How do informal networks operate within organisations?

Informal networks play a crucial role in the functioning of organizations by facilitating communication and collaboration that often bypasses the established formal structures. These networks emerge naturally among employees as they interact on a personal level, share information, and build relationships.

The key characteristic of informal networks is their ability to promote quick and effective communication, allowing employees from different departments or teams to collaborate without the constraints of formal channels, such as official meetings or rigid hierarchies. This flexibility can lead to increased innovation and faster problem-solving as team members leverage their personal connections to exchange ideas and support each other.

The other options do not accurately represent the nature of informal networks. For instance, the notion that informal networks are discouraged due to hierarchy overlooks their ability to coexist alongside formal structures and even enhance them. Suggesting that informal networks replace formal networks entirely implies a misunderstanding of their function, as both types coexist and complement each other within an organization. Finally, stating that informal networks only operate during social events underestimates their pervasive presence in everyday interactions among employees throughout the workday.