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CHAPTER ONE
1.0 INTRODUCTION
This chapter contains the statement of problem, objectives, hypothesis of the research
study and limitations encountered during collection and presentation of data and methods
of data collection.
1.1 BACKGROUND INFORMATION
Informal groups arises within formal structures and may be held together by such things
as friendship, longevity. Informal groups are ends in themselves and they exist only to
satisfy the needs of their members. THE \MEMBERS OF INFORMAL GROUPS
SHARE SOCIOAL VALUES AND ATTIRTUDES AND THEIR GROUP GIALS ARE
OFETEN RELATED TO INDIVIDUAL SOCIAL NEEDS (Duncan 1978).
People join informal groups because of common interest\, social needs or friendships
which has an important role ion facilitating or inhibiting performance and organizational
effectiveness (Draft and steers 1986).
According to Wbber and Awin (1986), people interact and communicate with others as
they carryout their jobs which reinforce positive feelings among themselves in
workplace. Informal groups offer affiliation, identification, emotional support and
protection to individuals.
According to FLEET (19191) INFORMA GROUPOS I SCREATED BY THE
MEMBERS IOF THE GROUP ITSELF FOR THE PURPOSE THAT MAY OR MAY
NOT BE related to the organization, and it has an unspecified time horizon. Informal
group are important to managers and can be a powerful force in determining
organizational effectiveness./
According to Draft (1986) individuals join informal groups for a basic need for protection
from textural threats for example the possibility of being fixed by the boss, the fear of
being embarrasses in a new situation or anxiety about being alone. Groups are primarily
sources of security,. Society and they develop meaningful relationships. They also keep
individuals self-esteem and help individual to pursue their own economic self – interest.
Informal group is one which is not formally recognized by the management of an
organization but which ha been formed by a group of employees for their own purposes,
and has the power to work against organizational goals as well as to collaborate with
them (Cole 1961).
1.2 TSTAMENT IF THE PROBLEM
According to Fleet (19919) informal groups are important to managers as powerful
force in determining organizational effectiveness. When employees are given a chance to
have informal groups in the organization the manager cannot be able to determine the
organization effectiveness. Through the study of informal groups as a way if influencing
organizations performance.
1.3 PURPOSE OF THE STUDY
The aim is to establish the relationship between informal groups and organization
performance.
1.4 OBJECTIVES OF THE STUDY
The objectives that guided the research work are:-
- To identify types of informal groups ion the organization under study.
- To establish the indicators of organization performance.
- To identify the relationship between informal groups and organization
performance.
1.5 RESEARCH QUETSIONS
-What are the type of informal groups in and organization./
- What are the indicators of organization performance.
- What is the relationship between informal groups an organization performance.
1.6 SIGNIFICANCE OF THE STUDY
The importance of carrying out this research is to;-
- Enable the researcher to fulfill the requirements and acquire more skills and
knowledge ion the field of study thus completing the course; Diploma in Business
Administration.
- It helps the managers as it is a powerful force in determining organizational
effectiveness.
- The informal groups individuals in reinforcing positive feelings among
themselves in workplace.
1.7 THE SCVOPE OF THE STUDY
The research was carried out in Nakuru municipality and Nairobi. The organizations
had more than 50 employees. The following are the organizations that the research
was carried out .
- Kenya Seeds Company (Nakuru).
- Rift Valley Provincial Headquarters (Nakuru)
- Ministry of Health (Nairobi).
1.8 LIMITATIONS OF THE STUDY
i) Limited time
The research had to be conducted in more than three organizations but was impossible
due to time.
ii) Lack of resources
The researcher was unable to carryout enough research due to lack of insufficient
resources.
iii) Expensive
It is expensive since the researcher had to go personally to the various organizations to
collect data.
iv) Noise
Some organizations like Kenya Seeds Company is located in industrial area and also near
the road thus its is very noisy.
v) Harsh weather conditions
There was much sun (hot) and is hard to move from one organization to another.
vi) Long an district procedures
One cannot go through some stages e.g. through security then secretary.
vii) Language barrier
Communication was a problem to some employees. THEY COULD
MISUNDERSTAND QUESTIONS AND MISINTERPRETE IT.
1.9 DEFINITION OF TERMS
i)m Informal groups – a group of individuals who interact over a period of time to share
values and attributers.
ii) Organization performance – It is the comparison between the effectiveness output and
input in an organization.
iii) Communicate – the way to relate with others.
Iv0 Threats – Fears that make an individual not to perform well a job ion the work place.
