May 2017 Q4 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)
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- Social groupings may act collectively against organisational interests, strengthened by collective power and information networks. Even if they are aligned with organisational goals, group/network maintenance may take a lot of time and energy away from tasks.
- The grapevine is notoriously inaccurate and can carry morale-damaging rumors.
- The informal organisation can become too important in fulfilling employees’ needs: individuals can suffer acutely when excluded from cliques and networks.
- Informal work practices may ‘cut corners’, violating safety or quality assurance measures. (Any 3)
ii) State TWO ways managers can adopt to minimise the detrimental or harmful effects of informal organisational arrangement. (4 marks)
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- Meeting employees’ needs as far as possible via the formal organisation: providing information, encouragement and social interaction.
- Harnessing the dynamics of the informal organization – for example by using informal leaders to secure employee commitments to goals or changes.
- Involving managers themselves in the informal structure so that they support information sharing, thereby eliminating undesired behaviors and attitudes. (Any 2)