Some of the advantages and disadvantages of informal organization are as follows:

Advantages of Informal Organisation:

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.


3. Fast Communication:

It serves as a faster channel of communication.

4. Fulfills Organisational Objectives:

It helps in achieving organisational objectives by compensating the limitations of the formal structure.

Disadvantages of Informal Organisation:


Disadvantages of informal organisation are as follows:

1. Resistance to Change:

It is very difficult for management to bring changes in the organisation if the informal organisation opposes them. Such resistance may restrict growth of the organisation.

2. Creates Rumours:


Sometimes informal organisation becomes a disturbing force, which can go against organisational interests, e.g., spreading rumours in the organisation.

3. Lack of specialisation:

It is based on the mutual relationships rather than on division of work as anybody can talk to any person in any department with regard to any topic. Hence, specialisation is not possible.