Informal organization means interaction among people at work which gives rise to a network of social relationship among employees is called informal organization. The informal organizational structure gets created automatically and the main purpose of such a structure is getting psychological satisfaction.
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Features of the informal Organisation
- The informal organizational structure gets created automatically without any intended efforts of the manager.
- This structure is formed by the employees to psychological satisfaction.
- It does not follow any fixed path of the flow of authority or communication.
- Source of information cannot be known under the informal structure as any person can communicate with anyone in the organization.
- The existence of this structure depends upon the formal organizational structure.
Advantages of the informal organization
1. Fast Communication
The informal structure does not follow the scalar chain, so, there can be a faster spread of communication.
2. Fulfils social needs
Informal communication gives importance to the psychological and social needs of the employees which motivates the employees.
3. Correct Feedback
Through informal structure, the top-level manager knows the real feedback of employees on the various plans and policies.
Disadvantages of Informal organization
1. Spread Rumours
According to a survey, 70% of information spreads through informal organization structure are rumors which may mislead the employees.
2. No systematic working
The informal structure does not form a structure for the smooth working of an organization.
3. May bring the positive results
If informal organisation opposes the policies and changes of management. Then it becomes very difficult to implement them in the organisation
4. More emphasis to individual interests
Informal structure gives more importance to satisfaction of individual interest as compare to organizational interest.
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