LECTURE 3
THEORIES OF ORGANIZATIONS AND MANAGEMENT
Formal and Informal Organizations
The informal organization is the interlocking social structure that governs how people work
together in practice. It is the aggregate of, norms, personal and professional connections through
which work gets done and relationships are built among people who share a common
organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal
relationships, social networks, communities of common interest, and emotional sources of
motivation. The informal organization evolves, and the complex social dynamics of its members.
Tended effectively, the informal organization complements the more explicit structures, plans,
and processes of the formal organization: it can accelerate and enhance responses to
unanticipated events, foster innovation, enable people to solve problems that require
collaboration across boundaries, and create footpaths showing where the formal organization
may someday need to pave a way.
.
Key characteristics of the informal organization:
evolving constantly
grass roots
dynamic and responsive
excellent at motivation
requires insider knowledge to be seen
treats people as individuals like
flat and fluid
cohered by trust and reciprocity
difficult to pin down
collective decision making
essential for situations that change quickly or are not yet fully understood
Formal organizations are based on rules, procedures and standards as the guiding principles
Key characteristics of the formal organization:
enduring, unless deliberately altered
top-down
, missionary
static
excellent at alignment
plain to see
equates “person” with “role”
hierarchical
bound together by codified rules and order
easily understood and explained
critical for dealing with situations that are known and consistent
It’s suggested by scholars that informal groups serve at least four major functions within the
formal organizational structure.
Perpetuate the cultural and social values
They perpetuate the cultural and social values that the group holds dear. 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.
Provide social status and satisfaction
They provide social status and satisfaction that may not be obtained from the formal
organization. In a large organization (or classroom), a worker (or student) may feel like
an anonymous number rather than a unique individual. Members of informal groups,
however, share jokes, eat together, play and work together, and are friends-which
contributes to personal esteem, satisfaction, and a feeling of worth.
Promote communication among members
The informal group develops a communication channel or system (i.e., grapevine) to
keep its members informed about what management actions will affect them in various
ways. Many astute managers use the grape- vine to "informally" convey certain
information about company actions and rumors.
Provide social control
THEORIES OF ORGANIZATIONS AND MANAGEMENT
Formal and Informal Organizations
The informal organization is the interlocking social structure that governs how people work
together in practice. It is the aggregate of, norms, personal and professional connections through
which work gets done and relationships are built among people who share a common
organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal
relationships, social networks, communities of common interest, and emotional sources of
motivation. The informal organization evolves, and the complex social dynamics of its members.
Tended effectively, the informal organization complements the more explicit structures, plans,
and processes of the formal organization: it can accelerate and enhance responses to
unanticipated events, foster innovation, enable people to solve problems that require
collaboration across boundaries, and create footpaths showing where the formal organization
may someday need to pave a way.
.
Key characteristics of the informal organization:
evolving constantly
grass roots
dynamic and responsive
excellent at motivation
requires insider knowledge to be seen
treats people as individuals like
flat and fluid
cohered by trust and reciprocity
difficult to pin down
collective decision making
essential for situations that change quickly or are not yet fully understood
Formal organizations are based on rules, procedures and standards as the guiding principles
Key characteristics of the formal organization:
enduring, unless deliberately altered
top-down
, missionary
static
excellent at alignment
plain to see
equates “person” with “role”
hierarchical
bound together by codified rules and order
easily understood and explained
critical for dealing with situations that are known and consistent
It’s suggested by scholars that informal groups serve at least four major functions within the
formal organizational structure.
Perpetuate the cultural and social values
They perpetuate the cultural and social values that the group holds dear. 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.
Provide social status and satisfaction
They provide social status and satisfaction that may not be obtained from the formal
organization. In a large organization (or classroom), a worker (or student) may feel like
an anonymous number rather than a unique individual. Members of informal groups,
however, share jokes, eat together, play and work together, and are friends-which
contributes to personal esteem, satisfaction, and a feeling of worth.
Promote communication among members
The informal group develops a communication channel or system (i.e., grapevine) to
keep its members informed about what management actions will affect them in various
ways. Many astute managers use the grape- vine to "informally" convey certain
information about company actions and rumors.
Provide social control
