An organization, or organisation is an entity, such as a company, an institution, or an association, comprising one or more people and having a particular purpose.
The word is derived from the Greek word organon, which means tool or instrument, musical instrument, and organ.
TypesThere are a variety of legal types of organizations, including corporations, governments, non-governmental organizations, political organizations, international organizations, armed forces, charities, not-for-profit corporations, partnerships, cooperatives, and educational institutions.
A hybrid organization is a body that operates in both the public sector and the private sector simultaneously, fulfilling public duties and developing commercial market activities.
A voluntary association is an organization consisting of volunteers. Such organizations may be able to operate without legal formalities, depending on jurisdiction, including informal clubs or coordinating bodies with a goal in mind which they may express in the form of an manifesto, 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, criminal organizations and resistance movements. And in some cases may have obstacles from other organizations 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:
the government is either filling out Incorporation or recognition in the form of either societal pressure, causing concerns or being considered the spokesperson of a group of people subject to negotiation
Compare the concept of social groups, which may include non-organizations.
StructuresThe study of organizations includes a focus on optimising organizational structure. According to management science, most human organizations fall roughly into four types:
The difference between a jury and a 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 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 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. 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.
Parliamentary procedure, such as Robert's Rules of Order, helps prevent committees from engaging in lengthy discussions without reaching decisions.
EcologiesThis organizational structure promotes internal competition. 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, or they are fired.
Companies who utilize this organization type reflect a rather one-sided view of what goes on in ecology. It is also the case that a natural ecosystem has a natural border - ecoregions do not, in general, compete with one another in any way, but are very autonomous.
The pharmaceutical company GlaxoSmithKline talks about functioning as this type of organization in from The Guardian.
By:Bastian Batac De Leon.
Matrix organizationThis 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.
Pyramids or hierarchicalA hierarchy exemplifies an arrangement with a leader who leads other individual members of the organization. This arrangement is often associated with basis that there are enough 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 in The Peter Principle, a book that introduced hierarchiology and the saying that "in a hierarchy every employee tends to rise to his level of incompetence."
TheoriesIn the social sciences, organizations are the object of analysis for a number of disciplines, such as sociology, economics, political science, psychology, management, and organizational communication. The broader analysis of organizations is commonly referred to as organizational structure, organizational studies, organizational behaviour, 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 organized, and the focus is on the organization as a set of tasks or actions.
Economic approaches to organizations also take the division of labor as a starting point. The division of labor allows for specialisation. Increasing specialisation 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, its communication, its autonomy, and its rules of action compared to outside events.
By coordinated and planned cooperation of the elements, the organization is able to solve tasks that lie beyond the abilities of the single elements. The price paid by the elements is the limitation of the degrees of freedom of the elements. Advantages of organizations are enhancement, addition and extension. Disadvantages can be inertness and loss of interaction.
Among the theories that are or have been influential are:
- Activity theory is the major theoretical influence, acknowledged by de Clodomir Santos de Morais in the development of Organization Workshop method.
- Actor–network theory, 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, the use of complexity theory in the field of strategic management and organizational studies.
- Contingency theory, 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, a loose but extensive grouping of theoretically informed critiques of management, business, and organization, grounded originally in a critical theory perspective
- Economic sociology, studies both the social effects and the social causes of various economic phenomena.
- Enterprise architecture, the conceptual model that defines the coalescence of organizational structure and organizational behaviour.
- Garbage Can Model, describes a model which disconnects problems, solutions and decision makers from each other.
- Principal–agent problem, concerns the difficulties in motivating one party, to act in the best interests of another rather than in his or her own interests
- Scientific management, a theory of management that analyses and synthesizes workflows.
- Social entrepreneurship, 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
Formal organizationsAn organization that is established as a means for achieving defined objectives has been referred to as a formal organization. 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. 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 organizationsIn contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the informal organization that underlies the formal structure. The informal organization expresses the personal objectives and goals of the individual. 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, 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.