Informal leader

From CEOpedia | Management online

An informal leader is a person who does not hold a formally assigned leadership position but is nevertheless recognized as a leader by their co-workers. They appear informally when no one has been selected as a leader (Claus et al., 2020). That means that leadership is not necessarily connected to someone being formally assigned to be the leader of a team (Briker et al., 2021). Informal leaders have influence over their team members in term of motivation, task behavior and direction (Zhang et al., 2012). They act as an initiator, planner, and integrator within the team. They become the leader because of the way their employees respond to them. Employees respect the informal leader and follow their lead (Claus et al., 2020). Informal leadership is known to be an important factor in organizational behavior.

Characteristics of an informal leader

Informal leaders tend to involve their employees in decision-making processes, for example. They listen carefully and want to understand. Therefore, they seek interactive dialogue and are open to criticism and appreciation. They encourage others, motivate them, and try to set accents together with them. It is likely that an informal leader wants to build trust, strong relationships with team members and people working in other departments. In addition, they seek to guide other employees by mentoring or coaching them and offering them other ways to help. Their coworkers also consider their informal leader as a guidance. In addition, informal leaders are seen as humble, fair, and behave in a manner that treats different ethical groups equally. It is natural for informal leaders to treat everyone with respect and dignity. They can also be seen as altruistic, caring for the common good, ethical, purpose-driven, and meaningful to employees. They have a sense of humor and like to have fun at work. Yet, they also think critically and creatively. They are confident, intelligent, and have a high level of expertise in their work area. Flexibility and open-mindedness are other characteristics of informal leaders. On the other hand, they do not use coercion or fear in their leadership style. Informal leaders are unlikely to abuse their power (Pielstick, 2000).

Comparison to formal leadership

Formal and informal leaders distinguish, for example, based on the following criteria:

  1. Type of influence
  2. Types of relationships

Type of influence: Unlike the informal leader, a formal leader is destined to assume a leadership role. The formal leader has a position in an organization that makes him or her the leader of a group within the organization or the entire organization (Claus et al., 2020). For a formal leader it’s the professional task to motivate its fellows. Being a formal leader is moreover linked with the job title. Therefore, formal leaders have a different availability of authority and power than informal leaders. This authority derives from different sources: The formal leader has power because of different hierarchy levels whereas the informal leader has power because of their coworkers giving them the possibility to be influential. Formal leaders can rely on a "power exercising" leadership style, while informal leaders must take an authentic leadership approach (Pielstick, 2000). There is no guarantee that a formally appointed leader can best motivate their employees or have the best ideas (Claus et al., 2020).

Types of relationships: Furthermore, informal and formal leaders have different relationships within the company. Informal leaders often cover a wider range of people working in different hierarchy levels than formal leaders (Pielstick, 2000). Nevertheless, having a formally assigned leader facilitating the team can be important for the company. The role the leader is supposed to have within the team is an important factor of deciding whether a formal leader should be selected or not (Zhang et al., 2012).

Advantages of informal leaders

It is said that informal leadership can increase the team’s effectiveness. With that, having an informal team leader can become an important factor for the team’s performance (Zhang et al., 2012). Also, team processes can be improved if an informal leader steps in an coordinates these processes. With a caring informal leader also the well-being within the team and the relationships can be positively affected (Briker et al., 2021).

Examples of Informal leader

  • A mentor: A mentor is a person who provides guidance, support, and advice to another person. They can be an informal leader in the workplace by providing their co-workers with direction, advice, and support.
  • A motivator: A person who is passionate about their work and is able to inspire and motivate others. They can be an informal leader by setting a good example for their team members and encouraging them to reach their goals.
  • A problem solver: A person who is able to identify and solve problems quickly and efficiently. They can be an informal leader by helping their co-workers think through and solve difficult issues.
  • A team builder: A person who is able to create a sense of camaraderie and trust among their team members. They can be an informal leader by fostering relationships and building morale among their team.

Limitations of Informal leader

  • The lack of formal authority can limit the ability of an informal leader to implement decisions, as they do not have the power to enforce them.
  • Informal leaders may struggle to gain recognition from senior management, as they lack the formal title and credentials of a leader.
  • Informal leaders may not possess the necessary skills and knowledge to properly lead a team, which can lead to ineffective decision-making.
  • The informal leader's style may not be conducive to teamwork, as they may struggle to create an environment in which all team members can contribute.
  • Informal leaders may find it difficult to motivate their team members without the authority to reward positive behaviour or punish negative behaviour.
  • The informal leader may not be able to provide feedback to their team members in a constructive way, which limits the team's growth.

Other approaches related to Informal leader

  • Transformational leadership: Transformational leadership is focused on motivating and inspiring others to reach their full potential (Briker et al., 2021). This type of leadership encourages employees to take initiative and approach challenges with creative solutions.
  • Servant leadership: Servant leadership is focused on serving others and putting their needs before those of the leader (Claus et al., 2020). This type of leader focuses on listening to their followers and helping them reach their goals.
  • Authentic Leadership: Authentic Leadership is focused on creating a shared vision and inspiring others to work together to achieve it (Zhang et al., 2012). This type of leader emphasizes values, honesty, and integrity in order to build trust and foster collaboration.

In summary, Informal leadership is an important factor in organizational behavior and other approaches such as transformational leadership, servant leadership, and authentic leadership are related to it. These approaches focus on motivating, inspiring, and serving others while emphasizing values, honesty, and integrity.


Informal leader — recommended articles
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References

Author: Mira Sophie Schön

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