INFORMAL ORGANIZATION
Informal organization takes place outside of formal structures. Informal order will come into being alongside formal structure. Those structures maybe acceptable or un-acceptable within society. Informal organization and order is a powerful force often ignored at an organizations own peril. When informal order supports formal structures it creates stability in the organization. When informal organization does not support the formal structure it can cause disorder in the formal environment and successfully disrupt the formal organization. Informal organization in formal environments is a two edged sword.
Informal organization can formalize its existence exert pressure on formal organization. An example is how trade unions come into being following (alongside) the establishment of an industry. Both informal and formal organization requires leadership.
FORMS OF INFORMAL ORDER
Informal organization will be formatted around the above forms of order. Forms of informal order can also be considered as developmental stages of formation (Assembly-Group-Club- Team) on a continuum, but they are also separate and quite distinct.
It would be true to say that the team exhibits finer elements of informal order and organization while an assembly is more subject to mass (mob) psychology and simple direction. Brief definitions of each will also help establish the role of leadership in each.
ASSEMBLY: a collection of people
GROUP: a select (isolated) core of people
CLUB: subscribed members bound by a set of ethics
TEAM: a synergistic association of people with purpose.
The role of leadership in informal organization begins with mobilizing (collecting) people, winning loyalty, gaining commitment then gradually guiding the organization to realize specific objectives. Leadership can use informal order (especially in formal environments) to achieve its ends. If informal order works against formal order (and vice versa) the organization will self-destruct. There are no winners in this war. Formal and informal order must co-exist harmoniously in an environment for an organization to survive the long term and optimize performance.
Organizations need to ensure that they have informal support for formal initiatives to succeed. Excluding any member of the organization will lead to corporate failure. What follows next is a success story of informal organization.