The Informal Organization of Business in Malabon:
A Research Paper
Presented to the Faculty
Of Senior High School Department,
Malabon National High School
Dela Rosa, Clarisse S.
Hernandez, Audrey S.
Laderas, Lorie Jane D.
Navarro, Lloyd Raphael R.
Sedilla, Alexis T.
Organization is a social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems, they affect and are effected by their environment. There are two categories of organization: the formal organization and the informal organization. Formal organization is exemplified by a group of people with consciously coordinated activities towards a common process, while the informal organization is formed when the needs of the people constituting it are not being met by the formal structure.
This study aims to understand the different effects of informal organization in managing a business. There are many variables that can form an informal organization in a company and those are friendship, common interest, proximity, needs satisfaction, collective power, and group goals.
According to the book, Management Theory and Practice by Martinez, Abasolo, and Carlos (1983),