Agriculture Reference
In-Depth Information
relationships among people; that is, their emotions, feelings, communications, and values.
The informal organization is an important part of an organization's culture.
The informal organization is crucial to the success of any fi rm, since it contributes greatly
to the fulfi llment of individuals' personal needs. A great many (if not most) professional
people and workers spend as many or more hours on the job as they do at home or with their
families. And for some, the hours spent on the job may be a primary source of ego fulfi llment
and social relationships. Their role on the job, their status among peers, and their personal
feelings about their job are critical to their well-being; therefore, all these factors directly
affect how well the formal organization works. Personal lives of employees can affect an
organization's effi ciency positively or negatively.
Managers who cultivate a positive informal organization will discover a desirable fringe
benefi t: the formal organization will be much more productive. Any gaps caused by unex-
pected situations can be handled far more easily. Communication will be facilitated through
informal channels. The span of control can be lengthened because people will work together
more effectively. The end result is that more and better quality work is completed as people
feel a commitment to the common goal.
On the other hand, where the informal organization is ignored or when personal relation-
ships interfere, results are less predictable, people are less fl exible, and they may spend
considerably more time on activities that are counterproductive to company goals. Managers
who ignore the power of the informal organization, who dictate without regard to sensitive
Plate 16.1
Hands
A positive and vibrant informal organization helps insure that the formal organization is effective
and profi table. Photo courtesy of USDA Natural Resources Conservation Service.
