Required:• Please explain the lesson • Give advantages and disadvantages of informal organization much rigidity orexcessive conformityto rules andregulations thatparalyzes decisionmaking and action inthe organizationInformal OrganizationAn informal organization is defined by the personalrelationships established among employees. Theinteraction of employees is based on friendship andcamaraderie and since there is no formal or bindingrelationship among them, relationships can be dissolvedat any time. The organization is not bound by authorityand responsibility, thus, there is no pressure among the members to meet or follow any set ofrules. Informal structures, however, are not conducive to policies and may oppose regulationsand changes.Both of these organizations serve crucial roles since the formal structure clearly outlinesthe tasks and responsibilities of the employees while the informal structure helps the companydevelop its own corporate culture out of the relationships among employees. These providebalance and promote a smooth flow of operations in the firm in the long run.

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Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter6: Managing Start-Ups And New Ventures

Section: Chapter Questions

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Required: • Please explain the lesson • Give advantages and disadvantages of informal organization