Editing Organization (section)

==Leadership==
{{Main article|Leadership}}

A [[leadership|leader]] in a formal, [[hierarchical organization]], is appointed to a managerial position and has the right to command and enforce obedience by virtue of the authority of his position. However, he must possess adequate personal attributes to match his authority, because authority is only potentially available to him. In the absence of sufficient personal competence, a manager may be confronted by an emergent leader who can challenge his role in the organization and reduce it to that of a figurehead. However, only the authority of position has the backing of formal sanctions. It follows that whoever wields personal influence and power can [[legitimize]] this only by gaining a formal position in the hierarchy, with commensurate authority.<ref name="Henry">{{cite book |first1=Henry P. |last1=Knowles|first2=Borje O. |last2=Saxberg|title=Personality and Leadership Behavior|publisher=Addison-Wesley Pub. Co|location=Reading, Mass|year=1971|pages=884–89|oclc=118832}}</ref>

===Formal organizations===
An organization that is established as a means for achieving defined [[Goal|objectives]] has been referred to as a '''[[formal organization]]'''. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, [[job (role)|jobs]], and tasks make up this work [[structure]].<ref>{{cite book |title= The Functions of the Executive |url= https://archive.org/details/functionsofexecu1938barn |url-access= registration |last= Barnard |first= Chester I. |author-link= Chester Barnard |year= 1938 |publisher= Harvard University Press |location= Cambridge, MA |oclc= 555075}}</ref> Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.<ref name = "Cecil"/>

===Informal organizations===
In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the '''[[informal organization]]''' that underlies the formal structure. The informal organization expresses the personal [[Goal|objectives]] and [[goal]]s of the individual [[wikt:Membership|membership]]. Their objectives and goals may or may not coincide with those of the formal organization. The informal organization represents an extension of the social structures that generally characterize human life&nbsp;– the spontaneous emergence of groups and organizations as ends in themselves.<ref name="Cecil">{{cite book |first= Cecil A. |last=Gibb|title=Leadership: Selected Readings |publisher=Penguin Books|location=Harmondsworth|year=1970|oclc=174777513|isbn=0140805176}}</ref>

In prehistoric times, man was preoccupied with his personal security, maintenance, protection, and survival. Now man spends a major portion of his waking hours working for organizations. His need to identify with a community that provides security, protection, maintenance, and a feeling of belonging continues unchanged from prehistoric times. This need is met by the informal organization and its emergent, or unofficial, leaders.<ref name="Henry"/>

Leaders emerge from within the structure of the informal organization. Their personal qualities, the demands of the situation, or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. Instead of the authority of position held by an appointed head or chief, the emergent leader wields influence or power. Influence is the ability of a person to gain cooperation from others by means of persuasion or control over rewards. Power is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment.<ref name="Henry"/>

=== The interplay between formal and informal organizations ===
As most organizations operate through a mix of formal and informal mechanisms, organization science scholars have paid attention to the type of interplay between formal and informal organizations. On the one hand, some have argued that formal and informal organizations operate as substitutes as one type of organization would decrease the advantages of using the other one. For instance, if parties trust each other the use of a formal contract is unnecessary or even detrimental to the relationship.<ref>{{Cite journal|last1=Lui|first1=Steven S.|last2=Ngo|first2=Hang-Yue|date=2004|title=The Role of Trust and Contractual Safeguards on Cooperation in Non-equity Alliances|journal=Journal of Management|language=en-US|volume=30|issue=4|pages=471–485|doi=10.1016/j.jm.2004.02.002|s2cid=144788583|issn=0149-2063}}</ref> On the other hand, other scholars have suggested that formal and informal organizations can complement each other. For instance, formal mechanisms of control can pave the way for the development of relational norms.<ref>{{Cite journal|last1=Poppo|first1=Laura|last2=Zenger|first2=Todd|date=2002|title=Do formal contracts and relational governance function as substitutes or complements?|journal=Strategic Management Journal|language=en|volume=23|issue=8|pages=707–725|doi=10.1002/smj.249|issn=1097-0266|doi-access=free}}</ref>