What are the drawbacks of informal organisations?

[luttu]

What are the limitations caused due to informal organisations in an industry?

[rms]

The working of an informal organisation produces both functional and dysfunctional aspects On the one hand, it benefits both its members and organisation as a whole, on the other hand, il creates difficulty in the smooth functioning of the organisation. Following are important difficulties due to informal organisation:
1. Resistance to change—Most dynamic organisations want change in work methods and routines; informal group have tendency to perpetuate the status quo. Each group tries to maintain equilibrium. In trying to maintain equilibrium, a group develops responses to return to its perceived best way of life whenever any change occurs. Though people perceive the outcome of a change individually if the outcome of change is precise and definite, often they show their reaction in group, and since informal groups are bound by convention, custom, and culture, often they resist any change.
2. Role conflict—Since informal organisations try to meet the social needs of their members there is a natural tendency to produce role conflict. An individual perceives role conflict when he has to fulfil conflicting requirements of both his group as well as of organisation as a whole. Such a conflict may be dysfunctional from organisation's point of view. Much of the role conflict can be avoided by carefully cultivating mutual interests with informal groups. The more the interests, goals, methods, and evaluation system of formal and informal organisations can be integrated, the more productivity and satisfaction can be expected.
3. Rumour—Rumour is a phenomenon of social communication that supplements the transmission of information through formal communication. Rumour is a specific proposition for belief, passed from person to person, usually by word of mouth, without secure standards of evidence being present. Rumour deals with temporary events in a way that implies that whatever is said is true even though there is not much information to circumstances and relieving of emotional tensions felt by people in those ambiguous situations. Since most of the time rumors carry false information, they become detrimental to organisational functioning. The best course of action to deal with rumour is the identification of their source and course. Getting at causes is wise use of the preventive approach, instead of a tardy curative approach. When people feel secure, understand the things that matter to them, and feel on the team, there are few rumors because there is very little ambiguity in the situation.
4. Conformity—The informal groups exert strong pressures for conformity. When conformity is mentioned, a person usually thinks of an autocratic boss and organisational rules. The members identify so much with the informal group that it becomes a part of their everyday life. Accordingly, they hardly realise the powerful pressures which it exerts to group implies that members become subject to willful control of an informal leader who may manipulate the group towards selfish or undesirable ends. The informal leader wields group power without the official control, weight of responsibility, and public regulations that formal leader has. In this way, the informal group can become an instrument of neurotic sources of conflict or non-responsible rabble using the group for their own selfish end.