GENERAL KNOWLEDGE

Detailed explanation-1: -"Informal structures are those based on the characteristics or resources of the specfic participants” (Scott p. 54), and can be distinquished from formal basis by observing the changes resulting from a change in personnel at a particular position.

Detailed explanation-2: -The primary function of informal organizations is basically to maintain cultural values of people. When people can associate themselves with each other socially, they always feel a sense of togetherness. Consequently, another function of informal organizations is to provide social satisfaction to members.

Detailed explanation-3: -First, it provides a source of friendships and social contact for organization members. Second, the interpersonal relationships and informal groups help employees feel better-informed about and connected with what is going on in their firm, thus giving them some sense of control over their work environment.

Detailed explanation-4: -Informal organization in a company develops because employees interact with each other. For example, they are not one hundred percent discussing work. Instead, they may associate with each other socially. For example, they may form small groups because they have a common interest, such as a hobby.