Answer to Question #152706 in Economics of Enterprise for sevgi

Question

How do informal groups within an organization differ from formal ones? What function do informal groups perform and which members’ needs do they meet?

Answer 1

Informal groups are formed spontaneously on the basis of interpersonal relations and do not have an official, legally fixed, approved status. And formal groups are created at the will of the head on the basis of certain organizational and legal documentation.

We can say that formal groups satisfy the needs of the organization, while informal - the needs of its members.

Informal groups perform a number of functions that are important to their members, including the following:

1) implementation of common material and social interests. This may be an interest in rationalizing or developing and implementing an invention, in obtaining additional income, in the joint construction of garages, in solving dacha issues, in organizing tourist trips, etc .;

2) protection against excessive pressure from the administration, excessive labor intensification, increase in production rates, reduction of workers, etc.;

3) receiving and transmitting necessary or interesting information;

4) facilitating communication and establishing mutual assistance in solving both organizational and personal problems;

5) preservation and cultivation of common cultural, social, national, religious and other values;

6) meeting the needs for group belonging, recognition, respect and identification. This increases satisfaction with work and stay in the organization;

7) creation of a favorable environment for activity and psychological comfort, overcoming alienation, fear, gaining confidence and calmness;

8) adaptation and integration of new and young employees. Admitting them to the team helps them quickly adapt to the requirements of the organization, allows them to receive valuable advice and assistance, and facilitates various types of communication.