Formal And Informal Structures

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Organizations have existed since the beginning of mankind, not in business and industry only, but in cultures, societies and empires. Any time a group of individuals has been united towards a certain goal or objective for their own benefit, whatever it may be, certain written and unwritten rules come into play. These rules are defined as internal organization, in what has come to be known in modern organizations nowadays as structure. Structures are affected by a number of variables such as how clearly it is defined and publicized and how the individuals fit within that structure. Moreover, how the individual views the organization and its members. An organization structure is a predefined internal hierarchy within the organization that systematizes…show more content…
no organization chart or drawing that identifies the relation between the different departments. Thus, informal structures are invisible and rely on relationships between individuals. This makes them very complicated and ambiguous, as they depend on cohesion and harmony between individuals. In order to maintain such a structure, the owner or CEO would have to consider ethnicity and background when hiring individuals in order to continue and grow the business. However, Formal structures are the opposite, they have clear chart that describes the relation between different departments. Additionally, all roles are clearly defined along with the authority matrix of a certain role. Policies and procedures are put in place to assure that any scenario that the business faces in reality is death with…show more content…
This relation adds a new dimension to the business and is said to be the point of view of the individuals or the employees that work in a given organization. The term used to describe this relation is organization culture. In the words of Schwartz and Davis (1981, p. 32), “Culture is a pattern of beliefs and expectations shared by the organizational members. These beliefs and expectations produce norms that powerfully shape the behavior of individuals and groups within the organization”. Organization Culture as described above, is equally important to the performance of the business as the organization structure is. These two elements are interdependent and shape how internal and external stakeholders view the company. Furthermore, culture affects how tasks are preformed and why. Many new employees often face a dilemma when working in a new company when it comes to performing tasks. Often, the new employee is cautioned if he/she does not preform the task a certain way, although, the new employee performed the task excellently; this is due to the culture in that
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