Informal Or Formal Organizational Culture Research Paper (Essay Sample)

Organization culture:
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Introduction to the organization culture:
Organization culture actually consists of the methods and ways which are followed for achieving the desired goals, targets and objectives for the organization. It is therefore an important driver of the success of a business. This is due to the fact the business favorable organization culture actually supports the organization development process. This is achieved by increasing the skills and abilities of the employees such that advanced levels goals and objectives are finally accomplished. The organizational culture is therefore an important driver of the success of a business as it helps in meeting the following targets for the business.
* Increasing trust between employees:
Through the favorable climate developed through organizational culture the trust between the employees can be achieved. The employees can work together for backing each other output. They would thus give their best shot to meet the goals and targets for the organization through collective efforts. Hence trust between the employees created through the organizational structure helps in meeting long term benefits for the organization.
* Improvement in employees output:
The employees who get satisfied through favorable organization culture gives out better output and returns to the organization. These employees consider the goals and targets of the organization as part of their personal targets. Therefore their efforts come in alignment with the organizational goals and hence are achieved in the stipulated time frame.
* Achieving synergy effect:
A synergy effect is finally achieved through which the efforts of the employees bring out high returns and new innovative ideas in action. This way the target achievements become easier and the economies of scales is achieved which confirms the sustenance of the organization in the long run. The targets are achieved on time and the growth process is followed as per the estimates.
Informal or formal organizational culture:
The organizational culture can actually be formed in two forms that are formal and second is informal. The formal form is when a particular course of action is developed which is expected to be followed by all the employees. These formal relations therefore help in deciding the authorities of each employee and gives out a more professional outcome in the business. The formal relations are thus developed in which the employees regard the orders of their senior and work in alignment with their guidelines.
However the informal relations are those relations which are not specified by the company through establishment of particular authorities of different employees. The informal relations between the employees such as senior-subordinates, subordinates-subordinates etc. work together after getting convincing each other. Therefore the informal relations develop wherein the employees start backing the interest of each other informally.
The best organization culture is the mix of formal and informal relations. That is, as per the formal relations developed through organization culture the employees should follow the guidelines and work procedure as specified by the authorities of the company. However through the developed of informal relations along with the formal relations the employees at different levels in the hierarchy in the organization will start giving out decision considering they have to answer their friend circle of lower level hierarchy employees.
However critics are of the view that the informal organization structure ends up with great confusion. Employees try to affect each other decision making and regular working procedures through their personal modes. This way the personal objectives of the employees take over the corporate objectives. Hence the organization interest is left at stake before the personal stake. Therefore the development of the informal relations brings in loss and problems to the organization.
Organization structures and Organization cultures:
Different types of organizational structure actually achieve. These organization cultures can be formed in groups, divisions, teams and leaders as well. The explanation to these can be done as follows.
* Groups:
In some organization culture efforts are made to supports the development of groups in which employees of similar skills and interest come together. This way a group is formed in an organization that actually tries to achieve a particular target or goal for the organization. These groups can be formal as well as informal groups. The formal groups come together as per the guidelines and orders of the authorities. However the informal groups come together with their personal thoughts and views. This way they work for the achievement of particular goals and objectives of the organization.
* Divisions:
Divisions constitute different authorized personnel who come together as per the authority orders. These members of the division have different abilities, skills and interest. They actually form a part of the whole organization set up in a miniature form. Thus the whole organization work is sorted out in these divisions consisting of people of different background and abilities such that the desired outcome is finally achieved.
* Teams:
Teams are actually made in the organization for the achievement of specific goal. These teams work together for achieving common and pre-specified objectives. Team comes together from different backgrounds but they work for backing each other personnel in the group. Hence their goal is to achieve target objective through the joint efforts of the team members. This way teams are mostly formal organizational structure.
* Leaders:
Leaders are people who guide others towards the accomplishment of target goals and objectives. The leaders therefore direct others through convincing them. They actually keep ahead their view point and bring alignment in the efforts of the organization with the company employees. Formal leaders thus try to review the skills of the employees, bring change in them and apply the available resources including human resource towards the accomplishment of company’s priority goals and objectives.
Notion of powers in Organization culture and structure:
The notion of power in the organization culture is essentially a predefined concept that is prefixed by the higher authorities within the organization. The higher authorities consequently produce and fix the powers of the personnel as per their designated level in the organization hierarchy. This way the power as well as responsibilities is settled well in advanced. The authority is mostly designated through formal methods. That is the senior gets higher controls in hand than the junior. However in few cases the notion of power gets stuck with the informal power distribution. This occurs when a person with higher informal ties gets the subsequent informal power to control others. The best method is however formal designation of power as it helps in achieving following benefits.
* It helps in removing the confusion between the employees for the distribution of power.
* It helps in identifying the key personnel responsible for growth or fall of the organization.
* It gives direction for developing a particular course of action by deciding the personnel who will be approached for completing particular target or goal for the organization.
However critics are of the view that the power needs to be well defined and directed by the higher management. Any effort made by the employees at the lower level to manipulate power will result in creating issues and problems. This way distrust will develop within the organization and the chaos like condition will prevail.
Impact on the employees work performance:
Organization culture leaves a huge impact on the employees’ work performance. This includes the followings.
* Increase in employee satisfaction:
The increase in employee satisfaction is observed through the development of a favorable organization structure. The employees start feeling convinced with the value for their efforts they received as Income. Also they consider the company goals and their personal and therefore make efforts their respective achievement.
* Improvement in employee output:
The improvement in the employee output is observed through the efficient organization culture. This is achieved as the other employees start respecting the authorities of each other and therefore does not work as obstacle in their way. This way the pace of work and growth remains consistent and the employees give better performance and thereby better output to the business.
* Deterioration chances of developing aggression or strike like conditions:
An efficient organization culture deteriorates the chances of developing aggression or strike like conditions within the organization. The employees will be convinced with the target goals and the method of working. This way their substantial trust on the company’s ways of working will help in getting their affirmation and thereby the chances of rise of any issue will deteriorate by manifolds.
* Decline in employee turnover:
The decline in the employee turnover can be observed through the development of effective and efficient organization culture. That is on getting convinced with the organization policies and procedures followed in the organization the employees will find themselves in a comfortable position to develop their personal carrier within the organization. Hence the decline in employee turnover can be observed where in very few employees will try to leave jobs.
* Enhancement of employees skills and commitment towards work:
The effective organization culture will help in reviewing the abilities of the employe...