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Corresponding author:
1 O.S. Popov Odessa National Academy of Telecommunications, Ukraine.
E-mail: 7234275@gmail.com
2 O.S. Popov Odessa National Academy of Telecommunications, Ukraine.
E-mail: ObodovskyYu@gmail.com

DOI: https://doi.org/10.30525/2661-5150/2020-1-1

THE INFLUENCE OF THE INFORMAL COMPONENT  
ON THE TRANSFORMATION PROCESSES  

OF THE ENTERPRISE MANAGEMENT STRUCTURES

Оlena Кniazieva1, Yuriy Obodovskyi2

Abstract. The article is dedicated to the topical issue of determining the place of informal component of management 
in ensuring the efficiency of the transformation process of the enterprise management structures. Generalization 
of theoretical and practical experience in the transformation of management structures allows to confirm that 
informal aspects are prominent in the process of the enterprise management, however, it is not reflected in the 
transformation of management structures. In particular, the current classification of informal relationships in the 
management process does not fully reflect their penetration into the system and management process, which 
leads to a decrease in the quality of the management structure, in the efficiency of transformation processes, the 
resistance of the management system of the transformation performed, and, accordingly, it reduces the overall 
efficiency of the enterprise management. Methodology. In the course of the research, the authors have used a wide 
range of general scientific methods, such as abstraction, deduction, induction, analysis and synthesis, modeling 
and systemic approach, to describe the informal component of management, to carry out its classification, as well 
as to identify models of the mechanism of transformation of management structures and transformation process. 
According to the results of the conducted research, it is proposed to supplement the existing classification of the 
informal component of management by taking into account such features as: effect, stability (duration of existence) 
and scale of distribution; it is also proposed to expand the content for the attributes of character and manifestations 
of interaction of formal and informal components. It is proved that informal relationships and connections should 
be taken into account at every stage of the process of transformation of the management structure. In particular, it 
is stated that the quality of the management structure, as one of the stages of the transfor-mation process, and the 
factors of influence on the enterprise in the aspect of functioning and transformation of its management structure, 
as a limitation of the transformation process, should be investigated, taking into account the classification features 
of the informal component. In this regard, it is proposed to supplement the existing aspects of the quality of 
management structures with an informal aspect and to determine the efficiency of the processes of transformation 
of management structures by the criteria of system resistance to change, resource mobilization, and independence of 
the management structure transformation group and the efficiency of transformation activities. It is determined that 
the system of interconnected elements, including methods, levers and instruments of influence, which in the process 
of interaction provide the realization of the task of transformation of the management structure, that is, determine 
the mechanism of transformation of management structures, occupies a prominent place in ensuring the efficiency 
of the transformation of management structures, as well as obtaining the desired result (effect) for the enterprise. 
The practical implication of the obtained results of the research is to ensure the increase of the level of quality of the 
management structure and the efficiency of transformation processes by taking into account the factor of informal 
relationships as an in-tegral attribute of the structure of the enterprise management. The use of certain components 
of the mechanism and stages of the process of transformation process of management structures will reduce the 
resistance of the enterprise personnel to change and will achieve the desired result (effect) for the enterprise.

Key words: informal component of management, management structure, mechanism of transformation of 
management structures, quality of management structures, efficiency of the enterprise.

JEL Classification: D70, D21, J53, L20



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1. Introduction
In conditions of fierce competition in the market, 

the sustainability of the operation and development 
of the enterprise is determined by its ability to take 
into account various factors of the external and 
internal environment and adapt the subsystems 
of the enterprise in order to ensure their smooth 
functioning. Digitalization of economy and 
society, globalization and geopolitical changes, 
socio-economic situation of the country and other 
factors both create opportunities and threaten the 
enterprise. Under these conditions, the decisive 
role in ensuring the functioning and development 
of the enterprise belongs to its management system 
in general and management structure in particular.

Today, many scientists, including M. V. Veres- 
kun, O. Yu. Husieva, D. L. Levchynskyi, H. L. Mo- 
nastyrskyi, I. I. Novakivskyi, Y. M. Petrovych, 
O. M. Romanukha, Ye. I. Khodakivskyi et al., have 
dedicated their work to solving the problems related 
to the functioning of the enterprise management 
structures. 

Studies of the scientific literature and the 
activities of the enterprises show that the use of the 
management structure as an orderly set of elements 
of the management system, which determines their 
composition, interconnections and subordination, 
provides the involvement of a wide range of 
relationships and connections among the elements 
of the management system, including those that are 
not formally established and regulated. 

Nevertheless, the scientific works have not fully 
addressed the issue of taking into account the 
informal component of management in the process 
of ensuring the efficiency of the mechanism of 
transformation of management structures and the 
efficiency of the enterprise as a whole. 

