What is the informal organizational structure?

An informal organizational structure is an organizational structure without written guidelines

for operating but is based on norms and systems developed by members. So, there are no
formal and written rules, procedures, or chain of command. If a formal organization pours its
structure into an organization chart, it is not with an informal organization.

What are the advantages of an informal organizational

structure?
Informal organizations are often formed outside the company’s official structure. However, it
contributes to satisfying employees’ social needs such as friendship, love, and support.

In addition, the bonds formed can strengthen relationships and collaboration within the
company. They develop a sense of belonging to each other. So, they can work together to
achieve the company’s goals.

Other advantages of an informal organizational structure are:

Fast communication: Communication need not follow a chain of command. Instead, it just
flows. Thus, it can be much faster than can be done in a formal organization.

Faster troubleshooting: For example, employees might congregate after normal business
hours. They discuss their work and other non-work issues. They give each other constructive
feedback and find solutions to each other. So, they can solve it themselves without waiting
for instructions from their superiors.

More adaptive: Management can get higher support when, for example, introducing change
through a new target or strategy, which requires employees to adapt. And approaching
informal groups within the company is important to reduce employee resistance.

More creativity: Employees are freer to explore and express their creativity and ideas. And
it may be difficult in the formal structure due to fewer opportunities, possible punishment, or
pessimism from being rejected by their superiors.
What are the disadvantages of an informal organizational
structure?
Hard to survive: Informal organizations are easy to form but also easy to break up. For
example, when the leader leaves, there is a void. And, it can cause the organization to
disband because the person who replaces it doesn’t have the same qualities.

Interpersonal and intergroup conflicts: The incompatibility often arises between members
and against other organizational groups. It can worsen interpersonal relationships, resulting in
chaos within the company.

Unsystematic work: There is no official structure. The organization does not divide the
roles, authorities, responsibilities, and duties into several units. Thus, it is more
uncoordinated.

Low control: There are no official rules or ways to bind member compliance. It does not rely
on the encouragement of rewards or punishments. Thus, it is difficult to manage and control
the organization.

Negative information: Rumors and misleading information often spread more quickly
through informal organizational structures.

More concerned with individual interests: Although, the members have common interests.
But, it is less important than individual interests. And, there is no obligation for members to
achieve common interests above individual interests.