Question

A company is manufacturing washing machines. There is a well-defined system of jobs which is clear and defines authority, responsibility and accountability in the company. But people are not allowed interact beyond their officially defined roles. As a result, the company is not able to adopt the changing business environment. The work force is also not motivated due to lack of social interaction. The company is facing problems of procedural delays and inadequate recognition to creative talents.
(a) Suggest how the organisation can overcome the problems faced by it.
(b) Give any two benefits it will derive from your suggestion.

Answer 1

(a). An informal organization is the social structure of the organization, as opposed to the formal structure of an organization. It establishes how an organization functions from a practical standpoint. The informal organization can work in concurrence with the formal organizational structure, parallel with it, or against it.

(b). Informal organization has the following benefits:

1. Promotes social and cultural values:

Members of informal organization share common thoughts, social and cultural beliefs. Their interests are promoted which adds to the strength of the organization and a commitment to accomplish its formal goals.

2. Relief to top managers:

Social interactions lead to cooperation and coordination amongst people of different groups. It helps top managers achieve their formal goals efficiently. They are relied o the botheration of inspiring workers to work.

3. Supplement to managers’ capacities:

Sometimes managers are unable to awake official decisions without the support of theist. People of informal organization help managers by providing them the help and support that cuts across official chain of command.

4. Social satisfaction and security:

Members satisfy their social needs of interaction, recognition and acceptance by others in informal organist ions. Their needs of friendship, love and support are satisfied in these organs tons.

5. Communication:

Communication travels much faster in informal transitions than formal organization. People discuss their work and non-work reacted problems with each other and find solutions without the support of superiors.

6. Better relationships:

If managers of formal organization develop and maintain cordial teat ions with managers of the informal organization, it promotes an environment of understanding. This helps to achieve formal goals of the organization efficiently.

7. Solve work-related problems:

People of different department’s discs their work-related problems and solve them on their own without waiting for instruction of superiors of their departments. A worker of the sales department, for example, can known details about production from his friend in the production department rather than his seniors in the sales department.

8. Promotes creativity:

People get a chance to exploit their creativity and work according to their judgment and skills without waiting for superiors’ instruction. They think of new ideas and apply them in practice without the fear of rejection by their superiors.

9. Self-control:

Employees frame their own targets and self control their activates. Control need to be exercised from the top.

10. Restraint on manager’s discretion:

Informal origination checks wrong acts of managers. Managers cannot frame goals, policies and plans not acceptable to members of informal organizations provide them relief against official boredom and tiredness. The provide them an outlet for satisfying their needs of interaction, love and friendship.

12. Quick feedback to managers:

Managers can get quick feedback on their official decisions from member through informal channels of communication. This helps in knowing how well their policies are bating accepted and implemented by organist members.