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An organization, or organisation (
Commonwealth English The use of the English language in most current and former Member states of the Commonwealth of Nations, member countries of the Commonwealth of Nations was inherited from British Empire, British colonisation. Mozambique, which joined the Commo ...
; see spelling differences), is an
entity An entity is something that exists as itself, as a subject or as an object, actually or potentially, concretely or abstractly, physically or not. It need not be of material existence. In particular, abstraction Abstraction in its main sense is ...
—such as a
company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common pu ...

company
, an
institution Institutions, according to Samuel P. Huntington Samuel Phillips Huntington (April 18, 1927 – December 24, 2008) was an American political scientist, adviser and academic. He spent more than half a century at Harvard University Ha ...
, or an
association Association may refer to: *Club (organization), an association of two or more people united by a common interest or goal *Trade association, an organization founded and funded by businesses that operate in a specific industry *Voluntary association ...
—comprising one or more
people A people is any plurality of person A person (plural people or persons) is a being that has certain capacities or attributes such as reason Reason is the capacity of consciously applying logic Logic is an interdisciplinary field wh ...

people
and having a particular purpose. The word is derived from the Greek word ''organon'', which means tool or instrument, musical instrument, and
organ Organ may refer to: Biology * Organ (biology) In biology, an organ is a collection of Tissue (biology), tissues joined in a structural unit to serve a common function. In the biological organization , hierarchy of life, an organ lies betwee ...
.


Types

There are a variety of legal types of organizations, including
corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal ...

corporation
s,
government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Departmen ...

government
s,
non-governmental organization A non-governmental organization, or simply an NGO, is an organization An organization, or organisation (Commonwealth English The use of the English language English is a of the , originally spoken by the inhabitants of ...
s,
political organization A political organization is any organization An organization, or organisation (Commonwealth English The use of the English language English is a West Germanic languages, West Germanic language first spoken in History of Angl ...
s,
international organization An international organization (also known as an international institution or intergovernmental organization) is a stable set of norms and rules meant to govern the behavior of states and other actors in the international system. Organizations ...
s,
armed forces A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare War is an intense armed conflict between State (polity), states, governments, Society, societies, or pa ...
,
charities A charitable organization or charity is an organization whose primary objectives are philanthropy Philanthropy consists of "private initiatives, for the public good, focusing on quality of life Quality of life (QOL) is defined by the Wor ...
,
not-for-profit corporation A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that o ...
s,
partnership A partnership is an arrangement where parties, known as business partner A business partner is a commercial entity with which another commercial entity has some form of Business alliance, alliance. This relationship may be a contractual, exclus ...

partnership
s,
cooperative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous The federal subject The federal subjects of Russia, also referred to as the subjects of the Russian Federation (russian: субъекты Российск ...
s, and educational institutions etc. A
hybrid organization A hybrid organization is an organization that mixes elements, value systems and action logics (e.g. social impact and profit generation) of various sectors of society, i.e. the public sector The public sector (also called the state sector) is ...
is a body that operates in both the
public sector The public sector (also called the state sector) is the part of the economy composed of both public service A public service is a service Service may refer to: Activities :''(See the Religion section for religious activities)'' * Administ ...
and the
private sector The private sector is the part of the economy An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of indust ...
simultaneously, fulfilling public duties and developing commercial market activities. A
voluntary association A voluntary group or union (also sometimes called a voluntary organization, common-interest association, association, or society) is a group of individuals who enter into an agreement, usually as volunteers, to form a body (or organization ...
is an organization consisting of volunteers. Such organizations may be able to operate without legal formalities, depending on jurisdiction, including informal
clubs Club may refer to: Arts, entertainment, and media * Club (magazine), ''Club'' (magazine) * Club, a ''Yie Ar Kung-Fu'' character * Clubs (suit), a suit of playing cards * Club music * "Club", by Kelsea Ballerini from the album ''kelsea'' Brands a ...
or coordinating bodies with a goal in mind which they may express in the form of an
manifesto A manifesto is a published declaration of the intentions, motives, or views of the issuer, be it an individual, group, political party or government. A manifesto usually accepts a previously published opinion or public consensus or promotes a ...

