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A reference group is a group to which an individual or another group is compared, used by sociologists in reference to any group that is used by an individual as a standard for evaluating themselves and their own behavior. More simply, as explained by Thompson and Hickey (2005), such groups are ones "that people refer to when evaluating their ...
The quest for informal group satisfaction may lead members away from formal organizational objectives. What is good for and desired by informal group members is not always good for the organization. Doubling the number of coffee breaks and the length of the lunch period may be desirable for group members but costly and unprofitable for the firm.
Informal standards: personal goals and interests of workers differ from official organizational goals. Informal communication: changes of communication routes within an enterprise due to personal relations between coworkers. Informal group: certain groups of coworkers have the same interests, or (for example) the same origin.
In all groups, formal and informal initiations add to a group's cohesion and strengthens the bond between the individual and group by demonstrating the exclusiveness of group membership as well as the recruit's dedication to the group. [15] Initiations tend to be more formal in more cohesive groups.
The relationship between formal and informal institutions is often closely aligned and informal institutions step in to prop up inefficient institutions. However, because they do not have a centre, which directs and coordinates their actions, changing informal institutions is a slow and lengthy process.
Further, the informal organization, which is the structure of social interactions that emerges within organizations, may be subject to restrictions also tends to lag in its integration into the newly established formal organisation, whereas formal organization or the subjective norms system created by managers can be changed relatively quickly.
Organizations are formed and sustained through continuous communication between members of the organization and both internal and external sub-groups who possess shared objectives for the organization. The flow of communication encompasses internal and external stakeholders and can be formal or informal.
The informal hierarchy between two or more people can be based on difference in, for example, seniority, experience or social status. [20] [17] The formal and informal hierarchy may complement each other in any specific organization and therefore tend to co-exist in any organization. [17]