Features of Informal Organization

Informal organization has the following features:

1.    Unplanned structure:

This structure is not planned by top managers. It arises spontaneously out of formal interactions amongst people. When people formally interact with each other, they tend to discuss their interests, attitudes, hobbies, beliefs etc.and in the course of doing so, form groups whose goals are different from formal organizational goals. Their informal relationships gradually develop an informal organization that co-exists with the formal organization.

2. Fulfilment of social needs:

The basic purpose of informal organization is fulfillment of social and personal needs of people. People share common thoughts, feelings and interests different from formal organizational goals. Their social needs of friendship, love and support are strengthened by informal organization.

3. No formal organization structure:

A formal organization has a definite saturate, It is depicted by lines and boxes on the organization chart (organization chart is a visual representation of organization structure). Informal organizaiton does not have any formal structure; It cannot be precisely shown on the organization chart. Relationships amongst people change according to changes in their interests and liking or each other. Workers of production department may consult sales managers for solving their personal problems rather than production managers and vice versa. There are no superiors and subordinates in informal organization. People contact each other in all forms; vertical, horizontal and diagonal.

4. Informal leaders:

Leaders are informally elected by group members. They strongly influence group activities and contribute to formal goals positively or negatively.

5. Informal communication system:

The system of communication is informal; It does not follow the chain of command. It operated along with formal channels of communication and works faster than the formal channel. It transmits the messages at a much faster spread though rumors may also spread along with formal massages.

Communication flows in every direction; vertical, horizontal, diagonal and connects propel throughout the organization.

6. No rules and regulations:

It has no fixed rules and regulations that govern functions of the organization. Rules are framed and changed by people according to their convenience.

7. No fixed tenure:

It is formed at the will of the people and dissolves at their will. It  does not operate for a fixed time period. Desolation of informal organization also does not follow any legal procedure.

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