Meaning of Informal Organization | features, Types, and Importance

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In this session, we will discuss the meaning of informal organization, and features of Informal Organization.

Meaning of Informal Organization

Informal organization is not defined by the organization structure. Which are a network and that types of network which is personal and social relationships that emerges spontaneously as people each other in a workplace. In other words, while working at those job positions, the individual interacts with each other and develops some social and friendly group in the workplace.

Informal organization is the opposite of formal organization. Like that in the organization, the formal organization structure intensely forms whereas the informal organizational structure gets related automatically and the main purpose of such structure is getting psychological satisfaction. (meaning of informal organization). In other words, In any business organization, there is a formal structure then there is no chance of misunderstanding anything. That’s because informal organizations completely design how to achieve specific organizational goals. And it relies heavily on the higher level of authority and division of labor to ensure that the work is accomplished effectually. (meaning of formal organization).

So in the organization, the existence of an informal organization depends upon the formal structure. Because people working at different job positions interact with each other to form informal structure and the job positions are create informal structure.

So in kinds of organization if there is no formal organization structure, then there will be no job position, then there will be no people working at job positions and there will be no informal organizational structure.

According to Keith Davis, “Informal organization is a network of personal and social relations not establish or require by the formal organization but arising spontaneously as people associate with one another.”

According to Chester Barnard, “An informal organization is an aggregate of interpersonal relationships without any conscious purpose but which may contribute to joint results.” (meaning of informal organization). In other words, In any business organization, there is a formal structure then there is no chance of misunderstanding anything. That’s because informal organizations completely design how to achieve specific organizational goals. And it relies heavily on the higher level of authority and division of labor to ensure that the work is accomplished effectually. (meaning of formal organization).

In the session on the meaning of informal organization, we will discuss the features of informal organization.

The features of informal organization can be dedicated by the following points
  • Based on the formal organization
  • It has no written rules and procedures
  • Independent channels of communication
  • No formal structure
  • Social needs
  • Unplanned structure
  • It lacks stability

Based on informal organization

Informal organization is based on the formal organization where peoples also informal organization. So it is clearly defined in any kind of organization if there is no formal organizational structure, then there will be no job positions, then there will be no people working at job positions, and there will be no informal organization structure.

It has no rules and procedures

In that type of organization, there are no fixed rules and procedures which can follow by the organizational employees. But there are group norms that have to be observed. For example in the organization employees are working and belonging to a particular community form a separate group in an informal way. (meaning of informal organization)

Gradually some norms do emerge like helping the members of their group to find solutions to the problems related to their works or their own self. Similarly, they protect the members of their community from managerial exploitation. In this way, all the persons joining this informal group will be bound to observe the norms of the group.

Independent channels of the group

In that type of organization, the relationships of employees and the system of communication are informal. So it doesn’t follow the chain of command. the informal organization works faster than the formal channel because it operates along with the formal channel of communication. And transmits the messages much faster through rumors that may also spread along with formal messages. So in this organization communication and relationships flows in every direction, horizontal, vertical, connect, and diagonal people throughout the organization. (meaning of informal organization).

No formal structure

And the formal organization has a specific structure that can be characterized by lines and boxes on the organization chart. So organization chart can display organizational structure. But in a formal organization, there is no formal structure that can represent of organization structure or chart. So in that type of organization, the relationship and communication amongst the people change according to changes in their interests and linking for together.

For example in a formal organization, the workers of the finance department may consult marketing managers to solve their problems rather than finance managers and vice versa. So it is clearly defined there are no supervisors and subordinates. The organizational employees communicate with each other in all the form. Diagonal, vertical, and horizontal.

Social needs

Personal needs of people and social fulfillment is the basic purpose of informal organization. Informal organization people share their own through, interests,s, and feelings from formal organization goals. By the informal organization, their social needs of friendship support, and love are strengthened. (meaning of informal organization)

Unplanned structure

Informal organization is not planned. It emerges spontaneously out of formal interaction amongst employees. when the whole employee of the informal organization interacts with each other then they talk about their interest, beliefs, attitudes, hobbies and that’s all in the session of doing so from groups whose goals are different from formal organizational goals. Their informal relationships and communication gradually develop the informal organization that co-exists with a formal organization.

It lacks stability

And that type of organization there is generally a lack of stability. For example, one employee can exchange his department like that today an employee can work production department but tomorrow he will be working in another department. Not only this one employee can work more than one department at a time. (meaning of informal organization).

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