Podcast
Questions and Answers
What is an informal group in an organization?
What is an informal group in an organization?
Which term is used to describe an informal group's susceptibility to underhanded behavior?
Which term is used to describe an informal group's susceptibility to underhanded behavior?
What is the primary disadvantage of an informal group within an organization?
What is the primary disadvantage of an informal group within an organization?
In a functional organization, how are employees grouped together?
In a functional organization, how are employees grouped together?
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Which organizational structure brings together individuals involved with a certain type of product or customer?
Which organizational structure brings together individuals involved with a certain type of product or customer?
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What type of firms are functional organization structures particularly effective for?
What type of firms are functional organization structures particularly effective for?
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In a functional organization, what is a disadvantage related to work specialization?
In a functional organization, what is a disadvantage related to work specialization?
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What is a common issue in functional organizations regarding decision-making?
What is a common issue in functional organizations regarding decision-making?
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Which type of organization structure is suitable for corporations with diverse product lines in related industries?
Which type of organization structure is suitable for corporations with diverse product lines in related industries?
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What is a key advantage of a product or market organization in terms of responsiveness?
What is a key advantage of a product or market organization in terms of responsiveness?
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Why might it be challenging to identify responsibility for problems in a functional organization?
Why might it be challenging to identify responsibility for problems in a functional organization?
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What aspect of work in a functional organization could lead to employee tasks being nonmotivating?
What aspect of work in a functional organization could lead to employee tasks being nonmotivating?
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Study Notes
Informal Groups
- Informal groups are formed spontaneously within an organization, with friendship as a primary reason for membership.
- They are not part of the formal organization and do not have a formal performance purpose.
- Informal groups are vulnerable to expediency, manipulation, and opportunism, and can cause harm to the company due to their low visibility.
Types of Organizational Structures
- Organizations can be classified into three types: functional, product or market, and matrix.
- Functional organization: departmentalization by functional activity, such as engineering or marketing.
- Product or market organization: organization by divisions based on product or customer type.
- Matrix organization: employees report to both functional/division manager and project/group manager.
Functional Organization
- Effective in smaller firms, especially single-business firms with well-defined skills and areas of specialization.
- Advantages:
- Economies of scale and efficient resource use through task grouping.
- Centralized decision-making with unified direction from the top.
- Excellent communication and coordination within departments.
- Promotes high-quality technical problem-solving.
- In-depth skill specialization and development.
- Career progress opportunities within functional departments.
- Disadvantages:
- Poor communication and coordination between departments.
- Delayed decision-making due to top-level involvement.
- Routine, non-motivating tasks due to work specialization.
- Difficulty in identifying responsible sections or groups.
- Limited view of organizational goals by employees.
- Limited general management training for employees.
Product or Market Organization
- Suitable for large corporations with multiple product lines in several related industries.
- Advantages:
- Flexible and responsive to change.
- High concern for customer needs.
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Description
Explore the concept of informal groups in organizations where members form spontaneous friendships. Learn about the characteristics of informal groups and their impact on the formal organization. Understand the challenges of managing informal groups in the workplace.
