An informal group of friends. Image credit huffingtonpost.com
ZIMSEC O Level Business Studies Notes: Informal and Formal groups
- Businesses are formal groups which are created to perform an economic activity and achieve set objectives which may include profit, growth, provision of essential services etc.
- Informal groups can emerge within these formal organisations
- Informal groups- are networks of personal and social relationships that arise spontaneously in order to meet the needs of their members
- Informal groups can also be known as informal organisations
- An example is when workmates meet as friends for a drink outside work
- The behavior and conduct of the members is governed by the group via norms
- Norms refer to what is considered to be normal and acceptable behavior
- Members who fail to follow set norms within the group face penalties such as isolation
- Formal groups-these are deliberately planned structures of roles within the organisation
- They are official, planned and deliberately created to achieve set goals
- They are also known as formal organisations
- Below is a table with a list of some of the differences between formal and informal groups
| Formal Group | Informal Group |
|---|---|
| They are planned and official | Arise spontaneously |
| Are assigned to carry out particular tasks within the organisation | Arise voluntarily to satisfy the needs of the members |
| Has formal rules and regulations which might include a code of conduct | Rules are informal and come from the members themselves |
| The leader is elected or appointed officially | The leader emerges spontaneously as the workers socialise usually because the leader is charismatic |
| Appear on the organisational chart | Do not appear on the organisational chart |
To access more topics go to the O Level Business Notes page
