Organizations have formal and informal aspects from "summary" of Organization Theory and Design by Richard L. Daft
Organizations are complex entities that are comprised of both formal and informal aspects. The formal aspects of an organization are the official structures, systems, and processes that have been intentionally designed and implemented by management to achieve specific goals. These formal aspects include the organizational chart, job descriptions, policies and procedures, and official communication channels. They provide a clear framework for how work is to be done and how decisions are to be made within the organization. On the other hand, the informal aspects of an organization are the unwritten rules, norms, and relationships that exist among employees outside of the formal structures. These informal aspects can have a significant impact on how work actually gets done within an organization, often influencing decisions, communication, and collaboration in ways that may not be immediately apparent to management. Informal aspects can include unofficial power dynamics, social networks, and shared values and beliefs. Both the formal and informal aspects of an organization play a crucial role in shaping its overall culture and effectiveness. While the formal aspects provide structure and guidance, the informal aspects can often determine how successfully those formal structures are implemented. For example, an organization may have a formal policy of open communication, but if employees feel uncomfortable speaking up due to informal power dynamics, that policy is unlikely to be effective.- Managers can better navigate the complexities of organizational life and create a more positive and productive work environment for their employees. Ultimately, the interplay between the formal and informal aspects of an organization can have a significant impact on its overall performance and success.
