The design of an organization specifies how goals are subdivided and reflected in subdivisions of the leadership and management in organizations. Divisions, departments, sections, positions, jobs and tasks make up this work structure. Every employee receives a salary for work rendered and enjoys a degree of tenure that protects him from the arbitrary influence of superiors or of powerful customers. The higher the individual’s position or leadership and management roles that arise from the hierarchy of the organization, the greater his presumed expertise in handling and solving problems that may arise from different problems in the lower levels of the organization. It is this bureaucratic nature that forms the structure that gives authority to the individuals at the higher end of the structure.
In contrast to the actual appointed head of a business unit, leadership and management roles emerges within the context of the informal organization that underlies the formal structure. The informal element of the organization conveys the personal objectives and goals of the individual members for example their objectives may or may not agree with those of the formal organization. The individuals in the informal organization represent an extension of the social structure the generally characterize human life. As people spend a major portion of his waking hours working for organizations they need to identify with a community that provides them with security, protection, maintenance and a feeling of belonging. All these needs and more are met by the informal organization and their unofficial leadership and management roles that they have. Personal qualities, demands of the situation, and other factors or a combination of these will attract followers who will accept their leadership and management roles with one or more of the factors.