Informal Relations within Bureaucracies

Abstract

This article focuses on the formation of informal relations within a bureaucracy. In any situation within which individuals are interacting and working together for a period of time, informal groups tend to develop. Informal groups have been shown to serve many purposes within an organization. This article discusses the purposes that informal groups serve as well as the outcome and importance of the Hawthorne Studies. In this vein, participative management and self-directed work teams are introduced as alternatives to the traditional formal organization approach.

Overview

The average person spends the bulk of their existence in some type of social organization. There are different types of social organizations, including government, religion, education, family, and work (formal). Sociologists sometimes interchange the words, "organization" with "institution." According to Jonsson (2007), an organization can be defined a group of people striving to accomplish a goal with specific procedures, policies, and structure in place to operate appropriately. Institutions can be defined as a "group of individuals who pursue a set of collective purposes and have established a division of labor (roles), methods of coordination, decision-making, and conflict resolution (procedures), common values and beliefs (culture), and a delimitation of geographical scope (space)" (Jonsson, 2007, p. 2). In addition, institutions control how an organization is structured and the types of activities and behaviors that are deemed acceptable (Martin, 2004; North, 1990; Scott, 1995). Regardless of the terminology, both structures describe how an entity governs its activities by establishing roles and structures for a group of people to function. If one wishes to study and understand the structure and processes, one must first "start from the premise that organizations are complex, ambiguous, and paradoxical" (Morgan, 1986, p. 322).

Formal organizations can be found all over the world as different societies attempt to meet their basic needs. Many believe that organizations attain stability in the long run and the people that are a part of the entity harbor a sense of belonging. In order for the organization to be successful, a formalization process must take place to a certain extent to ensure that conflict is managed and goals are achieved.

Formal organizations are established to complete a specific set of goals and objectives, and can be viewed as "a formal, rationally organized structure involving clearly defined patterns of activity in which ideally, every series of actions is functionally related to the purposes of the organization" (Merton, 1957, p. 195). In order to meet the goals and objectives, many organizations implement an administrative structure, which some refer to as a bureaucracy. Max Weber, a sociologist, has been credited for pioneering work in this area. Another scholar, Robert Merton, has been credited with building on Weber's work by discussing the dysfunctions of bureaucracy. Both researchers have made significant contributions to our understanding of how bureaucracies can influence the operations of an organization.

Bureaucracies. Depending on to whom one speaks, bureaucracy can take on a positive or negative connotation. Max Weber looked at the concept of bureaucracy from a positive standpoint. He described the ideal organization as one that was rational in its operation. In order to operate logically, an organization must have a structure that will govern and regulate the human nature of employees. Bureaucracy was seen as a positive way for an organization to operate properly from a structural and humanistic approach. Weber's philosophy became known as "rational bureaucracy." This concept consists of seven key principles which include:

• Specification of jobs with detailed rights, obligations, responsibilities, scope of authority
• System of supervision and subordination
• Unity of command
• Extensive use of written documents
• Training in job requirements and skills
• Application of consistent and complete rules (company manual)
• Assign work and hire personnel based on competence and experience (Borgatti, 2004, par 1).

The work of the classical theorists exploded during the late 19th century as organizations began to grasp the new concept of rationality. Researchers such as Weber, Fayol, and Taylor were promoting organizations to be rational about their decision making. For example, hiring a person based on credentials versus nepotism had more merit for the organization, and "the goal is to work smarter versus harder."

Although the rationality perspective was popular, there were subsets of the new concept (i.e. Scientific Management). Some theorists believed there was a correlation between rationality and motivational theories. For example, it was believed that people are more productive when they can see the benefit that they will receive. In most cases during this time period, many argued that the prime motivator was money. Experiments such as the Hawthorne Studies were conducted to validate this perspective. However, others countered that people needed more than money to meet their social needs. These theorists suggested that human beings needed to be around other people and reap other perks such as respect, power, and autonomy in order to function and be motivated to produce.

Informal Structures within Bureaucracies. Informal groups tend to develop in situations consisting of regular interactions between individuals of a group. Informal groups can serve many purposes within an organization. Although focus is often placed on the social interaction aspect of informal relationships, an informal group is itself structured with leaders and followers. The dynamic of the informal groups within an organization has the power to affect the dynamic of the whole. The existence and significance of informal relations was highlighted during the early 1900s with Hawthorne Studies, which were conducted at Western Electric Company by Elton Mayo and fellow researchers from MIT.

Within every formal organization, there is a sub-culture of informal relations operating. The activities of this group are both positive and negative (i.e. creation of the grapevine, creation of new models of organizations, peer pressure in the workplace). It should be noted that the activities of the sub-groups do not correspond with the formal organizational structure. However, their impact can be as powerful as the recognized structure (Borgatti, 2002).

