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Unit 10: Informal Organization

group can create some apprehension-in effect, a minor crisis. The termination of the group Notes
is a regressive movement from giving up control to giving up inclusion in the group. The
most effective interventions in this stage are those that facilitate task termination and the
disengagement process.

Prepare the chart of progression of any organization members and group
development.

10.6 Distinction between Formal and Informal Organization

Formal Organization Informal Organization

It is a prescribed structure of roles It is natural and spontaneous structure,
and relationships consciously arising out of the social tendency of people
coordinated towards a common to associate and interact. In other words,
objective. management has no hand in its emergence,
evolution and functioning.

Its values, goals and tasks are Its values, goals and tasks predominantly
predominantly oriented towards centre around individual and group
productivity, profitability, efficiency, satisfaction, esteem, affiliation,
growth and so on. friendship, etc.

It is well-defined in shape. Majority It is shapeless. There are a number of
of formal organizations are multi-directional, intricate relationships
pyramid-shaped. Ranks of individuals which cannot be easily charted.
are made clear by the use of titles. Sociograms which depict the attraction,
Communication is simple. One can repulsion and indifference among
easily chart all relationships. members do not present any well-defined
shape. Ranks of members are implicit.

There is a prescribed, mostly written There is an unwritten system of reward
system of reward and punishment. and punishment. Rewards take the form
Rewards can be both monetary and of continuous membership, social esteem,
non-monetary. satisfaction, group leadership, etc.
Punishments are isolation, censure,
harassment, etc.

This organization is usually very This organization is not very enduring,
enduring and may grow to any size. being dependent on the sentiments of
members, which often change. It also
tends to remain small.

Self Assessment
Multiple choice questions:
1. ...………. groups maintain and continue the cultural values and lifestyle of the group.
(a) Control (b) Informal

(c) Function (d) Formal

LOVELY PROFESSIONAL UNIVERSITY 229