Final answer:
The term 'informal organization' refers to the network of relationships, social interactions, and unwritten rules that exist within a group or an organization. In certain circumstances, it can be even more powerful than the formal organization largely because of its lack of visibility.
Step-by-step explanation:
Definition of Informal Organization
The term 'informal organization' refers to the network of relationships, social interactions, and unwritten rules that exist within a group or an organization. It is the system that emerges naturally among individuals as they work together, even though it may not be officially recognized or sanctioned by the formal structure of the organization.
Power of Informal Organization
In certain circumstances, the informal organization can be even more powerful than the formal organization. This is largely because of its lack of visibility. The informal networks and relationships formed among individuals can have a significant impact on decision-making, communication, and overall effectiveness within the organization.
Example
For example, in a workplace, the formal organization may have a hierarchical structure with clearly defined roles and responsibilities. However, the informal organization may consist of informal leaders who have influence over their colleagues, even if they do not hold managerial positions. These informal leaders may have the ability to shape opinions, mobilize support, and drive change within the organization, often without direct authority.