informal groups
Informal Groups. In addition to the groups that businesses formally organize and recognize—such as committees, work groups, and teams—most organizations have a number of informal groups. These groups are usually composed of individuals, often from the same department, who have similar interests and band together for companionship or for purposes that may or may not be relevant to the goals of the organization. For example, four or five people who have similar tastes in outdoor activities and music may discuss their interests while working, and they may meet outside work for dinner, concerts, sports events, or other activities. Other informal groups may evolve to form a union, improve working conditions or benefits, get a manager fired, or protest work practices that they view as unfair. Informal groups may generate disagreement and conflict, or they may enhance morale and job satisfaction. Informal groups help develop informal channels of communication, sometimes called the “grapevine,” which are important in every organization. Informal communication flows up, down, diagonally, and horizontally, not necessarily following the communication lines on a company’s organization chart. Information passed along the grapevine may relate to the job, the organization, or an ethical issue; or it may simply be gossip and rumors. The grapevine can act as an early warning system for employees. If employees learn informally that their company may be sold or that a particular action will be condemned as unethical by top management or the community, they have time to think about what they will do. Because gossip is not uncommon in an organization, the information passed along the grapevine is not always accurate. Managers who understand how the grapevine works can use it to reinforce acceptable values and beliefs. The grapevine is also an important source of information for individuals to assess ethical behavior within their organization. One way an employee can determine