Overcoming the Challenges Caused by Informal Systems in Organizational Structure

Organizations face various challenges when it comes to their structure and operations. One of the common hurdles is the presence of informal systems that may interfere with the intended formal systems engendering chaos in the organization’s structure. Informal systems refer to the practices and unwritten rules that are not stipulated in the official organization’s blueprint but are commonly used by employees to communicate and perform tasks. Such systems can be beneficial in some instances, but without proper regulation, they can derail the organization’s functioning, leading to inefficiencies and internal conflicts.

Understanding the nature of informal systems is key to overcoming the challenges they pose to the organization. Employees develop their informal practices based on past experiences and their individual judgment on how to perform their tasks efficiently. Informal systems can serve to bridge the gap of systemic inefficiencies and create a workable solution that ignores red tape. For example, a sales team could avoid seeking authorization from procurement when placing small orders for stationary but, instead, purchase them using their own budget. However, with the passage of time, such practices can become entrenched, leading to a situation where it is impossible to distinguish between what is official and what is informal. Also, informal systems can foster favoritism and nepotism, which can ultimately be costly to the organization, especially with conflict of interest.

To overcome the challenges caused by informal systems, organizations must enforce clear guidelines of their formal systems and policies to create structure and integrity in their business. The HR department is vital in ensuring the compliance of the systems by regularly conducting training programs and orientations to inculcate the formal procedures and policies in the employees’ daily operations. Such programs will initiate discussions on the benefits and disadvantages of informal systems, why they exist, and what suitable measures are to adopt when they are beneficial or harmful.

Organizations should also revise their formal systems regularly to keep up with the changing business environment and employees’ working needs. Engaging employees in this revision process can inspire their support and adoption of the formal policies to ensure the organization’s stability and growth.

In conclusion, informal systems play an essential part in an organization. However, employees must be aware of the negative impacts of informal systems on the organizations and strive to adhere to the formal systems in their daily operations. Organizations must enforce clear guidelines of their formal systems and policies and create a culture of compliance among the employees to overcome the challenges caused by informal systems. Ensuring that employees understand the effects of informal systems and the benefits of formal systems will create a harmonious and workable organizational structure that ultimately achieves the organization’s set goals.