Informal and formal organizations: the concept, goals and objectives

The economy is made up of the actions of various economic agents. Informal and formal organizations form the backbone of the economic system. They can have a different structure, diverse goals and objectives, but their main purpose is to carry out production and entrepreneurial activities.

Concept of organization

Representations about the organization are formed at the intersection of such disciplines as economics and management. It also refers to a process in which a system is created and managed, and a set of certain interactions of different systems and groups in the course of joint work, and the unification of people for the realization of any tasks. Traditionally, three historically formed varieties of organizations are distinguished: community, corporation and association. Depending on the principle of internal structure, there are informal and formal organizations. But in any case they are groups of people united by common goals and objectives. The main feature of the organization is the presence of several people who work together, pursuing the achievement of a socially significant, unified goal. Organizations differ in complexity of structure and in a large number of varieties.

Structure of the organization

The complexity of studying organizations is that they are distinguished by an extremely diverse structure. It is a complex, interconnected system of elements with different functions and structure. The structure of the organization is subordinated to the internal logic of production processes, it reflects the functional specifics of the enterprise and is designed to contribute to the most effective solution of economic and economic problems.

Traditionally, the structure of an organization is seen as an element of management. The organizational structure in management is determined by the tasks and activities of the company being solved, the economic factor affects it - a rational organizational structure allows to reduce costs. Also, the organizational structure is formed under the influence of such factors as the form of organization management, the degree of centralization of individual functional units, the principles of the division of labor, the external environment, the ways of employee relations, management strategy.

The structure of the organization contributes to the efficiency and efficiency of the adoption of critical production and management decisions. The organizational structure should be flexible, but stable, in order to increase the company's competitiveness in the market.

Types of organization structures

To study the structure of the organization there are several approaches. In the technical aspect, the structure of an organization is a system of material objects and processes that are the basis for the implementation of all processes. The technical structure provides the basis for functional connections between personnel, affects the content and nature of work, determines the type of personal and working relationships between employees and affects the social structure of the organization.

The social structure of the organization embraces interpersonal and intergroup interactions and extends to goals, values, power. The social structure is formed under the influence of several factors: leadership potential, its ability to build strategy and relationships, authority, professionalism, moral and psychological climate in the team, the creative and professional potential of employees, their initiative, ability and desire to look for non-standard ways of solving production problems.

The third component of the structure of the organization is socio-technical, this structure consists of spatial ways of uniting employees within their workplaces, ensuring their interrelations.

The organizational structure of the company in management is divided into hierarchical and adhocratic. In turn, hierarchical structures are divided into linear, functional, linear-functional, divisional and others. And organic are divided into matrix, design and brigade.

Hierarchical structures are a usual type of organization, they evolved gradually during the evolution of management. The linear organizational structure is simple and typical for enterprises with a simple production cycle. In such organizations, all the cycles are combined under the head of the head, who in turn reports to the higher-level managers. The head of the division takes full responsibility for the work of his department. The advantage of such a structure is the visible effectiveness of each unit and its manager, a well-established system of mutual subordination and distribution of functions, clear responsibility areas for managers of each link. The disadvantages of such organizational structures are the complexity of the overall strategic management of the divisions, each of which accomplishes its tasks, but is poorly involved in the implementation of strategic plans, weak flexibility and response to external and internal changes, a high degree of dependence of results on managerial professionalism. Functional organizational structure differs from linear organizational units, it is created based on the tasks to be performed. In such organizations, there is often a cross-over of the same executor, which greatly complicates the management. Linear and functional structures are past management methods of organizations, since they do not meet modern management requirements.

Linear-functional structure combines the two previous types, in this case, line managers rely on the activities of functional units. Such structures are convenient for the same type of production processes with a staff of no more than 3000 people. A more modern type of such structure is the linear-staff organization, in which for each type of activity a headquarters is created, which helps the manager to solve the main tasks. Divisional structures are characteristic of large companies with a complex production cycle. The division is a separate production unit headed by a manager who is fully responsible for the work of his team. Divisions can be allocated on a regional basis (this is an understandable branch system) or on a product. Hierarchical organizational structures have a stability, but a low degree of flexibility under the influence of a changing environment. Often in such structures there is a long decision-making time, bureaucratic barriers.

Organic structures are designed to remove the shortcomings of the hierarchy, they are created for specific situations and quickly respond to all changes, adaptability - that is their main difference and advantage. The brigade structure is distinguished by horizontal involvement of employees in working groups. The advantage of such structures is the effective use of the potential of employees, the speed of decision-making, but there are also complexities that are the complexity of coordination of all teams and the achievement of strategic goals. Similarly, there is a project structure in which a working group is selected to perform a specific task. A matrix or program-target structure consists of two kinds of elements: functional services and projects or programs. There is a double subordination in them, and this is the lack of such organizations. But the advantage is the efficiency of management, efficiency, high productivity, interaction of current tasks with the development strategy.

Also, the structure of the organization is divided into formal and informal. The formal is the structure that is fixed in any documents, the informal structure is the spontaneously formed relationships of employees and their division into groups within the collective. The basic informal structure is social relations. Informal groups arise spontaneously, when necessity arises, therefore they have a mobile and adaptive structure. Depending on the situation, the distribution of powers and functions in such groups can easily change.

Goals and objectives of the organization

Informal and formal organizations are created in the name of certain goals, and they determine the type and structure of the company. It is well known that the organization is distinguished by the presence of complex and diverse purposes, they include:

• Strategic goals. Setting global, long-term goals of the company is an important part of the activity of top management. Such goals include the company's position in the market, its image, important production and commercial indicators in the future growth.
• Tactical goals. The way to achieve global goals is always through achieving short-term goals. This type of objectives includes current and operational tasks, which necessarily fit into the overall strategic direction of development.
• Economic goals. Any organization sets itself commercial goals for profit, they must necessarily be expressed in a digital sense: in the amounts and time of achievement.
• Production goals. The development of the company is impossible without modernization and improvement of production. Purchase of equipment, development of technologies, search for new areas of implementation - all this fits into the production strategy.
• Social goals. Creating favorable conditions for work, forming a corporate culture, influencing the society and culture - all this is also an important part of the organization's activities.

