Modern organizations consist of two interwoven structures: the formal hierarchy and an informal network. The latter, which has gained prominence in organizational studies, significantly influences an institution’s operations. While the impact of informal networks on organizations has been extensively studied globally, there remains a gap in research within the Ethiopian context. This study explores the influence of informal networks on formal institutional frameworks at Debre Berhan University using a qualitative phenomenographic approach. Findings reveal that university leaders often underestimate their reliance on these networks despite their vital role in organizational effectiveness. Informal structures frequently operate alongside or even override formal policies, affecting leadership, decision-making and institutional culture. Based on these insights, the study offers theoretical implications and practical recommendations for integrating informal networks within formal structures effectively.
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