Professional Documents
Culture Documents
The informal organization is the interlocking social structure that governs how
people work together in practice. It is the aggregate of behaviors, interactions,
norms, personal and professional connections through which work gets done and
relationships are built among people who share a common organizational affiliation
or cluster of affiliations. It consists of a dynamic set of personal relationships, social
networks, communities of common interest, and emotional sources of motivation.
The informal organization evolves organically and spontaneously in response to
changes in the work environment, the flux of people through its porous boundaries,
and the complex social dynamics of its members.
The matrix organization is an attempt to combine the advantages of the pure functional
structure and the product organizational structure. This form is identically suited for companies,
such as construction, that are “project-driven”. The figure below shows a typical Matrix
organization. In a matrix organization, each project manager reports directly to the vice
president and the general manager. Since each project represents a potential profit centre, the
power and authority used by the project manager come directly from the general manager.
Bureaucracy is the combined organizational structure, procedures, protocols, and set of
regulations in place to manage activity, usually in large organizations. As opposed to adhocracy,
it is often represented by standardized procedure (rule-following) that guides the execution of
most or all processes within the body; formal division of powers; hierarchy; and relationships,
intended to anticipate needs and improve efficiency.
Adhocracy is a type of organization that operates in opposite fashion to a bureaucracy. The term
was first popularized in 1970 by Alvin Toffler[1], and has since become often used in the theory
of management of organizations (particularly online organizations), further developed by
academics such as Henry Mintzberg.