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Orgaanisationnal culture in bussiness

Thee inforrmal oorganissationn and iits

relaationship with thee formaal organisattion

3.1 Thhe informal organissation

The informal organisation is the network off relationshhips that exxist
within an organnisation. TThis netwoork evolvess over time e and tendss to
arisee through ccommon innterests annd friendships betweeen membeers of
stafff. These reelationshipss are oftenn across divvisions. Ann informal
orgaanisation wwill be preseent to somme degree wwithin all foormal
orgaanisations.

The advantages aand disadvvantages oof informal organisatioon are:

 Advanttages D Disadvantaages

 better motivation   inefficcient organnisations

 better commmunication   oppossition to change can be
intenssified
I  provision oof social coontrol
  the ‘grapevine eeffect’, wheere

potentially inacccurate
informmation or ruumours spread

througgh the inforrmal
organisation

  conformity

The infformal orgaanisation ccan either eenhance or hold backk the businness.

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