Informal Organization

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What is an Informal Organization? Meaning.

The Informal Organization is a concept in management practice that denotes the network, unrelated to the firm's formal authority structure, of social interactions among its employees. It is the aggregate of personal and social relationships that arise spontaneously as people associate with one another in the work environment. It is the complex of social interrelationships in habitually recurring patterns, collaborations or mutual assistance associations, arising from the combination or cooperation of persons within the framework of a given activity or organization.

The informal organization can make the formal organization more effective by providing support to management, stability to the environment, and useful communication channels.

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Compare also: Organic Organization  |  Organization Chart  |  Decentralization  |  Chaordic Organization

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