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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

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Page 1: Informal Group

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./

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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.

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- 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).

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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.

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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.

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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

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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).

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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.

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- 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.

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- 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.;

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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.

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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

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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.

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- 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.

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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

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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.

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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

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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

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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

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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

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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.

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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

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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.

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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.

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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.

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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.