Disadvantages of informal organisation:
(1) It Creates Rumors:
All the persons in an informal organisation talk carelessly and sometimes a wrong thing is conveyed to the other person which may bring in horrible results.
(2) It Resists Change:
This organisation resists change and lays stress on adopting the old techniques.
Advantages of informal organisation are as under:
1. Fulfills Social Needs:
It meets social needs of the members and hence results in a sense of belongingness among them.
2. Influence on Productivity:
It has a powerful positive influence on the productivity and job satisfaction.
