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Water Cooler Productivity
 
Informal employee relationships are strong, productive.
 
By Galia Ozari
July 31, 2007

People accomplish more and enjoy coming to work thanks to informal relationships with fellow employees, not due to the official management-created structure, a study by Katzenbach Partners LLC, a management consulting firm, reveals. 

“The lesson from this research is that the informal organization – the way work gets done outside formal organizational charts and processes– is real, and that employees recognize it and value it,” said Zia Khan, a principal with Katzenbach Partners, and co-author of a forthcoming report on informal organization, in a public statement. “The question is, does management also value it? Our research shows that the informal organization is a strategic asset executives need to actively manage instead of leaving to chance.”

The telephone survey of 510 American workers employed at firms of 1,000 or more personnel indicated that workers rely on one another for help with problem solving and job satisfaction, rather than on management. Nearly two-thirds of respondents (65 percent) stated that they “rely on themselves and co-workers to provide solutions and solve problems,” versus a mere 30 percent who rely on management for help.

In addition, many employees have found what they consider more efficient ways of accomplishing tasks rather than following management-created protocol. Almost two out of five (37 percent) maintain that they sometimes ignore company policy in favor of their own methods because “they’ve developed better ways of getting work done.”

Nearly all workers at large companies (90 percent) have someone who they respect for their experience and knowledge that they can approach when they need help. Usually it’s a co-worker (52 percent) rather than a boss (45 percent), and frequently it’s an employee in the same department (41 percent). Roughly one in ten (11 percent) approach a co-worker in another department.

Workers also credit their colleagues as resources for progress and creativity with in the company. Well over half (57 percent) assert that great ideas can emerge from “all levels” of the workforce, while a tiny minority (8 percent) maintain that the best ideas come from the CEO or company president. Even less (7 percent) believe they come from senior management, but ten percent credit middle managers with ingenuity. Lower-level supervisors and lower-level employees are cited by 15 percent of respondents as those who come up with the best ideas.

“Clearly, workers at big companies rely on, respect and leverage their co-workers and work friends. They turn to this ‘informal organization’ to get the most out of work – and to be more effective,” said Khan.

Do employees of large companies feel management listens to their concerns and ideas? Over a quarter (26 percent) of respondents stated that goals are not accomplished because a “lack of value placed on employee input” acts as a barrier to productivity. “Too much bureaucracy” is another major complaint (39 percent) and another quarter (23 percent) complains of “inadequate organizational structure,” within the large company in which they work.

“Our research also shows that when people are frustrated about their work and ability to get things done, it’s often because managers aren’t incorporating an awareness of how informal networks work in their planning and decision-making,” explained Khan.

The good news is that the majority of respondents (59 percent) maintained that they enjoy work “a lot” and one third (33 percent) stated that they enjoy it “somewhat.” Nearly two-thirds (64 percent) of those who find work enjoyable credit their positive relationships with their co-workers, while slightly less (62 percent) name the work they perform every day as rewarding.

“Most Americans are happy at work, and our research shows that strengthening the informal organization can make them even happier,” said Khan. “There’s a real opportunity to drive business performance investing in the informal organization.”