PRESTON UNIVERSITY ISLAMABAD

Organizational Communication

Assignment # 2

Q 1. Write a note on Informal Organization Structure.

Submitted to

Dr. Abdul Basit

Submitted by

Abid Ali Akbar1434-315005

MBA-IT (2.5)Quarter Jun-Aug 2015

Submitted Date23 June 2015

Informal Organization Structure.

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.

http://study.com/academy/lesson/informal-organization-definition-structure-examples.html

Main Characteristics of Informal Organization

(1) Based on Formal Organization:This is based on formal organization where people also have informal relations. (It means first of all the formal organization is established and then informal organization is created out of it.)

(2) It Has No Written Rules and Procedures:In this organization, there are no written rules and procedures to govern interrelationship. But there are group norms which have to be observed. For example, employees working in an organization and belonging to a particular community form a separate group in an informal way.

(3) Independent Channels of Communication:In this organization, relations among different people are not defined because a person at the lowest rank can have direct contact with the person at the highest level. The flow of communication cannot be specified.

(4) It is not deliberately created:Informal organization is not deliberately created. It emerges out of mutual relationship and tastes.

(5) It Has No Place on Organization Chart:Informal organization has no place on the properly prepared organization chart. Moreover, there is no information about it even in the organization manual.

(6) It is Personal:It’s being personal means that under this the feelings of individuals are kept in mind and nothing is imposed upon them.

(7) It Lacks Stability:There is generally a lack of stability in such an organization. For example, an individual mixes with one group of people today but can cross over to another group tomorrow. Not only this, an individual can be a member of more than one group at a time.http://www.yourarticlelibrary.com/organization/7-main-characteristics-of-informal-organisation/956/

Important Advantages of Informal Organization

(1) Effective Communication:In the absence of any definite course, it is an effective system of communication. Messages can be

quickly conveyed from one place to another with the help of this system.

2) Fulfills Social Needs:

In the informal organization, people having similarity of thoughts and ideas form a group of their own.

All the people in the group stand by one another in all the organizational or personal matters.

(3) Fulfills Organizational Objectives:Here there is no pressure of formal organization. In the informal organization, the subordinates put their ideas before the superiors without any fear or hesitation. It helps the superiors to understand their difficulties and immediate solution of the problem is sought out. Since the problems are easily solved it becomes easier to achieve the objectives of the organization.

http://www.yourarticlelibrary.com/organization/3-important-advantages-of-informal-organisation/962/

Main Disadvantages of Informal Organization

1) It Creates Rumors:All the persons in an informal organization talk carelessly and sometimes a wrong thing is conveyed to the other person which may bring in horrible results.

(2) It Resists Change:This organization resists change and lays stress on adopting the old techniques

(3) Pressure of Group Norms:In this organization, people are under pressure to observe group norms. Sometimes the people assembled in informal group lose sight of their objective and all decide to oppose their superiors unanimously. Such a situation adversely affects productivity.

http://www.yourarticlelibrary.com/organization/3-main-disadvantages-of-informal-organisation/964/