7.1 Informal Organization

Business Approaches

1. Rapid growth 2. Learning organization 3. Idea generation

Functions of Informal Organizations 1. Perpetuate the cultural and social values

Certain values are usually already held in common among informal group members. Day-to-day interaction reinforces these values that perpetuate a particular lifestyle and preserve group unity and integrity.

Benefits of the Internal Organization 4. Act as a safety valve

Employees experience frustration, tension, and emotional problems with management and other employees. The informal group provides a means for relieving these emotional and psychological pressures by allowing a person to discuss them among friends openly and candidly

Benefits of the Internal Organization 1. Blend with formal system

Formal plans. policies, procedures, and standards cannot solve every problem in a dynamic organization; therefore, informal systems must blend with formal ones to get work done. Faculty, staff, and student informal groups must cooperate in fulfilling the spirit of the law" to effectuate an organized, sensibly run enterprise.

Informal organization

Is the interlocking social structure that governs how people work together in practice. The informal organization evolves, and the complex social dynamics of its members also. the informal organization complements the more explicit structures, plans, and processes of the formal organization.

Benefits of the Internal Organization 2. Lighten management workload

Managers are less inclined to check up on workers when they know the informal organization is cooperating with them. This encourages delegation, decentralization, and greater worker support of the manager, which suggests a probable improvement in performance and overall productivity.

Benefits of the Internal Organization 5. Encourage improved management practice

Perhaps a subtle benefit of informal groups is that they encourage managers to prepare, plan, organize, and control in a more professional fashion. Changes and projects are introduced with more careful thought and consideration, knowing that the informal organization can easily kill a poorly planned project.h

Disadvantages of Informal Organization 1. Resistance to change

Perpetuation of values and lifestyle causes informal groups to become overly protective of their "culture" and therefore resist change.

Benefits of the Internal Organization 6. Understanding and dealing with the environmental crisis

The IRG Solution: hierarchical incompetence and how to overcome it (1984) argued that central media and government-type hierarchical organizations could not adequately understand the environmental crisis we were manufacturing, or how to initiate adequate solutions.

Functions of Informal Organizations 2. Provide social status and satisfaction

They provide social status and satisfaction that may not be obtained from the formal organization. may feel like an anonymous number rather than a unique individual. Members of informal groups, however, share jokes and gripes, eat together, play and work together, and are friends which contributes to personal esteem, satisfaction, and a feeling of worth.

Disadvantages of Informal Organization 4. Conformity

This can harm the formal organization by stifling initiative, creativity, and diversity of performance.

Disadvantages of Informal Organization 2. Role conflict

What is good for and desired by informal group members is not always good for the organization. Employees' desire to fulfill the requirements and services of both the informal group and management results in role conflict. Role conflict can be reduced by carefully attempting to integrate interests, goals, methods, and evaluation systems of both the informal and formal organizations, resulting in greater productivity and satisfaction on everyone's behalf.

Functions of Informal Organizations 3. Promote communication among member

develops a communication channel or system (i.e., grapevine) to keep its members informed about what management actions will affect them in various ways.

Benefits of the Internal Organization 3. Fill gaps in management abilities

if a manager is weak in financial planning and analysis, a subordinate may informally assist in preparing reports through either suggestions or direct involvement.

Provide social control (external control)

is directed to such groups as management, union leadership, and other informal groups

Disadvantages of Informal Organization 3. Rumor

ll-informed employees communicate unverified and untrue information that can create a devastating effect on employees

Provide social control (internal control)

persuades members of the group to conform to its lifestyle

Functions of Informal Organizations 4. Provide social control

provide social control by influencing and regulating behavior inside and outside the group. Internal control persuades members of the group to conform to its lifestyle. External control is directed to such groups as management, union leadership, and other informal groups