CHAPTER 3A Whole New Ball Game

Leadership and the Informal Organization

To people nurtured in the business school environment who came of age in traditional Western organizations, the world of the informal organization appears strange indeed. It is counterintuitive and somehow wrong. Even though these same people may admit privately that not much gets done in their organization by following the old organizational chart, this admission often takes on the aspect of a secret confession—for everybody knows that position is power and that the balance sheet rules. That is what it says in all the books, and of course they must be right.

As a matter of fact, the shadow world of the informal organization is often treated as the enemy. After all, it ...

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