Formal And Informal Organizations Essay

536 WordsNov 23, 20113 Pages
In a business, a formal organization is a fixed set of rules of organizational procedures and structures. The chain of command is a part of the formal organizational structure starting from the board of directors all the way down to the district sales manager. It is usually set out in writing in the form of rules or code of conduct, although the structure isn’t limited to the way it is represented on the chart. Also, the formal assignment of authority is by no means limited. On the other hand, an informal organization is the social structure web within the organization that commands how people co-operate and interact with each other. It is a combination of behaviors, interactions, personal and professional connections. Informal organization isn’t created by the organization, as formal organization is. It is a byproduct of the combination of employees and their interactions and behaviors towards each other. Formal organization can work independently, but informal organization depends totally upon the formal organization. In a way, an informal organization is a byproduct of a formal organization. In the piece Office Gossip, we see how informal organization became evidently powerful in the tanning salon. The behaviors, interactions and gossip that stemmed from the employees caused problems within the organization. Following the event where the salon manager disciplined a worker, other co-workers spread rumors of the manager’s incompetence. The owner took action and created a sort of contract that prohibited gossip within the organization. Implementing the new guideline through the contract was the owner’s way of setting a formal organization. In the case Co-workers Who Don’t Pull Their Weight, Jerry Steinberg speaks his mind about co-workers who have children and are treated differently because of that reason. Workers with children are given holidays off

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