The Difference Between Formal and Informal Leadership

Briefly discuss the difference between formal and informal leadership. Identify the formal and informal leaders in your organization. Explain why you have identified the informal leaders that you have and what makes them influential. 

The formal leaders are those who have the authority and position to lead the organization and help organization to achieve organizational goals. On contrast, informal leaders have no authority and position to influence organizational objectives and goals. Informal leader have special talent and skills to lead and influence organization’s members.  They are not officially bound to lead all the members towards organizational goals but formal leaders are committed to this. Formal leaders are bound to lead the members and enhance organizational productivity through human capital output. Informal leaders have no such types of official commitments towards the organization and they are not directly responsible for results.

In my organization, managers are the formal leaders as leadership is the first principle of managerial functions. All managers are not leaders. Managers have the responsibility to take actions against employees of the organization. Also, there are line managers, bottom managers and top level managers. Top managers have the authority to take company decision against set goals of the organization. On contrast, consultants, coaches and company’s advisors are the informal leaders in my organization. They have no power but they can give their advice on operations and how organizational goals can be achieved. Managers have the authority to influence the subordinates’ motivation level, quality and performance of decisions. A manager can influence group members, direct group members and leads group members towards organizational goals.

The reason to identify informal leadership in my organization is that employees want to follow a good leader. Sometimes informal leadership is great due to leaders’ qualities and advices. Informal leadership qualities path the way towards formal leadership. As a small organization, informal leadership create relaxed environment for employees. This type of leadership is best suitable for non-project situation. The main reason to identify the informal leadership in the organization is that, it is a way to better yourself on the position of formal leadership.

Your current organization’s strategic business imperatives and leadership requirements. Address whether or not your identified leaders match your organization's leadership requirements.

Strategic level performance requirements are critical for strategic version. Basically in my organization, there are three types of requirements of strategic leadership:

• Complexity handled skills and grow these skills at organizational level;
• Research programs on senior leadership officers
• Executive leadership

The above three factors are really important for the organizational success in today’s business practices and environment. Leadership is a process of interaction with other organization’s members to attain organizational set goals and objectives.