HR Management Assignment help on : Formal Power and Informal Power

Formal Power

Every company follows a well organized chart that lists relationships between people involved in the organization and ranks them according to the chart (Chronn.d.). This chart is developed to assign individual responsibilities to each and every person. It gives authority and creates a formal power system in the company. There are various positions that may be referred to a job function, corporate structure or any position in corporate ladder. All the decision making powers in the company rest in the hands of top management and the people below them need to follow the orders. Coming to the revenue generation part the sales team has many formal functional powers. Even in the small enterprises there is an organizational chart that is not formal but the employees will easily recognize them through the titles, job roles, functions, etc.

Informal Power

Informal power tends to be different and here the person who has good influence is considered to be powerful. It may not be the manager but a person has the ability to the ability to lead others and accomplish a certain goal. In an organization informal power means the ability of a person to achieve, direct or lead without having any official title (Chronn.d.). This can be derived from the relations between the employees and those individual who are respected by others due to some perceived notions seem to enjoy the informal power. Though the top management does not give much importance to informal organization but it is seen that it has huge impact on working dynamics. Informal power creates encounters that have an effect on the sense of belonging among the employees. If the encounter is poor then it affects the morale of the employees.

Both the forms of powers have different impacts on the organization. Formal power is important for achieving strategic goals while informal power plays a vital role when the official leadership uses it for achieving organizational goals.

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