Objectives of Informal Organization
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Workers have formal relations with higher officials but maintain informal relations with their fellow workers. Human relations approach encourages them to form informal groups and work for the organisation. Different schools of management also help managers to organize the process of production more effectively and successfully. The most important of them are scientific management and human relations approach.
An informal organization is a structure that does not have an official position. It is a small group where members spontaneously form and develop personal, primary or face-to-face relationships with each other. These structures develop within formal organizations. For many reasons, individuals come in contact with each other, work or have lunch together and during these meetings they develop close and intimate relationships such groups provide satisfaction to the members, encourage them to follow. For they have their own criteria, different position and style of working.
In fact, no business can be run completely ‘by the books’. In a real business setting, the relationships that actually exist between employees do not follow formal rules, employees in one department know employees in another department, meet
Regularly. They can also plot their future activities. Informal organizations exist within the confines of a formal authority structure. Informal organization consists of a group of people who spontaneously associate with each other for various purposes of mutual benefit and achievement. It is a primary source of information and for furthering social relations. It provides useful information and knowledge to the members. It also serves as a source of protection against threatening oppressive forces. It helps the members to find solutions to mutual and personal problems.
Such groups protect the members from the cold formal impersonal and indifferent atmosphere of the formal organisation. Members feel that they are human beings and are being treated as such by their fellow employees. Such grouping also helps the members to attain a sense of fulfillment and satisfaction in life.
The interactions that take place informally are neither determined by the formal structure nor can they be fully controlled by the formal authority. Informal groups sometimes act in support of formal goals and objectives, but they are equally capable of opposing formal guidelines. Informal group studies indicate that members often overwork. Members feel united and perform their roles with greater efficiency. The informal structure helps them to lighten the workload, forget the bitter experiences and support if the management takes action against them. Members of the primary face-to-face relationship can express their feelings with our fears, share their joys and sorrows with others, and discuss their problems.
Individual members are given full recognition; Many times he is praised by his friends for his extraordinary achievements.
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John Newstrom and Keith Davis have also emphasized that informal groups provide satisfaction and stability to the members. Members also feel a sense of belonging to each other and gain a sense of security and confidence.
Peter Blau, in his study of informal relationships, emphasizes that within a formal and large organization a close and intimate group emerges, clearly contrary to or against dominant norms, to be more efficient for the benefit of management. works in a way. In a study by the Income Tax Department, officers spoke individually and independently to their colleagues rather than consulting their chiefs. This not only gave them a kind of confidence and efficiency in their work, but also developed closer and closer relationships within them. Such primary groups can face the situation and solve the problems with more confidence and competence. Workers also receive support and mutual sympathy.
Scientific management, the major school of thought within this tradition, will now be considered in Human Relations.
scientific management principles
The principle of scientific management was first elaborated by Frederick Taylor, in whose book – The Principles of Scientific Man
The Management was published in America in 1911. The turn of the century in the United States was a time of rapid industrial expansion. Compared to today, the organization of work on the shop floor was left very much in the hands of workers and foremen. Men often bought their own equipment to suit their personal preferences and decisions about the speed of the machines were often left to the operator. Separate foremen used to hire and fire, Taylor argued that such a system was disorganized and inefficient. In their place, he suggested the following scheme of scientific management which he claimed would maximize productivity.
According to Taylor, copy has ‘one best way’
Formation of a work. It is the job of management to make such discoveries by applying scientific principles to the design of work processes. For example, different equipment should be tested to find the most efficient one for the job, periods of varying length and frequency should be tried to find a balance between rest and productivity, and the different movements involved in the task be evaluated. should be those which take the least time and produce minimum fatigue. Experimenting with different task designs will lead to finding the most efficient way to perform a particular task with this approach. Taylor laid the foundation for time and motion studies.
According to Taylor the following principles should be followed:
1) Worker Selection – Workers with low intelligence are best suited for simple repetitive work. Suitable workers should be selected to increase productivity. After selection they should be trained to perform as per the instructions.
