation.
5. Basis of Management Hierarchy
Delegation of authority establishes superior-subordinate relationships, which are the basis of a hierarchy of management. This helps employees to know 'who has to report to whom'. Thus, duties and powers of each individual become clear.
6. Better Coordination
The elements of delegation namely authority, responsibility and accountability help to define the powers, duties, and responsibilities related to various positions in an organisation. This helps to avoid overlapping and duplication of work and facilities coordination, as it gives a clear picture of the work being done at various levels.

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.