manifesto
,
mission statement A mission statement is a short statement of why an organization exists, what its overall goal is, identifying the goal of its operations: what kind of product or service it provides, its primary customers or market Market may refer to: *Market ...

mission statement
, or in an informal manner reflected in what they do because remember every action done by an organization both legal and illegal reflects a goal in mind. Organizations may also operate secretly or illegally in the case of
secret societies A secret society is a club or an organization whose activities, events, inner functioning, or membership are concealed. The society may or may not attempt to conceal its existence. The term usually excludes covert groups, such as intelligence ...
,
criminal organization Organized crime is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally thought of as a form of i ...
s and
resistance movement A resistance movement is an organized effort by some portion of the civil population of a country to withstand the legally established government or an occupying power and to disrupt civil order and stability. It may seek to achieve its objectives t ...
s. And in some cases may have obstacles from other organizations (ex: MLK's organization) but what makes an organization an organization is not the paperwork that makes it official but to be an organization there must be four things: # A goal in mind # A leader or committee making the decision # action involved # communication and members. But what makes an organization recognized by the government is either filling out
Incorporation (business) Incorporation is the formation of a new corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and p ...
or recognition in the form of either societal pressure (ex:
Advocacy group Advocacy groups, also known as special interest groups, use various forms of advocacy Advocacy is an activity Activity may refer to: * Action (philosophy), in general * Human activity: human behavior, in sociology behavior may refer to al ...
), causing concerns (ex:
Resistance movement A resistance movement is an organized effort by some portion of the civil population of a country to withstand the legally established government or an occupying power and to disrupt civil order and stability. It may seek to achieve its objectives t ...
) or being considered the spokesperson of a group of people subject to negotiation (ex: the Polisario Front being recognized as the sole representative of the Sahawri people and forming a partially recognized state.) Compare the concept of
social group In the social science Social science is the branch The branches and leaves of a tree. A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of pla ...
s, which may include non-organizations. Organizations and
institutions Institutions, according to Samuel P. Huntington, are "stable, valued, recurring patterns of behavior." Institutions can refer to social mechanism, mechanisms which govern the behavior of a set of individuals within a given community, and are id ...
can be synonymous, but Jack Knight writes that organizations are a narrow version of institutions or represent a cluster of institutions; the two are distinct in the sense that organizations ''contain'' internal institutions (that govern interactions between the members of the organizations).


Structures

The study of organizations includes a focus on optimising
organizational structure An organizational structure defines how activities such as task allocation Task may refer to: * Task (project management), an activity that needs to be accomplished within a defined period of time or by a deadline * Task (computing), in computi ...
. According to
management science Management science (MS) is the broad interdisciplinary study of problem solving and decision making in human organizations, with strong links to management Management (or managing) is the administration of an organization An organizat ...
, most
human Humans (''Homo sapiens'') are the most abundant and widespread species In biology, a species is the basic unit of biological classification, classification and a taxonomic rank of an organism, as well as a unit of biodiversity. A speci ...

human
organizations fall roughly into four types: *
Committee A committee or commission is a body of one or more persons subordinate to an assembly. A committee is not itself considered to be a form of assembly. Usually, the assembly sends matters into a committee as a way to explore them more fully than w ...

Committee
s or
juries A jury is a sworn body of people (the jurors) convened to render an impartial Impartiality (also called evenhandedness or fair-mindedness) is a principle of justice holding that decisions should be based on objectivity (philosophy), objective ...

juries
*
Ecologies Ecology (from el, οἶκος, "house" and el, -λογία, label=none, "study of") is the study of the relationships between living organisms, including humans, and their physical environment. Topics of interest include the biodiversity, di ...
*
Matrix Matrix or MATRIX may refer to: Science and mathematics * Matrix (mathematics), a rectangular array of numbers, symbols, or expressions * Matrix (logic), part of a formula in prenex normal form * Matrix (biology), the material in between a eukaryot ...

Matrix
organizations *
Pyramid A pyramid (from el, πυραμίς ') is a structure A structure is an arrangement and organization of interrelated elements in a material object or system A system is a group of Interaction, interacting or interrelated elements that act ...

