Informal groups

E. Schein defined group as: "(...) any number of people who 1) interact with one another 2) are psychologically aware of one another and 3) perceive themselves to be a group". According to the Uwe Bußmann, we can distinguish two types of groups - formal and informal, A. Parikh separates them in this way by position in company. Informal groups have almost the same nature as the formal groups.

An informal group in organization is interconnected social structure affecting how the work is done. People often gather in informal groups when they have common interests, have similar ethnicity or racial origin or they are just friends. Any group that does not belong to a formal organization is called an informal group. However, they do not have to perform tasks and achieve goals as the main reason for existence.

Informal groups are unassigned affiliations of people whose relationships are not determined by formal authority. The purpose of such groups is to realize important values for its members, even if they are contrary to the objectives of formal structures. Relations between members of informal groups are spontaneous and are initiated by the will of the employees themselves. Often, informal groups have more influence in many aspects on the company's activity than formal groups. One of the reasons for the rise of informal groups according to the A. Parikh is "when the group members are located within close distance with each other, and interact more".

Informal groups exist in every organization, regardless of formal structures they fulfill many functions, both positive and negative. The informal group exerts a positive influence on organizations when overlaps with the formal structure, using the value of informally transmitted information. It has a negative effect when informal groups are created between departments or levels in the company's hierarchy. The most important issue is finding ways to use informal groups in formal company structures to increase the company's efficiency.

Functions

The functions and goals of informal groups depend on the place and reasons for which they arise. Some of them may be as follows:

• Satisfying the specific needs of group members.
• Ensuring social affiliation and support.
• Protection against threatening and bullying.
• Transfer of knowledge and information.
• Helping members to find solutions to mutual and personal problems.
• Efforts to increase remuneration.
• Confirmation of your beliefs and values.

Types of Informal Groups

The division into types depends on the reasons for which they are created. The most common types are:

• Interest Group
• Friendship Group
• Reference Group

Characteristics of Informal Groups

As with the function, the characteristics depend on the type and cause of the informal group. Some of the characteristics distinguish between informal and formal groups, such us:

• Using behavioral norms of its members as group principles.
• Members' loyalty concerns each other first, then the company.
• The goals are determined by what the group members feel is right, not what the company objectives.
• The behavior of members towards each other results from their relationship, not their position in the company.
• The group leader is often chosen by his charismatic basis.
• Social needs and security needs are ahead of other needs.
• Informal groups are not as durable as formal groups

Examples of Informal groups

• Friends: Informal groups of friends can range in size from two to a large group. They can be composed of people from different age groups and backgrounds, who share a common bond. This bond can be based on shared interests, values, and goals. Friends typically meet in informal settings, like a local park or cafe, and spend time together doing activities like going to the movies, playing sports, or just talking.
• Family: Families are a type of informal group that is composed of people who are related to each other by blood or marriage. Even if family members live far apart, they still share a bond that connects them. Family members come together during special occasions to celebrate and support one another.
• Study Groups: Study groups are another type of informal group that is composed of people who are studying the same subject or taking the same class. Members of study groups typically meet outside of class to discuss the material and help each other understand the course material.
• Work Teams: Work teams are informal groups of people who come together to complete a specific task or project. These teams are made up of people from different departments and backgrounds who share a common goal. They work together to brainstorm ideas, solve problems, and come up with solutions.
• Hobby Groups: Hobby groups are informal groups of people who come together to pursue a common interest. These groups can be formed for any kind of hobby, from playing a sport to crafting. Members of hobby groups typically meet on a regular basis to share their experiences, help each other learn new skills, and practice their hobby together.

Advantages of Informal groups

Informal groups provide several advantages to its members:

• Increased efficiency: Informal groups can provide a more efficient working environment as compared to formal groups due to their ability to quickly come to decisions and execute them promptly.
• Improved morale: Informal groups can help to improve employee morale by allowing them to work in an environment that is more collaborative and encourages creativity.
• Increased productivity: Informal groups are able to produce better results as they are better able to tap into the collective knowledge and experience of its members.
• Enhanced communication: Informal groups provide a platform for members to openly communicate and share their opinions and ideas. This can lead to better understanding and better decision-making.
• Increased collaboration: Informal groups allow members to work together on the same project and benefit from each other’s expertise. This allows for faster and more effective problem-solving.

Limitations of Informal groups

Informal groups can present some limitations, such as:

• Lack of clear goals and objectives – informal groups often lack a clear purpose, which can lead to a lack of focus and direction.
• Limited resources and expertise – since informal groups are not usually backed by a formal organization, they may lack the resources and expertise to achieve their goals.
• Lack of structure – the lack of formal rules and regulations in informal groups can lead to confusion and a lack of accountability.
• Limited authority – informal groups usually do not have the authority to make decisions or implement policies.
• Limited accountability – without a formal system of accountability, it can be difficult to hold members accountable for their actions.

Other approaches related to Informal groups

In addition to E. Schein's definition of a group, there are other approaches related to informal groups. These include:

• Systems Theory: Systems theory looks at how groups of people interact and how their interactions influence the behavior of the group as a whole. It considers the relationships between the members of the group, how they interact with each other, and how the group's structure affects its performance.
• Network Theory: Network theory examines the connections between members of the group and how these connections form the basis for group behavior and decision-making. It looks at how information and ideas move through the group, and how members of the group contribute to the group's goals and objectives.
• Social Identity Theory: Social identity theory looks at how individual members of a group identify with the group and its values. It examines how group identity is formed, how members of the group interact with each other, and how group identity is maintained.

In summary, in addition to E. Schein's definition of a group, there are other approaches related to informal groups such as systems theory, network theory, and social identity theory. These approaches focus on the interactions between members of the group, how they form the basis for group behavior and decision-making, and how individual members of the group identify with the group and its values.

Footnotes

Informal groups — recommended articles

Advantages of team work — Importance of teamwork — Characteristics of organization — Group norms — Internal motivation — Lewin, Lippitt and White - basic styles of management — Horizontal communication — Oral communication — Ability to work in a team

References

• Agarwal R. D., (1982), Organization and Management, Tata McGraw-Hill Education, New Delhi.
• Bußmann U., (2014), Group Dynamics: The Nature of Groups as well as Dynamics of Informal Groups and Dysfunctions, Anchor Academic Publishing, Hamburg.
• Cole G. A., (2000), Organisational Behaviour: Theory and Practice, Cengage Learning EMEA, London.
• Constantin D. I., (2014), Systemic Approaches to Strategic Management: Examples from the Automotive Industry, IGI Global, Hershey.
• Goyal N, (2010), Industrial Psychology, Krishna Prakashan Media, Meerut.
• Harris O. J., Hartman S. J., (2001), Organizational Behavior, Psychology Press, New York.
• Lee-Ross D., Lashley C., (2012), Organization Behaviour for Leisure Services, Routledge, New York.
• Martin J., (2005), Organizational Behaviour and Management, Cengage Learning EMEA, London.
• Parikh M., Gupta R., (2010), Organisational Behaviour, Tata McGraw-Hill Education, New Delhi.
• Schein E., (1988), Organizational Psychology (Third Edition), Prentice Hall.

Author: Fryderyk Olchawa