Formal vs. Informal Structures

Question 1

Formal Organizational Structure

Answer 1

• Jobs are defined along with the experience and education needed to carry them out.
• Management positions are established along with lines of authority.
• Demonstrated in an organizational chart.

Question 2

Organizational Chart

Answer 2

a diagram describing reporting relationships and the formal arrangement of work positions within an organization.

Question 3

What information does the chart provide

Answer 3

1. the division of work
2. supervisory relationships
3. communication channels
4. major subunits
5. levels of management.

Question 4

Informal Organizational Structure

Answer 4

• Is a result of unofficial yet critical social interactions between employees and managers in the workplace.
  E.g. employees may meet for coffee breaks and discuss work
• Managers at all levels must take informal organization into account when making decisions.

Question 5

Potential advantages of informal structures

Answer 5

• Helping people accomplish their work
• Overcoming limits of formal structure
• Gaining access to interpersonal networks
• Informal learning

Question 6

Potential disadvantages of informal structures

Answer 6

• May work against best interests of entire organization
• Susceptibility to rumour
• May carry inaccurate information
• May breed resistance to change
• Diversion of work efforts from important objectives
• Feeling of alienation by outsiders