| HOw important are Informal groups in organization? | | | | are defined obviously have important implications for |
| Dr.R.Maria Inigo & Ms.Firdouse Jahan | | | | how processes and people are managed. |
| Concept | | | | Effectiveness, from the closed, rational system |
| In the real world, of course, many | | | | perspective, is achieved through: |
| formal groups have an informal dimension. As they | | | | Setting specific goals |
| work together, the members develop relationships, and | | | | Prescribing and Formalization of rules and roles |
| modify their work roles to suit themselves and other | | | | Monitoring conformance to these expectations. |
| members of the group. Sometimes, the strength of | | | | In order to prevent superiors from |
| their bonds can actually threaten or undermine the | | | | behaving arbitrarily or capriciously, the formalization of |
| formal system of the organization. This happens | | | | role expectations for subordinates is combined with a |
| particularly if the task of the organization is dangerous. | | | | specification of management authority within narrowly |
| A group of Individuals meet: if they | | | | prescribed hierarchical authority relations. The |
| form a group, then they will informally allocate roles | | | | organizational and management goal is to increase |
| among themselves depending on individual | | | | system rationality and predictability. This system of |
| preferences, and occasionally on talents. This collection | | | | management is based on the bureaucratic |
| of roles makes a system possible, and so occasionally | | | | organizational control |
| they may undertake a task together. It is the | | | | A natural system perspective |
| preferences of the Individuals which are paramount: If | | | | stresses the need for the organization to harness the |
| they are not getting anything out of their group | | | | minds and hearts of its participants and emphasizes |
| membership, they may well drop away. Tasks are | | | | the importance of informal social relations over formal |
| incidental. | | | | structures (Likert 1961; Weick 1999). In tandem, |
| Within any company there are two | | | | management science was also gradually moving |
| types of organization - the formal structure and the | | | | away from an emphasis on command and control to |
| informal structure. Both effect the organization and | | | | an emphasis on engaging the hearts and minds of the |
| relationships between staff. The formal organization | | | | organizational participants. The human relations |
| refers to the formal relationships of authority and | | | | perspective, initially associated with Mayo, initiated this |
| subordination within a company. The primary focus of | | | | view. Mayo (1945) is best known for the pivotal |
| the formal organization is the position the employee | | | | studies, triggered by the famous Hawthorne Effect, |
| manager holds. Power is delegated from the top levels | | | | that demonstrated commitment and loyalty were often |
| of the management down the organization. Each | | | | more important than self-interest and formal sanctions |
| position has rules governing what can and cannot be | | | | in determining the behavior of organizational |
| done. There are rewards and penalties for complying | | | | participants. The human relations school gave rise to a |
| with these rules and performing duties well. | | | | large body of work directed at informal, normative |
| Formation of Informal groups | | | | structures; organizational cooperation; organizational |
| Informal structures are sometimes | | | | culture; leadership; motivation; morale; and, later, |
| created intentionally, but more often they appear 'by | | | | teamwork (Barnard 1938; Goffman 1961, 1974; and |
| default'. Since they are hidden, and often personal, they | | | | Peters and Waterman 1982). This management |
| are very difficult to challenge, or even to identify and | | | | perspective has since been expanded to include |
| discuss. This is one of the major causes of conflict in | | | | efforts to engage not only the hearts and minds of |
| activist and volunteer groups. It often takes up a lot of | | | | organizational participants but also those of the |
| time and energy at the expense of the ideals pursued | | | | organization's customers and external stakeholders |
| and projects undertaken, and has a demoralizing | | | | (Porter 1985; Powell 1990). |
| effect on individual groups and on the movements | | | | Rohrbaugh (1983), Quinn and |
| they are involved in. | | | | Rohbaugh (1983), and Quinn (1988) noted that |
| Often these formal structures will be | | | | organizations were likely to experience tension among |
| set out on paper in the form of organizational charts. | | | | organizational effectiveness attributes. All organizations |
| However, in the course of time an informal structure | | | | have a need for some level of stability as well as a |
| develops in most organizations which is based on the | | | | need to be flexible and adaptable; a need for control |
| reality of day-to-day interactions between the | | | | and discipline as well as a need to allow some degree |
| members of the organization. This informal structure | | | | of freedom and autonomy; a need for rational formal |
| may be different from that which is set out on paper. | | | | structures and non-rational informal relations. They |
| Informal structures develop because. People find new | | | | concluded that effectiveness depended upon the ability |
| ways of doing things which they find easier and save | | | | of an organization, and its managers, to strike the right |
| them time. Patterns of interaction are shaped by | | | | balance among these critical attributes, as required by |
| friendship groups and other relationships. People forget | | | | the organization's objectives and situation[3]. |
| what the formal structures are. It is easier to work with | | | | Worker effectiveness |
| informal structures. | | | | measurements are based on human behavior Worker |
| Sometimes the informal structure | | | | effectiveness measurements also indicates how the |
| may conflict with the formal one. Where this is the | | | | workplace supports many issues. These metrics are |
| case the organization may become less efficient at | | | | intangibles and measure issues such as:- |
| meeting its stated objectives. However, in some cases | | | | Fostering innovation |
| the informal structure may prove to be more efficient | | | | Enhancing communication |
| at meeting organizational objectives because the | | | | Encouraging learning |
| formal structure was badly set out. | | | | Improving work process |
| The informal organization refers to the network of | | | | Expediting decision making |
| personal and social relations that develop | | | | Understanding and addressing the needs of |
| spontaneously between people associated with each | | | | users |