In this regard, the purpose of the article is to 
summarize the theoretical and practical experience 
in the classification of informal aspects of 
management and determine the place of informal 
component of the management in the process of 
ensuring the efficiency of transformation of the 
enterprise management structures.

2. Classification of the informal component  
of management

The point of view of scientists on the informal 
component of management as an attribute of 
the formal system (structure) of management is 
common. Nevertheless, in defining the concept of 

the management structure, this informal aspect is 
almost completely ignored by scientists. Because 
the structure of management characterizes the 
relationship among social elements, the informal 
relationships of management exist in it, as in any other 
social system, along with the formal relationships.

Formal relationships are defined as relationships, 
which are externally structured and enshrined in 
office documents that involve pre-known positions 
of participants in the process, while informal 
relationships are defined as relationships regulated 
by unwritten rules and norms and emerge in the 
organization regardless of formal regulations 
but influence on success of the organization in 
achieving the goal. 

Having all the attributes of a management 
system, the informal component is derived from it; 
its occurrence is due to the existing management 
system. This circumstance makes it possible to 
conclude that forming a management system, 
distinguishing certain components in the structure, 
giving individuals the powers of the management 
subject and the object, the owner (or other 
authorized body) sets the basis for the appearance 
of future informal component of management 
independently. The emergence and continued 
existence of informal aspects in the management 
process are conditioned by the fact that the 
activities of any team cannot be fully regulated, 
certain aspects always remain unresolved, and, thus, 
create preconditions for maintaining the existence 
of an informal component in the functioning of the 
enterprise.

Although informal aspects of management have 
been considered in the works of various scientists, 
and given that informal relationships exist at every 
enterprise (as it is explained in the thesis above), 
the scientists' attention is primarily focused on 
considering informal relationships in terms of their 
presence or absence at the enterprise. 

Thus, the existing classification of management 
structures (Novakivsjkyj, 2017) implies the 
separation of the formalization of relations in the 
management process and the allocation of formal 
and informal management structures, respectively. 
However, as mentioned above, the informal aspects 
of the management process cannot be reduced to the 
concept of structure only, since their composition 
and characteristics make it more appropriate to 
compare them with the management system.

A more sophisticated division of management 
structures is suggested by O. M. Romanukha, 



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who proposes to divide organizational structures 
into: working (formal), auxiliary (unofficial 
"positive") and protesting (unofficial "negative") 
(Romanukha, 2016). However, in this case, it is 
only intended to characterize the management 
structure by the presence and orientation of the 
influence of informal management relationships. At 
the same time, other aspects of interaction are not 
highlighted as features of the informal component.

Another point of view on the separation of 
informal institutions is suggested by Yu. O. Ukis, 
who identifies the manifestation of the interaction 
of formal and informal institutions as attributes, 
manifested in the form of modification (changes of 
informal institutions under the influence of formal 
ones and vice versa); formalization (legitimization 
of informal institutions into formal ones); 
deformation (transformation of formal institutions 
into informal ones) (Ukis, 2005). Therefore, 
summarizing existing approaches to the separation 
of informal aspects of management there can be 
indicated the distinguishing features such as the 
nature and manifestations of the interaction of 
formal and informal components.

Because, as scientists argue, informal relationships 
significantly affect the management structure of 
the enterprise, there is a need for a more thorough 
study and classification of this component.

Thus, it is proposed to supplement the existing 
classification of the informal component of 
management by taking into account such features 
as: effect, stability (duration of existence) and 
scale of distribution; it is also proposed to expand 
the content for the attributes of character and 
manifestations of interaction of formal and informal 
components.

Therefore, there is provided the following classifi-
cation of informal management components by:
– the effect that the informal component has on the 
activity of the enterprise. The thesis that informal 
aspects of the enterprise management can have 
both positive and negative effects is axiomatic. 
Thus, if certain aspects are mistakenly ignored 
or not sufficiently formalized in the formation of 
the management structure, it is precisely because 
of the informal relationships, connections at the 
enterprise the assigned tasks are ensured to be 
accomplished. That is, in this case, the informal 
component of management complements the 
formally regulated structure;
– the nature of the interaction between the formal 
and informal components of management. The 

