Formal and Informal Organizations Flashcards
refer to organizations formed by the company owner or manager to help the firm accomplish its goals; made up of formal groups (work groups/project team/committee) similarly formed by company authorities to support their activities and achieve their objectives
Formal organizations
refer to organizations that exist because of friendship or common interest; made up of informal groups which exist for the members’ need for social affiliation
Informal organizations
are characterized by hierarchical and reporting relationships among groups or members
Formal organizations
consist of informal groups born out of the need for social affiliation.
informal organizations
both have functions and advantages that benefit the organization and its members.
Formal organizations and informal organizations
Formal Advantages
- Working systematically
- Established on and for the organization’s objectives
- No duplication or overlapping of work
- Efficient coordination among departments 5. Implementation of chain of command and professional relationship
Formal Disadvantages
- Delay in feedback and action due to the established
chain of command
- Ignores the psychological and social needs of employees
- Emphasis on work only and overlooks the human relations, talents, and creativity of employees
Informal Advantages
- Fast communication due to the absence of standard operating procedures and protocols
- Gives importance to the psychological and social
needs of employees
- Top managers can solicit feedback directly from the employees on new policies and plans
Informal Disadvantages
- More susceptible to rumor mongering
- There is no systematic workflow in place
- Difficulty in implementing new rules and policies
- More emphasis on the individual interest of each employee rather than the overall goal of the company