Application

Human Relations Movement. Initially, the purpose of the Hawthorne Studies was to determine methods for improving worker productivity due to a perceived low morale among the assembly line employees. Researchers set up a study with three phases: Illumination, relay assembly, and bank wiring room studies (Borgatti, 2002).

Illumination. The illumination aspect of the study dealt with the lighting in the factory. The original hypothesis held that employees would perform better if there was more light. However, since lighting was expensive at that time, the researchers sought to figure out if there was a compromise to meet the lighting need as well as a cost effective way to provide it. The participants were divided into two groups -- test group and control group. In the beginning, both groups received the same type of lighting. In the second phase, the test group received more light and the researchers observed that the productivity increased, which was expected. However, there was unexpected observation -- productivity increased for the control group, which did not receive the extra lighting. The researchers repeated the experiment several times and received the same results. Therefore, they decided to reduce lighting to see if the results would change, and they did not. It appeared that the level of lighting did not have an effect on either group.

Relay Assembly Test Room. This particular experiment lasted for five years and measured productivity by counting the number of relays that each participant assembled. The researchers changed the testing environment by manipulating rest pauses, time in the workday, time in the workweek, wage incentives, and feedback from the supervisor. The results were the same as the first experiment. Regardless of the change, there was no effect. However, productivity always increased.

Unforeseen Results. After completing the first two experiments, the researchers realized that they were missing a key factor. No one had acknowledged the significance of the relationships that employees had with one another -- informal groups. Two important observations were made from the first two experiments. When the researchers established groups and made modifications to the work environment, they created an environment where:

• The workers felt like the management team cared about them, and they felt important and respected.
• Bonds were formed among the participants in both groups, which highlight how informal social structures in the workplace have value (Borgatti, 2002).

The findings from the first two experiments challenged the economic rationality model; money is not always the key to employee motivation. On the contrary, social processes within work groups are valued more than economic gain. For example, an employee may turn down a promotion to become the supervisor of peers. First line supervisor positions are historically hard to fill internally on account of the "strains in relationships" that may occur among friends. In essence, the value that an employee places on a position is decided by the degree to which the position allows the person to meet the individual's social obligations to members of the group.

Researchers discovered that it is important to understand each employee's position in the informal group structure to grasp dissention and disagreements within the group. In essence, employee disagreements are not always valid. There may be a level of subjectivity based on the informal group structure (Borgatti, 2002).

Bank Wiring Room. After re-evaluating the process based on the first two experiments, a third phase was created. This phase sought to explore the social structure of employees. The researchers invited 14 participants to a room. The group consisted of nine wiremen, three soldermen, two inspectors, and the observer. The three classifications of employees performed a function that required them to work together.

When observing the group, the researcher found:

• Assigned classifications carried certain status within the group
• There were long term friendships and antagonisms within the group
• Cliques had formed, and were based on physical closeness.
• The cliques had membership guidelines, which provided social control. There were four main categories of membership, which included:
• Not a rate-buster: don't work too much
• Not a chiseler: don't work too little
• Not a squealer: don't let supervisor know anything that could possibly be used against operators
• Not officious: don't act like an inspector
• The cliques served as a structure to make group decisions on organizational events (Borgatti, 2002).

In summary, the researchers found that formal organizations are not really as formal as they appear to be, even if they are bureaucratic in nature. When human beings interact with each other over time, they create a social structure which is only loosely based on the formal organizational structure.

The Hawthorne Studies have been a significant contribution to the field because it challenged the standard rationality model. The chart below, created by Wertheim (n.d.) highlights some of the assumptions made by the both the traditional and human relations models.

Viewpoint

Participative Management & Self-Directed Work Teams. One of the lessons learned from the Hawthorne Studies was the notion that management teams are not always in tune with their subordinates. Therefore, it is critical that the management team is aware of the needs of their workers. Otherwise, leadership may propose changes that may not be effective. Keeping the influence and importance of informal groups in mind, an alternative to the formal hierarchical structure is to have the management team work in conjunction with employees. Based on research regarding group dynamics, it may be beneficial to consider using a team structure such as that fostered by this "participative management." One format that would meet this need is participative management. Participative management is when a management team reaches out and seeks an authentic, cooperative partnership with its employees. Research has suggested that the advantages of participative management are improved productivity, better quality, and reduced costs.

By allowing the employees to work in teams, it is possible for organizations to foster positive and productive informal relationships that are beneficial to the organization. Given the social strength of these groups, organizations may seek to legitimize this structure by empowering the groups in a formal sense. A formal team within an organization can be referred to as a self directed work team (SDWT). "A self directed work team is a natural work group of interdependent employees who share most, if not all, the roles of a traditional supervisor" (Hitchcock & Willard, 1995, p. 4). This allows management to effectively manage and utilize the naturally occurring informal relations.

Conclusion

Formal organizations can be found all over the world as a way for different societies to meet their basic needs and beyond. Many believe that organizations attain stability in the long run and that the people who are a part of the entity harbor a sense of belonging. In order for the organization to be successful, a formalization process must take place, to a certain extent, to ensure that conflict is managed and goals are achieved.

