An informal organisation is a network of social relationships that arises out of personal interactions among the employees of an orgnisation beyond their officially defined roles. It can be said that an informal organisational structure originates from within a formal organisation.
The following are the advantages of an informal organisation.
(i) Faster flow of communication : As no definite path or channel of communication is followed in an informal organisation, information spreads faster.
(ii) Fulfillment of social needs: An informal organisation allows for personal communication beyond the officially defined roles. This enables the employees to interact with likeminded colleagues. This unofficial interaction provides a sense of belongingness among the employees towards one another and towards the organisation.
(iii) Fulfillment of organisational objectives: An informal organisation support the working of a formal organisation and thereby helps in the fulfillment of the organisational objectives in a better manner. For instance, the managers can interact with the worker informally and assess their views on various matters.