The Positive Dimension of Informal Relations on Organizations’ Performance: The Case of KNUST Banks

Abstract

This study examined the impact of informal relations on banks (Eco bank, Stanchart, United Bank for Africa, Barclays, Ghana Commercial Bank, and Cal Bank) at KNUST campus. Social survey was the design used for this study. The population of study was all workers of all banks on KNUST Campus. The sample size for the study was fifty-four (54) consisting of six (6) managers and forty-eight (48) working staff from the various banks. The simple random sampling technique was employed to select the sample. Additionally, purposive sampling technique, which is a non-probability sampling method, was used to select the various managers who participated in the study. The data used for this study included both primary and secondary. Closed ended questions were used to collect the primary data. In analysing the data collected from the field, both quantitative and qualitative methods of analysis were employed. From the study, it was evident that employees who interacted informally and participated in informal groups increased their capacity to be creative and express new ideas, which positively reflected in their performance. Again, it became known that informal relations complemented the formal structure by safeguarding the organization from self-destruction that would result from literal obedience to the formal policies, rules, regulations, and procedures. It was recommended that managers should critically look at informal relations and explore means that encourage employees to relate informally in relation to the objectives of the organization. In addition, managers should make efforts to check rumours since untrue information perpetuated by dissatisfied employees can affect the morale of other employees. It must be emphasized that informal relations is a natural, social and psychological need of employees and therefore managers need to study the informal group to discover ways in which the interests of informal groups can combine with the interest of the formal organization for higher productivity

Keywords: Positive, Productive, Organization, Informal Relations, Performance, Network