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 INTRODUCTION
This chapter gives details of other related studies of the project. It gives an account of
what has been published by different authors and researchers about informal groups and
it affects on performance of organization.
2.2 REVUEW OF THE PAST STUDIES
According to Dan and Steers (1986) informal groups evolve in response to the individual
and collective self interests of its members and are not the result of deliberate
organizational design. People join informal groups because of common interests social
needs or friendship. They develop their own norms and rules and establish unwritten
rules for their members. Study documented the important role of informal groups in
facilitating or inhibiting performance and organizational effectiveness. The informal
groups from as a result of;-
- People being located in close proximity to another
- Security- its is a source of security to social needs people associates with group to
pursue their own economic self –interest to develop self esteem and for social needs.
According to Kingston and Monday (1982) informal groups are important in an
organization in that;-
- Its appears good for people for example the satisfaction of important social and
affiliation needs , source of information for individual employees about
appropriate behavior and effective ways to perform tasks and provide support for
members in stressful situations.
- - Informal groups control their members.
- Help solve problems of belonging to large, impersonal organizations.
- Tools for implementing decisions.
- Group make better decisions than individuals .
- Problem finding tools.
Informal groups play an important role in most organizations Mil (1991), many people by
nature are gregarious and informal groups provide satisfaction of social needs. They may
form to help overcome bureaucracy by providing faster communications. THEY MAY
OCCUR IN CRISIS SITUIATION TO HELP SOME PROBLEMS. Informal groups
form to satisfy employees needs that the organization or manager does not satisfy. The
friendship type if informal groups exist to satisfy social needs, naturally arise from
human interactions within the same and nearby work locations. Informal groups offer the
individual the opportunity to satisfy needs that are not satisfied by the organization. Mill
also suggested that to achieve co-retardation managers should recognize the existence of
informal groups, gather data about informal groups, train supervisors ion groups behavior
and human relations.
2.2.1 Interest groups
According to Curto (1986) interest groups are informal groups that gain and maintain
membership primarily because of a special concern each other posses about a specific
issue. We related an example of group of workers pressing management for better pay or
working conditions.
Interest groups are formed on the basis of other common interests i.e to seek ways to
satisfy grievances with the company. It exists to satisfy social needs and maturely arises
from human interactions with the same and nearbny6 work locations Mill (1991).
According to Bortil (1991), interest groups ias an informal group created to facilitate
employees \pursuit of common concern. According to her study, interest group can desire
to influence a company to offer some policy and can benefit the organization.
According to Misshauk (1979) interest groups are type of informal groups which come
together as a result of common interest. The group work as a unit in order to bring about
a mutually desired goal or objective. In his study he came up with the following
characteristics of group interest.
- Usually based in the perception that a common interest or desire can best be
obtained through group action.
- May be based upon strength in numbers concept.
- Goals or objectives is usually to bring out a certain state or condition within the
organization (wage rate, work standards).
Prasad (1985) claims that interest groups are composed of the persons who commonly
associate with each other and maintain certain social practice and standards. According to
Robbins (1988) interested groups in employees who band together to have their vocation
schedule altered, to support a peer who has been fired or to see increased fridge benefits
represent the formation of a united body to further their common interests.
2.2.2 FRIENDSHIP GROUPS
The study of friendship group According to Hellrieghel Slocom and Woodman (1983)
friendships group serves primary purpose of meeting their members personal needs of
security and esteem.
Bartol (1992) studied friendship group as it evolves primarily to meet employees social
needs. They stem from mutual attraction often based on common characteristics for
example similar works background and or values members can benefit an organization by
enhancing the flow of information and reinforcing the willingness of employees to work
cooperatively. They can be detrimental, however, when employees place social concerns
above important work goals or when friends have a serious falling out. Thus managers
need to understand informal groups of their potential for influencing organization
effectiveness.
Misshauk (1979) studied friendship groups and argued that formation is based on human
needs to associate and interact. He came up with the following characteristics.
- Usually based on age, ethic background, marital status, sex or other social
characterizes shared.
- Members join together for satisfaction derived from interaction,
- Members join together for satisfaction derived form interaction.
- Membership is informal and not defined by organizations goals.
- Structure of organization (leadership) may not resemble that of formal
organization hierarchy.
CVerto (1986) argue that friendship groups fporm because of personal affiliation
members have in one another. Membership tends to change as friendship dissolve or new
friends arte made.