| other. The primary focus of the informal organization is | | | | Attracting and retaining talented employees. |
| the employee as an individual person. Power is derived | | | | Assessing informal groups and remedying for |
| from membership of informal groups within the | | | | effectiveness |
| organization. The conduct of individuals within these | | | | The most important managerial tool |
| groups is governed by norms - that is, social rules of | | | | available for assessing patterns of relationships in |
| behaviour. Despite the explosion of information that is | | | | informal networks is called social network analysis. By |
| accessible through the Internet and databases, people | | | | making critical patterns of interaction visible, social |
| still rely heavily on their networks for help with their | | | | network analysis helps managers give informed |
| work. | | | | answers to several questions such as: |
| Benefits for organization | | | | Does information flow smoothly within a given |
| Organizations also benefit from | | | | network? |
| informal structures based on friendship groups. When | | | | Do functional departments or business units |
| managers nurture these informal groups and mould | | | | collaborate appropriately in taking their services to |
| them into the formal structure this can lead to high | | | | market? |
| levels of motivation for the staff involved. Clearly, the | | | | Is the collective expertise within a network being |
| informal structure can be either beneficial or | | | | leveraged effectively? |
| detrimental to the functioning of the company or both. | | | | The result of such probing is likely to |
| People who work in an organization are only human | | | | be improved collaboration at strategic junctures within |
| and their effectiveness may depend on their personal | | | | an organization. Managers can carry out a social |
| relations with those around them. An obvious illustration | | | | network analysis by following six steps: |
| is that if a manager is aware of a personality clash | | | | Select audience |
| between employees he must respond. Else the | | | | Design the questions |
| effectiveness of the organization will be in question. | | | | Pose the right questions |
| Informal networks are important sources of job | | | | Collect and analyse data |
| satisfaction and retention. Many employees today join | | | | Interpret and make remedial action |
| and commit to local sets of relationships while feeling | | | | Managers should consider how |
| no particular allegiance to the corporation as a whole. | | | | changes in four areas of organizational context can |
| Informal networks are especially important in | | | | improve collaboration in informal networks. |
| knowledge-intensive sectors, where people use | | | | Consider the organization's formal structure. |
| personal relationships to find information and do their | | | | Understanding how the formal structure impedes |
| jobs. | | | | group effectiveness. |
| The Process Within informal groups | | | | Employee management practices |
| Norms are of great importance to | | | | Cultural values that prize individual |
| the informal group in controlling behaviour and | | | | accomplishment over collaborative endeavors |
| measuring the performance of members. Because | | | | Conclusion |
| norm violations threaten a group's existence, | | | | Executives often assume that |
| departures from the norm usually carry severe | | | | communication of any and all kinds, is the essence of |
| sanctions. The members must either conform or | | | | an informal network. As a result, they commonly |
| severe their group affiliation. The latter action is unlikely, | | | | conclude that uniting fragmented networks or |
| especially if the individual values group membership to | | | | developing sparse ones is simply a matter of more |
| satisfy certain needs. In informal groups both formal | | | | and better communication. In organizations with a |
| and informal norms exist. At such situation the informal | | | | strong top-down culture, informal networks themselves |
| norms transcend the formal. At times, when norms | | | | tend to closely mirror the prevailing pattern of |
| conflict with organization objectives., organizational | | | | hierarchy; as a result, they lack the flexibility to respond |
| effectiveness suffers. | | | | effectively to new opportunities. Some degree of |
| Members of informal groups may | | | | empowerment is necessary in these situations if |
| be sometimes unaware that the norms of the group | | | | flexible networks are to evolve. |
| influence their behaviour. Norms are particularly potent | | | | Informal groups of employees do |
| because without knowing it members would not even | | | | much of the important work in organizations today. To |
| think of acting otherwise, norms are that ingrained into | | | | help those networks reach their full potential, |
| their behavior pattern. When individuals break these | | | | executives must come to grips with how they really |
| norms, other members of the group impose sanctions | | | | function. The problem is compounded by the fact that |
| on them. | | | | most executives do little to systematically assess and |
| Organizational effectiveness through informal | | | | support informal groups. They spend vast sums of |
| structure | | | | money for new information systems or to implement |
| Organizations are composed of | | | | better and faster financial- reporting practices but |
| individuals and operate within systems. Individuals, | | | | seem less inclined to make the investments that would |
| organizations, and systems constitute the principal units | | | | give them a clear picture of how work is getting done |
| of analysis of the organizational and management | | | | within their organization. That's usually because |
| sciences, albeit always from an organizational | | | | executives are bound by myths about informal |
| perspective (i.e., the individuals of interest are within an | | | | networks and don't realize the potential of social |
| organization or set of organizations). | | | | network analysis to map important networks and the |
| As Morgan (1997) vividly describes, | | | | interventions that might emerge from this perspective. |
| there are numerous ways to conceptualize and model | | | | The world is driven in a knowledge-intensive |
| an organization, with profound consequences for | | | | environment where organizations have been |
| criteria of effectiveness. These concepts typically deal | | | | significantly restructured. Creating healthier informal |
| with organizational form and structure on the one hand | | | | networks is a critical job of managers and executives |
| and organizational functions and activities on the other. | | | | of today. |
| How the organization is designed and how its functions | | | | |