Formal and Informal Organisations

Topics: Management, Organization, Formal organization Pages: 3 (921 words) Published: November 11, 2012
This essay is based on Formal and Informal organisations and the details and difference between the two. Recommendations and conclusions are also drawn based on the information presented.

Formal and Informal Organisations
The fundamental concepts of formal and informal organisations are regarded with the nature and processes in the workplace. A formal organization is the actual framework of the organization including its organizational chart and its chain of command which determines accountability. However, within the informal organization, otherwise known as the ‘grapevine’ in a business, is the familiar working relationships that are established in the business place and contributes significantly to work culture. (Reingold, 2007) The real purpose of an organizational chart is to effectively outline the structure of the formal organization. It shows who is accountable to whom, from the top management to middle management and front line employees. It also shows the horizontalrelationships of the different functional and operational divisions and department personnel. This chart consists of the functional framework and is important in the workplace to establish stability, clarity in work relationships and reporting standards between supervisors and subordinates. (Parker, 2002) Although top management in some businesses does not take into account, the actuality of informal organizations when trying to determine culture, it does have an essential influence on work dynamism. Workers interact with each other at different intervals and in different situations such as lunch, in the break room, and even after work. These encounters can greatly influence the level of the sense of belongingness each employee experiences or feels in the working environment. If it is that these encounters are generally negative, the quality of work ethics and morale will be very poor. (Reingold, 2007) Understanding the direct reporting relationships outlined in the...
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