Chapter 5 The Informal Organization 1 Learning Objectives

Chapter 5 The Informal Organization 1

Learning Objectives Compare and contrast the formal and informal organizations. n Discuss some of the behavioral controls used by members of the informal organization to ensure compliance with the norms. n Explain how the informal communication network functions. n Identify the primary benefits associated with the informal organization. n 2

Learning Objectives (contd. ) List some of the disadvantages associated with the informal organization. n Cite some of the ways in which a manager can deal with the informal organization. n 3

Features of an Informal Organization n Interpersonal n Informal relations leadership n Behavioral control n Dependency 4

Figure 5. 1 Who Helps Whom? Ed Barbara Chuck Kevin Jeff Joe Pam Larry 5

Sociogram A sociogram shows intragroup social relationships 6

Types of Relationships in Informal Networks 1. The advice network shows who provides helpful information to whom 2. The trust network shows who shares delicate information with whom 3. The communication network shows who regularly talks with whom about work-related matters 7

Figure 5. 2 Formal Authority (Abridged) 8

Figure 5. 3 Informal Power 9

Organizational Goals and Individual-Group Goals Figure 5. 4 The Organization Goals The Individual-Group Goals Good profit High return on investment Adequate worker efficiency High-quality goods/ services Strong competitive posture Low tardiness/absenteeism Low turnover Good pay Job security Adequate fringe benefits Challenging work A chance to achieve Work satisfaction 10

Figure 5. 5 Informal Communication Networks Wayne Single Strand (Least frequent) Nancy Gossip Chain Ken Lois Nancy Don Al Wayne Al 11

Figure 5. 5 (contd. ) Don Probability Chain Nancy Lois Ken Wayne Nancy Don Lois Al Ken Wayne Al Cluster Chain (Most Frequent) 12

Causes for Grapevine Activity Figure 5. 6 1. Information is lacking 2. Insecurity in a situation 3. Personal interest is involved 4. Possession of new information 13

Informal versus Formal Groups Figure 5. 7 Informal Groups Formal Groups Roles and norms are flexible Roles and norms are rigid Membership is voluntary Positions are chosen Organizational structure is loose Organizational structure is formal Size is smaller Size is larger Sentimental and traditional Utilitarian and functional 14

Key Terms in the Chapter n n n Sociogram Advice network Trust network Communication network Authority Power Satisficing behavior Networking Nucleus group Fringe group Outer group n n n n n Grapevine Single strand Gossip chain Probability chain Cluster chain Goal conflict Conformity Rumor Selective filtering Elaboration 15