An informal organization is a social structure that arises spontaneously within an organization, which allows employees to operate without strict rules or hierarchical formulations. On the other hand, a formal organization is a structure that is formed to meet specific goals and operates within a specified set of rules and hierarchical structures. An informal organization has unique characteristics such as:
- Personal relationships based on trust and reciprocity: individuals interact freely within friendly social networks. Team members form relationships based on trust, mutual respect and collective responsibility.
- Informal communication channels: individuals operating within an informal organizational structure communicate in a relaxed, spontaneous and unofficial manner. They can use gossip, social media chats, and casual conversations to discuss business issues. Communication in an informal organization flows quickly through social networks rather than following rigid formal channel.
- Leadership emerges naturally: leaders of informal organizations are not chosen through formal mechanisms. They emerge naturally, even though they have authority as leaders. Informal leaders also gain trust and respect through personal expertise, social connections, and individual qualities.
- Flexibility: informal organizations are highly flexible and adaptive to change. They can quickly respond to changes in the external environment, take advantage of new opportunities, and address challenges as they emerge.
- Creativity and innovation: informal organizational structures encourage creativity and organization as a result of the autonomy and freedom offered by the informal social structure.
- Informal and fluid roles: the roles and responsibilities of individuals within an informal organization may not align with the formal job descriptions. Role fluidity is also high since individuals can shift from one position to another depending on the situation.
- Motivation and engagement within an informal organizational structure is high since individuals are motivated by intrinsic factors such as personal satisfaction, sense of belonging, and sense of achievement. These informal organizations are also characterized by high employee engagement due to strong social bonds and supportive work environments.
- Informal conflict resolutions: informal organizations are characterized by informal conflict resolutions in the form of mediation or negotiations.
