TYPES OF ORGANIZATIONS.
By Aurangzeb Soharwardi
Numerous Companies and Organizations are working in the world ,hosting billions of workers and equipment,making products and services. It requires resources and Management to run these organizations.In order to do that it is imperative to know the dynamics of organizations like Organization architecture & Design ,Organizational theory, Organizational philosophy &Ideology .An organization, or organization (Commonwealth English; see spelling differences), 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. Alfred Chandler’s Strategy and Structure (1962) work is also important to understand organization. Max Weber saw the modern world as the product of two forces, one cultural and the other organizational. Population ecology (beginning with Aldrich, 1979; Hannan and Freeman, 1977) also gave insights to organizations. Institutional theory (Meyer and Rowan, 1978; DiMaggio and Powell, 1981). Organization has many facets like Sociolog y , ecology( Organizational ecology (also organizational demography and the population ecology of organizations) is a theoretical and empirical approach in the social sciences that is considered a sub-field of organizational studies. The ecology of organizations is divided into three levels, the community, the population, and the organization) The books The Demography of Corporations and Industries by Glenn Carroll and Michael T. Hannan (2000) provides indepth knowledge. Organizational mortality :Organizational ecology is concerned with the capacity of the environment to support organizations and the rate of growth and decline of organizations within the environment. Each of these forces is a part of what is called Organizational Mortality. Economy, (Organizational economics (also referred to as economics of organization) involves the use of economic logic and methods to understand the existence, nature, design, and performance of organizations, especially managed ones.Organizational economics is primarily concerned with the obstacles to coordination of activities inside and between organizations (firms, alliances, institutions, and market as a whole). Organizational studies are based on organizational theories and follow a process which encompass Organizational science.
Dave Ulrich from Ross School of Business, University of Michigan and The RBL Group , in his article of Management and Business Review says that organization (culture, capability, workplace, process) has four times the impact of individual (talent, competence, workforce, people) on business results. He adds further that hierarchy looked like a pyramid and provided stability, career mobility, and process improvements. organizational logic pivoted toward a systems approach in which different organizational processes (strategy, structure, rewards, people) were aligned to deliver results. Capability is doing right for organizational identity and a newly coined term market-oriented ecosystem (MOE) ,which includes (money, people, technology).
A social group can be defined as two or more people who interact with one another, share similar characteristics, and collectively have a sense of unity. Other theorists disagree however, and are wary of definitions which stress the importance of interdependence or objective similarity . An affinity group is a group formed around a shared interest or common goal, to which individuals formally or informally belong. Affinity groups are generally precluded from being under the aegis of any governmental agency, and their purposes must be primarily non-commercial. 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. The Ruckus Society is a nonprofit organization that sponsors skill-sharing and non-violent direct action training, strategy & consultation for activists and organizers from frontline and impacted communities working on social justice, human rights, migrant rights, workers rights and environmental justice. It was founded by Mike Roselle and Twilly Cannon. It can be Non profit or For profit. A social networks perspective on the evolution of large scale inter firm organizational networks was presented by Braha et al.Open Value Network, also known as OVN, is a transnational open network that makes heavy use of technology to support its operations. It resembles the [centralized] Network type structure described above with the difference that there are no formal mechanisms of power to allow centralization of control over the platform (or the technological infrastructure) that enables the activities of the network. Examples are Bitcoin, Ethereum, Sensorica A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals. Companies take various forms. Decentralized autonomous organizations, also known as DAOs, are essentially autonomous Open Value Networks with most governance being “on chain”, i.e. formalized as smart contracts, which are programmed rules that govern the functioning of the ortganisation, minimizing human interference as much as possible. voluntary associations, which may include nonprofit organizations business entities, whose aim is generating profit financial entities and banks programs or educational institutions. A parent company is a company that owns enough voting stock in another firm to control management and operation by influencing or electing its board of directors. Companies that operate under this management are deemed subsidiaries of the parent company. Social network and Social organization are also used in defining organization. Economic sociology, studies both the social effects and the social causes of various economic phenomena. A GOAL DIRECTED SOCIAL ENTITY. It has four main parts STRUCTURE, PROCESS, CULTURE and PEOPLE. Technology and Systems are additional constituents of these four main parts. In 1979 , Henry Mintzberg defined his components of an organization : Strategic Apex , Middle Line , Technostructure , Support staff and Operating Core .Enterprise architecture, the conceptual model that defines the coalescence of organizational structure and organizational behavior. Mintzberg considers six main mechanisms of coordination of work: Mutual adjustment (without formal, standardized mechanisms) Direct supervision (when one person, leader of organization, gives direct orders to others) Standardization of work processes (based on the documents that regulate work and are produced by technostructure)Standardization of outputs (only the results of work are regulated) Standardization of skills (based on preparing the specialists outside the organization) Standardization of norms (based on organization’s values, ideology). Organization is categorized in Formal organizations(is established as a means for achieving defined objectives) and Informal.
