Business Studies

Six Mark Question:
What is meant by 'Informal Organisation'? State the features of Informal organisation.


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) Informal organisational structure gets created automatically without any intended efforts of managers.
(2) Informal organisational structure is formed by the employees to get psychological satisfaction.
(3) Informal organisational structure does not follow any fixed path of flow of authority or communication.
(4) Source of information cannot be known under informal structure as any person can communicate with anyone in the organisation.
(5) The existence of informal organisational structure depends on the formal organisation structure.
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Subjective Medium Published on 18th 09, 2020
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