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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 ...
Informal group: certain groups of coworkers have the same interests, or (for example) the same origin. Informal leaders: due to charisma and general popularity, certain members of the organization win more influence than originally intended. Different interests and preferences of coworkers. Different status of coworkers. Difficult work ...
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 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.
For instance, if parties trust each other the use of a formal contract is unnecessary or even detrimental to the relationship. [9] On the other hand, other scholars have suggested that formal and informal organizations can complement each other. For instance, formal mechanisms of control can pave the way for the development of relational norms ...
Informal and formal communication are used in an organization. Formal communication flows downward, horizontal and upward while informal communication is generally referred to as "the grapevine". Formal communication refers to the flow of official information through proper, predefined channels and routes.
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 ...
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.