Role of Informal Groups in Organizations

Group may be defined as a social phenomenon in which two or more persons decide to interact with one another, share common ideology and perceive themselves as a group. Both formal and informal groups exist in organizations. Formal groups are collection of employees who are made to work together by the organization to get the job done smoothly and efficiently. Informal groups, on the other hand are groups that emerge or randomly get formed due to the formal group member's interactions with each other, and there by develop common interacts. In the other words, informal groups are not formally organized in the work system to get the job done, but randomly develop on their own at the work place because of common interests and mutual linking among the members of the formal group. Informal groups in modern organization are important as they play vital roles. Some of the roles played by informal groups can be as following:

• Informal group are controlled by their norms and values, so the behavior of employees could be positive.
• Informal groups sometime lead to innovation and creativity regarding to job complexity and difficulties or for new product and services.
• Informal groups are controlled by their norms and values, so the behavior of employees could be positive.
• Informal groups help in communicating new changes easily and effectively.
• Informal group by their social interaction can create the better image of company.
• Informal group creates the warm relationship between superior and subordinates. Plus, it helps in establishing cultural interaction for the issues created in organization.
• Informal group can solve the formal problems of organization even in off-the-job time.
• Informal groups inform, suggest and help the organization determining employee's salary, motivation and job satisfaction.
• Informal groups lead special effort on job result and help in adoption of organizational change.