Formation of informal organizations is a natural process. You find another partner that connects with you much better and takes a personal interest in your professional development. It gives to each member that human consideration which boosts his self-image and personality. Whatever the case, an informal work culture will give you the flexibility to make those changes. These are as under: 1.
Spread Rumours: According to a survey 70% of information spread through informal organisational structure are rumors which may mislead the employees. But the management has authorised only a 30-minute lunch break. The grapevine tends to outstrips formal channels on speed. . Day-to-day interaction reinforces these values that perpetuate a particular lifestyle and preserve group unity and integrity.
In this context one may cite the example of an interaction between an operating department and another department, for which involvement is only supportive rather than primary. Members of an informal group know each other at a personal level thus making their relationship to be guided by personal aspects. As the groups continue to function in the informal organisation, group dynamics take place. Correct Feedback: Through informal structure the top level managers can know the real feedback of employees on various policies and plans. Negative Impact : Although not part of the formally established organisation, these informal groups can cause managers a number of problems. A strong informal group may force management to modify the system. Secondly, the manager should provide open and complete communications by using both formal and informal channels.
It is the clandestine transmitter and receiver of information before it is officially released. When managers nurture these informal groups and mould them into the formal structure this can lead to high levels of motivation for the staff involved. This encourages delegation, decentralization, and greater worker support of the manager, which suggests a probable improvement in performance and overall productivity. They are: Division of labor Scalar and functional processes Structure and Span of control Thus, a formal organization is one resulting from planning where the pattern of structure has already been determined by the top management. For example, members from five departments — production, marketing and sales, quality control, inventory, and finance — regularly meet at lunch intervals and share problems and concerns together.
Typical informal organizations will have simple missions with clear goals. Example This example will help you understand an informal organization. If a member breaks a company rule, they may cover up for him. An organisation is said to be formal organisation when the two or more than two persons come together to accomplish a common objective, and they follow a formal relationship, rules, and policies are established for compliance, and there exists a system of authority. Changes and projects are introduced with more careful thought and consideration, knowing that the informal organization can easily kill a poorly planned project. A positive work culture is about employee engagement, which means empowering workers to be a part of building and growing the organization. This means that there is a chain of command through which instructions are administered.
Everybody is assigned a certain responsibility for the performance of the given task and given the required amount of authority for carrying it out. These diverse needs of people cannot be met through the formal organisation. The leaders are at the core heart of decision-making. Following a four-year study of the Production System, Steven J. Managers are aware that they are sufficient to check on their powers of authority. Membership Membership is the key informal organization element for promoting cohesion. While working at those job positions, the individuals interact with each other and develop some social and friendly groups in the organisation.
Employees' desire to fulfill the requirements and services of both the informal group and management results in role conflict. Informal organization does not have any well-defined tasks. The organizational chart provides a functional framework and is important in the workplace to establish stability, clarity in working relationships and reporting relationships between superiors and subordinates. The informal organization can work in concurrence with the formal organizational structure, parallel with it, or against it. An informal organization can work concurrently with the formal organization, parallel to it, or even against it. This means that there is no chain of command and the flow of information from one member to the other.
The informal organization is the interlocking that governs how people work together in practice. Organization Development: It makes it easier to review and revise organization with changing requi9rements. A hierarchical structure is created, constituting top management, middle management and supervisory management. Informal organization helps the group members to attain specific personal objectives. Mainly the employees are the main beneficiary of a formal organization along with the environment in which they are operating. Communication Barrier: As in a formal organization a task needs the coordination of different departments so communication needs to clear in this process. Normally, profit maximisation or wealth maximisation are the fundamental objectives of a formal organisation.