Full Project – Impact of informal groups in organizations

Full Project – Impact of informal groups in organizations

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The organization development is a vital exercise that must be carried out with a successful conclusion, if technological bondage is to be avoided in the nation. In our society today there is need for adopting a creative approach for our technological take off. The reason is to encourage employees to cultivate the ability of making maximum use of resource available to them, develop new way of resources utilization that may come in the course of their job.

Since Nigeria independence, the nation has gone through a gradual rise in the level of industrialization and the evolution of both small and complex organization. An organization as defined by Griftin (1984:86) is a combination of people or human efforts, working in pursuit of certain common purpose called organizational goals. It is any group of two or more people working to achieve a goal or objectives. Organization range from the small business units to the very large and complex corporate bodies. There are two groups the formal and informal groups.

The informal group comes into being as a result of organizational hierarch which defines expected relationship among its workers in most cases, a group of people come together and discuss about the problems of company, individual problems and how the problems should be handled. Also, talk about those with different opinion from other and how such people should be treated or handled. Furthermore, this kind of group will usually have its mission or area of activity spelled out.

According to Millar C.D. (1997) most managers have little understanding of how their employees actually interact to get work done. In fact institutional charts fail to reveal the often hidden social networks that truly drive or hinder on individuals performance. Most heads of schools spend little attention to support and assess linkages among employees (teacher). Educational institutions exist in order to promote literacy nationwide and to remain result oriented.

Some managers view informal groups as a potential source of anti-establishment power, as a way of holding back information when the group does not agree with organizational goals or as a means of pressuring individuals to slow down production. Spataro, (2004) however observes that the belief that high productivity will work against the interest of workers is kept alive and enforced by some informal group within the organization.

Informal groups, on the other hand, develop in response to the needs of the people making up the groups. As a result do not have an explicitly stated set of goals nor are they institutionally defined in and position of authority. These aspects of an informal group develop as a result of group of individual with the same objectives. Hence informal groups are not set up by the management of the organization but arises as a result of people with similar interest interacting and also as a result of friendship association. Most cases, group of people come together and discuss about the company’s problems, some individual problems and how they should be dealt with, does who have contrary option from others would be convinced are forced to accept the opinion spell out by other members of the groups.

Rogers, (2007) noted that apart from storing to achieve group interest and most likely interest of their individual members. They constitute a basis for creative work actions that maximize organizational effort at optional performance. Exploring and unlocking the potentials conveyed by information groups at work is fast resulting to a conceptual reconfiguration, perhaps with a more strategic thinking on how both the groups themselves and management could possible co-exist and managers relying on them for competitive advantage. While these multi-perspective remains, the need to establish an empirical between informal groups and performance is imperative, therefore, the study is aimed at showing the relationship between informal group dynamics and performance.

The above comment succinctly shows the existence of informal groups in an organization. Those groups although not created by the management of the organizations are very members. Members are observed to be often committed to the achievement of the group objectives. These objective of the informal groups sometimes go contrary with organizations objectives.

Therefore it is very important for the management to be aware of the existence of these groups and understand how they work. Some managers fail to realize the fact that informal groups work under certain conditions which dominate the formal organization and neglect the efforts of management.

Moreover, they can be pervasive with some managers themselves belonging to the informal groups. Depending on whether they are favourable or unfavourable, this may result to the increase or decrease in the productivity of the organization. Improper management of the informal groups may also lead to dissatisfaction of workers, absentisem, personal turnovers grievances and conflicts and these may adversely affect the stability of an organization.

As a matter of fact, there are potential benefits to be tapped from the existence and activities of the informal groups. The management can only tap the benefits when it is willing to work with them effectively without engaging in members to suppress the information organization.



Management of the organization have been trying to improve individual productivity through researches and product development, employment of high skilled and experienced workers. Despite these efforts, productivity is dealing in an organization who is to be blamed is skilled declining or has remained low and unimpressive.

What is actually responsible for the continuous decline in productivity despite serious efforts by the management who have control over these group is yet to be achieved from the above assertions, it become imperative or necessary to research and conduct an assessment on the influence of informal groups on organizational productivity.

Do informal group activities influence organization decision-making?

To provide answers to this problem motivates the researcher and conduct an assessment on the influence of informal groups on organizational productivity.



The objectives of this research are narrowed down under the following.

  • To determine what is an informal group.
  • To find out the actual relationship between the information groups and management in the organization.
  • To find the benefits of informal groups in organizations.
  • To find out problems of informal groups in organizations.



The researcher formulated under the questions to provide a guide in the course of this research.

