An informal organization is that organization which is not established deliberately but comes into existence because of common interests, tastes and religious and communal relations. The main purpose of this organization, structure is getting psychological satisfaction. For example, employees with similar interest in sports, films, religion etc. may form their own informal groups.
Features
1. It originates from within the formal organization as a result of personal
interaction among employees.
2. It has no written rules and procedures.
3. It does not have fixed lines of communication.
4. It is not deliberately created by the management.
5. It is personal means the feelings of individuals are kept in mind.
Advantages
1. Speed: Prescribed lines of communication are not followed which leads
to faster spread of information.
2. Fulfilment of social needs – enhances job satisfaction which gives them
a sense of belongingness in the organization
3. Quick solution of the problems – because the subordinates can speak
without hesitation before the officers, it helps the officers to understand
the problems of their subordinates.
Disadvantages
1. It creates rumours: All the persons in an informal organization talk in a
careless way and sometimes a wrong thing is conveyed to the other
persons.
2. It resists changes and lays stress on adopting the old techniques.
3. Priority to group interests: Pressurises members to conform to group
expectations.
