Which is a potential advantage of an informal organizational structure?

An informal organizational structure can indeed enhance status by solving problems because it facilitates quick communication and collaboration among individuals who might not typically interact within a formal hierarchy. This structure often enables employees to share ideas, resources, and solutions more freely, leading to faster problem-solving and increased innovation.

Individuals in informal networks may feel empowered to take initiative, thereby gaining recognition and respect from their peers for effectively addressing issues. This sense of accomplishment can enhance their status within the organization, fostering a culture of teamwork and collaboration that can lead to improved overall performance. In contrast, other aspects such as increased bureaucracy or resistance to change are typically characteristics of formal structures. The informal network serves as a dynamic complement to the business’s formal hierarchy, offering flexibility and responsiveness that can enhance productivity and morale.