Explain the difference between a firm’s formal organization and its informal organization. Why are both types of organization important to managers? Provide examples
There could be a number of differences that might be found in the formal versus the informal organization. The formal organization could be considered all of the key and set rules, processes and methodologies that the employees have to follow such as more like the formal rules, the formal dress code as well as the different formal lines of communication. On the other hand, informal rules are those that arent considered to be so strict or rigid and so there is a certain degree of leniency that is inherent in them. Therefore, the informal rules could be when the employees sort of all get together for some happy hour and so forth. But both of these are important for the manager to understand since it enables the manager to have a better and a more effective but also more like an unbiased understanding of the organization itself.
A firms formal organization is defined to signify the formal relationships between authoritative figures and workers in an organization. Informal organization is defined to signify the relations of individuals on a spontaneous basis. These both types our essential to managers in the workforce. The position of employees and managers is the focal point of formal organization, while the workers character as a person is the focal point in an informal organization. The authoritative power comes from the those that are higher in command in formal organization while membership of the individuals in the informal groups are where the power comes from in the this organization.