2) Increase in monetary incentive- According to Taylor, if workers are given increase in wages then they will work more. For them the primary motive of every worker is money. Workers should be paid more according to the output of goods. If they are producing more then special incentives should be given. In practice, this usually includes salary in the center scheme on the basis of piece work – payment according to the work done.
4) Time and motion study – According to Taylor, working conditions should be improved. Better lighting, ventilation, regular supply of drinking water, sanitary arrangements, cleanliness etc. will definitely increase the productivity, increase interest in work of the workers; They would love to do more.
Taylor believed that the scientific planning of work tasks, the systematic planning and selection of suitable workers for the performance of those tasks, as well as a correct and sustainable system of financial incentives would maximize productivity. Taylor saw scientific management as the solution to many problems in industry. Firstly, it will increase both the quantity and quality of the product. Secondly, it promised to end conflicts between employers and employees. Since employees are concerned with higher profits and workers with higher wages. They share an interest in increasing productivity. Increased productivity reduces labor costs and results in higher profits which in turn allow for higher wages.
Telarian includes the following main features:
1) As Taylor observed, workers do not work with enthusiasm. They are also unable to concentrate themselves, so attention is always detached. While further studying the motions involved in the work and the time required to do them, Taylor realized that the inefficiency and dispersal of workers could be eliminated. He suggested that most operations involving body movements which are pointless should be avoided. He claimed that this could save both time and energy. Workers can match their motions with machines and become more efficient. They do more work in less time.
2) According to the scientific theory of management, workers are rational economic beings. Usually they work for money. So if money is given as an incentive, they would prefer to work more. Their performance should be linked to payment, this is called piece meal payment i.e. payment according to the products produced. The interest of employed people can increase in their work. This can increase productivity. If employees work more, they should be paid more.
3) Taylor and his colleagues further observed that workers cannot work for long hours if the working conditions are uncomfortable, unhealthy or lack of adequate ventilation and light, so if there is sufficient light, fresh and clean environment the workers always will do more work. The working conditions should be pleasant encouraging and comfortable for the workers to work.
There is a theory suggesting an increase in management efficiency. This is called administrative design principle. It is part of the classical management school.
Henry Ford and others focused their attention on the problems of administration at the management level. According to him the whole process of management can be divided into a number of processes based on scientific principles. For example 1) Planning 2) Departmentalization based on division of labor and specialization 3) Co-ordination of different departments 4) Delegation and sub-delegation of authority 5) Communication.
According to industrial psychologists, if management follows these basic principles
If one follows the guidelines and takes decisions on scientific basis then definitely there will be increase in productivity, the whole administrative process will be more systematic, rational and there will be no conflicts.
Taylorism Theory E.D. was developed by Brandeis, N. Ale. Gant, F.B. Gilbreth and others. White administrative theory was proposed by Marie Fayol, it was later developed by Gully
CK, Mavic, Mary Parker, and others-
Although the use of scientific management has increased productivity, Harry Braverman has decried the theory as a means of greater exploitation of workers. For him it has strengthened the dominance of capital over labour. He claims that the theory has been adopted as a means of controlling alienated labor and that it is part of a process whereby workers are increasingly transformed into ‘instruments of capital’, workers become cogs in machines , are inhumanly controlled by the instructions of the management. For Braverman, the theory has resulted in greater exploitation of workers at the hands of management in the name of increasing efficiency.
Taylor’s two assumptions were rejected outright. The first is that workers are ‘economic men’ and they only go for the money, which is wrong. Second, seeing workers as individuals rather than as members of social groups, Taylor failed to see them as human social beings with their own desires, ambitions, emotions and different abilities and their desire to form primary relationships with fellow workers. .
