Four employees belonging to four different departments taking their lunch together represent an example of an informal group. Informal groups arise spontaneously and voluntarily to satisfy the various social needs, not likely to be fulfilled by the formal organization.

The informal organization is the interlocking social structure that governs how people work together in practice. It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation.

Informal organizations exist in every organisation. They are built spontaneously over time and not deliberately. Policies, procedures or norms are not required to form such groups, they are formed merely based on the personal interactions and common interests.

Informal organizational structure includes personal relations, relations and interactions of people in the organization, that are created naturally, informally and unofficially. Informal organizational structure is a type of social network and can be analyzed with adequate methods (sociometry, social network analysis).

A primary benefit of the informal organization is that it provides an opportunity for employees to develop bonds with co-workers. This improves overall workplace cohesion and morale. Employees that work together often produce better results if they have good rapport away from work processes.

Formal organisation is created deliberately by top management. Conversely, informal organisation is formed spontaneously by members. Formal organisation is aimed at fulfilling organisation’s objectives. As opposed to an informal organisation is created to satisfy their social and psychological needs.

What are the advantages and disadvantages of formal and informal organisation

• Systematic Working:
• Achievement of Organisational Objectives:
• No Overlapping of Work:
• Co-ordination:
• Creation of Chain of Command:
• More Emphasis on Work:

The formal organization is bound by rigid rules, regulations and procedures. This makes the achievement of goals difficult. Informal organization refers to the relationship between people in the organization based on personal attitudes, emotions, prejudices, likes, dislikes etc.

A formal organization has its own set of distinct characteristics. These include well-defined rules and regulation, an organizational structure, and determined objectives and policies, among other characteristics.

Following are the main characteristics of informal organisation:

• (1) Based on Formal Organisation:
• (2) It Has No Written Rules and Procedures:
• (3) Independent Channels of Communication:
• (4) It is not deliberately created:
• (5) It Has No Place on Organisation Chart:
• (6) It is Personal:
• (7) It Lacks Stability:

Dalton has classified informal groups into three categories namely, horizontal, vertical and mixed.

Since group members have common interests, it becomes easy to accomplish goals that they set. Informal relationships offer a sense of belonging, social status and satisfaction unlike in a formal set up where the relationships are purely work oriented.

Informal Communication: Meaning, Characteristics, Advantages and Limitations

• Characteristics.
• Informal or grapevine communication has the following characteristics:
• (1) Formation through Social Relations:
• (2) Two types of Information:
• (3) Uncertain Path:
• (4) Possibility of Rumour and Distortion:
• (5) Quick Relay:

The two main elements of a utilitarian organization are purpose and productivity because the members are compensated through benefits and incentives for their contributions to the cause. There is some affinity in a utilitarian organization which offers tangible benefits and a contractual type of membership.

A formal organization is an organization with a fixed set of rules of intra-organization procedures and structures. They have a definite place in the organization due to a well defined hierarchical structure which is inherent in any formal organization.

Hence, we can say that the school is a social institution to set up by the society to serve its ends. Schools are related to a number of other formal organisations. Some of these are integral to the education system i.e. college and universities, and state and oilier educational agencies.

1)It has a group of people who are expected to perform certain tasks. 2)it has a clear authority structure which is hierarchical. 3)It has clear rules and regulations governing the performance of duties by individuals.

Functions of formal organisation

• Set specific goals – The essential function of a formal organisation is to set specific goals.
• Establish credentials – The function of a formal organization is to establish strict compliance and credentials within and outside the organization.

As an educational organization, the school provides the students to gain knowledge, ability and attitude in accordance with the aims and principles of the educational system. The school is a social organization on its own as well as it can be handled within the context of the relations and its place within the society.

A bureaucracy is a large, formal, secondary organization characterized by a hierarchy of authority, a clear division of labor, explicit rules, and impersonal interactions between its members. The school environment became structured around hierarchy, standardization, and specialization.