informal component of management is manifested 
in the form of supplementation or opposition to 
formally regulated one. The interaction, which is 
manifested in addition to the informal aspects of 
formally regulated relationships, as mentioned 
above, creates opportunities for ensuring the 
efficient operation of the enterprise, while at 
the same time creates obstacles opposing it. The 
opposition to the formal management structure 
is expressed in the form of ignoring the hierarchy, 
violating the principles of subordination, executing 
decisions of informal leaders, etc., which in most 
cases leads to negative consequences for the 
enterprise;
– a manifestation of the interaction of formal and 
informal aspects of management. By this feature, 
the informal component has a pronounced or 
hidden character. It is mainly the opposition of 
informal relationships and connections with 
formally regulated procedures that takes the form 
of a hidden appearance, whereby, over a long period 
of time, the management of the enterprise may not 
even suspect the presence of informal aspects;
– stability (duration of existence). The attribute 
implies a tendency to change over time. Informal 
relationships are more than formal and prone 
to transformation: changes in the apparatus and 
management structure cause certain informal 
relationships and connections to break down. 
Therefore, the informal component of management 
is characterized by a sign of duration of existence: 
permanent or situational.
– scale of distribution. The informal aspects of 
management vary in scope, encompassing both 
every element (or, more commonly, almost all) 
and only certain elements of the management 
system. The difference in scale is determined by 
the purpose and tasks that lead to the emergence of 
informal relationships and connections.

The need to supplement the existing classification 
of informal aspects of management is due to their 
presence in each enterprise in one way or another 
and to the need to take into account the informal 
component in the process of assessing the very 
structure of management, an integral attribute of 
which informal relationships and connections act.

Expanding the classification features of the 
informal aspects of management makes it possible 
to establish the need to transform the existing 
management system and its components in more 
detail, to identify the weaknesses of the formal 
management structure and to make appropriate 



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changes in order to improve its qualitative 
characteristics.

Therefore, given the importance of taking 
into account informal aspects in the enterprise 
management process, as well as the high prevalence 
of informal aspects in telecommunication 
enterprises, informal relationships and connections 
need to be taken into account in the transformation 
of the management structure.

3. Mechanism of transformation  
f management structures

Transformation of management structures 
involves the use of the mechanism as a system of 
interconnected elements, including methods, levers 
and instruments of influence, which in the process 
of interaction provide the task of transforming the 
management structure, ensuring the desired result 
(effect) for the enterprise. Taking into account the 
existing achievements of scientists on the concept 
of the mechanism as an economic category, the 
authors refined and adapted the existing model of 
the mechanism (Lazarjeva, 2017) regarding the 
transformation of the management structures.

The proposed mechanism allows, with the 
involvement of employees of the enterprise, to 
determine the reserves for improving its quality 
by monitoring the management structure 
and, accordingly, to implement the necessary 
management decisions, which are directions and 
measures to transform the management structure. 
The purpose of developing and implementing 
the mechanism is to ensure the efficiency of the 
enterprise as a whole, primarily by reducing the 
resistance and negative impact of the informal 
component, as well as increasing the motivation of 
employees.

An important place in this mechanism of 
transformation of the management structures 
belongs to the informal component of 
management, the impact of which is traced at 
each stage of the transformation process. Thus, 
the transformation process of the management 
structures reflects the connection and the 
necessary sequence of steps of this process. The 
conditions of activity of the enterprise, i.e., factors 
of influence on the enterprise, not only cause the 
mismatch of the level of quality of the management 
structure of the current state, but also act as 
limiting factors of the transformation process: 
depending on the available financial, material, 
labor and other resources of the enterprise, there 

are chosen the persons who will be involved in 
the transformation of the management structure, 
which will affect the overall efficiency of the 
transformation process. In terms of determining 
the factors of influence on the enterprise 
informal component manifests itself as follows: 
in the formation of the management system, 
i.e., the definition of the subject and object of 
management, the owners and managers of the 
enterprise are provided opportunities for the 
development of informal relationships, but in 
the future the relationship becomes the opposite, 
which means that when the functioning of the 
enterprise informal aspects of management both 
determine the composition of the elements of 
the management system, eliminating those that 
create obstacles to the development of informal 
relationships, and determine the shape of the 
system as the management structure with the 
help of informal relationships.

The quality of the management structure is 
actually a prerequisite, that is, the entrance of the 
transformation process. As a characteristic of the 
existing properties of the management structure 
that are able to meet the needs of the enterprise, 
quality should take into account the informal 
aspect, as an integral attribute of the management 
structure, as mentioned above. However, at present, 
both in the literature and in the practical plane, there 
is no consideration of the informal component 
factor in the process of assessing the quality of the 
management structure. In this regard, the authors 
have proposed to complement the aspects of the 
quality of management structures, which have 
been generalized by the scientists (Simenko, 2009; 
Prudnykova, 2017), by taking into account the 
informal component by parameters, the allocation 
of which is consistent with the above classification 
of informal management components:
– independence, which is a reflection of the 
level of mutual influence of formal and informal 
components of management;
– auxiliarity, which is the characterization of the 
influence of the informal management component 
on the formal one, it implies the establishment of the 
need for the emergence of the informal component, 
because of the inability to solve the tasks set for the 
enterprise through a formal management structure;
– scale, which is an assessment of the scale of the 
informal component of management, i.e., coverage 
of the informal component of all elements and 
aspects of the enterprise;



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– opposition, which is an assessment of the 
opposition of the formal and informal components 
of management.

