Problems created by informal groups and how a manager should deal with them

Informal groups

Informal groups are groups that form spontaneously among employees on the basis of friendship, common interests, background or work proximity, without being created by management. They have their own leaders, norms and grapevine communication. They meet social needs that the formal organisation does not, belonging, identity, security and information, and can be very useful. But they can also create problems.

Problems created by informal groups for the organisation

1. Group norms that limit output. A group may set its own idea of a fair day's work and pressure members not to exceed it, regardless of management targets or incentives.
2. Role conflict. An employee may be torn between what the supervisor wants and what the group expects.
3. Rival power centres. Informal leaders may have more influence than formal managers and may use it against management.
4. Conflict of goals. Group goals may differ from organisational goals; loyalty to the group can override loyalty to the organisation.
5. Resistance to change. Groups protect their established habits and may oppose new methods, technology or transfers that threaten them.
6. Pressure to conform. Members may suppress their own views and initiative to avoid rejection by the group, which reduces creativity.
7. Rumours and misinformation. The grapevine spreads information fast but often inaccurately, causing anxiety and distrust.
8. Favouritism and cliques. Groups based on region, language or caste may divide the workforce and exclude others.
9. Time wasted in gossip and social activity during working hours.

How a manager should deal with informal groups

1. Work with them, not against them. A manager who tries to break up friendships and lunch circles only drives them underground; it pays to learn how the groups work and to treat them as an asset.
2. Identify informal leaders and win their cooperation; consult them and use them to communicate with the group.
3. Integrate group and organisational goals: show how the organisation's success benefits members, and use group incentives.
4. Keep communication open and accurate so that rumours lose their force; listen to the grapevine to learn of employees' concerns and make use of its good side.
5. Involve groups in decisions, especially on changes that affect them, so that they support rather than resist.
6. Avoid threatening the group's security; introduce changes gradually and explain them.
7. Discourage harmful cliques by fair treatment, mixed teams and transparent policies on promotion and rewards.
8. Act firmly but fairly against behaviour that harms the organisation, such as deliberate restriction of output.

Example. When a bank branch planned to move staff to a new software system, a close-knit group of senior clerks spread fears of job losses and resisted. The manager met the group's informal leader, explained the training plan, asked the group to test the system first and recognised their suggestions; resistance turned into support.

Conclusion

Informal groups can be a source of problems but also of strength. A manager who understands them, communicates openly and aligns their goals with the organisation's turns potential resistance into cooperation.