According to Preasad (1985) friendship groups denotes close personalities as friends or
relatives most frequently exist in paid. This type of informal groups denote close
personalities as friends or relatives most frequently exist impairs. This type of informal
groups in an organization is especially useful for spreading influence and information.
2.3 BENEFITS OF NFORMAL GROUPS
Benefits of informal groups have been stated by different authors. According to Certo
(1980) theirs;-
- Increased case of communication between group members.
- States and social satisfaction that might not be enjoyed without group
membership.
- Perpetuation of social an cultural values group members consider important.
- Increased desirability of the overall work environment.
According to Sanford (1990)
- Employees social satisfaction – provide an employees with a sense of belonging
and acceptance.
- An escape value – Provide emotional escape values for preserving employees self
respect and dignity.
- Complement for formal organizational – Fill in the gaps ion authority and
responsibility and promote efficient of formal systems, close gaps on individual
managers abilities, provide additional channels of communication and stimulate
managers to do a better planning and implemented job.
- Provide for psychological survival by breaking monopoly.
- Provide a means for accomplishing complex jobs beyond the capacity of any
single individual.
- Helps employees bring their outside culture into work setting.
- It has a powerful influence on productivity and job satisfaction.
According to Prased (1985) informal groups have the following disadvantages
- It has its own objectives which may be \good or bad for the enterprise.
- Informal2 group can make a job of formal managers more difficult as it may be
subjective in nature or may act on mob psychology and as a catalyst for rumor
mongers.
- It may not be easy to del it informal groups tactfully
2.4 MANAGING TO INFORML GROUPS
According to Prasad (1985) it is useful to take into consideration the following points
while managing the information organization.;
i) To ensure that employees know that management recognizes and accepts the
informal groups.
ii) To influence informal groups in such a way that irts role is positive and its
negative aspect is minimized.
iii) To consider allays the possible effect on any planned action on informal
groups.
iv) To try to synchronies formal and informal groups.
v) To integrate formal groups.
CHAPTER THRE
3.0 RESEARCH METHODOLOGY
The researcher used survey research design. This involves the use of questionnaires.
Questionnaires is a list of questions there one is required to answer questionnaires items
may be closed ended or open end type. This method allowed the researcher to acquire
information on informal groups and organizations performance.
3.2 TARGET POPULATION
The researcher surveyed three organizations; one in Nairobi and two in Nakuru M
UNICIPALITY NAMELY;-
- Ministry of Health – Nairobi
- Rift Valley provincial ADAMINSTARTION Nakuru
- Kenya Seeds Company – Nakuru.
3.2.1 MINISTRY OF HELATH
IT was established on 1970;s. They engage in services such as ensuring medical services
are available in all; health centers and hospitals . They also monitored the extension to
which patients are treated and recruit nurses and doctors. The type of informal groups
they use commonly are making and grievance or conflict handling in the organization.
3.2.2 RIFT VALLEY PROVINCIAL ADMINUSTRATION
It was established in 1943. They engage in services such as counseling and guidance
services to offenders. The informal groups are welfare and interest groups. The informal
groups go well in organization thus leading to increase output or performance in the
organization.
3.2.3 JKENYA SEEDS COMPANY – NAKURU VBRANCH
It was established in 1936. They engage in economic activity of seeds growing and
processing./ This type of informal group they use are interest and friendship groups.
Informal groups help in some critical issues discussed in the organization which help in
organization performance.
3.3 RESEARCH INSTRUMENTS
These are methods used to collect data
- Questionnaires
- Interviews
- Library research
- Observations
3.4.1 QUETSIONNAIORES
These are a list of questions given to the respondent in order to obtain information about
the given issues. The researcher used the mode of hand delivery of the handwritten
questions.
Advantages of questionnaires
- Cheaper compared to personal interview
- Information not observed can be collected.
- It can be accurate to be dealt with
- It can be used for future reference.
- It can be used as an evidence that the researcher carried out the research.
Disadvantages
- It is time consuming since one has to prepare questions.
- Non response rate is high.
- There is no immediate feedback especially when the questionnaires are left
behind in the organization to be answered later.
- 3.4.2 INTERVIEWING
- This is asking personally for the required information
- Advantages
- - Information given is detailed.
- Answers are given immediately without postponing or inquiry.
- First and information is obtained.
- The information us clear since one can ask if it is not understood well.
Disadvantages
- It is tiresome because some managers are so elaborate hence speaking all that
time was not required.
- Inaccurate data may be given by interviewed due to misunderstanding or
forgetfulness of the q questions.
