What is Informal Organization, Characteristics of Informal Organization

Wed, 07/27/2011 - 13:08 -- Umar Farooq

What is Informal Organization

Informal organization is regarded as any joint personal activity without conscious joint purpose even though possibly contributing to joint results.  Thus all manner of groups fall within the sphere of informal organization. In the informal organization, people work together because of their personal likes and dislikes etc.  For example, Passenger traveling in an aeroplane or people wandering in streets forms a sort of informal organization.

Characteristics of Informal Organizations

Following are the characteristics of informal organization

  1. Structure wise information organization is flexible and unplanned
  2. There is no defined relationship
  3. In informal organization there are two or more than two people
  4. Informal organization involves spontaneous relationship
  5. In such organization membership is on volunteer basis
  6. People have right to join more than one informal groups at the same time

Also Read:    What is Centralization     Delegation of Authority      Formal Organization

Example of informal Organization

From Business Point of view, it can be explained as supervision in production department takes advice from personnel manger or direct orders form the General Manger instead of going to his won departmental Head.  It is an example of informal organization. This co-operation and co-ordination between a supervisor of one department and manger of another department may be either as a result of neighbor ship in the colony or personal friendship etc. Such inter-relationships cannot be shown in organization charts.  They are only felt and recognized through experience.

To sum up, let us quote C.T Barnard, Informal organization brings cohesiveness to a formal organization. It brings to the members of a formal organization, feeling of belonging of status of self-respect and of satisfactory.  Informal organizations are rather an important mean of maintaining the personality of the individual against certain effects of formal organization, which tend to disintegrate personality.