Organizations (expresses the personal objectives and goals of the individual membership). According to types of structure the organization has following types. Pre-bureaucratic structures Bureaucratic structures , Post-bureaucratic structures , Line or Scalar Organization is also known as departmental or military type of organization. In this type of organization business activities are divided into three groups, namely finance and accounts, production and sales. Each of this department is sub-divided into certain self-contained departments, i.e., sections. Next is the Functional Organisation: This type of organisation is sometime called “Taylor’s organisation” as it was for the first time introduced by F.W.Taylor. It is divided into departments on the basis of specialized functions. Line and Staff Organisation , a staff man usually controls one function of business of which he is an expert. Usually the staff has no administrative authority, but an expert in some phase of operation. Line or scaler organization. Committee Organization is a group of persons formed for the purpose of giving advice on certain important problems, which cannot usually be solved by an individual. It helps by pooling the thoughts of several persons on problems involving several functions and offered for criticism. Therefore, now-a-days many large companies add a network of committees to the line and staff organization. Some other Hierarchical org structure are Horizontal or flat org structure, Divisional org structures (market-based, product-based, geographic) ,Matrix org structure(Matrix organization 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). ,Team-based org structure ,Network org structure, Projectized organization. Flatarchy structure suitable for small companies or startups. Blending a functional structure and a flat structure results in a flatarchy organizational structure, which allows for more decision making among the levels of an organization and, overall, flattens out the vertical appearance of a hierarchy.The best example of this structure within a company is if the organization has an internal incubator or innovation program. Tall versus Flat Organisational Structure: Mechanistic versus Organic Organisations: Craft Organisation: Promotion Organisation: Administrative Organisation: Boundaryless Organisation: Learning Organisation: Further more Henry Mintzberg classified organization into four types Entrepreneurial organization has a loose organizational structure and is typically driven by entrepreneurial-minded or creative types of leaders. Innovative Organization ,Machine Organization and Professional Organization.
A Decentralized Autonomous organization (DAO), sometimes labeled 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 not influenced by a central government. A DAO’s financial transaction record and program rules are maintained on a blockchain. The precise legal status of this type of business organization is unclear.
Ecological Organization is an organizational structure which 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.
In Pyramids or hierarchical a hierarchy exemplifies an arrangement with a leader who leads other individual members of the organization.
An environmental organization is an organization coming out of the conservation or environmental movements that seeks to protect, analyze or monitor the environment against misuse or degradation from human forces.
A fraternity or fraternal organization is an organized society of men associated together in an environment of companionship and brotherhood; dedicated to the intellectual, physical, and social development of its members.
A multidimensional organization is an organization that pursues its objectives simultaneously through multiple dimensions.
A Mutual Organization, or mutual society is an organization based on the principle of mutuality and governed by private law. Unlike a true cooperative, members usually do not contribute to the capital of the company by direct investment, but derive their right to profits and votes through their customer relationship. A mutual organization or society is often simply referred to as a mutual.
A Pacifist organization promotes the pacifist principle of renouncing war and violence for political ends. They are distinguished from organizations concerned only with removing nuclear weapons from war, though those organization may call for suspension of hostilities as well. Other organizations include those that deal with other concerns, but have a strong pacifist element.
Requisite organization (RO) is a term and methodology developed by Elliott Jaques and Kathryn Cason as a result of the research in stratified systems theory, general theory of bureaucracy, work complexity and human capability over 60 years.
An Umbrella organization is an association of institutions, who work together formally to coordinate activities or pool resources. In business, political, or other environments, one group, the umbrella organization, provides resources and often an identity to the smaller organizations. Sometimes in this kind of arrangement, the umbrella organization is to some degree responsible for the groups under its care.
