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Unit 10: Informal Organization

10.12 Keywords Notes

Formal organization: It is a prescribed structure of roles and relationships consciously
coordinated towards a common objective.
Grapevine: The grapevine is the informal communications network within an organization.
Informal group: An informal group is a group of people casually acquainted with each other
for their own personal fulfilment because they have some common characteristics and concerns.
Informal organization: It is natural and spontaneous structure, arising out of the social
tendency of people to associate and interact.
Rumour: A rumour is often viewed as an unverified account or explanation of events circulating
from person to person and pertaining to an object, event, or issue in public concern.
1. Draw the stage diagram of group development.
2. Make a list for employee motivation the organizational environment
and productivity.
10.13 Review Questions

1. Why do you think informal groups emerge in organization? What organizational
needs do they serve?
2. Describe the difference between a formal and an informal organization.
3. Describe the positive and negative aspects of an informal organization.
4. What should a manager do to harmonize informal organization with the formal
organization?
5. Describe the various stages of development of an informal group.
6. Write short notes on:
(a) Basic elements of group behaviour.
(b) Types of informal groups.
(c) Theories of formation of informal groups.
7. What is informal organization?
8. What is the importance of informal organization?
9. Discuss the benefits of informal organization?
10. What are the disadvantages of informal organization?

Answers to Self Assessment
1. (c) 2. (b) 3. (d) 4. (c) 5. (a)
6. (a) 7. (d) 8. (a) 9. (b) 10. (a)
11. informal organization 12. filtering 13. force 14. flat
15. behaviour list

10.14 Further Reading

The Future of Business: The Essentials, by Lawrence J. Gitman, Carl McDaniel.

http://scholar.google.co.in/scholar?

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