The purpose of a formal organization is usually enshrined in the statute and is ideological and motivational, it must be related to the mission of the company. The goals of informal groups are usually not recorded in writing and appear in the form of shared values and interests. The organization builds all goals in order of importance and, basing on them, formulates strategy and tactics of work.

Characteristics and attributes of the organization

Despite the significant differences between organizations, they are united by the characteristics inherent in any of them. The most important characteristic of an organization is the existence of a goal that is close to all its participants.

An important characteristic of a formal organization is its legal status and isolation. The organization must have an officially fixed form of management, which ensures its special status. Separation also manifests itself in the isolation of production and managerial internal processes that create a boundary between the organization and the outside world. The next sign of the organization is the indispensable availability of resources: human, financial, material, state organizations can have power as a resource. The organization has such a characteristic as self-regulation, it has its own area of responsibility and makes basic decisions on its own. But while it remains dependent on the external environment, which affects its activities. An important feature is the presence of an organizational culture that exists in the form of corporate norms, traditions, rituals, myths.

Signs of formal organizations

In addition to general characteristics, the characteristic of a formal organization has its own distinctive features. The first of such signs is the availability of a set of documents regulating its activities: instructions, statutes, laws, regulations, prescribe to it a certain order of actions in different situations. Thus, its activities were initially formalized. The formal structure of the organization includes informal groups, but its formal components always remain dominant. Thus, a formal organization is always broader and more informal.

Symptoms of Informal Organizations

The unique characteristics of informal organizations distinguish it from its antipode. Such characteristics include:

• The presence of public control. Informal organizations are under the vigilant control of their members and the external environment, in order to identify approved and disapproved behavior. Members of informal groups are prescribed certain behavioral models, for the deviation from the norms and rules of a group member, there is a censure or even an exception from the group.
• Obstruction of change. Another sign of informal groups is the internal resistance to change, the group seeks self-preservation and views change as a threat to its existence.
• Presence of informal leaders. The most important characteristic of such groups is the presence of informal leaders. A group leader is a structuring element of such organizations, it delegates certain rights and responsibilities, and it has the confidence and recognition of the members of the group.

Types of organizations

In addition to the fact that there are formal and informal organizations, it is also possible to select other types. They can be classified by industry: trade, manufacturing, intermediary, service, etc. The legal status of the organization can be divided into commercial and non-commercial. By volume of production it is possible to single out small, medium and large organizations. The main classifications refer primarily to formal organizations, but some species may exist in the informal group.

Internal environment of the organization

An important feature of the organization is the presence of its internal environment. Traditionally, it includes goals, tasks, organizational structure, human resources and technologies. The internal environment is a mobile structure, since it strongly depends on the situation. The system of formal organization consists of groups created by management, in their activity they are guided by the norms and rules set forth in the documents. In this aspect, the internal environment is usually spoken of as an element of the corporate culture of the organization. The formal group may be subject to change, but the manager is the initiator. Informal groups are also part of the internal environment, but their activities are less predetermined and regulated. Here an important role is played by communications, sympathies and relationships, what is called the psychological climate of the working group.

Formal and informal groups in the structure of the organization

The complex structure of organizations, especially large ones, involves the allocation within small working groups for the solution of various tasks. They can be formal and informal. The role of formal groups is to solve production and economic tasks as directed by management. Such groups are created for the time of carrying out any work, for example, to create a project. Their activities are regulated by documents, for example, orders that allocate powers and set tasks. But in large companies, informal organizations are also spontaneously created. Examples of such associations can be found at any enterprise. They are formed spontaneously on the basis of personal sympathies and interests. They also play an important role in the organization, as they unite the collective, form and maintain the climate in the organization, contribute to the improvement of the corporate culture.

The concept and role of the group leader

Informal and formal organizations in their functioning rely on leaders. The concept of a leader assumes that this person has special psychological characteristics and qualities. A leader is a person who has the confidence of a group, he must have authority. If formal groups have an officially appointed leader who is not a leader, then in informal groups there is always a leader who is nominated for this role due to his personal qualities. The leader of the groups unites people and motivates them to commit any actions, he does not need to exert pressure on them, because the employees voluntarily delegated authority to him. Modern management recommends the management of leadership, relying on their authoritative resource in groups.

Management of formal organization

Management of a formal organization is built on traditional management functions: planning, organization, control, motivation and coordination. In such organizations, the division of labor is the defining one, which gives each employee a place in the production chain. State organizations, for example, work on the basis of job descriptions, which very clearly prescribe the scope of work, authority, rights and duties of various employees. In such collectives, the role of management is extremely high, since performers do not have to make decisions, they are not supposed to do it by instruction. A formal group needs a leader who would be empowered to take responsibility. The management of a formal organization is determined by its structure, goals, sphere of activity, fakotrami of the internal and external environment.

Management of an informal group

Informal social organization presupposes a certain freedom, the hierarchy of power is uncharacteristic, the main thing here is social ties and relations. Management of such a group is carried out in several directions at once, horizontally, from below upwards and from top to bottom. Management of an informal organization can be carried out by formal leaders, but more often the reins of government are given to informal leaders who have authority over the group. In such organizations, you can not use the usual management tools in the form of instructions and orders, more often guidance is exercised through psychological methods of influence and influence. Management of an informal group depends on the cohesion and size of the group, status and composition.