Debunking the Myth: Why Informal Groups ARE Powerful within Organizations

Introduction

For years, conventional wisdom has held that formal groups within organizations are the most powerful and effective. These groups are often given more resources and support than informal groups, which are viewed as being less effective and less dependable. However, recent research suggests that this conventional wisdom may be not only outdated but misguided. In fact, informal groups can be just as powerful and effective as formal groups, if not more so. This article explores this phenomenon and uncovers the reasons why informal groups are powerful within organizations.

What are Informal Groups?

Before delving into the reasons for their power, it’s important to define what we mean by informal groups. In contrast to formal groups such as departments or committees, informal groups are voluntary and often emerge organically. They can be based on common interests, friendships, or shared goals and can exist both within and across departments. These groups can have a significant impact on organizational culture, productivity, and effectiveness.

The Power of Social Norms

One reason informal groups can be powerful is that they operate under the auspices of social norms. These norms dictate the ways people behave and interact with one another, and they can be much more powerful than formal rules and structures. Informal groups often develop their own norms, which can be highly effective in shaping behavior within the group. For example, if a group values open communication and transparency, members will be more likely to share ideas and thoughts openly, leading to better problem-solving.

Increased Trust and Collaboration

Another key factor in the power of informal groups is the increased level of trust and collaboration between members. Informal groups tend to have a higher level of social cohesion than formal groups, leading to more effective communication and collaboration. Members of informal groups often know each other well and have a better understanding of each other’s strengths and weaknesses, making it easier to delegate tasks and leverage strengths.

Flexibility and Adaptability

One of the greatest advantages of informal groups is their flexibility and adaptability. Because they are not bound by formal structures or processes, they can adjust quickly to changing circumstances and fill gaps left by more formal groups. For example, if a department is struggling to meet a deadline, an informal group can step in and provide support, leveraging their collective skills and resources to get the job done.

Real-World Example: The Power of Informal Groups at Google

One of the best examples of the power of informal groups comes from Google. The company is well-known for fostering informal groups, known as “20% projects,” where employees can work on personal projects unrelated to their job. These projects have led to some of Google’s most successful products, including Gmail and Google Drive. The company has since discontinued the formal program, but the culture of fostering informal groups remains a key part of their success.

In Conclusion

In conclusion, informal groups are much more powerful than many believe. They leverage social norms, trust and collaboration between members, flexibility and adaptability to have a significant impact on organizational culture, productivity, and effectiveness. If organizations want to tap into the power of informal groups, they need to provide support and resources while being mindful to let them operate organically. By doing so, they can unleash the full power of their workforce and achieve greater success.