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211.An informal organization can be a valuable asset to managers attempting to create an environment of harmony among workers and establish the corporate culture.

212.The informal organization appears as dashed lines on a firm's organizational chart.

213.The informal organization is best suited for decision making on big issues.

214.The key people in a company's grapevine typically have considerable influence in the organization.

215.Successful managers will find the balance between promoting the informal organization and maintaining a formalized structure, as well.

216.Samad accepted a managerial position at City Bank. In order to be more effective in his new position, he should try to learn who the important people are in City's informal organization.

217.Molly, a production line employee at Holiday Industries learned from a friend at her coffee break that one of the managers in accounting is about to be fired. She is eager to learn if other friends at Holiday know any more about the situation. This flow of information is an example of Holiday's grapevine.

218.Rapid Response Security Firm, a company that provides on-site security services for malls and other retail environments needs to review current procedures used by its professional officers to make certain they are in compliance with new laws. On crucial issues such as this, it is more important to gather information through the informal organization, as opposed to the formal organization.

219.Jack just learned that several persons in Arizona became ill from the peanut butter they ate that was produced and bottled in his plant. As he walks the back stairs at the plant, he ponders, "It's time to get the informal organization in on this. We've got to stop this in its tracks!" Jack is taking the right approach to solving this serious problem.

220.Jessica found a job at a bank, after losing her insurance company job when the firm went bankrupt. Although she has only been with this firm for a couple of weeks, she senses a rather austere climate where not too many people take the time to get to know one another. Several of her coworkers seem to get very nervous when managers walk by and breathe sighs of relief when the VP is away for the day. When she asked her supervisor why people seemed afraid of the VP, the supervisor quoted an old Tennyson poem, "Ours is not to reason why, ours is but to do and die." Jessica realizes the bank does not operate as an open organization. It lacks a thriving informal organization. It is unlikely that Jessica will feel an allegiance to this company.



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