Chapter 4
What are social organizations and formal organizations?
Social organizations and formal organizations are two different types of organizations that differ in terms of their structure, purpose, and mode of operation. Social organizations are organizations that are formed for social or leisure purposes (Shafritz, Ott, & Jang, 2015). They are typically loosely structured and informal, and their primary goal is to bring people together for a shared purpose or interest. Examples of social organizations include clubs, associations, and volunteer groups. These organizations are often characterized by informal relationships and a lack of formal rules and procedures. Formal organizations, on the other hand, are organizations that are structured and designed to achieve specific goals and objectives. They are typically more hierarchical and have a clear chain of command, with formal rules and procedures that govern their operations. Examples of formal organizations include corporations, government agencies, and non-profit organizations (Shafritz, Ott, & Jang, 2015). These organizations are often characterized by formal relationships, standardized procedures, and a division of labor. Both social organizations and formal organizations play important roles in society, but they differ in their structure, purpose, and mode of operation. Understanding the differences between these two types of organizations can help to explain their strengths and weaknesses, and provide insights into how organizations can be designed and managed more effectively.
Should you form organizations by activities, products or functions?
The ideal way to form an organization depends on various factors such as the size, type, and nature of the business, as well as its goals and objectives. There are three common approaches to organizing a business: by activities, by products, and by functions (Shafritz, Ott, & Jang, 2015). Organizing by activities means grouping tasks and processes that have a common objective. This structure is often used in project-based organizations. Organizing by products involves grouping functions and activities related to specific products or services. This structure is commonly used in manufacturing or retail companies that have a product line (Shafritz, Ott, & Jang, 2015). Organizing by functions means grouping activities and tasks by their functional area, such as finance, marketing, and operations. This structure is commonly used in large organizations where each functional area is responsible for specific tasks. In summary, the most appropriate way to organize a business depends on its goals, objectives, and operational requirements. It is often a combination of these approaches.
In organizational design, what is a simple structure?
A simple structure, also known as a flat structure, is a type of organizational design that is characterized by a minimal hierarchy, few levels of management, and decentralized decision-making (Shafritz, Ott, & Jang, 2015). In a simple structure, there is limited differentiation between management and operational levels, with a smaller number of managers and more direct communication channels between employees and senior management. This type of structure is typically used in small organizations and startups, where decision-making needs to be quick and efficient. It also allows for a more flexible and agile work environment, where employees can take on multiple responsibilities and respond to changes in the market more quickly. However, as organizations grow and become more complex, simple structures can become less effective, as the lack of formal structure and clear reporting lines can lead to confusion and inefficiency (Shafritz, Ott, & Jang, 2015). In such cases, it may be necessary to implement a more complex structure, such as a functional or divisional structure, to better meet the needs of the business.
References
- Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of Organization Theory (8th Ed.). Cengage Limited.