- It is time consuming. A lot of time is spent when collecting data.
- It is expensive when traveling for is included or when moving from one
organization to another.
3.4.3 OBSERVATION
The researcher visited the organizations and was taken around to collect data required in
writing and analyzing the project.
Advantages
- It is the accurate method of collecting data since the researcher observes for
herself.
- It is easy to understand and interpret.
- It is easier to get information since one is only require do observe.
Disadvantages
- It is tiresome since one is required to walk all through the organization
understudy.
- It requires p\personal visit which may be costly as compared to questionnaires.
It is time consuming because pone should be taken around the organization so as to
observe.
3.4.4 LIBRARY RSERACH
The researcher collected information from sources such as books regarding informal
groups and organizations performance.
3.5 TOOLS OF DATA ANALYSIS
This section deals it the relationship between informal groups and organizational
performance as per objectives given by:- . Pie charts, tables and graphs are used to
summarized data obtained ion the visited organizations and the history behind the
organization performance.
3.5.1 POE CHARTS
This is a circle divided by radial lines so that the area of each action is proportional to the
size of the figure presented and constructed proportional to the figures concerned
totaling.
Advantages
- Proportional to figures used.
- It is restricted on entry number
- Accurate and easy to code figures on.
3.5.2 GRAPHS
This is presentation of data by a continuous line or curve. The essence of graph is that
measurements are significant in both dimensions portraying correct impression on the
data collected, having clear and comprehensive title.
Advantages
- It is attractive
- It allows great value of ranges to be shown .
- Highlights the rates of change.
- It is easy to interpret and understand.
3.5.3 TABLES
These are data represented in columns and rows within clear stated units.
Advantages
- Comparison between different categories can be made quickly.
- It reveals the patterns with the figures.
- Takes up les space.
- It enables the desired figures to be located more quickly.
- It is easy to understand an interpreted.
Ministry of Health Rift Valley Province
Administration
Kenya Seeds
Company
Top Management 1 1 1
Middle management 17 15 10
Workers 484 990 289
TOTAL 502 1 006 300
CHAPTER FOUR
4.0 DATA ANLYSIS AND PRESENATTION
4.1 INTRODUCTION
This chapter contains the various methods of data analysis. Data analysis and
presentation was presented with the help of charts, bar graphs and tables
. Generally the chapter ill contain data analysis, findings and conclusion.
4.2 BACKGROUNMD OF THE ORGANIZATIONS VISITED
MINISTRY OF HELATH
It was established in 1970’s. They engage in services such as ensuring media services are
available in all health centers and hospitals. It also monitors the extend to which patients
arte treated and recruit nurses and doctors./ It has 51 employees and four departments.
RIFT VALLEY PROVINCIAL ADMINISTRATION
It was established in 1943 bu7t was opened in 1970’s. It engages in services such as
counseling and guidance to offenders. IT has two departments namely; General
Administration and guidance and counseling departments. The organization has 23
districts with 200 employees each.
KERNYA SEEDS COMPANY LTD – NAKURU
It was established in 1956. They engage in activity of seed growing and processing. It
also sells seeds of different kinds e.g .maize, beans, sunflower, tomatoes, onions, spinach.
It has four departments namely; sales and marketing, Accounting, Research and
Production and General Administration. It has 300 employees.
4.2 .1 INFORMAL GROUPS USED IN ORGANIZTAION
A. MINISTRY OF HELATH
Most employees in ministry of health used interest groups and friendship groups. When
interviewed they said the groups help in decision making and grievances or conflict
handling in the organization
GRAPH SHOWING THE INFORMAL GROUPS USED N MINISTR OF HEALTH
B) RIFT VALLEY PROVINCUIAL ADMINISTRATION
The most or commonly used type of informal group is interest group followed by
welfares group the friendship group which help the organization to go well thus leading
to increased output or performance in the organization.
This means that the organization or management needs to improve their informal groups
to increase productivity and efficiency.
The most commonly used type of informal group is i9nmterst group followed by
friendship groups.
C) KENYAN SEEDS COMPANY LTD – NAKURU BRANCH
The most common types of informal groups in Kenya Seeds Company Ltd are friendship
groups, interest groups and horizontal; groups. All these types are used by both
employers and employees. These groups are good to the organization as they help in
grievance handling.
GRAPH SHOWING GROUP[S USED IN KENYA SEEDS COMPANY LTD
FIGURE 3: Show the informal groups used in Kenya Seeds Company. The common type
of informal groups ids friendship, followed by interest groups then finally horizontal
groups.
