INFORMAL AND FORMAL INFORMAL AND FORMAL ORGANIZATIONSORGANIZATIONS

Presented by:Abhay Dhumal.

Sonal Kapare.Ajinkya Chobe.

Radhika Wadkar.

TYPES OF GROUPSTYPES OF GROUPS

TYPES OF ORGANIZATIONSTYPES OF ORGANIZATIONS

• Formal Organization - These are established by the organization and have a public identity and goal to achieve. Some formal groups are having relatively temporary life. Eg. Committee. The other type is relatively natural and enduring. They perform tasks together as part of their job assignments. Eg. Team.

• Informal Organization- These groups emerge on the basis of common interests, proximity, and friendships.Although there are many varieties of informal groups, they are collectively referred as Informal Organization.

Formal and Informal OrganizationsFormal and Informal Organizations

• The informal organization is the shadow of formal organization.

• Whereas the formal organization is characterised by structure, organizational objectives, and relatioships prescribed by management, the informal organization tends to be loosely organized, flexible and ill defined.

• The informal organization consists of the unofficial and unauthorized relationships that inevitably occur between individuals and groups within the formal organization.

COMPARISON OF INFORMAL AND COMPARISON OF INFORMAL AND FORMAL ORGANIZATIONSFORMAL ORGANIZATIONS

Why informal organization arise?Why informal organization arise?

Informal organization is a logical and reciprocal relationship in which the individual contributes his time and efforts in exchange for the satisfaction of certain needs that he has. These needs are :

Satisfaction of social needSatisfaction of social needThis is the most fundamental reasonThe various social needs are Desire for affiliation Need for acceptance and interaction Companionship

Sense of belonging and Sense of belonging and identificationidentification

After joining informal organization person gets the feeling of belongingness

Need for identification is satisfiedNeed for status is satisfied

Knowledge of approved behaviorKnowledge of approved behavior

Informal organization provides its members assistance in determining acceptable and unacceptable behavior.

In cas eof established rules of the organization, individual needs to know which rules are strictly followed and which rules, if any, are generally ignored

Sympathetic EarSympathetic EarIndividual encounters daily tensions and

frustrations in their jobsIn the informal organization, individual

find sympathetic friends who have had similar experiences and, therefore, can understand their troubles

Confidence of an individual is preserved

Assistance in meeting objectivesAssistance in meeting objectives

Example- A student may be unsure of what a professor expects in the term paper he has assigned. Therefore the student turns to his fellow student for assistance

Opportunities for influence and Opportunities for influence and creativitycreativityMany of the jobs given by formal

organization which appear dull and routine are made more interesting by individual creativity and spontaneity, encouraged and protected by the group

Example- Extra work breaks can be obtained because employees spell one another

Perpetuation of cultural valuesPerpetuation of cultural values

• During the course of its existence, the group develops certain cultural values which the members of the group consider desirable. Subsequently, the group acts to perpetuate these values

Example- Department of salesmen with college degrees might oppose the hiring of a new salesman with only a high school education.

Communication and InformationCommunication and InformationAn informal work group is a good means

of disseminating information and keeping the group members informed.

Workers at all levels of organization desire to know what is going on in the organization and how they are affected by what is going on.

It also helps them to adjust to new circumstances.

Advantages and disadvantages of Informal Advantages and disadvantages of Informal OrganizationOrganization..Advantages Disadvantages

Make a more effective total system Develops undesirable rumor

Lightens workload on management Encourages negative attitude

Helps get the work done Resistance to change

Tends to encourage co-operation Leads to interpersonal and intergroup conflict

Fills in gaps in managers ability Weakness motivation and satisfaction

Gives satisfaction and stability to work groups

Operates outside of managements control

Improves communication Support conformity

Provides a safety valve for employee emotions

Develops role conflict

Encourages managers to plan and act more carefully

Contributes to higher cohesiveness

Informal LeadershipInformal Leadership

• The employee with the largest amount of status in the informal organization, usually becomes its informal leader.

• The member emerges from within the group, often acquiring considerable informal power.

• There may be more than one informal leaders• All the successful informal leader scan not be

successful formal leaders

Key roles of Informal Leaders Key roles of Informal Leaders helps in socializing new members into

organization.may be called upon by the group to

perform the more complex tasksmodels and explains the key norms

(informal standards of Behaviorplays dominant role in applying sanctions maintains Cohesiveness of group