INFORMAL ORGANISATION –

RELEVANCE AND IMPORTANCE

GROUP B10
HTBC0206- JANHVI SOHANDANI
HTBC0207- RASHMIN SOLANKI
HTBC0208- SHRAVANI SURVE
HTBC0209- SAIFAN TAMBOLI
HTBC0210- TANYA VASWANI
HTBC0211- MAHIMA WALWANI
INTRODUCTION

According to Chester Barnard, “an informal organization is an aggregate of

interpersonal relationships without any conscious purpose but which may
contribute to joint results.”According to Schein, an informal organization
exists in the sense that it has no legal existence, no legal boundaries, no
membership roster, no tangible assets, no formal structure, and no official
leadership. The distinguishing feature of an informal organization is the social
fabric that binds its members together with a common identity.
CONCEPT

Informal organization have:

• no fixed rules or hierarchy

• Dynamic
• Fluid
TYPES

• Horizontal – People who work at the same level in an organization

belong to a horizontal group.
• Vertical – People working at different levels in an organization
belong to the vertical group.
• Mixed – People from different levels and different departments
create a Mixed Group.
EXAMPLE

Members of the sales team join every day for lunch with the human resource
team. Another example of such informal groups is that sales team personnel
help tech development employees to figure out the requirements of the product.
ADVANTAGES
•The informal organization has several advantages. They are:
•First, they instill a sense of unity and solidarity among members.
•It happens because they are obsessed with each other’s social interactions.
Therefore, this leads to job satisfaction and stability in the organization.
•In addition, a strong informal organization can be an effective means of rapid
communication. Managers and employees can use this.
•The informal organization can compensate for the limitations imposed by formal
structure, enabling it to successfully achieve organizational goals.
IMPORTANCE
 

•1 Information is exchanged between groups and people quickly

because the lines of communication are not defined.
•2 Quick feedback is received.
•3 Job satisfaction is attained because the social needs of the
members are fulfilled, thus leading to stability in the organization.
•4 People in an organization are diverse, and so are their needs,
which cannot be fulfilled by the formal design of the organization.
BIBLIOGRAPHY

• www.bstmanagement.com
• www.crsvedu.com

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