Formal leaders or managers are appointed by the business organization to exercise authority over others. However, it is very common for informal leadership to be established in any group of people either at work, school or in any other social context.
Informal leadership is a fascinating phenomenon where individuals emerge as influential figures without holding a formal position of authority. They gain respect and trust from their peers, inspiring and motivating them through their actions and behaviors rather than relying on assigned power.
Who is an informal leader?
An informal leader is a person who does not a have formal leadership title, so no formal authority, but this person has the respect of colleagues and some power over them.
An informal leader is not recognized as a leader in the organizational structure, but will act as one. Informal leaders have the ability to lead without formal power, perhaps because of their experiences, personality or special knowledge.
Informal leaders may have more influence over workers than formal leaders.
Features of informal leadership
Here is a closer look at its key characteristics of informal leadership:
- No Formal Authority. Unlike appointed leaders, informal leaders do not have hierarchical power. They do not give orders or enforce policies, but their influence stems from their personal qualities and contributions.
- Earned Influence. Their leadership role is not dictated by an organizational chart. Instead, it is naturally earned through consistent displays of expertise, commitment, and genuine care for others.
- Varied Expressions. Informal leaders can emerge in diverse settings, from workplaces and classrooms to online communities and social groups. They might be experts in their field, skilled communicators, problem solvers, or simply individuals who bring positive energy and enthusiasm to the group.
- Impact Across Levels. They can influence peers, colleagues, and even superiors. Their insights and initiative can drive positive change within teams and organizations, even if they lack formal authority.
- Motivational Power. Informal leaders often excel at motivating others. They inspire their peers by setting positive examples, fostering collaboration, and providing constructive feedback. This creates a more engaged and productive environment.
- Challenges and Benefits. Recognizing and supporting informal leaders is crucial. While they can enhance team dynamics and contribute valuable perspectives, their lack of formal authority can sometimes lead to confusion or conflict with designated leaders. Effective business communication and collaboration between formal and informal leaders are key to harnessing the full potential of this dynamic.
Examples of informal leadership
- A team member who consistently offers insightful solutions during brainstorming sessions, even without being in a leadership role.
- A student who mentors their peers in a challenging subject, despite not being an official tutor.
- A social media user who fosters positive discussions and encourages respectful engagement within a community.
How should a business treat informal leaders?
Businesses face a strategic dilemma when dealing with informal leaders. Integrating them into formal structures can be beneficial, but in a climate of distrust, it could erode their credibility among peers. Conversely, ignoring or suppressing them risks alienating their followers and creating potential disruption.
The ideal approach lies in forging a collaborative relationship built on trust. In organizations where employers and employees strive towards shared goals, managers can harness the influence of informal leaders by aligning their individual and group aspirations with the broader business objectives. This necessitates open communication and finding common ground.
Dismissing these influential figures or attempting to limit their impact through isolation are counterproductive tactics that ultimately hinder progress.
In short, many business researchers have recognized that the impact of informal leadership and informal leaders could be very important for business performance.
