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- 6 Marks
Question
a) The informal organisation exists alongside the formal organisation and includes social relationships, informal communication network, behavioral norms, and power structure. Informal organisational arrangement may be detrimental or beneficial to an organisation.
Required:
i) Explain THREE ways that informal organisational arrangement may be detrimental or harmful to an organisation. (6 marks)
Answer
- Collective Opposition: Social groupings within the informal organisation may act collectively against organisational interests, strengthened by collective power and information networks. Even if aligned with organisational goals, the maintenance of these groups or networks can take significant time and energy away from tasks.
- Spread of Rumors: The grapevine, which is part of the informal communication network, is notoriously inaccurate and can carry morale-damaging rumors that harm the organisation’s working environment.
- Exclusivity and Alienation: The informal organisation can become overly important in fulfilling employees’ social needs, leading to the exclusion of individuals from cliques and networks, causing acute distress or alienation among those who are excluded.
- Tags: Business Culture, Employee Relations, Informal Organisation
- Level: Level 1
- Topic: Organisation culture in business
- Series: MAY 2017
- Uploader: Dotse