MODULE 12: INFORMAL AND FORMAL GROUPS

TOPIC 1: GROUP DYNAMICS

The social process by which people interact face-to-face in

small groups is called
group dynamics. The word “dynamics” comes from the Greek
word meaning “force”;
hence group dynamics refers to the study of forces operating
within a group.

Group dynamics deals with the attitudes and behavioral patterns

of a group. It can be used as a means for problem-solving,
teamwork, and to become more innovative and productive as an
organization.
TYPES OF GROUPS

There are many ways of Classifying groups. A key difference

exists between formal and Informal groups.

FORMAL GROUPS

 Refers to the structure of jobs and positions with clearly defined

functions and relationships as prescribed by the top
Management.

 It can also be defined as system of well-defined jobs with a

prescribed pattern of communication, coordination and
delegation of Authority.

 According to Louis Allen, formal group is a system of well-

defined jobs, each bearing a definite measure of authority,
responsibility and accountability.

Another fundamental distinction is between two types of formal

groups. Some have a temporary life, they are created to
accomplish a short-team task and then disband. An example of
temporary group is a committee or task force. The event at which
group members discuss ideas or solve problems is generally
called a meeting.
Formal groups are created for many purposes , members maybe
asked to generate ideas , make decisions, debate issues,
negotiate resources , or provide status reports and receive
constructive feedback

Meetings are necessary, but they do introduce more complexity

and more chances for problems to arise when improperly used.
They used,

committees not to reach decisions but to put them off, not to

obtain employee input but to sell a previously reached conclusion
and not to develop subordinates but to hide incompetence.
- It is a type of group meeting in which members in their group role
have been delegated the authority to handle the problem at hand.

Effective surface agendas are critical to the success of a

committee meeting
should:
• Clearly specify the date, time, and place of the meeting
• Indicate a primary purpose for the meeting
• List presenters, the time allotted to them, and the time available
for discussion
• Help the group to focus on decisions, not just discussions
• Have room for new items to be added
• Address items in priority order (highest to lowest)
• Identify the date, time, and place of the next meeting

Formal groups are created for many purposes , members maybe

asked to generate ideas , make decisions, debate issues,
negotiate resources , or provide status reports and receive
constructive feedback

Meetings are necessary, but they do introduce more complexity

and more chances for problems to arise when improperly used.
They used,

committees not to reach decisions but to put them off, not to

obtain employee input but to sell a previously reached conclusion
and not to develop subordinates but to hide incompetence.
- It is a type of group meeting in which members in their group role
have been delegated the authority to handle the problem at hand.

Effective surface agendas are critical to the success of a

committee meeting
should:
• Clearly specify the date, time, and place of the meeting
• Indicate a primary purpose for the meeting
• List presenters, the time allotted to them, and the time available
for discussion
• Help the group to focus on decisions, not just discussions
• Have room for new items to be added
• Address items in priority order (highest to lowest)
• Identify the date, time, and place of the next meeting

A nominal group exists in name only, with members having

minimal interaction prior to producing a decision. Here are the
steps that nominal
groups often follow:
1. Individuals are brought together and presented with a problem.
2. They develop solutions independently, often writing them on
cards.
3. Their ideas are shared with others in a structured format (e.g., a
round robin process that
ensures all members get the opportunity to present their ideas).
4. Brief time is allotted so that questions can be asked—but only
for clarification.
5. Group members individually designate their preferences for the
best alternatives by secret ballot.
6. The group decision is announced.
Advantages of the nominal group technique include the opportunity
for equal participation by all members, the non dominance of
discussion by any one member, and the tight
control of time that the process allows. Disadvantages reported are
that group members are
frustrated by the rigidity of the procedure, gain no feelings of
cohesiveness, and do not have
the opportunity to benefit from cross-fertilization of ideas.
to others’ thoughts, to use these thoughts as a stimulus to spark
new ideas of their own, and
then to feel free to express them. When this sequence takes place,
a large number of new and different ideas can emerge.

Here are some factors that contribute to the often-pervasive

negative attitudes about time spent in committee meeting:

A lack of trust causes participants to withhold their true feelings,

missing or incomplete information prevents participants from
making important decisions when appropriate.

INFORMAL GROUPS

 An organization which is not established by any formal

authority but arises from the personally and social relations of
the people.

 It refers to the relationship between people in the organization

based on personal attitudes, emotions, prejudices, likes dislikes
etc.

 It arises naturally based on friendship or some common interest

which may or may not be related with work.

 These groups may be based on same taste , language, culture

or some other factor.

 E.g. People of common language forming group, association of

people.

Another fundamental distinction is between two types of formal

groups. Some have a
temporary life, they are created to accomplish a short-team task
and then disband. An example of temporary group is a committee
or task force.

Meeting The event at which group members discuss ideas or

solve problems.

The other type of group of formal group is more natural and

enduring work group.

Team this type of group is formed when people regularly

performed tasks together as part of their job assignments.

The nature of of Informal Organizations

Comparison of Informal and formal Organization

BASIS FOR FORMAL GROUP INFORMAL GROUP

COMPARISON

Formation Deliberately Voluntarily

Size large Comparatively small
life Depends of the type Depends on the
of group numbers
Structure Well-defined ILL defined
Importance is given Position Person
to
Relations Professional Personal
Communication Moves in a defined Stretches in all the
directions direction
As a result of differences between formal and informal sources of
power :
Formal organizations may grow to immense size ,but informal
organizations tend to remain small in order to keep within the
limits of personal relationships. Because of their naturally small
size and instability , informal organizations are not suitable for the
large formal aggregates of people and resources that are needed
for modern institutions. Instead, their complement and hopefully
enhance the formal one.

Benefits of Informal Organizations

- Although informal systems may lead to several problems like,

Maybe a hurdle in achieving the objective of an organization
,Indirectly reduces effort of management to promote greater
productivity, Easily spreads rumor. they also bring a number of
benefits to both employers and employees :

• Lightens workload on management

• Helps get the work done
• Tends to encourage cooperation
• Fills in gaps in a manager’s abilities
• Gives satisfaction and stability to work groups
• Improves communication
• Provides a safety valve for employee emotions
• Encourages managers to plan and act more carefully
• Contributes to higher cohesiveness

Problems associated with Informal Groups

One of them is resistance to change, the groups tend to become
overly protective of its way of life and to stand like a rock in the
face of change

One way to to gain a better understanding of an informal system is

to prepare a visual portrait of it. These diagrams are called
Network charts or Informal Organization chart . it usually focus on
either interpersonal feelings expressed among individuals or actual
behaviors exhibited.