THE BAR GRAPH BELOW SHOWS THE PERFORMANCE LEVEL OF DIFFERENT
ORGANIZATIONS
CONCLUSION
It was found that the Ministry of Health Organization uses the best type of informal
groups because they allow the employees to express their feelings followed by Rify
Valley Provincial and finally Kenya Seeds Company ltd.
4.3 INDICATORS OF EMPLOYEES PERFORMANCE OF THE ORGANIZATION
4.3.1 MINISTRY OF HEALTH
High response of the duties. Due to introduction in informal groups the organization the
employees responded to their duties.
Satisfaction. Die to the practice of informal groups, there is satisfaction to the employees
in the organization.
Productivity: Employees performance has increased in Ministry of health which leads to
high provision of effective services in the organization.
4.3.2 RIFT VALLEY PROVINCIAL ADMINISTARTION
Good public image : Employee performance ahs led to good image un Rift Valley
Provincial Administration organization, this shows the informal groups responded to
positively by employees in the organization .
Productivity:- The performance of the organization has led to high production because of
effective performance.
Development: Rift valley administration has developed because of the introductions or
emergence of informal groups in the organization.
4.3. KENA SEEDS COMPANY LTD – NAKURU
Efficiency: In Kenya Seeds company employees performance has created effective
efficiency.
High productivity: The performance of employees in the company had led to high
productivity in the organization.
TABLE SHOWING PERFORMANCE OF THE ORGANIZATION
COMPANY Production and services due to employee
performance
Kenya Seeds Company Ltd 6 500
Rift Valley Provincial
Administration
7 500
Ministry of Health 8 000
TOTAL 22 000
Ministry of Health = 8 000 x 360
22 000
= 130.9
Rift Provincial Administration = 7 500 x 360
22 000
= 122.7
Kenya Seeds Company Ltd = 6 500 x 360
22 000
= 106.4
PIE CHART SHOWING INDICATORS OF EMPLOYEE PERFROMANCE IN THE
ORGANIZATION
CONCLUSION
It was found that there is high performance in the ministry of health because the
employees responded to the informal groups thus high production and development of the
organization.
CHAPTER FIVE
5.0 FINDINGS, CONCLUSIONS AND RECOMMNEDATIONS
This chapter contains findings, conclusions and recommendation.
5.1 FINDINGS
Throughout the research the researcher discovered that the proper provision of effective
use of informal groups has a lot of benefits to the organization hence increasing
organization performance. The commonly used methods or types of informal group by
the organization visited are interest groups and friendships groups and horizontal.
The benefit of informal groups is that it is important to managers an cane be a powerful
force in determining organizational effectiveness which in turn results to high profit, it
makes staff to be committed to their duties, thus quality output and also motivate
employees thus increase the morale in work place. Findings indicators is more
advantageous to make employees well informed since it promotes organizational
performance.
5.2 CONCLUSIONS
The organization visited by the researcher try all the best o use informal groups with their
employees so as to improve their productivity and laws to ensure customers satisfaction
on goals indicated by the organization performance, the researcher discovered that there
should be need of more use of informal groups in the productivity of organization and its
application on the speed at which information flow in the organization.
Lastly, the relationship that exists between informal groups and organizational
performance is that the more use of informal groups the more the productivity of an
organization. It creates good image to the organization and also adhere is existence of
harmonious relationships that exists between the [personnel and the managem4ent.
According to figure 4, Ministry of Health has effective informal group. There is use of
interest group where the performance is good. Rift Valley Provincial Administration is
fair and finally Kenya Seeds Company ltd is average standard thus the results are also
average. They types organization need to be challenged to use interest groups to boost the
morale of employees hence effective performance.
5.3 RECOMMENDATIONS
For higher productivity, the top management should improve 2onm informally groups
and realize the need of using it. It is important for all organizations visited and in
operation to review their informal groups regularly.
Rift Valley provincial Administration should initiate to use of friendship group[s as a
typ[e of informal group in their day to day relations between employees and the
management so as to save time in workplace.
Since most of employees proposed on the use of interest groups as a type of informal
groups in Rift Valley Provincial Administration. The management should look into the
ways of encouraging employees to give feedback which will help in the relationship in
the organizations.
The workers in Kenya Seeds Company are not fully satisfied in their work thus it is
important for the management gaps and fill them and come up with ways of encouraging
the use of informal groups and understand their employees needs, and try to satisfy them.