FREE online courses on Group Dynamics - Significance of Informal
Organization
The importance of informal organization arises from the
functions performed by informal groups. The important functions of informal
organization are as under:
(i)
It serves as a very useful channel of communication in the
organization. The informal communication is very fast. (ii)
It blends with the formal organization to make it more effective. It gives
support to the formal organization.
(ii)
The informal leader lightens the burden of the formal manager
and tries to fill in the gap in the manager's abilities.
(iii)
Informal organization gives psychological satisfaction to the
members. They get a platform to express their feelings.
(iv)
The presence of informal organization encourages the manger to
plan and act carefully. Thus, informal organization supports and supplements the
formal organization.
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.
Informal organization may act to fill in gaps in a manager's
ability. For instance, if a manager is weak in planning, one of his subordinates
may informally help him in such a situation. Management may also make use of
informal group leaders by taking them into confidence to mediate as bridges of
understanding between the management and the employees. Therefore, management
should adopt a positive attitude towards informal organization. It should use it
along with formal structure to make a workable system for achieving the
organizational objectives.