Pyramid
s or
hierarchies A hierarchy (from the Greek: , from , 'president of sacred rites') is an arrangement of items (objects, names, values, categories, etc.) in which the items are represented as being "above", "below", or "at the same level as" one another. Hierarch ...


Committees or juries

These consist of a group of peers who decide as a group, perhaps by voting. The difference between a
jury A jury is a sworn body of people (the jurors) convened to render an impartial Impartiality (also called evenhandedness or fair-mindedness) is a principle of justice holding that decisions should be based on objectivity (philosophy), objective ...

jury
and a
committee A committee or commission is a body of one or more persons subordinate to an assembly. A committee is not itself considered to be a form of assembly. Usually, the assembly sends matters into a committee as a way to explore them more fully than w ...

committee
is that the members of the committee are usually assigned to perform or lead further actions after the group comes to a decision, whereas members of a jury come to a decision. In
common law In law, common law (also known as judicial precedent or judge-made law, or case law Case law is the collection of past legal decisions written by courts and similar tribunal A tribunal, generally, is any person or institution with authority ...
countries, legal juries render decisions of guilt, liability, and quantify damages; juries are also used in athletic contests, book awards, and similar activities. Sometimes a selection committee functions like a jury. In the Middle Ages, juries in continental Europe were used to determine the law according to consensus among local notables. Committees are often the most reliable way to make decisions.
Condorcet's jury theorem Condorcet's jury theorem is a political science theorem about the relative probability of a given group of individuals arriving at a correct decision. The theorem was first expressed by the Marquis de Condorcet in his 1785 work ''Essay on the Applic ...
proved that if the average member votes better than a roll of dice, then adding more members increases the number of majorities that can come to a correct vote (however correctness is defined). The problem is that if the average member is subsequently ''worse'' than a roll of dice, the committee's decisions grow worse, not better; therefore, staffing is crucial.
Parliament In modern politics and history, a parliament is a legislative A legislature is an assembly Assembly may refer to: Organisations and meetings * Deliberative assembly A deliberative assembly is a gathering of members (of any kind of ...

Parliament
ary procedure, such as
Robert's Rules of Order ''Robert's Rules of Order Newly Revised'', commonly referred to as ''Robert's Rules of Order'', RONR, or simply ''Robert's Rules'', is a political book based on the original Robert's Rules of Order written by Henry Martyn Robert Henry Martyn Ro ...
, helps prevent committees from engaging in lengthy discussions without reaching decisions.


Ecologies

This organizational structure promotes internal
competition Competition is a rivalry A rivalry is the state of two people or groups engaging in a lasting competitive relationship. Rivalry is the "against each other" spirit between two competing sides. The relationship itself may also be called "a ri ...
. Inefficient components of the organization starve, while effective ones get more work. Everybody is paid for what they actually do, and so runs a tiny business that has to show a
profit Profit may refer to: Business and law * Profit (accounting) Profit, in accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic ...
, or they are fired. Companies who utilize this organization type reflect a rather one-sided view of what goes on in
ecology Ecology (from el, οἶκος, "house" and el, -λογία, label=none, "study of") is the study of the relationships between living organisms, including humans, and their physical environment. Ecology considers organisms In biol ...
. It is also the case that a natural
ecosystem An ecosystem (or ecological system) consists of all the organisms and the physical environment with which they interact. These biotic and abiotic components are linked together through nutrient cycles and energy flows. Energy enters the syst ...

ecosystem
has a natural border -
ecoregion An ecoregion (ecological region) or ecozone (ecological zone) is an ecologically Ecology (from el, οἶκος, "house" and el, -λογία, label=none, "study of") is the study of the relationships between living organisms, including h ...
s do not, in general, compete with one another in any way, but are very autonomous. The
pharmaceutical company The pharmaceutical industry discovers, develops, produces, and markets drug Uncoated tablets, consisting of about 90% acetylsalicylic acid, along with a minor amount of inert fillers and binders. Aspirin is a pharmaceutical drug A me ...
GlaxoSmithKline GlaxoSmithKline plc (GSK) is a British multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinati ...

