Merits of Informal Organisation: 1.
Informal organisation blend with formal systems to make a workable system for getting work
done. Many requirements which cannot be met with formal organisation can be met better by
informal relations.
2.
An informal organisation lightens the workload of the formal manager. If the employee know
that their manager has the support of the existing informal organisation, they are more likely
to respond to his ideas, to be motivated to work efficiently.
3.
A significant benefit of informal organisation is that it gives satisfaction and stability to work
group. It is the means by which workers achieve a sense of belongingness and security.
4.
It is a useful channel of employee Communication. Management often depends on informal
system to convey certain types of information.
5.
Presence of informal organisation encourages a manager to plan and act more carefully than
he would otherwise.
Drawbacks: Informal organisations create a major danger or difficulty which require careful attention on the part
of management.
1. Resistance to Change: With the persistence of certain culture, these develops a tendency to
perpetuate the ‘status quo’ and oppose change.
2. Role Conflict: What is good for the employee is not always good for his employer. Hence a role
conflict occurs.
3. Rumour: Communication leads to rumour. Rumour is a dangerous disease that sweeps through
an organization as fast as wild fire, and usually with as much damage.
4. Conformity: Social control exerts strong pressures for conformity under formal organisation. But
conformity is caused as much by informal organisation.
Control of Informal Organisation: Organisation should be viewed as a positive force. Informal organisation lightens the burden of
formal managers. It helps to fill in the gaps in formal orders and managers abilities, provides for
satisfaction and stability to the workmen. However, benefits of informal organisation will accrue only
when it is properly controlled and its potential power properly channelised. the significant aspects of
manager’s duty in this connection are:
1.
He should recognise and reconcile himself to the existence of informal organisation.
2.
He should influence the informal organization, so that its role is positive and the negative
aspect is minimised.
3.
He should integrate informal organisation, with formal organisation, in such a way that the
former also contributes to the accomplishment of enterprise objectives.
4.
He should make informal organisation, secondary to formal organisation.
