An informal organization is a setup that doesn’t base its functioning on formal relations or a structured style of working. An informal organization definitely has an objective to achieve but it is different from a formal organization. Every organization has a group of people who work together to achieve a common goal or objective.
The informal organizational setup doesn’t have people assigned to do particular roles or functions. Also, there is no position defined within the organization or ranks fixed. In informal organizations, humans form relations based on their attitudes, likes, dislikes, and perceptions. People choose their own position in their organization based on various informal factors. They do not bind by any policy or procedure or rank but come together of their own will and communicate with each other.
An informal organization can be found in many formal setups and is formed naturally with the help of interaction and communication. Personal and social relationships are given higher importance in informal organizations. For example, in a company, when an event is being planned, employees voluntarily come together by sharing their views and likes, and dislikes for the event preparations. A manager may guide the employees on organizing the event but eventually, through the employees’ communication and interaction, informal relations get formed, which is nothing but an informal organization within a formal one.
An informal organization can also be found in a college setup wherein students are given an assignment by the teacher and students themselves choose their team members to complete the group project. Such selection of team members based on their own thinking, values, likes, dislikes, prejudices, etc. forms the basis of an informal organization in a formal class. Another example can be employees from various teams working in an organization who come together to have lunch every day, thus forming an informal setup.
