Give the meaning of informal organisation and state any five features of it.
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As formal organisation grows in size, parallel existence of informal relationships along with formal relationships becomes unavoidable. Informal organisations have always existed with formal organisations. They arise because of inevitable social and personal needs of individuals which cannot be satisfied by the principles of formal organisation. They represent non-planned, unofficial, social interactions amongst people working in formal structures. They arise out of common interests of people.
These organisations are not governed by formal set of principles but they are an important and integral part of formal organisations. E. Wight Bakke calls the creation of informal organisations along with formal organisations a fusion process.
According to him, “When an individual and an organisation come together in such a way that the individual is a participant in, and a member of, the organisation and the two are mutually dependent on each other, both are reconstructed in the process. The organisation to some degree remakes the individual and the individual to some degree remakes the organisations.”
Importance of informal organisation was recognised by Chester Barnard. He viewed informal organisation as “any joint personal activity without conscious joint purpose, even though contributing to joint results.” Keith Davis defines informal organisation as “a network of personal and social relations not established or required by formal organisation but arising spontaneously as people associate with one another.”
While working in a formal organisation, people of different departments at different levels interact with each other, discuss their common interests (cultural, social etc.) and form groups to promote their goals. These goals are known as group goals and informal organisation is an important means to satisfy these goals.
Features of Informal Organisation:
Informal organisation has the following features:
1. Unplanned structure:
This structure is not planned. It arises spontaneously out of formal interaction amongst people. When people formally interact with each other, they tend to discuss their interests, attitudes, hobbies, beliefs etc. and in the course of doing so, form groups whose goals are different from formal organisational goals. Their informal relationships gradually develop informal organisation that co-exists with the formal organisation.
2. Social needs:
The basic purpose of informal organisation is fulfillment of social and personal needs of people. People share common thoughts, feelings and interests different from formal organisational goals. Their social needs of friendship, love and support are strengthened by informal organisations.
3. No formal structure:
A formal organisation has a definite structure. It is depicted by lines and boxes on the organisation chart (organisation chart is a visual representation of organisation structure). Informal organisation does not have any formal structure. It cannot be precisely shown on the organisation chart. Relationships amongst people change according to changes in their interests and liking for each other.
Workers of production department may consult sales managers to solve their personal problems rather than production manager and vice versa. There are no superiors and subordinates in informal organisation. People communicate with each other in all forms; vertical, horizontal and diagonal.
4. Informal leaders:
Leaders are informally elected by group members. They strongly influence group activities and contribute to formal goals positively or negatively.
5. Informal communication system:
The system of communication is informal. It does not follow the chain of command. It operates along with formal channel of communication and works faster than the formal channel. It transmits the messages much faster though rumours may also spread along with formal messages. Communication flows in every direction; vertical, horizontal, diagonal and connects people throughout the organisation.
6. No rules and regulations:
It has no fixed rules and regulations that govern functions of the organisation. Rules are framed and changed by people according to their convenience.
7. No fixed tenure:
It is formed at the will of people and dissolves at their will. It does not operate for a fixed time period. Dissolution of informal organisation also does not follow any legal procedure.
As formal organisation grows in size, parallel existence of informal relationships along with formal relationships becomes unavoidable. Informal organisations have always existed with formal organisations. They arise because of inevitable social and personal needs of individuals which cannot be satisfied by the principles of formal organisation. They represent non-planned, unofficial, social interactions amongst people working in formal structures. They arise out of common interests of people.
These organisations are not governed by formal set of principles but they are an important and integral part of formal organisations. E. Wight Bakke calls the creation of informal organisations along with formal organisations a fusion process.
According to him, “When an individual and an organisation come together in such a way that the individual is a participant in, and a member of, the organisation and the two are mutually dependent on each other, both are reconstructed in the process. The organisation to some degree remakes the individual and the individual to some degree remakes the organisations.”
Importance of informal organisation was recognised by Chester Barnard. He viewed informal organisation as “any joint personal activity without conscious joint purpose, even though contributing to joint results.” Keith Davis defines informal organisation as “a network of personal and social relations not established or required by formal organisation but arising spontaneously as people associate with one another.”
While working in a formal organisation, people of different departments at different levels interact with each other, discuss their common interests (cultural, social etc.) and form groups to promote their goals. These goals are known as group goals and informal organisation is an important means to satisfy these goals.
Features of Informal Organisation:
Informal organisation has the following features:
1. Unplanned structure:
This structure is not planned. It arises spontaneously out of formal interaction amongst people. When people formally interact with each other, they tend to discuss their interests, attitudes, hobbies, beliefs etc. and in the course of doing so, form groups whose goals are different from formal organisational goals. Their informal relationships gradually develop informal organisation that co-exists with the formal organisation.
2. Social needs:
The basic purpose of informal organisation is fulfillment of social and personal needs of people. People share common thoughts, feelings and interests different from formal organisational goals. Their social needs of friendship, love and support are strengthened by informal organisations.
3. No formal structure:
A formal organisation has a definite structure. It is depicted by lines and boxes on the organisation chart (organisation chart is a visual representation of organisation structure). Informal organisation does not have any formal structure. It cannot be precisely shown on the organisation chart. Relationships amongst people change according to changes in their interests and liking for each other.
Workers of production department may consult sales managers to solve their personal problems rather than production manager and vice versa. There are no superiors and subordinates in informal organisation. People communicate with each other in all forms; vertical, horizontal and diagonal.
4. Informal leaders:
Leaders are informally elected by group members. They strongly influence group activities and contribute to formal goals positively or negatively.
5. Informal communication system:
The system of communication is informal. It does not follow the chain of command. It operates along with formal channel of communication and works faster than the formal channel. It transmits the messages much faster though rumours may also spread along with formal messages. Communication flows in every direction; vertical, horizontal, diagonal and connects people throughout the organisation.
6. No rules and regulations:
It has no fixed rules and regulations that govern functions of the organisation. Rules are framed and changed by people according to their convenience.
7. No fixed tenure:
It is formed at the will of people and dissolves at their will. It does not operate for a fixed time period. Dissolution of informal organisation also does not follow any legal procedure.
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