Informal and formal groups in organizational dynamics

Human Resources: Informal Groups

The objective of this study is to examine the differences between informal groups and formal groups.

Informal Groups

Informal groups are those comprised by individuals who share the same interests or participate in the same type of activities. Individuals involved in informal groups generally share similar practices or adopt similar identities. Informal groups are characterized by a "sense of community" with leaders of informal groups often opposing the organization's formal directives. Informal groups enable the organization to work in a more effective manner and for example may serve to "ease communication between employers and provide encouragement to managers for planning and acting in a careful manner. The downside of informal groups is that they often serve to provide encouragement for less than desirable attitudes and often "foster interpersonal and intrapersonal conflict." (Boundless, 2013, p.1)

Informal Groups are often referred to as a community of practice and to be a group that arises "naturally from a common interest in a particular domain or area." (Boundless, 2013, p.1) The informal group may also be created "with the specific goal of gaining knowledge related to a common field." (Boundless, 2013, p.1) The informal group learns from one another due to the sharing of information and experiences which enables the group members in their personal and professional development. (Boundless, 2013, paraphrased)

III. Contribution of Informal Groups

The contribution of informal groups is examples in the informal groups of Xerox employees and specifically Xerox customer representatives who, by exchanging tips and tricks of the trade at informal meetings resulted in the creation of the Eureka project by Xerox saving the corporation approximately $100 million. (Boundless, 2013, paraphrased)

IV. Bases of Power

Bases of power refer to the methods utilized by management to influence organizational employees. The five bases of power include coercive power, legitimate power, reward power, referant power and expert power. It would appear that legitimate power would be the strongest of these since the person possessing legitimate power is acknowledged by those they lead as being in charge of the group.