Explain the functions of the informal organization and the grapevine in a business.
Informal groups are created by group members to accomplish goals that may or may not be relevant to the organization, and they can be very powerful forces.
The grapevine—the informal communications network within an organization—can be used to transmit information (important or gossip) through an organization much faster than through the formal communication network.
Information transmitted through the grapevine can go in any direction across the organizational structure, skipping up or down levels of management and even across departments.
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Creating a Flexible Organization
- Understand how committees and task forces are used.
- Describe the effects of corporate culture.
- Describe the four basic forms of organizational structure.
- Understand how the span of management describes an organization.
- Explain how decentralization follows from delegation.
- Identify the various bases for departmentalization.
- Explain why job specialization is important.
- Understand what an organization is and identify its characteristics.
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