Nature and Significance of Informal Groups in Organization

Informal groups are neither formally structure nor organizationally determined. It is based on personal interaction, sentiments and social activities. The membership is voluntary participate. Its primary focus is person. It has members with common objective or similar need for social affiliation and friendship. It quickly adapts to environmental changes but resists to change within the group.

Not only is the formal group important in effective performance of the job. But equally important of informal group in organization because of the following reasons:
  1. Compensation for the low capacity manager's ability: Manager may not be capable in all the fields. In same, he may snag the ability. Especially, in planning and other decision making his snags i.e. low capacity can be compensated by his subordinates informally, if he has the good relationship with the informal group. 
  2. Useful channel of communication: Communication through informal group is faster than formal. Any information through the channel of informal groups spreads quickly. Thus the informal group proves to be very useful channel for effective communication.
  3. Compel managers to plan and act cautiously: Informal groups induce the manager to plan and act cautiously because of weak plan and action is always undermined by the groups.
  4. Provides sense of belongingness and security: Informal group provides satisfaction and stability of work team to attain a sense of belongingness and security. A new employee will remain an isolate until the group accepts him as a member. When the new comer will be accepted as a group member he attains a sense of belongingness and security.
  5. Greater performance and supervision: Informal groups help get the jobs done or control performance. If the manager feels that his work team is cooperating him, he has less need for checking frequently and confidently delegate and decentralize the work. The informal group support leads in general supervision instead of close supervision, which enhances the productivity of the employees later on.
  6. Reduced frustration and allied employee: Informal groups are the safety value for the frustration and allied employee because if any employee feels irrigation with his superior's behavior, he can talk it to his group members and can dissipate his unpleasant feelings.

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