As a result a new approach came into existence to study the behavior of the individual worker at the work place.
human relations approach
Many of the central ideas of human relations developed from an investigation at the Western Electric Company’s Hawthorne plant in Chicago. From 1927 to 1932, a team headed by Harvard Business School professor Elton Mayo conducted a series of experiments designed to study . The relationship between working conditions and productivity. Mayo began with the assumptions of scientific management, believing that the physical condition of the work environment, the qualifications of the worker, and financial incentives were the main determinants, he found that there was no consistent relationship between improving working relations and productivity, Rest period and productivity Financial incentives and productivity.
Mayo then studied workers’ attitudes towards work and then behavior as members of informal work groups. Both sides of Mayo’s research can be seen from the following study. Fourteen men were placed in an observation setting known as the Bank Wiring Observation Room. There were nine wiremen who connected the wires to the terminals. Three soldermen, each of whom soldered the work of three wiremen, and two inspectors who tested the completed work. The quality and quantity of the men’s output was carefully measured. The wages of the men were based on the piece meal job i.e. on the basis of the day’s work done by the group. The more groups produced above a certain level, the more money each worker received.
But in reality each worker limited his output in order to maintain a uniform weekly rate of output for the group. The researchers found that workers had established a norm that defined a fair number of days’ work and that this norm determined their output, rather than standards set by management. There were clear differences in the level of their production. This can only be explained by the inter personal relationships within the work group. One group insisted that workers should not produce too much while the other insisted that they should not produce too little. Largely as a result of these parameters, the wireman’s output differed in the two groups.
The Hawthorne studies shifted the emphasis from the individual worker to the worker as a member of a social group. They viewed her behavior as a response to group norms rather than being guided solely by economic incentives and action plans drawn up by management. According to Roethlisberger and Dixon, group members set a norm among themselves for a daily quota and strictly adhered to the norm.
No worker was allowed to work more or less than the standard set by the group. If a wireman wanted to do more work, he was insulted or even criticized by other members by calling him a ratter buster. This light restriction did not allow wiremen to overwork as a group and stop early or they met their quota set by the group. Thus the light restrictions of the group did not allow the wiremen to overwork and stop early or they met their quota set by the group. Thus they succumbed to pressure from a group that had stronger financial incentives.
From the Hawthorne study, and the research that he largely inspired, developed the Human Relations School. It said that the scientific management principle of financial incentives did not motivate workers adequately. On the contrary, other needs of the workers have to be taken into account.
Social needs such as the need for friendship, the need to belong, group support, recognition and status and the need for ‘self-actualization’ which includes the development of the individual’s talents, creativity and personality.
Social needs such as the need for friendship, the need to belong, group support, recognition and status and the need for ‘self-actualization’ which includes the development of the individual’s talents, creativity and personality.
सामाजिक ज़रूरतें जैसे दोस्ती की ज़रूरत, संबंधित होने की ज़रूरत, समूह समर्थन, मान्यता और स्थिति और ‘आत्म-वास्तविकता‘ की आवश्यकता जिसमें व्यक्ति की प्रतिभा, रचनात्मकता और व्यक्तित्व का विकास शामिल है।
Social needs such as friendship, the need to belong, group support, recognition and status and the need for ‘self-actualization’ which includes the development of the individual’s talents, creativity and personality.
सामाजिक ज़रूरतें जैसे दोस्ती, संबंधित होने की ज़रूरत, समूह समर्थन, मान्यता और स्थिति और ‘आत्म-वास्तविकता‘ की आवश्यकता जिसमें व्यक्ति की प्रतिभा, रचनात्मकता और व्यक्तित्व का विकास शामिल है।
Till completion These needs must be met if productivity is to be increased in real terms. only with ‘pay’
rsonal satisfaction can be secured. Management should cooperate with the norms of informal groups so that better feedback can be obtained from the workers and confirmed. In most cases the norms set by the group were more than the quota set by the management so if the management encourages and supports the formation of such informal groups, it will always be beneficial. If employees are invited to participate in the key decision-making process, they will be more interested and committed to work. In ways that make informal groups more involved within the organization, organizational goals can certainly be expected to be met.
