Advantages of informal organisation:
(i) It leads to faster spread of information as well a quick feedback.
(ii) It fulfills the social needs of the members.
(iii) It contributes towards fulfillment of organisational objectives by compensating for inadequacies in the formal organisation.
Limitations of informal organisation:
(i) It leads to spread of rumours.
(ii) It may lead to resistance to change.
(iii) It pressurizes members to conform to group expectations which may be against organisational interest.
