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Informal vs. Formal Organizations

The document discusses informal organizations and their relationship to formal organizations. [1] Informal organizations consist of the personal interactions and contacts between people in an undefined structure, even if they are not part of a formal group. [2] These informal relationships can establish attitudes and customs and create the conditions for formal organizations to arise. [3] Formal organizations both rise from and require the existence of informal groups between employees, as the informal social structures help with communication, group cohesion, and allowing individuals to maintain their own identities.

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163 views6 pages

Informal vs. Formal Organizations

The document discusses informal organizations and their relationship to formal organizations. [1] Informal organizations consist of the personal interactions and contacts between people in an undefined structure, even if they are not part of a formal group. [2] These informal relationships can establish attitudes and customs and create the conditions for formal organizations to arise. [3] Formal organizations both rise from and require the existence of informal groups between employees, as the informal social structures help with communication, group cohesion, and allowing individuals to maintain their own identities.

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twilightstars
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INFORMAL ORGANIZATIONS AND

THEIR RELATION TO FORMAL


ORGANIZATION
Chester I. Barnard
I. What is a informal organization?
◦ People interact with each other even when their relationships are not a part of or
governed by formal organizations
◦ The interactions occur and continue without any specific conscious joint purpose
◦ They change the experience, knowledge, attitudes and emotions of the persons
affected  we infer this effects by using the phrase mob psychology
◦ Informal organization = the aggregate of personal contacts and interactions and
associated groupings of people
◦ Informal organization is indefinite and structureless – it has no definite subdivision
II. Consequences of informal organizations

◦ Two important classes of effects:


1. It establishes certain attitudes, understandings, customs, habits
2. It creates the condition under which formal organizations may arise
III. The creation of informal by formal
organizations

◦ Formal organizations rise out of and are necessary to informal ones


◦ Formal organizations create and require informal ones
◦ A formal organization can be understood only by knowing who’s who, what’s
what, why’s why of its informal society
IV. The functions of informal in formal
organizations

◦ Communication function
◦ The maintenance of cohesiveness in formal organizations
◦ The maintenance of the feeling of personal integrity, of self-respect, of independent
choice
◦ The means of maintaining the personality of the individual
Thank you!

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