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The Informal Organization

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Presentation on theme: "The Informal Organization"— Presentation transcript:

1 The Informal Organization
Chapter 5 The Informal Organization

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

3 Learning Objectives (contd.)
Identify the primary disadvantages associated with the informal organization. Cite some of the ways in which a manager can deal with the informal organization. Discuss how to successfully complete an employment interview.

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

5 Figure Who Helps Whom?

6 Types of Relationships in Informal Networks
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

8 Figure 5.3 - Informal Power

9 Organizational Goals and Individual-Group Goals
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 Table 5.1 - Average versus Successful Managers: How They Spend Their Time

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

12 Informal Communication Networks (contd.)
Don Lois Ken Probability Chain Nancy Wayne Nancy Don Lois Ken Wayne Al Al Cluster Chain (Most Frequent)

13 Causes for Grapevine Activity
Information is lacking Insecurity in a situation Personal interest is involved Possession of new information

14 Figure 5.7 - Informal versus Formal Groups

15 Benefits of the Informal Organization
Getting Things Done Lightening Managerial Workload Providing Job Satisfaction Serving as a Safety Valve Providing Feedback to Managers

16 Figure 5.8 – The Informal Organization in Action

17 Disadvantages of the Informal Organization
Resistance to Change Goal Conflict Conformity Problems Rumor

18 Dealing with the Informal Organization
Recognize Its Inevitability Influence Its Direction Stay Abreast of Changes

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

20 Key Terms in the Chapter (contd.)
Node central connectors Boundary spanners Gatekeepers Bridges Experts Interview etiquette


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