The transformation of the management structure 
should ensure both an im-provement in its 
quality and the desired effect for the enterprise. 
However, the use of the model of the mechanism 
of transformation of the management structure 
by itself, as well as the implementation of the 
transformation process do not ensure its efficiency.

Currently, the assessment of the transformation 
process or improvement of the management 
structure is supposed to be carried out by 
determining the effect of the transformation of the 
management structure. But the effect inherently 
reflects the result of the activity. Due to this, 
by characterizing the effect of transforming the 
management structure, researchers focus on those 
additional resources that can be obtained as a result 
of improving management. Scientists bypass the 
question of assessment of the transformation process 
itself. However, the relevance and necessity of 
determining the efficiency of the transformation 
process is not diminished.

The efficiency of the transformation process 
involves determining the ability of the management 
apparatus to act efficiently, to influence the 
transformation process in order to improve the 
efficiency of the enterprise as a whole and aspects 
of the quality of its management structure in 
particular. The authors propose the following as 
criteria for the efficiency of the transformation 
process:
– resistance of the system to change. This criterion 
covers the informal component of management, 
which may be affected by changes in the management 
structure. As a criterion for the efficiency of 
the transformation process of the management 
structure, resistance characterizes the inability 
of the system to act actively due to confrontation 
from the part of employees, managers, etc. An 
important aspect in ensuring the efficiency of the 
transformation process is the determination of the 
system's ability to eliminate timely the destructive 
effect of resistance to changes in the enterprise 
management. Determining the characteristics of 
its intensity and scale are the components of the 
system's resistance to change;
– resource mobilization. The ability of the system 
to provide an active and efficient flow of the 
transformation process implies a rational approach 
to mobilizing the resources required for this. The 

criteria are urgency, promptness in providing and 
rational use of the necessary resources;
– independence of the management structure 
transformation team. The main task of 
implementing the transformation process of the 
management structure is entrusted to the group for 
evaluation and transformation of the management 
structure, which prompts the issue of ensuring its 
independence and objectivity. The influence of 
the management apparatus of the enterprise, as 
well as of other stakeholders of the enterprise in 
order to satisfy subjective interests, will offset the 
non-involvement of the members of the group 
and will create obstacles to ensuring the efficient 
transformation of management. The components 
of this criterion of efficiency are the objectivity 
and independence of the members of the group to 
transform the management structure;
– the effectiveness of the transformation measures. 
The result of the activity of the group for the 
assessment and transformation of the management 
structure is the formation, directions and 
transformation measures that should contribute 
to improving the quality of the management 
structure, bringing it into line with the conditions 
of activity of the enterprise and to ensure different 
types of effect. However, implementation of the 
proposed measures is within the competence of 
the management of the enterprise, and therefore 
the question arises about ensuring the timeliness 
and completeness of the implementation of the 
measures proposed by the group.

Therefore, due to the need to ensure the 
efficiency of the enterprise as a whole and its 
management structure in particular, consideration 
of the characteristics of the informal component 
of management should occur at each stage of the 
transformation process using the classification 
features of the informal component.

4. Conclusions
The features of the informal component of 

management are distinguished, which allow to 
expand its existing classification by more detailed 
definition of its characteristics. Taking into 
account all aspects of the informal component, 
combined with aspects of the activity of the formal 
component, allows for the efficient functioning of 
the management structure. It is pointed out that 
the transformation of the management structures 
requires the formation of a mechanism as a set of 
elements that in the process of interaction provides 



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the task of transforming the management structure. 
It is determined that the qualitative characteristics 
of the management structure as an input and 
the factors influencing the enterprise, acting as 
a restriction of the transformation process, should 
take into account the informal component in order 
to avoid the resistance of the employees of the 
company to change and to ensure the efficiency of 
the transformation process.

The importance of the problems considered 
in the work causes the continuation of 

further scientific research regarding the 
transformation of the management structure of 
telecommunication enterprises. In particular, 
in view of the model of transformation process 
considered in the work, further studies related 
to the evaluation of the effect of transformation 
of the management structure, as an output of 
the transformation process and the criterion, 
by which the expediency of carrying out these 
or other transformations in the management 
system, are promising and relevant.

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