Understanding the Concept of Informal Organization: Definition and Examples
In every organization, there are two types of structures that operate simultaneously; formal and informal structures. While the formal organization refers to the official structure of an organization, with clearly defined lines of authority and communication, the informal organization refers to the unspoken structure, the unwritten rules, and the norms that govern an organization’s behavior.
In this article, we will explore the concept of informal organization, its definition, and examples, highlighting its significance in organizational behavior.
What is Informal Organization?
Informal organization is the social structure that emerges out of the day-to-day interactions within an organization. It is not established by formal authority but rather develops organically through the relationships between employees. Informal structures arise because employees have common goals, interests, backgrounds, and personalities, which lead them to work closely together, communicate frequently, and establish informal channels of communication.
The informal organization has its own communication network that transcends formal lines of communication, and it is vital for the smooth functioning of the formal organization. It enhances employee morale and job satisfaction, promotes teamwork, and helps to socialize new employees into the organization’s culture.
Examples of Informal Organization
There are several examples of informal organization that demonstrate the importance of informal structures in shaping organizational behavior. Here are a few:
1. Cliques: A clique is a group of employees who share a common interest, such as sports, music, or hobbies. Cliques exist in almost every organization, and they provide employees with a sense of community and support. However, cliques can also lead to the exclusion of others, which can create tension and division within the workplace.
2. Informal Leaders: Informal leaders are individuals who may not hold any formal position of authority but are highly respected by their peers. They emerge naturally based on their knowledge, skills, and expertise. Informal leaders have the power to influence the behavior of others and to shape the culture of the organization.
3. Grapevine: Grapevine refers to the informal communication network that exists within an organization. It operates outside the formal lines of communication and is used by employees to share information, rumors, and gossip. While grapevine can be a source of misinformation, it can also provide valuable insights into the organization’s culture and mood.
Significance of Informal Organization
The significance of informal organization lies in its ability to complement formal structures. While formal structures define the roles and responsibilities of employees, informal structures provide a framework for building relationships and promoting collaboration. It fosters a culture of trust and transparency, which leads to higher employee engagement and productivity.
Furthermore, informal organization provides a platform for the expression of employee needs and concerns, which may not be addressed by formal structures. It also enables the organization to adapt quickly to changes in the internal or external environment, by utilizing the informal communication networks.
Conclusion
In conclusion, informal organization is an integral part of organizational behavior, and it is essential to acknowledge its significance. While formal structures provide a framework for organizing roles and responsibilities in an organization, the informal structures provide the foundation for developing relationships and promoting collaboration. Through cliques, informal leaders, and grapevines, informal organizations shape organizational behavior, and it is crucial to recognize their significance. By leveraging the power of the informal organization, companies can create a culture of trust, transparency, and collaboration that drives employee engagement and productivity.
