Business Studies

Six Mark Question:
Give the meaning of 'Informal Organisation' and state any five features of it.


SOLUTION
The informal organisation may be defined as “a network of personal and social relationships that arise spontaneously as people associate with one another in a work environment. It is composed of all the informal groupings of people within a formal organisation.”
Features of Informal Organisation:
1. 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.
2.Informal leaders: Leaders are informally elected by group members. They strongly influence group activities and contribute to formal goals positively or negatively.
3.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.
4.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.
5.No fixed tenureIt 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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Subjective Medium Published on 18th 09, 2020
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