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Informal Leadership

Informal leaders in an organization have no formal authority but gain respect and influence over colleagues through referent, expert, or reward power. They act as bridges between higher formal authorities and employees, helping to socialize new members and build cohesiveness. Informal leadership can arise when formal leadership is absent, weak, or if special tasks need completing. Informal leaders have authority to cross formal limits with manager consent but have less power, duration, and domain than formal leaders. They help fill leadership gaps but can also create impediments if opposing formal leader directions.

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1K views16 pages

Informal Leadership

Informal leaders in an organization have no formal authority but gain respect and influence over colleagues through referent, expert, or reward power. They act as bridges between higher formal authorities and employees, helping to socialize new members and build cohesiveness. Informal leadership can arise when formal leadership is absent, weak, or if special tasks need completing. Informal leaders have authority to cross formal limits with manager consent but have less power, duration, and domain than formal leaders. They help fill leadership gaps but can also create impediments if opposing formal leader directions.

Uploaded by

Arputha
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© © All Rights Reserved
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INFORMAL LEADERSHIP

IN-FORMAL INFORMAL
(Not Formal ) (Carries some information)
INFORMAL LEADERSHIP
A person has who has no formal authority but has the same
respect of colleagues and some power over them
Informal leaders draw on referent or expert or reward
power to establish themselves as leaders
They usually act as informal persons(carries information)
who builds bridges between higher formal authorities
(government or other organizations) and their employees
They are chosen to rejuvenate the growth of an
organization
They focus on groups need for affiliation, leadership and
recognition
INFORMAL LEADERSHIP
The life span of an informal leader in a formal organization
should be as less as possible
On handing over authority to an informal leader, may not
safe for a formal entity. But he/she possess the largest
social status in the informal organization
They may help socialize new members into the
organization. They help to build and sustain the level of
cohesiveness
They are expected to model and explain the key norms.
They have independency to satisfy both their personal
needs and formal orders
CAUSES FOR THE RISE OF INFORMAL
LEADERSHIP
Absence or decease of a formal leader
Bifurcation of a formal entity
Need for high efficiency and communication among employees
Emergence of financial , stability risks in a formal entity
Arise when formal powers gets weaken
As the guardian of industrial assets until a formal authority takes
charge of it
To complete special tasks/operations
To promote the motivation, cooperation among workers when formal
OBJECTIVES OF AN INFORMAL
LEADERSHIP
To fill the space created by the deficit in the formal leadership
To enhance the growth of the industry
To provide sophisticated environment for the employees
To sow the seeds for the growth of olive branch if there is a
confrontational environment
To analyze and promote labor relations
To challenge and resolve the disputes
To disentangle the knots which are the impediments
To transcend formal limits (where a formal leader fails) for the
benefits of the organization
RELATION BETWEEN FORMAL AND
INFORMAL LEADERS
Not all informal leaders have intentionally gone out of their
ways to become informal leaders. Sometimes they
"emerge" simply because others in the organization have
great respect for them
While informal leaders might be important or even
essential to the success of an organization, they can also
be huge impediments if they start pulling in directions that
are in opposition to the direction the formal leaders value.
For the reason above, formal leaders may want to take
steps to develop their informal leaders more completely,
and keep lines of communication open with them.
IMPORTANCE OF INFORMAL LEADERSHIP
Mostly, an organization feels the importance of an informal
leadership if they feel nasty essence of a formal leadership
Sometimes , formal leaders create unfavorable
surroundings to their organization due to megalomania
(condition which causes people to think that they have
personal omnipotence and grandeur)
Informal leaders acts as scavengers and eradicate the ill
effects which is caused by the decisions of former formal
leaders.
Till the organization has been relieved from all kinds of
agony, an informal leadership sustains the growth of it
CHARACTERISTICS OF AN INFORMAL
LEADER
Ability and Confidence
Decisiveness
Willingness to lead
Ability to prioritize
Situational Requirements
Trust
Motivation and Involvement
Good Communication
ELIGIBILITY AND TENURE OF AN
INFORMAL LEADER
She/he should hold intellectual skills and she/he must be the
part of an organization
The experienced and wise person should be elected by the
group of employees and managers as an informal leader of a
formal organization. Sometimes, She/he might be appointed
by the former formal leader to fill his short-term absence.
She/he should not hold any other profitable positions in any
other entities. She/he should protect and maintain the
prestige, properties of that organization
Till the formal leader gets his/her chair, he/she enjoys his/her
tenure
POWERS OF AN INFORMAL LEADER

An informal leader can proceed any kind of actions to protect


the prestige of an organization and the welfare of his
employees
She/he can terminate the temporary workers
She/he can remove the permanent workers with the proper
evidence and procedure(as a formal leader). She/he possess
these rights and takes these kind of doctrinaire decisions
after consulting with managers
She/he cannot change policies of the organization without
referendum
She/he cannot take financial decisions independently until or
unless he is dexterous in it
POWERS OF AN INFORMAL LEADER
She/he possess special rights to appoint advisory bodies for the
welfare of the organization
With the consent of managers, She/he can recruits the fresher for
the development of the organization
Unlike formal leader, She/he cannot appoint a person based on
recommendations due to his limited powers
She/he should not make a MoU which affects the organizations
development without the guidance provided by his/her advisory
body. However he/she cancel disruptive alliances with prior notice
She/he should form a committee to choose a formal leader as soon
as possible. Till the ascension of a formal leader, She/he shouldnt
transfer powers to anyone
ADVANTAGES OF INFORMAL LEADERSHIP
With the consent of managers, She/he has :
Authority to cross the formal limits
Authority to choose any kind of mode of operation
Authority to change the schedule of employees
Authority to promote any kind of technological advancement in his/her
industry
Since there is no formal commands, the leisure and labor relations rate
has been increased. The employees could enjoy their job satisfaction
and independency in his/her tenure.
Informal leaders can be promoted as a formal leader if their approach
is better than their former formal leader. This can be done by passing a
referendum.
DISADVANTAGES OF INFORMAL
LEADERSHIP
She/he possess less power duration and domain
Except certain situations/without the consent of managers , She/he :
Cannot sanction any financial funds to any other entities such as
charities, NGOs
Cannot frame new policies/rules and regulations according to
his/her own interest
Cannot alter the subsidiaries, salary, increments of the permanent
employees
Cannot extend his period of command after a formal leader
assumes his/her office.
Cannot choose his own Point of Work
PROBLEMS ASSOCIATED WITH INFORMAL LEADERSHIP
Personality of the informal leader
Tenure of the leadership
Authority provided
Formal Authority Informal Authority
REFERENCES
http://
www.ijbmer.com/docs/volumes/vol5issue1/ijbmer201405010
1.pdf
http://
www.businessmanagementideas.com/organisation/advantage
s-and-disadvantages-of-informal-organisations/2344
https://businessmanagement.wordpress.com/2007/06/06/for
mal-and-informal-leader
/
http://leadertoday.org/faq/informalleader.htm

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