Formation of Groups Within the organization, formal and informal groups are both formed to foster communication and cooperation. However, the main difference between two groups is the nature of its formation. Formal groups are formed through the framework of formal organizational structure. According to Inigo & Dahan (2010), formal groups are created by the management which displays the company structure and groupings in organizational charts. For instance, in a firm, employees are divided into different departments to perform systematic and formally defined tasks for the company. On the other hand, informal groups are formed spontaneously by members of organization who share common characteristics and interests.
Having no formal mandate from the company, members of informal groups interact based on personal relationship rather than work relationship. According to Yousaf (2008), informal group structures exist because individuals join the organization with different motives, interests, and personalities. As such, it is only natural for individuals to seek for membership in a group that satisfies his need for belongingness. While formal groups ensure the efficient functioning of the organization, it is also important that managers pay attention to informal groups for organizational productivity.
There is, for one thing, a very fast communication channel that exists in formal groups. If the manager makes use of this informal communication channel, then the flow information is guaranteed to be efficiently circulated within the company. Also, informal groups increase the cohesiveness within the organization because members support and encourage the manager to act out a mutually shared plan for the company. For a manager, a member of informal group can help him overcome his weaknesses by providing insights on management.
Lastly, informal groups are necessary because it bridges the gap between management and employee. The manager can always tap informal group leaders to communicate and foster understanding with its members. Because of the increasing importance of informal groups within organizations, managers should maintain a positive relationship of informal groups within the company. Alongside with formal organizational structure, informal groups support and create a workable system to achieve company objectives. Works CitedInigo, Maria R. & Jahan, Firdouse. (2010). How Important are Informal Groups in Organization. Retrieved from: http: //drrmariainigo. articlesbase. com/management-articles/how-important-are-informal-groups-in-organization-2641061.htmlYousaf, Nadeem (2008).
Relationship Between Formal and Informal Structures. Retrieved from http: //management. corporatemanagementsolution. com/structurerelationship. htm