Course Content
OVERVIEW OF MANAGEMENT
Definition and importance of management Functions of management Managerial roles Evolution of management thought Types of management environment
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PLANNING FUNCTION
Meaning and importance of planning Principles of planning Purpose of planning Types of plans Planning tools Process of planning Planning challenges Making plans effective Management by objectives
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ORGANIZING FUNCTION
Meaning and Importance of Organizing Structure and Designs of Organizations Principles of Organizing Process of Organizing Delegation Coordination Centralization and Decentralization Informal Organizations
0/9
STAFFING FUNCTION
Meaning and Importance of Staffing Human Resource Planning Recruitment and Selection Training and Development Performance Management Reward Management Separation
0/8
DIRECTING FUNCTION
Meaning and Importance of Directing Leadership Motivation Communication Group Dynamics Conflict Management
0/7
CONTROLLING FUNCTION
Meaning and Importance of Controlling Elements of Control Characteristics of Effective Controls Control Process Role of Control in an Organization Tools of Controlling
0/7
STRATEGIC MANAGEMENT
Overview of Strategic Management SWOT Analysis Strategy Formulation Strategy Implementation Strategy Evaluation
0/6
EMERGING ISSUES AND TRENDS
Organization Culture Ethics and Social Responsibility Managing Innovation and Change Diversity and Inclusion Corporate Governance Globalization
0/7
Principles and Practices of Management
About Lesson

Informal organization refers to the relationships between people in an organization based not on procedures and regulations but on personal attitudes, prejudices, likes and dislikes, etc. Informal organization is a natural or spontaneous network of relationships based upon individual needs, moods, and emotions.  

Distinction between Formal and Informal Organization

Formal Organisation Informal Organization
It is based on delegation of authority and  may grow to immense size          It arises on account of social interaction of people and tends to remain small.
It is shown on the organization chart.    It has no place in the formal chart.
Formal authority attaches to a position Informal authority attaches to a person.
Rules, duties and responsibilities are written and clearly defined. It has unwritten rules and traditions.
It is created deliberately and is consciously planned It is natural and arises spontaneously
Formal authority flows downwards.    Informal authority flows upwards or  horizontally.
It provides for division of labor and has a definite structure.       It is structure less and develops out of social contacts.
It is permanent and stable.   It is relatively fickle and unstable.
Formal organization is created to meet organizational goals.     Informal organization arises from mans quest for social satisfaction.

Merits and Demerits of Informal Organization

Merits Demerits
Enables work to be done  quickly and effectively Opposes change of any kind
Reduces managerial work-load   Encourages negativism.
Promotes co-operation                              Generates inter-personal and group rivalries
Leads to effective communication.  Promotes undesirable rumor mongering
Provides an outlet for employee emotions Promotes dissatisfaction among employees
Promotes job-satisfaction on the part of employees Causes undue harassment to certain employees
Makes the organizational system highly effective Causes frustration and lack of motivation
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