12.3.2 Informal Organisation: Informal Organisation arises from the social interaction of people in
the organisation. The people cut across formal channels and communicate amongst each other. It is
due to friendship, mutual regard, intimacy and closed contact formed with relationship. Thus the
informal organisation has no place in the formal organisation chart. It is formed to meet personal
needs of the group and acts as an agency of social control. Informal organisation is not established
by managers formally but arises spontaneously and naturally. For instance the members of a group
may start recognising a person as their leader because of his age. Seniority, job-knowledge, information
personality strength or skill etc., Thus informal organisation is earned not delegated. It is all-pervasive
and is found in every enterprise at all levels of the managerial hierarchy.
It is very difficult to find a completely formal or a completely informal organisation. The formal managers
should try to make use of informal managers for the achievement of goals of the enterprise.
Features of Informal Organisations: Informal organizations are characterised by the following features.
1.
It develops spontaneously and is not established by formal managers.
2.
It is based as informal authority attached to the person, and not the position. Informal authority
is earned and not delegated. This authority under informal organisation largely flows upward
or horizontally.
3.
Informal organisation represents human tendency to cut across formal channels and
communicate informally with other parts of the enterprise.
4.
People in the informal organisation are influenced by leaders without any formal authortiy.
5.
It is all-pervasive and exists in every enterprise.
6.
Informal organisation is not always destructive though at time it can make the job of managing
more difficult. Because of its powerful influence on productivity and job satisfaction, formal
management will do well to derive benefit from the study of informal organisation.
7.
Informal organisation cannot altogether be abolished. Informal organisation is not created at
the will of the formal managers; not the latter can do away with all the social conventions and
group norms.