2013Unpublished venueRequires access

Study on the Interactive Relationship between Formal Organization and Informal Organization——From the Perspective of Externality

Yao Ka

Open publisher page 1 citations

Abstract

Informal organizations are playing an increasingly important part in business development and enterprise management in a complex and uncertain business environment. But at present,the research and practice on informal organization is still at the start stage due to its uncertainty,and it has large research space. This paper would like to build model and design mechanism for the interactive relationship between formal organizations and informal ones,from an economic perspective: externality. From the model and mechanism,we find: the interactive relationship depends on the effect from informal behavior to organization efficacy; employee in the informal organization can realize Pareto optimum; effective mechanism encourages the self-management of the informal organization. This paper contributes a new direction for researches of informal organization,and meanwhile,the model and mechanism tend to improve organization practice in flatted and community-based organizations.

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What this paper is about

Informal organizations are playing an increasingly important part in business development and enterprise management in a complex and uncertain business environment. But at present,the research and practice on informal organization is still at the start stage due to its uncertainty,and it has large research space. This paper would like to build model and design mechanism for the interactive relationship between formal organizations and informal ones,from an economic perspective: externality. From the model and mechanism,we find: the interactive relationship depends on the effect from informal behavior to organization efficacy; employee in the informal organization can realize Pareto optimum; effective mechanism encourages the self-management of the informal organization. This paper contributes a new direction for researches of informal organization,and meanwhile,the model and mechanism tend to improve organization practice in flatted and community-based organizations.

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Available abstract

Informal organizations are playing an increasingly important part in business development and enterprise management in a complex and uncertain business environment. But at present,the research and practice on informal organization is still at the start stage due to its uncertainty,and it has large research space. This paper would like to build model and design mechanism for the interactive relationship between formal organizations and informal ones,from an economic perspective: externality. From the model and mechanism,we find: the interactive relationship depends on the effect from informal behavior to organization efficacy; employee in the informal organization can realize Pareto optimum; effective mechanism encourages the self-management of the informal organization. This paper contributes a new direction for researches of informal organization,and meanwhile,the model and mechanism tend to improve organization practice in flatted and community-based organizations.

Key concepts: Informal organization, Perspective (graphical), Externality, Mechanism (biology), Business, Space (punctuation), Formal organization, Knowledge management

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