This document discusses formal and informal groups within organizations. Formal groups are established by the organization to achieve goals, while informal groups form spontaneously based on common interests, friendships, or proximity. Some potential advantages of informal groups include making the overall system more effective, lightening the workload on management, and improving communication. However, informal groups can also develop undesirable rumors, resist change, and operate outside of management's control. The document provides guidelines for management to understand and integrate informal groups while avoiding threats to them. It also discusses characteristics of effective committees and planned approaches to decision making in groups.

1. Formal and
Informal
Groups

2.  Formal Group – Established by the organization and
have a public identity and a goal to achieve
 Informal Group – Common interests/ Friendship/
Proximity/ Camaraderie
Introduction

3. Formal Groups
• A More Natural and enduring work group. Formed where people
perform tasks together as part of their job assignments and referred
to as a team. Describe the prescribed lines of communication and
authority

4. Informal Groups
• The focus in the formal organization is a network of personal and
social relations not established or required by the formal
organization but exists spontaneously as people associate with each
other

5. Difference between Formal and Informal
Organizations (John Newstorm and Keith Davis)

6. Potential Advantage and
Disadvantages of Informal
Organizations
1. Makes a more effective total system
2. Lightens work load on management
3. Helps to have work done
4. Tends to encourage cooperation
5. Fills in gaps in a manager’s abilities
6. Gives satisfaction and stability to work groups
7. Improves communication
8. Provides a safety valve for employee emotions
9. Encourages managers to plant and act more carefully

7. Potential Advantage and
Disadvantages of Informal
Organizations
1. Develops undesirable rumors
2. Encourages negative attitudes
3. Resists change
4. Leads to interpersonal and intergroup conflicts
5. Rejects and harasses some employees
6. Weakens motivation and satisfaction
7. Operates outside of management’s control
8. Supports conformity
9. Develops role conflicts

8. Certain Guidelines that management
may need to apply as approach to
Informal Groups
1. Accept and understand the informal organization
2. Identify different levels of attitudes and behavior of
individuals within the group
3. Be aware of the possible effects on informal systems when
taking any kind of decision
4. Integrate as far as possible the prevailing interests of
informal groups with those of the formal system
5. Keep formal activities from unnecessarily threatening the
informal organization

9. COMMITTES

10. COMMITTES
• SIZE
• COMPOSITION
• AGENDAS
• LEADERSHIP ROLES

11. PLANNED APPROACHES
• BRAINSTORMING
• NOMINAL GROUP TECHNIC (PSS)
• DELPHI DECISION MAKING (Expertise)
• DIALECTIC DECISION METHODS
• CONSENSUS

12. Guidelines for Effective Group
Meetings
1. Distribute the agenda and background material in advance
2. Clarify the objective
3. Compose the group appropriately
4. Encourage the expressions of minority viewpoints
5. Separate idea generation from evaluation
6. Make assumtopns explicit
7. Legitimize questions explicit
8. Control irrelevant discussions
9. Test support for decisions
10. End on a positrive note and assign responsibilities