Final answer:
The formal path of communication through an organization is referred to as a hierarchy of authority, which establishes a clear chain of command and is central to the bureaucracy in formal organizations.
Step-by-step explanation:
The formal path of communication through an organization is known as a hierarchy of authority, which is a core characteristic of bureaucracies in formal organizations. In these bureaucracies, there exists a clear division of labor, explicit rules, and a level of impersonality to ensure operations are conducted in a professional manner. Despite modern shifts towards flatter organizational structures promoting teamwork, this traditional hierarchy still plays a pivotal role in formal organizations. It allows for structured communication and ensures that every member of the organization knows to whom they report and who reports to them, thereby creating an efficient flow of information and decisions.
Formal organizations are large, impersonal organizations that include businesses, government agencies, and other structured groups. These organizations are crucial in a capitalist system, which is a way of organizing an economy. In this context, the things used to make and transport products are owned by individuals and companies, rather than by the government. The structured approach of bureaucracies within formal organizations supports the instrumental function of being goal-oriented and task-focused.