Describe the informal organization and discuss intrapreneuring.
Possible Answer: The formal organization is the part that can be
represented in chart form. The informal organization—everyday social
interactions among employees that transcend formal jobs and job
interrelationships—may alter formal structure. There are two important elements
in most informal organizations. Informal groups consist of people who decide to
interact among themselves. Their impact on a firm may be positive, negative, or
irrelevant. The grapevine is an informal communication network that can run
through an entire organization. Because it can be harnessed to improve
productivity, some organizations encourage the informal organization. Many
firms also support intrapreneuring—creating and maintaining the innovation and
flexibility of a small business within the confines of a large, bureaucratic
structure.
Source: Business
Essentials, 8e (Ebert/Griffin) – Global Edition
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