It is assured that there will be no conflict of interest between the management and the workers. If there is such a situation, it will be due to non-satisfaction of the needs of the workers. By reorganizing social relations within the organization, according to human relations theory, conflict can be removed and both groups can live in peace.
But the human relations school has also been criticized that it does not look at other factors beyond the factory premises that determine workers’ behavior such as the workers’ job conditions, the culture of the group of workers to which they belong, and the lives of workers. Or their own definitions of work.
Initially, human relations studies focused on employee satisfaction and established a direct link between morale and productivity. The later behavioral science approach, through its objective and scientific research of individual behavior and motivation, indicated that the relationship between morale and productivity was oversimplified. The Behavioral Science Movement Was Another Refinement on Human Relations
Movement and it covers such a wide range of interpersonal roles and relationships.
Informal networks can develop at all levels of the organization. At the top level, personal ties and relationships may be more important than in the formal organization in which decisions are made. Some directors, with their personal relationships, get their decisions or policies approved by other members, thus sometimes dominating the entire structure.
Businessmen often meet in informal gatherings and decide major policies. They may also informally lead other corporations. Supervisors and workers also develop informal relationships. Many informal tasks are performed by them. This can be explained by the tendency to seek flexibility in formal rules. For those in less lucrative jobs, informal ways of working provide greater satisfaction. Informal relations among the executives at the higher level help in organizing the work more effectively as they feel more satisfied and try to achieve the goal of the organization together. Most importantly, they blend in with the look! system for creating an effective social order.
- Informal organization helps by cooperating with the management.
- Informal organization provides satisfaction and stability to work groups. It is the means by which workers feel a sense of belongingness and security and hence satisfaction increases and turnover decreases.
- In an informal group an ordinary worker can achieve some status which he would never get in a formal structure by unusual abilities like singing, talking, joking etc. He is respected and admired by his colleagues. He feels happy and can do better work. The worker also gets information about what is happening around because of his informal relations. their intimate personal relationships. Their close personal relationships with others provide them with security.
The Hawthorne experiments conducted by Elton Mayo confirmed that in an informal group, members express their feelings and frustrations, thus freeing themselves from tension and stress. The informal group becomes more powerful. Management will have to act with caution and care. They have to plan very minutely and thoroughly to discuss each and every point with the group. The members develop solidarity and harmony among themselves. They strictly follow the norms, thus supporting the group. This often helps to increase productivity in general.
Many of the central ideas of human relations developed from an investigation at the Western Electric Company’s Hawthorne plant in Chicago from 1027 to 1932. A team headed by Elton Mayo, a professor at the Harvard Business School, conducted a series designed to study relations. conducted as an experiment. Between working conditions and productivity Mayo began with the notion of scientific management, holding that the physical conditions of the working environment, worker’s qualifications and financial incentives were the main determinants of productivity. But during the experiments he
found no consistent relationship between better working relationships and productivity
and productivity or financial incentives and productivity.
Mayo then studied workers’ attitudes towards work and their behavior as members of informal work groups. Mayo’s research has two aspects as can be seen from the following study. “Fourteen men were placed in an observation setting known as the bank writing observation room. Nine were wire men who attached wire to wiremen and two were inspectors who tested completed work. Quality and quantity were measured. “.
The wages of the men were based on the piece meal job i.e. on the basis of the day’s work done by the group. The more the group produces above a certain level, the more money each worker receives. But in reality each worker limited his output in order to maintain a uniform weekly rate of output for the group. The researcher found that workers had established shed norms that defined a fair day’s work and that their output was determined, rather than by a standard set by management. This can only be explained in terms of interpersonal relationships within the workgroup. One group insisted that the other group should not produce much less instead. Largely as a result of these parameters, the wireman’s output differed in the two groups.
