A formal structure has the disadvantages of being very expensive, losing unity of command, causing overlapping managerial authority and responsibilities, and being difficult to explain to employees.

Formal Structure

The officially designated arrangement of roles and responsibilities within an organization, typically outlined in organizational charts and documents.

Unity of Command

A principle stating that each employee should report to one and only one manager to avoid confusion and conflict.

Managerial Authority

The power vested in managers to make decisions and direct resources to achieve organizational goals.