An organisation is a structured arrangement of individuals and groups created to achieve specific objectives. In Administrative Theory, the study of organisations is concerned with how people are arranged, how authority is exercised, how decisions are made, and how coordination is maintained. Organisations can broadly be classified into formal and informal organisations. Both are important for understanding administrative behaviour and organisational functioning. A formal organisation is a deliberately created structure in which roles, responsibilities, authority and relationships are clearly defined. It is established to achieve predetermined objectives efficiently. The formal organisation is based on rules, procedures, hierarchy and division of work. Henri Fayol and Max Weber emphasised the importance of formal structures in administration. In a formal organisation, positions are more important than the personalities occupying them. Authority flows through a recognised hierarchy, and each employee has a defined area of responsibility. Government