Informal Organization

According to Chester Barnard “an informal organization is any joint activity without conscious joint purpose, even though contributes to joint results”. It is a network of personal and social relations not established or required by the formal organization but formed as people associate with one another.

Characteristics of Informal Organization

·         constantly evolving and diminishing

·         dynamic and responsive

·         excellent at motivating people

·         requires insider knowledge to be seen

·         treats people as per the individuals’ likes and capacities

·         collective decision making