Journal of Education, Society and Behavioural Science

This study examines the impact of informal relations on banks (Eco bank, Stanchart, United Bank for Africa, Barclays, Ghana Commercial Bank, and Cal Bank) at KNUST campus. Social survey was the design used for this study. The population of study was all workers of all banks on KNUST Campus. The sample size for the study was fifty-four (54) consisting of six (6) managers and forty-eight (48) working staff from the various banks. The simple random sampling technique was employed to select the sample. Additionally, purposive sampling technique, which is a non-probability sampling method, was used to select the various managers who participated in the study. The data used for this study included both primary and secondary. Closed ended questions were used to collect the primary data. In analyzing the data collected from the field, both quantitative and qualitative methods of analysis were used. From the study, it was evident that employees who interacted informally and participated in informal groups increased their capacity to be creative and express new ideas which positively reflected in their performance.  Again,  it came to  light  that  managers sometimes  failed  to  realize there were informal group pressures within their organizations which influenced and determined employees’ behavior. It was recommended that managers should critically look at informal relations and explore means that encourage employees to relate informally in relation to the objectives of the organization. In addition, managers should make efforts to check rumours since untrue information perpetuated by dissatisfied employees can affect the morale of other employees. It must be emphasized that informal relations is a natural, social and psychological need of employees and therefore managers need to study the informal group to discover ways in which the interests of informal groups can combine with the interest of the formal organization for higher productivity.