Informal groups: why they form and how a manager should handle them

Informal groups

An informal group is a circle of employees that nobody in management designed: it grows out of everyday contact, shared interests and friendships, and it exists alongside the official structure rather than inside it. It has no written rules or official positions, but it has its own leaders, norms of behaviour and channels of communication (the grapevine). Examples are colleagues who share a car to work every day, a group of employees from the same town, or staff from different departments who run the office's festival celebrations together.

Causes of the creation of informal groups

1. Social needs. People want friendship, acceptance and a sense of belonging, which formal relationships alone do not provide.
2. Identity and self-esteem. Membership gives status and recognition among peers that a person may not get from the formal position.
3. Security and protection. Members support one another against unfair treatment, excessive pressure or job insecurity.
4. Communication needs. People want to know what is happening; the grapevine supplies information faster than formal channels.
5. Common interests and similarity. Similar age, background, language, region, hobbies or views draw people together.
6. Physical proximity and work flow. Those who sit together or whose jobs link closely interact often and form bonds.
7. Help in work. Members share know-how and help one another to cope with tasks.
8. Relief from monotony. Informal contact breaks the boredom of routine work.
9. Power and influence. Acting together gives members more influence over decisions than they would have alone.

How a manager should handle informal groups

1. Map the groups. Breaking up friendships only drives them underground, so the useful first step is to learn who belongs to which group, who leads it, what part each member plays and what the group treats as acceptable behaviour.
2. Work through the informal leaders. Consult them and win their support; they can carry a message to the group more effectively than formal orders.
3. Align group goals with organisational goals. Show how the organisation's success benefits members, and avoid changes that threaten group norms needlessly.
4. Use the grapevine. Listen to it to learn employees' feelings, make use of its good side and correct rumours with prompt, accurate formal communication.
5. Encourage participation. Involve group members in decisions that affect them, so that the group supports rather than resists.
6. Avoid threatening the group's security. Explain changes in advance and handle transfers or new methods sensitively.
7. Build team spirit through formal means. Team assignments, recreation and recognition can channel informal ties into productive teamwork.
8. Deal firmly with harmful behaviour. Where a group restricts output or spreads hostility, counsel members and enforce rules fairly.

Example. When a factory introduced new machines, the operators' informal group feared job losses and slowed down. The manager met the group's informal leader, explained the retraining plan and involved the operators in fixing the new work schedule; resistance turned into support.

Conclusion

Informal groups arise from human needs that the formal organisation cannot meet. Handled with understanding, they improve communication, morale and cooperation; ignored or opposed, they can resist management.