Excelsior Department

Store
Team C
 Store Heirarchy

Manager

Rosie Sam Edith Joe Eddie Sally

Becka Jade Tyler Jonah

 History

• The Excelsior Department store was

thriving.
• The current six employees were faithful
and loyal. Most had been employed for
over ten years.
• Employees were a closely knit group.
• Management has been approved to hire
an additional six staff members.
Problems facing the store
Old time employees were taking
advantage of their longevity at the
department store.
Old time employees were giving
other old time employees
preference when making sales.
 Customers were complaining
about customer service of the
newer employees.
 Newer employees were being
made to do the “grunt” work.
 New employees weren’t
making as much money and
commissions were low.
What is an informal group?
 A network of
personal and social
relations not
established or
required by the
formal organization
but arising
spontaneously as
people associate
with another.
 Employees act
different than required
Employees often
interact with different
people
Workers may embrace
a set of attitudes,
beliefs and sentiments

How was the informal group determined?

Benefits of an informal group
 Makes an effective total
system
 Lightens workload on
management
 Helps get the work done
 Gives satisfaction and
stability to work groups
 Improves communication
 Encourages managers to
plan and act more
carefully
 Contributes to higher
cohesiveness
Problems with Informal Groups
 Resists change
 Weakens motivation and
satisfaction
 Supports conformity
 Rejects and harasses
some employees
 Operates outside of
management control
 Develops role conflicts
 Helps develop rumors
How do you think an
informal group would
help a business like
the Excelsior
Department Store???