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　　1.5 The impact of the informal organisation on the business
　　The informal organisation can either enhance or hold back the business. Managers need to be aware of the informal structure and ensure that they
　　§ adapt the formal structure to complement the informal one
　　§ maintain a looser formal structure so that the informal structure can thrive. For example, hold monthly meetings to inform employees of the company’s goals but allow the informal structure to flourish e.g. ad hoc teams to form so that innovation and communication is not stifled
　　§ at the very least take account of the informal structure in decision making. For example, if a manufacturing department has split itself into two informal ‘cliques’ and output is in decline, the declining output could have nothing to do with the formal structure, but be due to lack of integration of the whole division due to the cliques. Rather than changing the formal structure, management could for example mix members of the two ‘cliques’ on training courses, and so try and reduce the impact of the informal organisation.
　　Expandable text
　　In his studies at the Hawthome works of the Western Electric Company in Chicago between 1924 and 1927, Elton Mayo concluded that informal groups exercised strong social controls over workers’ habits and attitudes, e.g. an individual productivity bonus scheme failed as workers were unwilling to show up their less capable colleagues.
　　Test your understanding 14
　　What other methods could be employed to integrate a department and reduce the impact of the informal organisation as in the last example above?
　　Chapter summary
　　#FormatImgID_0#Test your understanding answers
　　Test your understanding 1
　　§ Most common structure found in organisations
　　§ Jobs are grouped on the grounds of common specialisation
　　§ They sell few products （that are closely related）
　　§ Operate in a stable environment
　　§ Found in smaller companies
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