The Hawthorne studies shifted the emphasis from the individual worker to the worker as a member of a social group. They viewed her behavior as a response to group norms rather than being guided solely by economic incentives and action plans drawn up by management. According to Roethlisberger and Dixon, group members adhere to a set of daily quotas among themselves and adhere strictly to the norm. No worker was allowed to work more or less than the standard set by the group. If a wireman wanted to do more work, he was insulted or even criticized by other members as a rate buster. Thus the light sanction from the group did not allow the wireman to do much work and closed early as he met his quota set by the group which was a stronger financial incentive.
From the Hawthorne study, and the research that he largely inspired, developed the Human Relations School. it started
Enough of those scientific management workers. On the contrary, other needs of the worker should be taken into account i.e. social needs like friendship, needs, group support, recognition and status and the need for ‘self-actualization’ which includes the development of individual talents, creativity and personality as a whole. These needs must be met if productivity is to be increased in real terms. Workers’ cooperation can be obtained only through ‘personal satisfaction’. Management should co-operate with the norms of the informal group so that better feedback can be obtained from the worker and confirmed. In most of the cases these norms set by the group were higher than the quota set by the management. So if management encourages and supports the formation of such informal group, it will always be beneficial. If workers are invited to participate in the major decision making process, they will be more interested and committed to work. . The way information groups are involved were within the organization, the goals of the organization can certainly be expected to be accomplished.
It is assured that there will be no conflict of interest between the management and the workers. If this is the case, it must be due to non-satisfaction of the workers’ needs. According to human relations theory, by recognizing social relationships within the organization, conflict can be resolved and growth can be maintained in both.
But the human relations school was also criticized that it does not look at other factors beyond the premises of the factory which determine the behavior of the workers i.e. the job status of the workers, the culture of the group of workers to which they belong and the life or
But the human relations school was also criticized that it does not look at other factors beyond the premises of the factory which determine the behavior of the workers i.e. the job status of the workers, the culture of the group of workers to which they belong and the life or
But the human relations school was also criticized that it does not look at other factors beyond the premises of the factory which determine the behavior of the workers i.e. the job status of the workers, the culture of the group of workers to which they belong and the way of life or work.
Initially human relations studies tended to focus on employee satisfaction and morale, implying a direct relationship between its objectives and attitudes. Through scientific research of individual behavior and motivation, it has been shown that there is a relationship between morale and productivity. The relationship was oversimplified. the behavioral science movement was ahead
Refinement of the human relations movement and the inclusion of a much wider range of interpersonal rules and relationships.
The behavioral science school of management thought began after 1940 and focused on understanding individuals and their interpersonal relationships. A Maslow developed a needs hierarchy to explain human behavior within an organization, for that lower level needs must be satisfied first, then workers can move to the satisfaction of higher level needs. Psychologists throw light on many aspects of rational behaviour, sources of motivation and nature of leadership. Put the two physical styles up front. Theory X represents the classical approach to management and organization and theory Y represents the neo-classical or modern approach to management and organization.
Behavioral science has provided a more objective, systematic and scientific understanding of one of the most complex and important factors in management. Man or woman in the process of managing behind the machine. An organization based on the human factor is essentially a social system and not just a techno-economic system. Thus this theory recognizes the importance of the human element in the entire process of production. The knowledge of individual and group behavior enables us to develop suitable work environment or situation which can enhance productivity as well as employee satisfaction. We can design training programs for employees and managers with the help of behavioral science.
Human relations, together with the behavioral sciences constitute the neo-classical theory of management, which opened the door for a deliberate shift from bureaucracy to participatory and democratic leadership or managerial style.
In neo-classical approach, job structure, job design is given secondary importance. The first imp is an understanding of human behavior. Employees are given greater participation in job planning and are motivated to increase interest in work.
Modern Management Theories:
Modern management theory calls for refinement, expansion and synthesis of all classical and neo-classical approaches to management. These trends started after 1950. Under modern management art theory we have 3 streams.
1) Quantitative Approach to Management i.e. Operations Research.
2) Systems approach to management.
