Limitations of Informal Organization

Though informal organization provides a useful means for achieving foal goals of the organization, it also suffers from the following limitations:

1.    Conformity:

Being part of informal organization, member’s form groups know as informal groups. These groups make their own norms and standards of performance which are followed by all group members, whether or not they like them. If these norms are against the interests of formal organization, members still accept them, otherwise they lose group acceptance. For example, if the group decides not to work overtime, all members agree to it even if they want to work overtime, Informal organization, therefore, result in excessive conformity to group norms which are bad.

2. Attitude of leaders:

If attitude of leaders is negative, that is , he wants his personal interests to be satisfied at the cost of group  interests, informal organization will work against the formal organizational goals. This is harmful for all in the origination.

3. Role conflict:

As members of foal and informal organization, people face the problem of role conflict. If group goals are different from formal goals, members conform to group goals. If the organs tin allows lunch break of 30 minutes but groups extend it to 45 minutes to socialize with each other, members face conflict in their formal and informal roles.

4. Rumors:

“Rumors are grapevine information that is communicated without secure standards of evidence being present. “ It means spreading false information. Information flows virtually in all directions, to every individual at every level of the transition. False information (rumor) speeds in informal organization at a very fast speed . If, for example, managers decide to declare Monday a holiday and a worker overhears them, the message that Monday is a holiday will pass throughout the transition in no time even if it has not been officially announced by managers.

5. Resistance to change:

Informal groups become over protective about their group goals and values. They oppose any change in their way of working. Lack of desire to deviate from existing norms or to acquire new knowledge works against implementation of and sound policies in the transition. An organs ton where warder are used to working five days a week will not easily accept a six-day week even if working hours each day are reduced.

6. Conflicting goals:

If group are different from organizational goals. Members generally pursue group goals even if they are against the interests of formal transitional goals. This is against the interests of the company and its members.

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