GlaxoSmithKline
talks about functioning as this type of organization i
this external article
from ''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer ''The Observer'' is a British newspaper published on Sun ...

The Guardian
''. By:Bastian Batac De Leon.


Matrix organization

This organizational type assigns each worker two bosses in two different hierarchies. One hierarchy is "functional" and assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field. The other direction is "executive" and tries to get projects completed using the experts. Projects might be organized by products, regions, customer types, or some other schemes. As an example, a company might have an individual with overall responsibility for products X and Y, and another individual with overall responsibility for engineering, quality control, etc. Therefore, subordinates responsible for quality control of project X will have two reporting lines. The United States aerospace industries were first to officially use this organizational structure after it emerged in the early 1960s.


Pyramids or hierarchical

A
hierarchy A hierarchy (from the Greek: , from , 'president of sacred rites') is an arrangement of items (objects, names, values, categories, etc.) in which the items are represented as being "above", "below", or "at the same level as" one another. Hierarch ...
exemplifies an arrangement with a
leader Leadership, both as a research area and as a practical skill, encompasses the ability of an individual, group or organization An organization, or organisation (Commonwealth English The use of the English language English ...

leader
who leads other individual members of the organization. This arrangement is often associated with the basis that there are enough to imagine a real pyramid, if there are not enough stone blocks to hold up the higher ones, gravity would irrevocably bring down the monumental structure. So one can imagine that if the leader does not have the support of his subordinates, the entire structure will collapse. Hierarchies were
satirized Satire is a genre of the visual arts, visual, literature, literary, and performing arts, usually in the form of fiction and less frequently Nonfiction, non-fiction, in which vices, follies, abuses and shortcomings are held up to ridicule, wi ...
in ''
The Peter Principle ''The'' () is a grammatical article Article often refers to: * Article (grammar) An article is any member of a class of dedicated words that are used with noun phrases to mark the identifiability of the referents of the noun phrases. The ca ...
'' (1969), a book that introduced ''hierarchiology'' and the saying that "in a hierarchy every employee tends to rise to his level of incompetence."


Theories

In the social sciences, organizations are the object of analysis for a number of disciplines, such as
sociology Sociology is a social science Social science is the branch The branches and leaves of a tree. A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the scie ...
,
economics Economics () is a social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interact ...

economics
,
political science Political science is the scientific study of politics Politics (from , ) is the set of activities that are associated with making decisions In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as ...
,
psychology Psychology is the scientific Science () is a systematic enterprise that builds and organizes knowledge Knowledge is a familiarity or awareness, of someone or something, such as facts A fact is an occurrence in the real world. ...

psychology
,
management Management (or managing) is the administration of an organization An organization, or organisation (Commonwealth English The use of the English language English is a West Germanic languages, West Germanic language first spok ...

management
, and
organizational communication In communication studies, organizational communication is a field of study focusing on the communication and information flow within organizations through different roles of the media. The flow of communication within the members, individuals an ...
. The broader analysis of organizations is commonly referred to as
organizational structure An organizational structure defines how activities such as task allocation Task may refer to: * Task (project management), an activity that needs to be accomplished within a defined period of time or by a deadline * Task (computing), in computi ...
,
organizational studies Organizational studies is "the examination of how individuals construct organizational structure An organizational structure defines how activities such as task allocation Task may refer to: * Task (project management), an activity that needs ...
,
organizational behaviour Organizational behavior (OB) or organisational behaviour is the: "study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself".Moorhead, G., & Griffin, R. W. (1995) ...
, or organization analysis. A number of different perspectives exist, some of which are compatible: * From a functional perspective, the focus is on how entities like businesses or state authorities are used. * From an institutional perspective, an organization is viewed as a purposeful structure within a social context. * From a process-related perspective, an organization is viewed as an entity is being (re-)organized, and the focus is on the organization as a set of tasks or actions. Sociology can be defined as the science of the
institutions Institutions, according to Samuel P. Huntington, are "stable, valued, recurring patterns of behavior." Institutions can refer to social mechanism, mechanisms which govern the behavior of a set of individuals within a given community, and are id ...