Formal organizations are established to complete a specific set of goals and objectives, and can be viewed as "a formal, rationally organized structure involving clearly defined patterns of activity in which ideally, every series of actions is functionally related to the purposes of the organization" (Merton, 1957, p. 195). In order to meet goals and objectives, many organizations implement an administrative structure, which some refer to as a bureaucracy. Max Weber, a sociologist, has been credited for pioneering work in this area. Another scholar, Robert Merton, has been credited with building on Weber's work by discussing the dysfunctions of bureaucracy. Both researchers have made significant contributions to our understanding of how bureaucracies can influence the operations of an organization. Informal groups tend to develop in situations consisting of regular interactions between individuals of a group. Informal groups can serve many purposes within an organization. Although focus is often placed on the social interaction aspect of informal relationships, an informal group is itself structured with leaders and followers. The dynamic of the informal groups within an organization has the power to affect the dynamic of the whole. The existence and significance of informal relations was highlighted during the early 1900s with Hawthorne Studies, which were conducted at Western Electric Company by Elton Mayo and fellow researchers from MIT.

Initially, the purpose of the Hawthorne Studies was to figure out ways to improve the productivity of workers. There was a concern that worker morale was low among the employees on the assembly line. Therefore, the researchers set up a study that had three phases, which consisted of illumination, relay assembly, and bank wiring room studies.

The findings of the Hawthorne Studies highlighted how:

• Employees are motivated by social needs and get a sense of identity through association with others.
• Employees are more responsive to the social forces of peers rather than management's incentives and rules.
• Employees are more likely to respond to managers who assist them satisfy their needs.
• Managers need to involve subordinates in coordinating work to improve efficiency (Borgatti, 2002).

Terms & Concepts

Bureaucracy: A formal organizational structure that directs and coordinates the efforts of the people involved in a hierarchical manner.

Formal Organization: A group or structural arrangement organized to achieve certain specific, clearly stated goals.

Hawthorne Studies: A series of studies carried out by the Western Electric company at their Hawthorne plant in the 1920's and 30's. The study originally focused on lighting but ended up highlighting the effects of informal relationships.

Human Relations Movement: An offshoot of the sociology of industry originating before the Second World War. Human Relations (HR) comprised both an academic literature of varying quality and a set of prescriptions for managerial practice to find reasons for and solutions to issues such as work dissatisfaction and employee-management conflict.

Informal Groups: An informal group is a group of people casually acquainted with each other for their own personal fulfillment because they have some common characteristics and concerns (interests/hobbies/friendship/job). The members of the 'grapevine' often found within a formal organization can also be called an informal group.

Participative Management: An open form of management where employees have a strong role in the organization's decision-making processes.

Scientific Management: A "school of thought largely developed by Frederick Taylor who pioneered the use of time and motion studies, in which management would carefully break down tasks into simple chunks, then work out the best way for a worker to execute the chunks (all the way down to how long a step to take, how often to break, how much water to drink, etc.). The worker then executed their jobs exactly as they were told, like automatons" (Borgatti, 2002).

Self-Directed Teams: A group of people, usually employees, who combine different skills and talents to work independently toward a common purpose or goal, free from managerial oversight.

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Suggested Reading

Ali, I. M. (2016), Doing the organizational tango: Symbiotic relationship between formal and informal organizational structures for an agile organization. Interdisciplinary Journal of Information, Knowledge, and Management, 11, 55–72. Retrieved October 29, 2018, from https://doaj.org/article/4c0cb9d97d0e4dd59f9a58db46a89005

Cone, E. (2007). Informal organizations. CIO Insight, (86), 29. Retrieved October 29, 2018, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=27254054&site=ehost-live&scope=site

Hanchett, S. (1997). Women's empowerment and the development research agenda: A personal account from the Bangladesh Flood Action Plan. Feminist Issues, 15(1/2), 42–71.

Hodson, R., Roscigno, V., Martin, A., & Lopez, S. (2013). The ascension of Kafkaesque bureaucracy in private sector organizations. Human Relations, 66(9), 1249–1273. Retrieved October 29, 2018, from EBSCO Online Database Sociology Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=sxi&AN=89975652&site=ehost-live&scope=site

Joyce, E., Pike, J. C., & Butler, B. S. (2013). Rules and roles vs. consensus: Self-governed deliberative mass collaboration bureaucracies. American Behavioral Scientist, 57(5), 576–594. Retrieved October 29, 2018, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=86919752&site=ehost-live&scope=site

McGregor, J. (2006, February 27). The office chart that really counts. Business Week, (3973), 48–49. Retrieved October 29, 2018, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=19787113&site=ehost-live&scope=site

Williams, K. (2007). Employees turn to "informal organization." Strategic Finance, 89(3), 17. Retrieved October 29, 2018, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=26492186&site=ehost-live&scope=site