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What is Informal Leadership Management?

Informal leadership is the ability of an individual to influence the behavioural aspects of other people informally. This type of leadership is not found in the formal quality of leadership. Naturally, such leaders are not aware of the formal behavioural factors that are fully contrary to the behavioural factors of formal personalities.

In this kind of leadership, there is no formal authority. Whereas formal leaders are capable of exerting formal as well as informal power, informal leaders do not have the formal authority or organisation to lead. Informal leaders, however, have the capacity to influence members of official organisations and can be even more capable in some situations than formal leaders.

An informal leader, as opposed to a formal leader, has a friendly relationship with employees and tends to motivate them by example, rewards or expertise. Unlike a formal leader, they do not act bossy and have a more open relationship with the employees. They tend to include all the workers into the process of decision-making and use methods and techniques that workers are supposed to follow.

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How is Informal Leadership Useful?

Informal leaders might not have official, authoritative power but have various power bases. They tend to lead by example, and thus – make use of referent power. They might also make use of expert power, with others coming to them for skills and knowledge that no other person in the organisation has. They may also use the power of reward, whereby they recognise and praise organisation members for a task they have handled well.

However, they cannot use formal or legitimate power, as the organisation has not formally sanctioned their authority. They are also unable to use much coercive power.

Given that effectual usage of coercive power, it is required to have some form of legitimate authority to mete out punishments or offer rewards as approved and deemed fit by the organisation. However, an informal leader of a group can use peer pressure to a member who is misbehaving, by threatening him or her with ostracism unless he or she abides by the rules.

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