Informal groups meet social needs of members. Image credit

ZIMSEC O Level Business Studies Notes: Importance, Advantages and Disadvantages of informal groups

Advantages /Importance of informal groups

  • They satisfy the social needs of their members
  • The group members can help each other during times of crisis for example divorce at home and other situations for which there is no formal group help
  • Members encourage each other to meet an acceptable level of performance e.g. lazy members may be told to work hard
  • Managers can use informal groups to relay information
  • Provides an extra channel of communication via the grapevine
  • Members motivate each other
  • Managers can leak information and use it to gauge the reaction of employees e.g proposed salary cuts


  • They can be a source of conflict within the organisation
  • They result in idle time as members chat away during work time
  • The grapevine might be cause confusion, anxiety and enmity
  • They result in the perpetration of bad practices as new employees are initiated into the group
  • Can be a source of resistance to change.

To access more topics go to the O Level Business Notes page