Informal organisation is a network of personal and social relations which are not established or required by the formal organisation but arising spontaneously due to people associating themselves with one another.
Advantages of Informal Organisation:
(i) It leads to faster spread of information as well a quick feedback.
(ii) It fulfils the social needs of the members.
(iii) It contributes towards fulfillment of organisational objectives by compensating for inadequacies in the formal organisation.
Disadvantages of Informal Organisation:
(i) It leads to spread rumours.
(ii) It may lead to wards resistance to change.
(iii) It pressurizes members to conform to group expectations which may be against organisational interest.
