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Free Management Dissertations - Describe The Features Of Both Formal And Informal Groups. Provide Relevant

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Describe the features of both formal and informal groups. Provide relevant examples.

Collectively, groups of people accomplish far more than individuals; the standard of living that we experience is improved by tackling problems together We are heavily dependant on others, we are social animals, and there is a strong need for collective and organised activity. Organisations fulfil our social, cultural, political and physical environment (Mullins, L. 2005).
Formal groups are formed as part of the organisational structure, by managers to organise and delegate the work load. Informal groups are formed by personal preferences, and satisfy psychological and social needs (Mullins, L. 2005). The study of individuals of an organisation cannot be studied in isolation, all interactions and variables within the structure of the organisation need constantly reviewing. Buchanan D. and Huczynski, A. (1991) added that organisations are social arrangements for the controlled performance of collective goals (Buchanan, D. and Huczynski, A. 1991:7).
Wenger and Snyder (2000) followed studies into how people share information through being a member of a formal or informal group. Wenger defined these groups as communities of practice, and they will develop around issues that matter to employees. Groups of people informally bound together by shared expertise and passion for joint enterprises Some meet regularly Others are connected primarily by e-mail networks. These groups may or may not have an explicit agenda on a given week, and even if it does, it may not follow the agenda closely (Wenger E and Snyder 2000139).
Formal groups are created to achieve organisational objectives; this is achieved through co-ordinating the work load. Individuals are brought together by defining their role within the organisations structure. The nature of the tasks is predominant to the group; this formal structure reinforces the organisation’s culture and control systems (Greenberg, J and Baron, R. 2003). When there is a business need for a specific task to be completed, groups can be formed to accomplish this. These groups can have a time limit placed on them from the start (Mullins, L. 2005).
A lack of official information will quickly reveal informal groups within an organisation. The grape vine will pass information swiftly through the organisation. This cuts through the organisation’s structure ignoring the formal channels of communication. The group members are spread across departments; they might be friends who do lunch, or smokers who meet out side the building. This net working is informal, and can benefit the individual member; each group has its own culture. These groups are cross sectional, and are formed without any involvement from the formal structure (Mullins, L. 2005).
List the key individual differences that exist and state why it is necessary for managers to have an understanding of them.


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