What Is the Informal Sector?

Is one of the types of organization, as opposed to a formal organization. It refers to an open social organization that is formed spontaneously on the basis of emotions, interests, hobbies, and needs to meet the different needs of individuals. There is no formal document stipulating it.

The essentials of the informal organization were proposed by American behavior scientist Elton Mayo and others after conducting the famous Hawthorne experiment.

Informal organizations are formed along with the operation of formal organizations. The personal relationships between members of some formal organizations have gradually increased from mutual acceptance and understanding to friendship. Some small groups that are invisible and connected to the formal organization but are independent of the formal organization have gradually formed. After the formation of these small groups, due to the similar nature of their work, equivalent social status, basically consistent understanding of some specific issues, and basically the same views, or based on personality, hobbies, and similar sentiments, they have been accepted by everyone And follow the rules of behavior, so that the original loose, random group gradually transformed into a system that tends to be fixed, that is, "informal organization".

Informal organizations generally do not have a clear organizational structure or articles of association. The core figures of them become natural leaders due to personal prestige or influence. Their ideological foundation and behavioral norms are often common habits and opinions. Based primarily on sentiment and rapport, its members are required to adhere to common, unwritten rules of conduct.

Informal organizations exist objectively without the transfer of people's will, and their negative effects are difficult to prohibit and cancel. Since informal organizations have many positive effects in favor of formal organizations, leaders of formal organizations should make full use of informal organizations to achieve the purpose of fostering collective consciousness. ^[2]

Informal organizations have the following characteristics:

(1) Because people have common thoughts and feelings, they are attracted and interdependent, and they are spontaneous groups. There are no clear provisions.

(2) The main function of informal organizations is to meet the different psychological needs of individuals and to help each other consciously.

(3) Once an informal organization is formed, it will generate norms for various behaviors and control the mutual behavior of members, which can promote or resist the achievement of formal organizational goals.

(4) The leaders of informal organizations do not necessarily have high status and power, but they have realistic influence. Because they are more capable, or have more experience, or are good at others. ^[3]

Informal organization problem

There are several issues that are worth noting in the management of informal organizations:

(1) The pressure of informal organizations will resist changes in formal organizations. Informal organizations often become a force that stimulates people to resist the innovation and develop the inertia of organizations.

(2) Breeding rumors, rumors are easy to produce in informal organizations.

(3) The pressure of informal organizations to require consistency among members often constrains their personal development. Staff members have done their best in their work and must be recognized by other members of the informal organization, otherwise they will not dare to work too hard.

(4) Manipulating the masses, leaders of informal organizations often use their position to exert pressure on the masses to manipulate them.

(5) If the goals of the informal organization conflict with the formal organization, it may have a very adverse impact on the work of the formal organization. ^[2]

Informal organization advantages

Although informal organizations have some bad effects, managers use them properly to make efforts to overcome and eliminate their adverse effects, which is conducive to the effective realization of formal organizational goals.

(1) Make up for the shortcomings. No matter how strict the policies and regulations of any formal organization, loopholes will inevitably occur. Informal organizations can complement and complement the formal organizations to make up for the shortcomings of formal organizations.

(2) Assist in management. Formal organizations can improve work efficiency and facilitate task completion by establishing and publicizing the correct organizational culture and gaining support from informal organizations.

(3) Strengthen communication. Informal organizations can allow employees to have a channel of self-adjustment when they are frustrated or encounter difficulties, and get comfort and satisfaction. Frequent contacts of people in informal organizations will make the relationship between each other more Harmony and harmony, so it is easy to produce and strengthen the spirit of cooperation.

(4) Rectify management. Informal organizations can urge managers to take reasonable measures to deal with certain problems and have checks and balances. ^[2]