EFFECT OF INFORMAL ORGANIZATION ON THE PERFORMANCE OF FORMAL ORGANIZATION IN NIGERIA
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EFFECT OF INFORMAL ORGANIZATION ON THE PERFORMANCE OF FORMAL ORGANIZATION IN NIGERIA
Chapter one
INTRODUCTION
1.1 Background of the Study.
In any organisation, informal organisation is a word that cannot be overstated; it refers to the voluntary formation of cliques by personnel at all levels of the organisation. This is from top management to employees in their day-to-day operations.
However, Middlemist (1990: 9) defines a formal organisation as a collection of individuals who have developed a coordinated system of specialised activities for the aim of achieving specific goals over a long period of time, even if individual membership may vary. It is also a deliberate method of organising a legal body in order to achieve a unified aim.
As a result, there are some interactions between formal and informal organisations. Informal organisations cannot emerge in a vacuum; they must be preceded by official organisations.
Furthermore, because criticism is one of the variables that contribute to successful organisation, this criticism may be found in the GRAPE VINE, which is the result of informal organisation.
When discussing the effect of informal organisation on formal organisation performance, it identified two side effects. The two side effects can be positive or harmful depending on the goal and the situation at hand.
The necessity to investigate the effect of informal organisation on the performance of formal organisation originated from various organisational issues and discipline
which invariably result in organisational drawback. As a result, this aspect must be prioritised in every formal organisation in order for the organization’s activities to run smoothly.
The manager of the formal organisation should also consider the GRAPE VINE information because it may provide a better basis for determining whether there is an informal organisation within the formal organisation and whether it is possible or not, and then a solution can be provided.
Also, this informal organisation contributes significantly to the development of the formal organisation since, as in the instance of GRAPE VINE, information may be inspired from there and sound very fascinating to the manager without understanding the source of the information.
First, it can be tested and practiced. For example, if a manager learns from the air that if employees are not paid by the end of the month, there will be a walkout against management, resulting in bad or low production.
The management would now consider it appropriate incentives. When this is done to the workers, it is the responsibility of an informal organisation to shift the people’s and the organization’s will from negative to positive at that point.
1.2 Statement of Problem
Successful managers or supervisors must be able to analyse and grasp the nature and group forces of employees’ self-interest, as well as combine them with those of formal organisation.
The performance of the formal organisation is denoted by two side effects, positive or bad, depending on the goal and situation at hand.
Informal and formal organisations both have a purpose in respect to employee work, achieving corporate goals, and meeting worker requirements.
The purpose of this study is to investigate the impact of informal organisation on the formal organization’s output, morale, and communication.
1.3 Objectives of the Study
To investigate the effect of employees’ self-interest in informal organisations on formal organisation production.
To investigate the impact of employees’ self-interest in informal organisations on formal organisational communication.
To investigate the impact of employee self-interest in informal organisations on formal organisation morale.
1.4 Research Question.
How does employees’ self-interest in informal organisations affect the production of formal organisations?
How does employee self-interest in informal organisations influence formal organisation communication?
How does the self-interest of employees in informal organisations affect the morale of formal organisations?
1.5 Significance of the Study
This research study on the effect of informal organisation on formal organisation performance is critical for managers to implement efficient and effective control mechanisms while dealing with administrative challenges and problems. It would assist managers in assessing the risk of ignoring lower-level personalities in the organisation.
It will assist government agencies in developing policies related to the rise of informal organisations, and students of tertiary institutions and other researchers who wish to do research will find this study beneficial as a reference.
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