Formal vs. Informal Structures
The org chart tells one story. The way work actually gets done tells another. HR must recognize both formal and informal structures—and design for what truly drives performance.
Beyond the Org Chart
Every organization has a formal structure—documented in org charts, job descriptions, and policies. But every organization also has an informal structure—shaped by relationships, influence, trust, and culture.
Ignoring the informal structure is like ignoring the ocean under the iceberg.
How Informal Structures Form
Informal networks are shaped by:
- Personal relationships and trust
- Shared history and tenure
- Informal leadership and expertise
- Location (e.g., people who eat lunch together)
- Communication habits (e.g., Slack channels, group chats)
They’re hard to see—but powerful.
When Informal Structures Help
- Speed up problem solving across silos
- Spread tacit knowledge
- Enable innovation through trusted networks
- Provide emotional support and engagement
When Informal Structures Hurt
- Undermine official decisions or leadership
- Create shadow hierarchies
- Fuel exclusion or gatekeeping
- Cause burnout for unofficial “go-to” people
HR’s Role in Managing Both Structures
1. Diagnose the Informal
Use tools like:
- Organizational Network Analysis (ONA)
- Surveys on trust and influence
- Peer nomination methods
These uncover key connectors, bottlenecks, and hidden leaders.
2. Leverage the Informal
- Engage informal influencers in change programs
- Use them as culture carriers
- Involve them in onboarding and cross-functional initiatives
3. Protect Inclusion and Equity
Watch for:
- Clique behavior
- Favoritism by informal leaders
- Unequal access to information or influence
Formal structures can be used to correct for informal imbalances—by clarifying roles, increasing transparency, or rotating responsibilities.
4. Connect the Two
High-functioning organizations don’t suppress informal networks—they connect them to the formal structure. That means:
- Creating safe spaces for bottom-up ideas
- Encouraging horizontal collaboration
- Making leadership accessible
Final Thought
Structure lives on paper. Culture lives in people. HR’s job is to bridge both—ensuring that what’s written matches what actually happens, and that influence flows ethically, inclusively, and effectively.