Informal organization is a network of personal and social relationships that arises spontaneously as people associate with each other in the work environment. It can be illustrated by the lunch bunch, the coffe-break group, the company bowling team, or just two people who meet to talk after work. It is a self grouping of people because of shared interests, social and educational backgrounds, personalities, and shared needs.
The informal organization cuts across the formal organization structure. It is not shown on the organization chart. People from differnet departments and different levels in the organization interact, find commonalities, support and assist each other, satisfy needs, and provide information. Membership in an informal organization is voluntary and is determined by the members of the group.
Informal organization is the network of personal and social relationships that emerges when people work together.