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Formal Vs. Informal Groups/Organization

Firstly, I’ll like to point out that two or more people/individuals coming into contact on a continuing basis, personally & meaningfully could be referred to as a group.

Informal group comprises of a small number of people who frequently participate in activities and share feelings for the purpose of meeting their mutual needs. The institution is a set of rules based on implicit understanding, being in most part socially derived and therefore not accessible through written developments or necessarily sanctioned through formal position. These formal institutions include social norms, routines and political processes.

Formal group and institution on the other hand could be defined as the rules that are readily observable through written documents or rules that are determined & executed through formal position such as authority or ownership. They include explicit incentives, contractual terms, & firm boundaries as defined by equity positions, organizational charts and job descriptions generally reflect the formal structure or prescribed network in a given organization. The military can perhaps be considered to be the ultimate state of formal organization where by rank and job title are sufficient to fully described persons role in the organization. This form permits no role ambiguity. Effective performance in such an organization would need you to understand the requirements in one’s role within the cultural and procedural context of the organization.

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