institutions
of
modernity Modernity, a topic in the humanities and social sciences, is both a historical period (the modern era Human history, or world history, is the narrative of humanity Humanity most commonly refers to: * Human Humans (''Homo sapiens' ...

modernity
; specific institutions serve a function, akin to the individual organs of a coherent body. In the social and political sciences in general, an "organization" may be more loosely understood as the planned, coordinated, and purposeful action of human beings working through collective action to reach a common goal or construct a tangible
product Product may refer to: Business * Product (business) In marketing, a product is an object or system made available for consumer use; it is anything that can be offered to a Market (economics), market to satisfy the desire or need of a customer ...
. This action is usually framed by formal membership and form (institutional rules). Sociology distinguishes the term organization into planned formal and unplanned informal (i.e. spontaneously formed) organizations. Sociology analyses organizations in the first line from an institutional perspective. In this sense, the organization is an enduring arrangement of elements. These elements and their actions are determined by rules so that a certain task can be fulfilled through a system of coordinated
division of labor Division or divider may refer to: Mathematics *Division (mathematics) Division is one of the four basic operations of arithmetic, the ways that numbers are combined to make new numbers. The other operations are addition, subtraction, and mult ...
. Economic approaches to organizations also take the
division of labor Division or divider may refer to: Mathematics *Division (mathematics) Division is one of the four basic operations of arithmetic, the ways that numbers are combined to make new numbers. The other operations are addition, subtraction, and mult ...
as a starting point. The division of labor allows for (economies of)
specialization Specialization or Specialized may refer to: Academia * Academic specialization, may be a course of study or major at an academic institution or may refer to the field in which a specialist practices * Specialty (medicine), a branch of medical ...
. Increasing specialization necessitates coordination. From an economic point of view, markets and organizations are alternative coordination mechanisms for the execution of transactions. An organization is defined by the elements that are part of it (who belongs to the organization and who does not?), its
communication Communication (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. Through the power o ...

communication
(which elements communicate and how do they communicate?), its autonomy (which changes are executed autonomously by the organization or its elements?), and its rules of action compared to outside events (what causes an organization to act as a collective actor?). By coordinated and planned cooperation of the elements, the organization is able to solve tasks that lie beyond the abilities of the single element. The price paid by the elements is the limitation of the
degrees of freedom Degrees of Freedom (often abbreviated df or DOF) refers to the number of independent variables or parameters of a system. In various scientific fields, the word "freedom" is used to describe the limits to which physical movement or other physical ...
of the elements. Advantages of organizations are enhancement (more of the same), addition (combination of different features), and extension. Disadvantages can be inertness (through co-ordination) and loss of
interaction Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The idea of a two-way effect is essential in the concept of interaction, as opposed to a one-way causal effect. Closely related terms are interac ...
. Among the theories that are or have been influential are: *
Activity theory Activity theory (AT; russian: link=no, Теория деятельности) is an umbrella term In linguistics Linguistics is the scientific study of language, meaning that it is a comprehensive, systematic, objective, and precise s ...
is the major theoretical influence, acknowledged by de
Clodomir Santos de Morais Clodomir Santos de Morais (30 September 1928 – 25 March 2016) was a Brazilian sociologist who originated the Organization Workshop (OW) and the associated Cultural-Historical Activity Theory (CHAT), Activity-based Large Group Capacitation Metho ...
in the development of Organization Workshop method. *
Actor–network theory Actor–network theory (ANT) is a theoretical and methodological approach to social theory Social theories are analytical frameworks, or paradigms, that are used to study and interpret social phenomenon, social phenomena.Seidman, S., 2016. Contes ...
, an approach to social theory and research, originating in the field of science studies, which treats objects as part of social networks. *
Complexity theory and organizations Complexity characterises the behaviour of a system or model (disambiguation), model whose components interaction, interact in multiple ways and follow local rules, meaning there is no reasonable higher instruction to define the various possible i ...
, the use of complexity theory in the field of
strategic management In the field of management Management (or managing) is the administration of an organization An organization, or organisation (Commonwealth English The use of the English language English is a West Germanic languages, We ...
and organizational studies. *
Contingency theory A contingency theory is an organizational theory A theory involves concepts or construct Construct, Constructs or constructs may refer to: * Construct (information technology), a collection of logic components forming an interactive agent or ...
, a class of behavioural theory that claims that there is no best way to organize a corporation, to lead a company, or to make decisions. *
Critical management studies Critical management studies (CMS) is a loose but extensive grouping of theoretically informed critiques of management, business and organisation, grounded originally in a critical theory perspective. Today it encompasses a wide range of perspective ...
, a loose but extensive grouping of theoretically informed critiques of management, business, and organization, grounded originally in a critical theory perspective *
Economic sociology Economic sociology is the study of the social cause and effect of various economic phenomena. The field can be broadly divided into a classical period and a contemporary one, known as "new economic sociology". The classical period was concern ...
, studies both the social effects and the social causes of various economic phenomena. *
Enterprise architecture Enterprise architecture (EA) is the most reputed discipline that: i) defines, organises, standardizes, and documents the whole architecture and all important elements of the respective organisation, covering relevant domains such as business, ...
, the conceptual model that defines the coalescence of organizational structure and organizational behaviour. *, describes a model which disconnects problems, solutions, and decision makers from each other. *
Principal–agent problem The principal–agent problem, in political science Political science is the scientific study of politics Politics (from , ) is the set of activities that are associated with making decisions In psychology, decision-making (also sp ...
, concerns the difficulties in motivating one party (the "agent"), to act in the best interests of another (the "principal") rather than in his or her own interests *
Scientific management Scientific management is a theory of management Management (or managing) is the administration of an organization An organization, or organisation (Commonwealth English The use of the English language English is a West G ...
(mainly following Frederick W. Taylor), a theory of
management Management (or managing) is the administration of an organization An organization, or organisation (Commonwealth English The use of the English language English is a West Germanic languages, West Germanic language first spok ...

