Informal Organisation

The Concept of Informal Organisation

Interaction among people at work gives rise to a network of social relationships among employees, and this is called the informal organisation. It emerges from within the formal organisation when people interact beyond their officially defined roles.

When people have frequent contacts, they cannot be forced into a rigid formal structure. Based on their interaction and friendship, they tend to form groups that show conformity in terms of interest. Examples of such groups, as the NCERT chapter gives them, are employees who take part in cricket matches on Sundays, meet in the cafeteria for coffee, or are interested in dramatics. Informal organisation has no written rules, is fluid in form and scope, and does not have fixed lines of communication.

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Features of Informal Organisation

• Originates from the formal organisation: It arises as a result of personal interaction among employees within the formal setup.
• Group norms, not official rules: Standards of behaviour evolve from group norms rather than from officially laid-down rules and regulations.
• Independent communication channels: Group members develop their own routes for the flow of information, without any specified direction.
• Spontaneous emergence: It emerges spontaneously and is not deliberately created by management.
• No definite structure: It has no definite structure or form because it is a complex network of social relationships among members.

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Advantages of Informal Organisation

• Faster communication: Since prescribed lines of communication are not followed, information spreads faster and feedback is quick.
• Fulfils social needs: It helps members find like-minded people and satisfies their social needs, enhancing job satisfaction and giving them a sense of belonging.
• Supports organisational objectives: It compensates for inadequacies in the formal organisation — for example, employees' reactions to plans and policies can be tested through the informal network.

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Disadvantages of Informal Organisation

• Spreads rumours: When it spreads rumours it becomes a destructive force that goes against the interest of the formal organisation.
• Resistance to change: If the informal organisation opposes a change, management may not be able to implement it, which can delay or restrict growth.
• Group pressure: It pressurises members to conform to group expectations, which can be harmful if the group's norms are against organisational interests.

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