Business

What Do You Know About Informal Organizations?

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Organizations adopt several types of formations according to their strategies, goals, and plans. Therefore, the normal hierarchy could be the best form for an organization to achieve its goals, while work teams are a better option for some other organizations. However, to ensure the effectiveness of an organization, job descriptions have to be well defined along with the relationship between managerial levels and posts in addition to the chain of command and communication channels.

Also, leadership is a valuable asset in order to persuade each member in the organization to get on board and get the work done, also to harmonize the teamwork.

In astronomy, astronomers realized a component of the universe whose presence is discerned from its gravitational attraction rather than its luminosity which is called “Dark matter”. Alike the universe, the space between managerial levels and chain of command is filled with an unseen relationship, a dark matter in the universe of the organization which is called “Informal Organization”.

What is the informal organization?

It is an unobservable organization that often takes the form of a work team and either has a leader or is self-managed, in which it determines the relationships between the employees as well as the strength of these relationships in addition to the means and channels of communication. Despite this, this organization is not directly responsible for the results of the work before the management.

Although this informal organization is not easily observable and is not directly accountable to management for performance and results, it directly affects them. Thus, it is considered as one of the indirect factors of success or failure.

Characteristics of informal organization:

  • It is unofficial:

That means the management did not organize it or determine the relationships between its members, however, every employee in the unofficial organization is a member in the official one.

  • It is self-organized by the employees:

The informal organization is being developed through the interaction between the employees, thus the strength of the relationships is determined due to the chemistry which formulates among the employees during their daily interaction. In addition to that, the strength of relationships increases with time and positive experiences among the work team.  

  • There is no code for communication:

Communication is ascending from the lowest administrative level to the top or vice versa when it is descending, and the methods of communication are usually related to the organization’s infrastructure as well as the culture of the organization, the distance of authority, and the form of the organization.

In contrast to that, most communications are at the same level and all administrative levels are dissolved in one work team regardless of the position or degree occupied by the employee of formal organization.

  • It is dynamic and flexible:

Official organization’s success can be measured according to its flexibility towards problems, challenges, and crises. However, some actions need a fundamental change in order to be taken. Unlike the informal organization, it is highly dynamic and flexible when it is about planning and decision-making.

  • Affected by the quality of work environment:

The work environment is developed by the organization’s leaders, while the employees perform their tasks and interact with customers in this environment, as a result of the quality of the relationship between employees in the formal organization is highly affected by the quality of the work environment thus transfers to the informal one.

The relationship between formal and informal organizations?

As mentioned above, the informal organization fills the spaces between the managerial levels in the formal organization, so that an informal organization cannot be established without a formal one.

There is a positive relationship between both organizations that the quality and strength of the informal organization affect the effectiveness of the employees in addition to the harmony of the work team and vice versa.

 How to use the informal organization in the favor of a formal one?

Leaders strive to observe and find contributing factors to the effectiveness and efficiency of the system, for that reason they impose certain policies and create shared values, in addition, to envisioning how the organization can make the most of its resources (physical and human). For that reason, the informal organization has been observed as a vital factor that affects the quality of the work environment. For that, some measures can be taken in order to utilize the informal organization:

  • Create a shared vision:

The existence of a common vision for the work team motivates them to interconnect and support each other in order to achieve the goals of the organization and then activate the informal organization to support employees and achieve convergence between the two organizations.

  • Impose values that promote unity and cooperation:

Imposing values based on unity and equality and working with the principle of one family build bridges of trust between the employees and the organization, and thus the rapprochement between the two organizations, the formal and informal.

  • Shorten the gap between formal and informal organization:

This is done through continuous interaction between management and employees, monitoring the concerns of the work team, and working to clarify the unclear matters and bring together views.

  • Actively communicate with everyone in the organization:

Effective communication with employees helps them feel safe to talk about problems or constraints they face during work, in addition to that continuous communication with employees sends messages of the organization to them, which are discussed within the corridors of and in break times or during going or returning from work to return again to management in the form of feedback or public opinion.

  • Actively respond to inner concerns and complaints:

Based on the previous measure, after collecting information and monitoring the mood and public opinion, it is important to actively respond to whatever is detected either positive by appreciation or negative by informing the employees that the management is aware of the concern and taking the necessary measures to clarify or solve it.

  • Create a continuous learning environment:

Informal organizations can be taken advantage of to create an environment for continuous learning, and this is done by designing a work environment that includes systems, infrastructure, and headquarters design that allow workers to exchange information and talk about work matters, and even after working hours by organizing creative team building activities.

  • Be a part of the informal organization:

Leaders can be part of the informal organization, even if incompletely, if they can achieve a common vision for the organization as a whole and exercise leadership, including leading by example and adhering to the organization’s values, as well as fulfilling the human needs of employees, in addition, to support in cases of success or failure.

Conclusion:

Informal organization is a vital factor for success or failure as it is considered as the soul of the organization, although it is not easily observed unless it is taken into account by the management. It might not a tangible asset however it balances the organization like the dark matter in the universe. 

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