FREE online courses on Group Dynamics - How to deal with Informal Organization

 

According to Keith Davis, “Beneath the cloak of formal relationships in every institution, there exists a more complex system of social relationships called informal organization”. Creation of informal organization is a universal process as man is a social animal and he can't live in isolation. People form informal organization on the basis of common interests, preferences, tastes, religion, etc.
The following guidelines will enable the manager to make effective use of small groups in the organization:

 

1.                  The informal groups operating in the organization should be identified and their existence recognized.

2.                  The patterns of informal communication should be analyzed carefully. To know the sources of misinformation, rumor, etc. an enlightened manager can use informal channels to plug the loopholes of the formal communication system.

3.                  The management should try to achieve equilibrium between formal and informal organizations. Conflicts between the two should be avoided through two-way communication with he group and their leaders.

4.                  The management should attempt to integrate the interests of informal groups with the objectives of the formal organization. If this could be achieved, much of the role conflict would be avoided.

5.                  The desirable patterns of informal relationships may be incorporated into the formal structure. This will make the organization strong.

6.                  Informal group must be taken into confidence whenever a change in work methods is to be introduced in the organization. It is easier to introduce a change when group norms are changed. For overcoming resistance to change on the part of the groups, the management must share complete information about the change with the groups and try to persuade them to accept change by convincing them of the benefits of the said change.

 

To sum up, informal groups can be used constructively for attainment of organizational goals. If the interests and goals are integrated with the company's, the groups will work for the company objectives rather than against them.