The Streetwise (pdf) column in the September 2007 issue of Strategic Finance contains a summary of a report titled “The Informal Organization”.
The focus of the report is that formal management structures are not how organizations actually work. Informal organization, self organizing groups with the goal of getting a particular task completed, is the key to success.
The organizations with the highest success will be those who recognize and encourage informal organization, and encourage feedback and communcation among and between all levels of the management structure.
The complete report is available by mail at no charge by sending an e-mail to Alexandra Corriveau ( Alexandra@sommerfield.com ). I have ordered my copy, and I suspect it will be a beneficial read.