Formal and Informal Organization Structures, Research Paper Example

A formal organization consists of a fixed set of rules that govern the procedures and the structure of an organization. The rules put in writing, and strictly followed. The design work is through a formal planning an organization chart and job description. There exist a strict organizational structure, in the chain of command and authority. Conveyance of message done through a set scale of the chain, where one passes a message to the immediate supervisor. The organization sets goals, objectives, and policies to achieve after a specified period (Gächter & Falk 2000). All members of the formal organ interrelate in terms of reference, and these types of organizations establish and remain unchanged for a long period.

An informal organization structure, on the other hand, is one without formal planning. The relationship between members is natural. There is daily contact, emotional blend, fun, and close contact between members. While the two types of organization structures may appear parallel, they intersect and co-exist in a unit or an organization. Occasions arise in an organization, where the informal organization needs employment for success and gain of some unexpected benefit (Lazzarini et al, 2001, p.75).

Informal organization helps in meeting the psychological needs of members, enhances the morale of members, and creates exceptional interpersonal environment that promotes the stability of the formal organization. However, if too much employed, the informal organization would adversely affect the organization’s activities.

In conclusion, it is right to say that formal and the informal organization can coexist within the same organizational structure. This is because the two types of structures complement each other in an organization. The Informal structure helps workers relate and work together to reach and attain the set goals and objectives of the formal structure (Lazzarini et al, 2001, p.120).

References

Gächter, S., & Falk, A. (2000). Work motivation, institutions, and performance, Working paper, Institute for Empirical Research in Economics, University of Zurich.

Lazzarini, S. G., Miller, G. J., & Zenger, T. R. (2001). Order with a little bit of law: complementarity vs. substitution between formal and informal arrangements, Working paper, Olin School of Business, Washington University.