  • To what extend do informal group activities affects organizational productivity of Federal Polytechnic Nekede Owerri?
  • What is the actual relationship between informal groups and management in federal Polytechnic Nekede Owerri?
  • To what extend has information group activities contributed to the realization of the organizational objectives of Federal Polytechnic Nekede?
  • How has informal group influence Federal Polytechnic Nekede?
  • Are information groups detrimental or not to the function and culture of the organization?
  • Does members or employee in the organization rely on informal structure for support?



For the purpose of this study, the following hypothesis were mapped out and would be tested; with the null and alternative hypothesis.

Ho1: Informal group activities does not affect organizational productivity.

HA1: Informal group activities affect organizational productivity.

Ho2: Internal groups are not detrimental to the function and culture of the organization.

HA2: Internal groups are detrimental to the function and culture of the organization.

Ho3: Member or employee in the organization does not rely on informal structure for support.

HA3: Member or employee in the organization rely on informal structure for support.

Ho4: Informal group does not influence staff of federal polytechnic Nekede Owerri.

HA4: Informal group influence staff of federal polytechnic Nekede Owerri.



Informal groups are not sanctioned structures within the organizations, therefore people will not willing associate themselves with such structures.

The scope of this study was limited to cover type of groups, reasons for joining groups activities of informal groups. Informal group leadership roles, problems of informal groups and the effect on the productivity in the organization.

It was anticipated that some may be reluctant to discuss the subject of the study, while others could regard it as sensitive. The sampling was expected to consist of the first ten respondents from each organization prepared to participate. The study would therefore concentrate on those that have been affected and have a certain understanding and perceptions about informal groups.

Due to this dynamic nature of the situation, the population was relatively small and so was the sample.

It is evident that due to this limited scope of the study, the researcher cannot, with and degree of scientific certainty, generalize the result to other organization in Federal Polytechnic Nekede Owerri.



Research work are subject to one form of limitation or the other especially during the period of economic meltdown.

Some of these limitation includes;

  • Resistance to Change: Informal groups become over protective about their group goals and values. They oppose any change in their way of working. Lack of desire to deviate from existing norms or to acquire new knowledge works against implementation of sound policies in the transition. An organization where warder are used to working five days a week will not easily accept a six-day week even if working hours each day are reduced.
  • Conflicting Goals: If group are different from organizational goals. Members generally pursue group goals event if they are against the interest of formal transitional goals. This is against the interest of the company and its members.
  • Role Conflict: As members of group and informal organization, people face the problem of role conflict. If group goals are different from formal goals, members conform to group goals. If the organization allows such break of 30 minutes but groups extend it to 45 minutes to socialize with each other, members race conflict in their formal and informal roles.
  • Time Constraints: Time affect the research work considerably as the periods was too short for submission of this research.



The existence of informal groups in organizations have negative or positive influence which may pronounced or silent but vital to the achievement of organizational objectives.

Understanding and controlling the informal group activities might become possible when an empirical study has been conducted and some facts about the relationship existing between these factors informal groups, formal groups and the management within an organization are revealed the identification of the needs of the individual workers will help the management to motivate the workers better for improved productivity.

Thus, the research would be useful to organizations, academic and consultants to organizations. It also provide a platform for further work in the topic by other scholars.

Information groups helps in providing useful means for achieving goals of the organization.

Informal groups helps in shaping the attitude of leaders in a positive manner. It encourage leaders not to work only to achieve their personnel interest but rather working towards achieving the organizational objectives.



  1. MANAGEMENT; This involves the coordinating of both human material resources efficiently and effectively in achieving organizational goal.
  2. ORGANIZATION: A social system/unit with certain resources and means having specific goals and objectives to seek.
  • RECRUITMENT: Recruitment is seeking our prospective employees and encouraging them to submit application for employment.
  1. EMPLOYEES: This is a person who agrees to render his service to the employer, obey his orders and subject himself to his control and direction for consideration in form of wages and salaries.
  2. EMPLOYER: This is the person that offers labour to the employee.
  3. RESOURCES: The input needed to conduct a successful business foreign.
  • RESOURCES MANAGEMENT; This has to do with the total utilization of space resources such as man, material, machines etc. in order to achieve organizational goals.
  • MANPOWER PLANNING: This is personnel functions that seeks to anticipate growth and ensue that the rightful number and types of staff are retained to develop to recruits.
  1. COMPENSATION: This is a reward employees recorded in exchange for their contribution of time, effort and certain abilities at work.



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Full Project – Impact of informal groups in organizations