Informal Groups
The most important features concerning “informal groupings” within Inditex organization are:
- These groups arise from the interactions of Inditex formal organization;
- They arise in a spontaneous way (unplanned);
- They are outside the control of those running the organization (it is inevitable);
- They may only contribute to the objectives of the organization as well as in certain situations could be difficult to achieve them;
- They have been formed between workers who have an affinity or share common values.
These relationships found do not appear in Inditex structure organisation charts: friendships and antagonisms, individuals who identify with other individuals, groups that are rejected each other and a variety of relationships at work or outside it.
These groups constitute the so-called informal organization, which is developed as noted from the interaction imposed and determined by Inditex formal organization.
This is the case of María, who works in the commercial area, Javier, who works in the area of HR, Marilia, working in the production area and Enrique who works in finance. Although they both work in different areas, they are proposed to meet this weekend at the home of Javier to develop a new product project. They do this even though nobody gave them the task, and while not paid for it, they do so because they share common values, and they want the progress of the Inditex shops they’re managing.
Another example is the case of the Inditex plant workers who work in the department of manufacturing of synthetic fabrics and meet over the weekend for a barbecue. During the barbecue they discuss the different techniques that would be most appropriate, efficient and effective to produce the final product. After agreeing, they decide to discuss it with their foreman back in the textile mill.
The following design parameters follow the Mintzberg line to examine the structural changes within the groups that have occurred in Inditex over recent decades.
The first of these, the design of the job vacant, establishing a new division of tasks and responsibilities, because organizations had been using mostly classic motor skills of individuals and learning organizations use now their cognitive skills. The work now appears divided into strictly defined tasks (less horizontal specialization) and the operator moves from run to direct and control (less vertical specialization).
In addition, the formalization of the behavior decreases (the workers can make suggestions), the demand for new skills increases (hence they are given great importance to training).
Regarding the design of the superstructure, a learning organization will reduce the number of hierarchical levels and, due to the introduction of new information technologies and the need for smaller companies, dynamic and innovative, it also decreases the total number of people required to carry out organizational functions.
Continuing now with the design of lateral linkages Inditex, learning new planning mechanisms, will success via mutual adjustment, informal communication, through networks of horizontal coordination committees or working groups or by e-mail communications, videoconferencing or access to common databases, allowing members to exercise all of the company a certain self-control over their work and encouraging teamwork, because business processes are increasingly complex and a single individual, independently, cannot tackle.
Finally, the design of decision-making system provides greater responsibilities for workers in a learning organization, due to increased vertical and horizontal decentralization.
Inditex is a good example of such organization which seems that there is independence between stores and manufacturers and even the boss, Amancio Ortega. By this, Inditex teaches those who will work on it as a way of seeing the life, ie the employees that work for Inditex argue that everything they do is essential for the organization to continue to expand worldwide. This means that workers have internalized its role within the organization and produce the best result if this is in their hands. This last point means that the entire organization is interconnected, or what is the same, there is more or less a close relationship between the boss, business managers, marketing managers, managers of the stores, which made garments, and finally the sellers, ie everything is under complete control from any aspect.
(DIEGO’S PART – not mine but could be useful, what do u think?)
The group dynamics is crucial to encourage these informal aspects of Inditex. There are different groups that affect the individual in different ways:
– The positive reference groups for the individual, which provoque a correct conduct or behavior on the individual.
– The negative reference groups for the individual, leading to differentiation of the individual behavior within Inditex.
This can be seen best by the following examples:
The positive:
Ricardo, Jose, Julio and Naiara are general managers of Inditex production areas, human resources, legal and finance, respectively. Their friendship is very big and they always get together to talk not only in workplace but also outside it. One day while Ricardo, Julio and Naiara decide to reduce the chattering lunch half an hour to help to increase their productivity and solve a greater number of problems that occur daily. That day, Jose was not with them because he was sick. The next day morning John was told about their colleagues decision, it was taken to benefit the company and benefit themselves. What will Jose do? Will he adapt to the group behaviour? or will he decide to continue taking an hour for lunch? Chances are that John brings its conduct to group behavior. On the other hand, if his conduct does not conform to the group behavior, this will be frowned upon by their colleagues and even he could be marginalized.
The negative:
In Inditex, there is a productive department dedicated to develope new textile materials. In this department there are three different types of machines: machines A, B and C. The workers that operate them are not only good companions but also meet on Saturday morning to play soccer. During the hours they use to make small pauses in its rate of production for a chat. The supervisor of the equipment advice the workers not to do those little pauses to chat. Therefore, the supervisor decided to discuss it with the head of department to take action. After analyzing the issue, he reached the following resolution: the workers who make those little pauses shall be liable to pay cuts. The supervisor will communicate this resolution to the workers of the machine A. The next day, Manuel and Pedro are catched by the supervisor and are punished by a 10 euros reduction in their salary. Other workers see this situation and decide not to make pauses in the work place.
The supervisor, happy with this, at the end of the day, he decide to assess the volume of production of the machines, because he thinks it should have been high in relation to previous days when they carried out the pauses. However, compared to previous days, the volume of production decreased by% 5, the day after a% 10 and below 15%. Concerned by this situation, the supervisor decided to discuss this issue with the boss, because he did not understand whether it had been reduced during labor talks had been removed. After studying the issue, they realized that the measure had been counterproductive