Conflicts in Organizational Structure Designs

It is often a great deal to be in an organization that is experiencing growth and transformation. Change of this type gives a thrill that is not common in otherwise mature organizations. Being part of the team that is laying down structures and making policies is an experience worth its weight in gold. However, the experience does not always go as smoothly as it should. Putting down structures to formalize an otherwise hapless organization is not a walk in the park despite all the thrill and satisfaction that comes with it. A growing business faces pressure from external partners such as suppliers and creditors to shape up so that it can play comfortably in the current world of fierce competition. The struggle between formal and informal organizational structures at such moments is real, ugly, and at times, tiring. Nevertheless, there must be someone who should pull the weight. I happened to be the person at some point in my young career. 

As well highlighted by Gulati and Puranam (2009), some conditions in the informal environment compensate for not being formal by providing a somewhat relaxed atmosphere which is valuable to employee behavior. The same positive element makes employees resistant to change when time to ‘grow up’ comes. Gulati and Puranam (2009, p.423) have confirmed that being reliant on the strengths of an informal organization is a recipe for disaster especially in the long-run due to the potential of such strengths undermining performance and castigating numerous reorganizations which delay forward mobility. In my organization, we were shifting from a rather informal organizational structure to a formal one. As I mentioned in this week’s introduction, I was practicing in Human Resource, and I was responsible for a couple of employees. When the time came for the organization to adopt a formal HR posture, there was resentment and discomfort. As the responsible official, it was hard for me to convince these employees why such drastic changes were happening and at the same time bring their attention to the benefits such changes would bring. 

It thus became clear that the informal organizational structure was applicable and desirable in the juvenile stages of the company. As things grow, the pressure to adapt to a standardized way of doing things becomes apparent and necessary. In spite the advantages that the firm was accruing from the previous structure, the need to forego such benefits for the greater good becomes inevitable. As Soda and Zaheer (2012, p 752 and 769) have indicated, the effects felt out of experiencing the formal and informal organizational structures are distinctly different especially when it comes to the performance of the employees and consequently the organization as a whole.  

Works Cited

Gulati, R. and Puranam, P., 2009. Renewal through reorganization: The value of inconsistencies between formal and informal organization. Organization Science, 20(2), pp.422-440.Soda, G. and Zaheer, A., 2012. A network perspective on organizational architecture: performance effects of the interplay of formal and informal organization. Strategic Management Journal, 33(6), pp.751-771.