Informal Organization

Meaning & Definition

An informal organization represents an informal structure of relations and social contacts arising naturally between members of an organization. It does not depend on the hierarchy of the company nor any of its policies. The informal organization plays an important role in the process of communication and cooperation.

Important Features of Informal Organization

• Promotes healthy interactions between employees.
• Facilitates the exchange of ideas and information.
• Allows for greater collaboration among employees.
• Fosters good communication within the organization.
• Creates a sense of community within the organization.

Compliance & Policy Considerations 

There is no particular statutory compliance associated with this term.

Though employees interacting in informal organizations must adhere to conduct guidelines at the workplace, anti-harassment policies, and confidentiality policies.