Informal Organization

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What is an Informal Organization?

Informal organization refers to the social structure within an organization that emerges spontaneously as employees interact with each other. It is the opposite of the formal organization, which refers to the official hierarchy and rules within a company.

The purpose of the informal organization is to provide social support and networking opportunities for employees. It can also serve as a way for employees to share information and ideas, and resolve conflicts.

The components of the informal organization include social networks, cliques, and subcultures. Social networks refer to the relationships and connections between individuals within the organization. Cliques are groups of individuals who share similar interests and values and who often spend their time together outside of work. Subcultures are groups of individuals who share a common identity and set of values that differ from the dominant culture of the organization.

The importance of an informal organization lies in its ability to influence behavior and decision-making within an organization. It can shape the way that work is done, and it can also impact communication, motivation, and productivity.

The history of informal organizations dates back to the early 20th century when researchers began to study the social dynamics within organizations. Over time, the concept of informal organization has become increasingly important in management theory and practice.

The benefits of the informal organization include increased social support and cohesion, improved communication and information sharing, and enhanced creativity and innovation. However, there are also potential downsides to informal organizations, such as cliquish behavior and the exclusion of certain individuals, as well as the potential for conflicts to arise.

Examples of informal organizations include the office gossip network, a group of coworkers who regularly go out to lunch together, and a team of employees who bond over a shared hobby or interest.

See Also