Characteristics informal organization:

1. As the name suggest, the structure of this type of organization is informal.

• It develops from inter-relationships and interactions.
• This kind of structure is naturally formed when the employees working together work for a commonly defined goal.

2. Based on human relations:

• This kind of structure is based on human relations.
• It is formed between people who share similar feelings, interests, values, hobbies, habits and beliefs.

3. Ever-changing:

• The informal structure is ever changing.
• When an employee leaves one group and joins another work group, the new informal structure is created or changed, as per the change in work environment.

4. Universal:

• This structure is universal i.e. it is not only found in businesses.
• It is found in all places wherever human activities take place.

5. Informal communication:

• The channel of communication is informal i.e. the communication is done informally and mainly orally.
• As a result, there are chances to have more opinions and fewer facts in it. This kind of communication is very fast.

6. Small size:

• The size of this organization is mostly small because it forms due to individual relationships, exchange of ideas, sharing same wave-length, etc.
• A large organization can have several such informal organizations but members in each would mostly less.

7. Lack of control: These organizations are formed on the basis of circle and mindset of ‘ individuals. Hence, no control can be maintained within an informal
organization.

8. Complements formal structure:

• Since informal organization emerges from formal organization it is said that informal organization complements formal organizations.
• In the modern times, informal fcommunication structure is used widely. This helps to reduce industrial disputes and maintain discipline. Hence this structure is more popular.