3) Casual approach to management.
1) Quantitative Approach to Management:
The quantitative approach to management offered systematic analysis and solutions to many of the complex problems faced by management in the real world. More commonly used OR techniques are linear programming game theory excitations and probability. New mathematical and statistical tools are now applied in the field of management. Along with this operation research or management science. Computers are used to find solutions to complex management problems. Production scheduling, replacement of capital equipment, inventory, central plant location transport problems, warehousing problems long range planning and many other complex managerial problems are computers with mathematical models i.e. using equations to solve many problems.
2) Systems Approach:- The modern theory considers an organization as an open, adaptive system that has to adjust to changes in the environment.
When systems approach is applied to an organization, we have the following characteristics of an organization as an open adaptive system.
1) It is a subsystem of its wider environment.
2) It is a goal oriented people with a purpose.
3) It is a technological subsystem using knowledge, technology tools and facilities.
4) It is a structural subsystem—people working together on interrelated activities.
5) It is a psychological system of people in social relations.
6) It is a managerial subsystem for planning, organizing, motivating, communicating and controlling overall efforts directed towards achieving goals.
The systems approach emphasizes that all subsystems of an organization are interconnected and interconnected.
3) Contingency Principle:
A contingency approach analyzes and understands all interrelationships so that managerial actions can be adjusted according to the demands of specific situations or circumstances. Thus emergent approach enables us to find practical answers to the problem demanding solution.
Systems approach to management
looking down
|
looking managerial system looking purpose and across management ahead Objective goal
process theory
4) M.B.O:- Management by Objectives – MBO which is the major contribution of P. Ducker was introduced in cash.
4) M.B.O:- Management by Objectives – MBO which is the major contribution of P. Ducker was introduced in cash.
4) M.B.O:- प्रबंधन द्वारा उद्देश्य – MBO जो कि P. Ducker का प्रमुख योगदान है, को नकद में पेश किया गया था।
4) M.B.O:- Management by Objectives – MBO which is the major contribution of P. Ducker was introduced in cash.
4) M.B.O:- उद्देश्यों द्वारा प्रबंधन – MBO जो कि P. Ducker का प्रमुख योगदान है, को नकद में पेश किया गया था।
The concept of MBO includes planning, setting standards, evaluating performance and motivation.
Characteristics of Modern Management Thought:
1) System Approach:- An organization as a system has five basic parts. 1) Input 2) Process 3) Output 4) Feedback 5) Environment.
Management allocates and coordinates resources (inputs) to some desirable output. The success of these outputs can be gauged through feedback. If necessary, we have to modify our mix of inputs to produce outputs according to the changing environment.
2) Dynamic:- The interactions that take place within the structure of an organization keep on changing. Whereas the classical theory assumed stable equilibrium.
3) Multi Motivated:- Profit is not the only motive, management has to compromise and integrate many diverse motives. Economic, social, ie productivity and satisfaction (shareholders, employees, customers, community and society).
4) Multivariate:- It is assumed that there is no simple cause-effect phenomenon. A phenomenon may be the result of several factors which are themselves interrelated and interdependent. Some factors are controllable, some uncontrollable. These have to be kept in mind.
5) Adaptive:- The survival and growth of an organization in a dynamic environment depends on its ability to adjust to constantly changing conditions. We have human or machine controller to provide necessary correction based on the information to get the desired result.
notes:
1) Structure refers to the vertical, hierarchical character of the organisation. It represents the organization principle.
2) Technology and information look at the horizontal character of the organization. The flow of information and decisions is shown.
3) The people element ranges from individual needs to overall company goals—looking down the organizational hierarchy to the men concerned system. It is related to leadership, motivation etc.
4) A ‘forward-looking’ organizational objective towards adapting company goals in response to changes in the environment.
5) The management system is based on a choice of 4 approaches:
(a) people, b) technology and information, c) people and, d) goals. IF integrates all viewpoints—a mechanism for unifying disparate theories.