Security

Status
Self-esteem
Affiliation
Power
Goal Achievement

Formal and informal groups
Formal
o Officially designated to serve a specific
organizational purpose.
o It is created via formal authority for some defined
purpose.
o A formal group can be a command group or a
functional group that is relatively permanent is
composed of managers and their subordinates
who meet regularly to discuss general and
specific ideas to improve product or service.
2 kinds of formal group
Command group is specified by the organizational
hierarchy, usually outlined on the organization
chart.

Task group is comprised of employees who work
together to complete a specific project or job.

Informal
o Informal groups are groups that are not formed in
response to any organizational requirement and have no
formally defined structure of relationship between
group members.
o Refers to a cluster of people who come together
naturally as a result of having similar interests or
motives. The group usually has a short lifespan and
disbands as soon as their objective is complete.
2 KINDS OF INFORMAL GROUPS
Interest group members have a common interest
in some particular job-related event or possible
outcome.
Friendship group members are drawn together by
common characteristics such as age, ethnicity,
politics, etc.

Difference between formal and
informal groups
1. Origin
formal groups - are created deliberately and consciously in the
organization by the framers of the organization.
informal groups are created because of the operation of socio-
psychological forces at the workplace, that is, people while
working together develop certain liking and disliking for others for
the type of interactions not provided officially.

2. Purpose
formal groups formed to achieve formal organizational goals.
informal groups objective is to achieve social satisfaction
3. Size
formal groups - may be quite large in size.
informal groups - tend to be small in size so as to maintain the group
cohesiveness which is essential for the informal groups to be attractive
for the members concerned.

4. Nature of Groups
formal groups - are stable and may continue for a long period. Their
membership is specified through organizational process.
informal groups - are quite unstable in nature. Since their formation and
functioning depend upon the value systems, general liking and disliking,
and other personality features of the members concerned, they may
disappear very quickly because of the change in the membership or
they may cease to be attractive for the members and the members may
form alternative groups.

5. Number of Groups
Generally the number of informal group is greater than the number of
formal group.
6. Authority
formal group
Granted by the hierarchy of the company to the position
- Is easy to earn (provided the person has the position)
- Can be easily enforced
- Is protected by the company's culture, and thus very hard (sometimes
impossible) to break (this is why everyone tells you to avoid having
conflicts with your manager)

informal group
- Gained
- Is hard to earn
- Can be easily taken away
- Does not enforce itself, instead, employees choose to respect that
authority because they respect the person

7. Behaviour of Members
formal groups - governed by formal rules and regulations.
informal groups - governed by norms, belief, and values of the groups.

8. Communication
formal groups official communication channel. It is vertical in
direction.
informal groups unofficial communication channel. It flows in
horizontal and vertical directions.
9. Abolition
formal groups - can be abolished at any time. Since
these are created by organisational process, these
can be abolished by organisational process also.
informal groups - are difficult to abolish by
organisational process. Any attempt by management
to abolish the informal group may be thwarted by
the members and may lead to the formation of
many more groups.

10. Leadership
formal groups - have authority and certain rights and
privileges that informal leaders lack. Leader wields a
certain power over the group, and has the authority
to discipline and punish errant members. Her
authority gives her an added power: to give rewards
to the group.
informal groups - does not have the ability to take
action against any members of the group, nor is he
able to reward his teammates. He has to rely on
open communication, a shared vision, guidance and
charisma.
11. Status
formal group inhibits free interaction and
socialization.
informal group do not prevent free
interaction among people.