Informal Organization And Its Features

There are many interpretation of the term organization. Some regard it as the human relationship in group activity equivalent to social structure. Chris Argyris refers to this as the notion that an organization includes all the behaviour of the participant, others use organization in the sense of an enterprise, organized to accomplish certain objectives.

In a company, we can often see the two basic structures which are the formal and informal organization. [ refer to another article on Bernard Elto Mayo on formal and informal organization ]


Below article looks at informal organization and its features:



Informal Organization


  • Is the relationship between people based not on procedures but on personal attitudes, prejudices, likes ad dislikes



Features Of Informal Organization

  • This is not established by management and is not the rigid formality of boss-employee relationship and delegation.


  • Its develop spontaneously and pervades in all enterprises


  • Based on informal authority wherein people in an enterprise are strongly influenced by leaders without any formal authority. The informal authority is earned and not delegated. Authority under informal organization largely flows upward or horizontally


  • Informal organization represent human tendency to cut across formal channels of communication and communicate informally with other parts of the enterprise which are considered by layman as “gossiping” or grapevine channel of the enterprise






  • For an effective manager to be successful in managing his staff, it is essential to understand the formal and informal organization. Very often, in a very old established organization, the manager can see a stronger force of informal organization at work.

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