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Disadvantages of Informal Organisation
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- Using Ownership
| Disadvantages of Informal Organisation (a) The leader of an informal organisation may turnout to be a troublemaker in the organisation. In order to increase his influence, he may work against the policies of management, and try to manipulate the behaviour of his followers. b) Informal groups generally tend to resist change. Change requires new skills but informal groups want to maintain the status quo. This creates obstructions in implementing new ideas, and thus organisation's growth. c) Informal communication may give rise to rumours which may create conflict and misunderstanding among employees. Rumours may prove very dangerous for the organisation. d) Every member of the informal group is also a member of the formal. Sometimes, role conflict may arise because expectations and requirements of the formal organisation may conflict with those of the informal organisation. e) The informal group exerts strong pressure on its members for conformity. The members may become so loyal to their group that the group norms may become apart of their life. 142 B) Using Ownership Organisations can be classified into private sector organisation and public sector organisation. This distinction is based on ownership classification. The Private sector organisations are owned and financed by individuals. The main reason for their effort is purely commercial in nature such that they can earn profit, have good return on capital employed, increased market share position. The public sector organisations, on the other hand, are owned and financed by government, i.e., federal, state or local government or other government agencies. They are created t provide some essential services to the generality of the public and not principally to make profit. Profits generated from such activities are either ploughed back to the organisation to improve services or sued to setup another organisation which provides services for the wellbeing of the public. Cb Authority Based Organisations Cole (1996) noted that, Weber (1949), distinguished three types of authority which are traditions, charismatic and rations – legal. These three types of authority is differentiated based on the form of control regarded as legitimate by subordinates and their acceptance of the power of superiors. Weber felt that the concept of authority has to be distinguished from that of power. Download 3.37 Mb. Share with your friends:
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