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The network of relations that is created from the social interactions taking place outside of the office is called as informal organisation. It traces its origin from the formal organisations and are not created at will by management. These relationships are built on friendship that develops between co-workers. It supports the formal organisations in following ways
1. A free flow of communication is established in an informal organisation which leads to communication channels outside the organisation. In this way communication spreads easily and assists the formal organisation.
2. In informal organisations people develop good bonding among themselves and thus towards organisation. It helps in increasing coordination among the members and also promotes mutual trust and respect. The result of such bonding is it lowers the level of conflicts.
3.Informal organisations help in fulfilling organisational objectives. Managers can get to know about the workers issue and ask for suggestions on improving the work conditions. Happy workers will be more contributing towards organisation.
4. It helps in building a harmonious work environment by encouraging cooperation among workers and managers. A peaceful work environment is more productive.
5. An informal organisation helps in increasing efficiency among the workers. The workers understand their importance and actively contribute towards organisation growth.