Informal organization refers to the relationship between people in the organization based on personal attitudes, emotions, prejudices, likes, dislikes, etc.
Informal Organization
Informal organization refers to
the relationship between people in the organization based on personal
attitudes, emotions, prejudices, likes, dislikes, etc. These relations are not
developed according to procedures and regulations laid down in the formal
organization structure. Generally, large formal groups give rise to small
informal or social groups. These groups may be based on some similarities that
people of a large group see among the members of the group with respect to
tastes and preferences, socio-cultural background, temperaments, attitudes,
etc,. These groups are not preplanned, but they develop automatically within
the organization according to its environment.
Informal organizations are small
groups and these groups can overlap because a person may be a member of several
different informal groups. A manager cannot abolish the informal groups since
he does not create them. Informal relations will always support and supplement
the formal one. There are certain disadvantages also of informal organizations.
They put resistance to change and conform to old practices. The communication
in informal organization is very fast. Sometimes, it creates
rumors which may prove dangerous to the enterprise.
Modern authors on organization
behavior view organizations as consisting of both types of relationships, i.e.,
formal and informal. It is true that while laying out an organization plan,
management can only develop formal structure of relationships, but organization
is not only a form chart or structure of relationships. Formal organization, no
doubt, is an important part of the organization. But informal organization is
also not less important. If handled properly, it will help in performing the
activities of the organization very efficiently and effectively. In short,
informal relations are complementary to formal relations and procedures laid
down in the organization structure. Both formal and informal organizations are
necessary for any group action just as two blades are essential to make a pair
of scissors workable.
Tags : Management Concepts & Organisational Behaviour - Formal And Informal Organization
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