How Organisations work

Many of us are working either part time or full time. And it is quite vital to understand how organisations work. The purpose of this post is to give awareness for the subject matter.

Always be watchful for your actions in your workplace as nothing goes unnoticed. There are two channel ways that exist in every organisation.

  1. Formal Channel
  2. Informal Channel

Formal way of doing things

In any organisation there is system to do things. For example who will raise the requisition , who will authorise the transaction and finally who will procure it from the external vendor. Formal channels are slow, time taking and compliance based. In formal communication care is taken as to how the information will flow.

Informal way of doing things:

In informal way of doing things employees don’t need any type of authorization or any discipline to follow. Information passes all the ways among employees and the work process is faster than the formal procedure. For example, if you want to order an urgent chemical from warehouse but you don’t have enough time to get it approved , you will use the informal channel by making a call to your colleague in warehouse and will ask him to make arrangement to shift it your destination. Formally this will be done later.

While there are more uses of using the informal channel it has a disadvantage also and the most notorious is ‘Covering’. For example you did a blunder and your friends at work will don’t highlight it or it wont be brought into knowledge of the higher management.

Grapevine Effect: 

There is no organisations where rumors don’t fly in the air. You will often find people standing at the corner and hear them whispering. It is said that about 80% of the rumors you hear are true. Management also spread these rumors intentionally though informally through the mouths of others to get the feedback. For example management is thinking to raise your pay by 20%, then they will tell this news to anyone who has much influence in the working class, for example your tea boy will come to you and will say ‘ I have heard that pay is increasing by 20% and this news will spread like a fire in the forest. Management will then get the response either employees are happier with the increase or not.

Employees Annual Appraisal

Performance Appraisals
Performance Appraisals (Photo credit: Mediocre2010)

Each year your manager will make your appraisal report. He will assess your objectives that were given to you at the start of the year and then will rate you according to your accomplishment. This is the most hard job for a manager to rate his sub-ordinate. If mishandled this can cause disturbance and lack of trust among his team members.

360 degree appraisal

It is often said that appraisal are often biased. Either your manager dislikes you for on personal grounds so he will under rate you, hence you may be the victim of his power and get no promotion. On the contrary it can also happen that he likes you or he has some personal relationships with you , so he will give you extra credit or rating so that you can be promoted. To cater this new appraisal system has been establised to appraise the employees.

360 degree appraisal is conducted by giving your appraisal form to any one. He can be you your boss or your sub-ordinate. By this way there is lesser chances that you will be victimized or intentionally undermined.

This also forces you to be professional and to treat everybody alike. In the traditional management system you just have to focus your boss and have to keep him happy. While in the 360 degree you appreciate everybody because you don’t know who is going to rate you this year.


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