Informal Networks in Organizations - A literature review

In the increasingly complex and dynamic theories of modern organizations, there is a substantial lack of knowledge about the way things actually get done, and how individuals interact socially within the organizations to facilitate this. The primary goal of this paper is to identify, analyse and assess the existing contributions to the understanding of these informal networks in organizations. The first part of the paper presents the key terms and concepts needed to understand social networks both in general and within the framework of formal organizations in particular. In the second part, the main characteristics of the informal networks are highlighted along with an analysis of the implications for managers and for the formal organization as a whole. Finally, some propositions about the importance of the informal networks are listed, as they form the basis for the indications of the future research needed in this field.