The classical
theory describes the formal organization while the human relations theory
highlights the informal organization. A formal organization is that which is
depicted in organizational charts; diagrams, manuals, service books etc.
By formal organization we mean the organization as deliberately planned, designed, and duly sanctioned by competent authority. It is organization as it appears to the observer from outside. But an informal organization is not written and is depicted by social relationships in the organization.
In an organization there continually occur interactions, contacts and relationships which are not part of or governed by formal organization. These contacts may be incidental or accidental to organized activities or may arise from some personal desire or even gregarious instincts. Contacts may be friendly or hostile.
These contacts make an informal organization which in the words of Chester Barnard, prefers to the aggregate of the personal contacts and interactions and the associated groupings of people.
An important attribute of an informal organization is that it is indefinite, structure less and has no definite sub-division. Informal organization could be seen as the pattern of the actual behaviours of the personnel in it. This actual behaviour often differs from the behaviour as expected in the formal organization.
By formal organization we mean the organization as deliberately planned, designed, and duly sanctioned by competent authority. It is organization as it appears to the observer from outside. But an informal organization is not written and is depicted by social relationships in the organization.
In an organization there continually occur interactions, contacts and relationships which are not part of or governed by formal organization. These contacts may be incidental or accidental to organized activities or may arise from some personal desire or even gregarious instincts. Contacts may be friendly or hostile.
These contacts make an informal organization which in the words of Chester Barnard, prefers to the aggregate of the personal contacts and interactions and the associated groupings of people.
An important attribute of an informal organization is that it is indefinite, structure less and has no definite sub-division. Informal organization could be seen as the pattern of the actual behaviours of the personnel in it. This actual behaviour often differs from the behaviour as expected in the formal organization.
A discussion
of organizations commonly includes some examination of their “formal” and
“informal” attribute. The “overlays” or informal attributes (collectively
called by the name informal organization), it should be noted, are based on and
could not exist without the formal. Five will be described here - (I)
Socio-metric overlay, (2) functional over1ay, (3) decision overlay, (4) power
overlay and (5) Communication overlay.
The Socio-metric overlay describes the pattern growing out of the feelings of social attraction or rejection that people have for each other. Person - to person contacts between any levels of the organization regardless of the more formal arrangements are encouraged or discouraged by the personal feelings. Another, the functional overlay refers to contacts such as those between the staff specialist, who has a specific expertise, and those through out of organization who directly seek his guidance or cooperation outside the formal channels.
The Socio-metric overlay describes the pattern growing out of the feelings of social attraction or rejection that people have for each other. Person - to person contacts between any levels of the organization regardless of the more formal arrangements are encouraged or discouraged by the personal feelings. Another, the functional overlay refers to contacts such as those between the staff specialist, who has a specific expertise, and those through out of organization who directly seek his guidance or cooperation outside the formal channels.
Pfiffner and
Sherwood’s decision overlay describes the relationships based on going directly
to the people who have the real influence in reaching a decision and by-passing
the formal lines. A power overlay would
indicate the key people who can accomplish something because they know the roles.
They are in intimate touch with the formal decision makers, or they are highly
respected in spite of their relatively low position in the organization. The
communication overlay reveals the actual pattern of pathways which information
such as correspondence takes in moving through the organization.
Informal
organizations are necessary to the operation of formal organizations as a means
of communication, of cohesion, and for protecting the personality and integrity
of the individual. The informal patterns developed over and beyond, but not in
total disregard of the more formally structured organizational arrangements
which allow the organization the flexibility which such a social grouping
requires.
Thus,
informal organizations serve to:
·
help
attain personal objectives,
·
provide
social satisfaction,
·
provide
channel of communication; grapevine – rumour; and
·
exercise
social control of behaviour - internal and external.
Informal
organization produces effects which may fall into two classes. Firstly, it
establishes certain attitudes, understandings, customs, and habits. Also it
creates the condition under which formal organization may arise, The most
general direct effects of informal organization are customs, mores, folklore,
institutions, social norms and ideals. These customs and norms are very powerful
as much as, if there is a clash or
conflict between a practice establ4shed by legal enactment and a custom, the
latter usually prevails. Secondly, informal organization is a condition which
necessarily precedes formal organization.
The possibility of accepting a common purpose, of communicating, of attaining a state of mind, of producing a willingness to co-operate requires prior contact and preliminary interaction. It must also be remembered that informal organization compels a certain amount of formal organization. This flows from the thought that similarity of needs and interests which continuation of contact implies must persist, which in turn requires formal organization.
The possibility of accepting a common purpose, of communicating, of attaining a state of mind, of producing a willingness to co-operate requires prior contact and preliminary interaction. It must also be remembered that informal organization compels a certain amount of formal organization. This flows from the thought that similarity of needs and interests which continuation of contact implies must persist, which in turn requires formal organization.
The
attitudes, institutions and customs of the informal society affect and are
partly expressed through formal organization. As Chester I. Bernard puts it,
the formal and informal organizations are interdependent aspects of the same
phenomenon - as society is structured by formal organization; formal
organizations are vitalized and conditioned by informal organization. What is
asserted is that there can not be one without the other.
If one fails the other disintegrates; Formal organizations arise out of and are necessary to informal organization, but when formal organizations come into operation, they create and require informal organizations.
If one fails the other disintegrates; Formal organizations arise out of and are necessary to informal organization, but when formal organizations come into operation, they create and require informal organizations.