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It is argued that no one can ignore the existence of informal groups within formal organisations. They perform necessary functions and satisfy human needs. The role of the leader to achieve co‐operation between the formal and informal organisations, thereby encouraging group goals and company goals to coincide, is explored.

Informal work‐groups are described, and their characteristics and development are discussed. They are compared with formal groups which are defined by the structure of the organisation and an individual′s role within that structure. Informal groups will always occur in any organisation; so management′s task is to understand and use informal groups to achieve the organisation′s ends. This is especially true as regards productivity, and the variables affecting productivity are discussed. The article then concentrates on leadership as a factor affecting group productivity. In this context, interactions between leaders (formal and informal) and group members are considered. A model is presented of how management can use informal groups to increase productivity. The importance of good relationships between formal and informal groups is emphasised, and a list of ways in which management can foster good relationships is provided. If, for any reason, the informal group will not co‐operate with the organisation, but continues to work against it, management must ensure that the group is disbanded.

This study is designed to examine strategic planning practices in Jordanian manufacturing organizations (JMOs). Two issues are of primary concern here. The first is related to the extent of using strategic planning in JMOs, while the second issue is concerned with the infrastructure necessary to implement successful strategic planning.

Data were collected via a questionnaire that was administered to the CEOs of the 37 manufacturing firms included in this study. Out of the 37 questionnaires distributed, 28 were returned representing a response rate of 76 percent.

Results reveal that 39 percent of JMOs are implementing strategic planning, whereas 61 percent are not. Results also indicate that while JMOs managers possess strong and positive attitudes toward strategic planning; these attitudes have not been translated into real commitment. A low to moderate level of commitment, low level of participation, and moderate strength of information system are found in this study.

So far, only limited empirical research has been conducted to explore strategic planning practices in Jordanian business organizations (JBOs). Our current study is among the few pioneering studies that have contributed to the enhancement of our understanding of strategic planning practices in JBOs.