management
that analyses and synthesizes
workflow A workflow consists of an orchestrated and repeatable pattern of activity, enabled by the systematic organization of resources into processes that transform materials, provide services, or process information. It can be depicted as a sequence of ...

workflow
s. *
Social entrepreneurship Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneur Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk ...
, the process of pursuing innovative solutions to social problems. * Transaction cost theory, the idea that people begin to organize their production in firms when the transaction cost of coordinating production through the market exchange, given imperfect information, is greater than within the firm. * Weber's Ideal of Bureaucracy (refer to
Max Weber Maximilian Karl Emil Weber (; ; 21 April 186414 June 1920) was a German Sociology, sociologist, historian, jurist, and political economy, political economist regarded as among the most important theorists of the development of Modernity, modern ...

Max Weber
's chapter on "Bureaucracy" in his book ''
Economy and Society An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products ...
'')


Leadership

A
leader Leadership, both as a research area and as a practical skill, encompasses the ability of an individual, group or organization An organization, or organisation (Commonwealth English The use of the English language English ...

leader
in a formal,
hierarchical organization A hierarchical organization is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. This arrangement is a form of a hierarchy. In an organization, the hierarchy usually consists of ...
, is appointed to a managerial position and has the right to command and enforce obedience by virtue of the authority of his position. However, he must possess adequate personal attributes to match his authority, because authority is only potentially available to him. In the absence of sufficient personal competence, a manager may be confronted by an emergent leader who can challenge his role in the organization and reduce it to that of a figurehead. However, only the authority of position has the backing of formal sanctions. It follows that whoever wields personal influence and power can legitimize this only by gaining a formal position in the hierarchy, with commensurate authority.


Formal organizations

An organization that is established as a means for achieving defined has been referred to as a
formal organization A formal organization is an organization An organization, or organisation (Commonwealth English The use of the English language English is a of the , originally spoken by the inhabitants of . It is named after the , one of t ...
. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work
structure A structure is an arrangement and organization of interrelated elements in a material object or system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. ...

structure
. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.


