Informal organization is just opposite of formal organizational stricture. It is unplanned social structure originated spontaneously within a formal organization. It lacks definite rules, regulation, duties and responsibilities . It helps to fulfill social and psychological needs of the members.
Advantages Of Informal Organization
The main advantages of informal organizational structure can be highlighted as follows:
1. Quick Spread Of Information
One of the most notable benefits of informal communication is that it ensures faster communication because it does not follow specific rules and routes. So, quick feedback is possible.
2. Quick Decisions
Informal communication does not follow specific chain of command so quick decision is possible in this type of structure.
3. Flexible And Dynamic
It is more flexible and dynamic than formal organization and can be adopted as per the changing environment and situation.
4. Promotes Sense Of Belonging
Informal organizational structure helps to establish good relationship among the members in the organization. So, it promotes sense of togetherness and unity in the workplace.
5. Increased Motivation
This structure is more democratic than formal structure. So, it helps to increase the motivation level of the employees.
6. Emotional And Psychological Support
It provides emotional and psychological support to the members.
Disadvantages Of Informal Organization
Some of the major drawbacks or disadvantages of informal organization can be expressed as follows:
1. Spread Of Rumors
One of the main drawbacks of informal organization is that it may spread rumors and false information that may mislead the members in the organization.
2. Lack Of Structure
It lacks proper structure, process, rules and regulations so that organizational goals may not be achieved properly.
3. Focus On Individual Interests
Informal organization gives focus on individual needs and interests rather than organizational interests and goals. So, it is difficult to perform organizational tasks effectively.
4. Difficult To Control
Because of the lack of strict rules and proper chain of command it is difficult for the management to maintain better control and proper discipline in the organization.
5. Unsystematic And Uncoordinated
Informal organization is unsystematic because there is no official leadership, proper structure, rules and regulations. It is difficult to maintain better coordination among the members.
Also Read
Advantages and disadvantages of formal organization
Characteristics of formal organization
Characteristics of informal organization
6. Limited Scope
It has limited scope than formal organizational structure.
Pros And Cons Of Informal Organization In Brief
Pros:
- It ensures faster communication and quick feedback
- It provides emotional support for its members
- It is helpful for making friendship and get psychological satisfaction
- It promotes the sense of unity and togetherness among the employees
- It is more flexible and dynamic
Cons:
- There is a high possibility of spread of rumors that may lead to misunderstanding
- It gives emphasize on individual interest rather than organizational interest
- It lacks clear structure and proper chain of command
- It is difficult to control and maintain proper discipline in this structure
