Definition

An informal organization is the social structure of
the organization, as opposed to the formal structure
of an organization. It establishes how an organization
functions from a practical standpoint. The informal
organization can work in concurrence with the formal
organizational structure, parallel with it, or against it.

Concepts and Structure
You can best understand the concept of an informal
organization by comparing it to a formal
organization. Let's look at the formal organization
first since it's a bit easier to understand. The
structure and operation of a formal organization is
typically set forth in the official documents, rules, and
procedures of the organization (like a corporation's
articles of incorporation and bylaws). The roles,
authority and responsibilities of each member of the
organization are clearly defined. For example, a
limited liability company's operating agreement
outlines the scope of authority and responsibilities of
the managers of the company. A formal organization
is cold, sterile, and impersonal.
Now, let's take a look at an informal organization.
It's primarily a social creature - made up of the sum
total of social norms, relationships, and interactions
that affect how an organization works. While a formal

Members of an informal organization can certainly hold official offices and have formal duties.organization is cold and impersonal. an informal organization is intensely personal. alliances. and preferences on how tasks should be performed. but they also bring their own values. trusted sources of information. or even against it. It's all about social interactions and relationships between the members. Decisions are . enemies. These social influences may cause a member of the informal organization to work in conjunction with the organization. Members develop friendships. you can think of an informal organization as:  An organization within the formal organization working with it  An organization beside the formal organization working towards the same goals but not necessarily together  Or an organization working outside the formal organization and against it The structure of an informal organization is usually quite different from its formal counterpart. Its structure is usually fluid and rather flat. in parallel with it. In some respects. personal interests and assumptions into the equation of how they act.

because formal rules and hierarchy don't pin it down. responsive. .often made collectively rather than unilaterally by one leader. An informal organization is also able to be dynamic. Cohesion is often established through trust and reciprocity between members. and adaptable to change.