Meaning: It refers to the natural groupings of people in the work situation to meet personal needs.
Features:
i. Based on Formal Organisation: This is based on formal organisation where people also have informal relations. (It means first of all the formal organisation is established and then informal organisation is created out of it.)
ii. It has no Written Rules and Procedures: In this organisation, there are no written rules and procedures to govern inter-relationship. But there are group norms which have to be observed.
iii. Independent Channels of Communication: In this organisation relations among different people are not defined because a person at the lowest rank can have direct contact with the person at the highest level. The flow of communication cannot be specified.
iv. It is not Deliberately Created: Informal organisation is not deliberately created. It emerges out of mutual relationship and tastes.
