Psychology of management


informal organizations dynamically interact



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Psychology of management

informal organizations dynamically interact 
with formal ones , influence work quality and people’s attitude to work and the higher-ups

The scope of problems connected with informal organization includes those of 
effectiveness decrease, rumors spreading, and the tendency to resist changes. To potential 
benefits relate great loyalty to the organization, and high collectivism. A higher work 


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productivity is observed when group norms exceed officially established ones. To cope with 
potential problems and master potential benefits of an informal organization the management 
should recognize the informal organization and work with it considering the opinions of informal 
leaders and group-members, allow informal groups to participate in decision-making and quench 
rumors by prompt providing official information. 
Knowing group dynamics well, the management may control groups effectively, hold 
effective meetings, wisely use such structures as committees in the activity of their enterprise. 
The mechanism of informal groups’ control may be represented as a certain set of rules 
which should be kept by an organization’s executive. 
The basic rules of informal groups’ control: 
1. To accept the existence of the informal organization. 
One of the biggest and most wide-spread difficulties impeding effective control of 
informal groups and organizations is initially low opinion of their leaders. It used to be believed 
that in order to cope with an informal group it is necessary just to destroy it. But at present there 
has been established the opinion that informal organization may help the formal one in achieving 
its aims. And its destruction may lead to that of the formal organization as well. That is why the 
management should recognize the informal organization, work with it and not threaten its 
existence. 
2. To study the factors influencing the effectiveness of informal groups’ functioning. 
Group size. One of contemporary scientists, Keith Davis, thinks that the preferable 
number of group members is 5 people. These groups take more correct decisions than those 
beyond this number. In smaller groups their members worry that their personal responsibility for 
the taken decisions is too obvious. On the other hand, in larger groups their members may 
experience difficulty, shyness in expressing their opinions in front of others. Generally, as the 
group size increases, the communication between its members becomes more complicated, and 
reaching agreement on the questions connected with group activity and the tasks performed 
becomes more difficult. 
Group membership. Here, under the membership is understood the degree of similarity of 
personalities and points of view, approaches which they show at problem solving. If a group 
consists of unlike personalities, this promises a greater efficiency than a group whose members 
have similar points of view. 


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Group norms. The norms adopted by a group make a strong impact on an individual 
personality’s behavior, and the direction in which the group will work: on achieving 
organization’s goals or resisting them. 
Group unity is the measure of inclination of group members to each other and to the 
group. A united group is a group whose members experience strong inclination to each other and 
consider themselves similar. Because a united group works well in the collective a high unity 
level may increase effectiveness of the whole organization if their aims agree with one another. 
They have less misunderstanding, strain, enmity, and mistrust, and their work productivity is 
higher than that of non-united groups.
Proneness to conflict. It was mentioned before that the difference in opinions usually 
leads to a more effective work of a group. But it also increases conflict probability. Despite the 
active exchange of opinions is useful, it may also lead to intragroup conflicts and other 
manifestations of open conflict which are always fatal. 
Group-members’ status. The group members whose status is quite high can make a 
greater impact on group decision than those with low status. But this does not necessarily leads 
to efficiency increase. 
Functional role of group-members. There are two kinds of role directions to create a 
normal functioning group. The target roles are distributed in such a way as to have an 
opportunity to select group tasks and fulfill them. The supporting roles suppose a behavior 
enhancing activization of group’s life and activity. 
3.
To develop and apply in practice the methods of informal groups’ control in order to use 
their potential and benefits and to decrease the negative impact. 

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