Informal organizations

In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the
informal organization The informal organization is the interlocking social structure In the social sciences, social structure is the patterned social arrangements in society that are both emergence, emergent from and determinant of the Structure and agency, action ...
that underlies the formal structure. The informal organization expresses the personal and
goal A goal is an idea of the future or desired result that a person or a group of people envision, Planning, plan and commit to achieve. People endeavour to reach goals within a finite time by setting Time limit, deadlines. A goal is roughly simi ...

goal
s of the individual
membership Member may refer to: * Military jury, referred to as "Members" in military jargon * Element (mathematics), an object that belongs to a mathematical set * In object-oriented programming, a member of a class ** Field (computer science), entries in ...
. Their objectives and goals may or may not coincide with those of the formal organization. The informal organization represents an extension of the social structures that generally characterize human life – the spontaneous emergence of groups and organizations as ends in themselves. In prehistoric times, the man was preoccupied with his personal security, maintenance, protection, and survival. Now man spends a major portion of his waking hours working for organizations. His need to identify with a community that provides security, protection, maintenance and a feeling of belonging continues unchanged from prehistoric times. This need is met by the informal organization and its emergent, or unofficial, leaders. Leaders emerge from within the structure of the informal organization. Their personal qualities, the demands of the situation, or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. Instead of the authority of position held by an appointed head or chief, the emergent leader wields influence or power. Influence is the ability of a person to gain cooperation from others by means of persuasion or control over rewards. Power is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment.


The interplay between formal and informal organizations

As most organizations operate through a mix of formal and informal mechanisms, organization science scholars have paid attention to the type of interplay between formal and informal organizations.On the one hand, some have argued that formal and informal organizations operate as substitutes as one type of organization would decrease the advantages of using the other one. For instance, if parties trust each other the use of a formal contract is unnecessary or even detrimental to the relationship. On the other hand, other scholars have suggested that formal and informal organizations can complement each other. For instance, formal mechanisms of control can pave the way for the development of relational norms.


See also

*
Affinity group Affinity Group may refer to: *Affinity group, a small group of political activists *Affinity Group Inc., a provider of products and services to the recreational vehicle (RV) market {{Disambig ...
* *
Coalition The term "coalition" is the denotation for a group formed when two or more people, factions, states, political parties, militaries etc. agree to work together temporarily in a partnership to achieve a common goal. The word coalition connotes a co ...
*
Collective A collective is a group of entities that share or are motivated by at least one common issue or interest, or work together to achieve a common objective. Collectives can differ from cooperative A cooperative (also known as co-operative, c ...
*
Decentralized autonomous organization A decentralized autonomous organization (DAO), sometimes called a decentralized autonomous corporation (DAC), is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and ...
*
History of organizations The history of organizations describes the general history of the rise of the organization An organization, or organisation (Commonwealth English The use of the English language English is a of the , originally spoken by th ...
* List of designated terrorist organizations * List of environmental organizations * List of general fraternities * List of international professional associations * List of trade unions * Maturity Model * Multidimensional organization * Mutual organization * Organizational psychology * Organization Workshop * Pacifist organization * Requisite organization * Service club * Size of groups, organizations, and communities * Umbrella organization * Voluntary association


References

;General * Ronald Coase, Coase, Ronald (1937). "Ronald Coase#The Nature of the Firm, The Nature of the Firm" ''Economica'', 4(16), pp. 386–405. * * * Hewlett, Roderic. (2006). The Cognitive leader. Rowman & Littlefield Pub Inc. * * * * Marshak, Thomas (1987). "organization theory," ''The New Palgrave: A Dictionary of Economics'', v. 3, pp. 757–60. * Mintzberg, Henry (1981). "Organization Design: Fashion or Fit" ''Harvard Business Review'' (January February) * Morgenstern, Julie (1998). ''Organizing from the Inside Out''. Owl Books * Laurence J. Peter, Peter, Laurence J. and Raymond Hull. ''The Peter Principle'' Pan Books 1970 * * Samson, D., Daft, R. (2005). Management: second Pacific Rim edition. Melbourne, Victoria: Thomson * *


External links


Research on Organizations: Bibliography Database and Maps

TheTransitioner.org
a site dedicated to collective intelligence and structure of organizations {{Authority control Organizations, Types of organization,