Ambivalence Organization: Which experience the simultaneously of positive and negative orientations toward a person, goal, task, idea, conflicting feelings about an issue and such appears to be quite common in organizations, but it is poorly understood. It is closely related to the level of organizational identification.
A positive organization is a place where people are flourishing as they work and as a result they are able to exceed performance expectations,” explains Professor Quinn. No organization is entirely positive or negative. Instead they are the ratio of positive to negative behaviors that are observed. In 2003, a movement began in organizational behavior called positive organizational scholarship, which focuses on companies creating positive work life and performance. The four key components of positive organizational scholarship (POS) are self-efficacy, hope, optimism, and resiliency. Companies that are successful in adapting the four components are able to manage organizational performance in a positive manner. Positive Organizational Behavior is defined as “the study and application of positively oriented human resource strengths and psychological capacities that can be measured, developed, and effectively managed for performance improvement in today’s workplace” Organizational Citizenship Behavior is linked with it. Strategic Organization may refer to: … the process of organizing in a way that is strategically effective – i.e., promotes the broad goals of the organization. Ambidextrous Organization is based on Organizational ambidexterity which refers to an organization’s ability to be efficient in its management of today’s business and also adaptable for coping with tomorrow’s changing demand. Just as being ambidextrous means being able to use both the left and right hand equally, organizational ambidexterity requires the organizations to use both exploration (external) and (exploitation) techniques to be successful.
According to legal registration , the organization can be of four main types that is Sole proprietorship, Partnership, Corporation, and Limited Liability Company, or LLC(Public/Private).
Organizational adaptation is a concept in organization theory and strategic management that is used to describe the relationship between an organization and its environment. The conceptual roots of organizational adaptation borrows ideas from organizational ecology, evolutionary economics, industrial and organizational psychology, and sociology. A systematic review of 50 years worth of literature defined organizational adaptation as “intentional decision-making undertaken by organizational members, leading to observable actions that aim to reduce the distance between an organization and its economic and institutional environments”. Organizational studies is “the examination of how individuals construct organizational structures, processes, and practices and how these, in turn, shape social relations and create institutions that ultimately influence people”. Organizational learning is the process of creating, retaining, and transferring knowledge within an organization. An organization improves over time as it gains experience. From this experience, it is able to create knowledge. This knowledge is broad, covering any topic that could better an organization. Examples may include ways to increase production efficiency or to develop beneficial investor relations. Knowledge is created at four different units: individual, group, organizational, and inter organizational. An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organization Science is a bimonthly peer-reviewed academic journal published by the Institute for Operations Research and the Management Sciences. It covers research on the dynamics of organizations. In 2012, it was one of the four general-management journals listed by the University of Texas at Dallas when ranking universities by research. In 2016, the journal was ranked on the Financial Times top 45 list. The editor-in-chief is Gautam Ahuja (Cornell University). According to the Journal Citation Reports, the journal has a 2018 impact factor of 3.257. Then there are concepts of Archeology , Sociology ,Ecology and economics of Organization.
}An agile organization is a term applied to organizations which are quick in responding to changes in the marketplace or environment. The agile organization is also focused on its customer’s needs which call for customized rather than standardized offerings. }An agile organizational structure is a non-hierarchical system of operating procedures that allows a business to be more flexible and respond quickly to shifts and changes in the market environment. It is characterized by fast activity cycles, customer-centricity, open communication, and a network of autonomous teams.
There are four Key Principles of Organization , Division of Labour, Delegation of Authority, The Scalar Principle and Unity of Command .Further more they have been further expanded like , The Scalar Principle , Principle of Objective ,Principle of Unity of Efforts , Principle of Authority ,Principle of Responsibility , Principle of Definition , Principle of Co-Extensiveness, Span of Management ,Principle of Balance , Principle of Continuity and Flexibility , Principle of Span of Control , Principle of Scalar Chain , Principle of Absoluteness of Responsibility. The Organization works on Efficiency, Authority , Span of Control ,centralization.
ARCHEOLOGY , SOCIOLOGY , ECOLOGY ,ECONOMY of Organizations.
work of Alfred Chandler, Max Weber, or Mike Hammer.See STAR model by Jay Galbraith, 7-s or organization health by McKinsey.For more on organizational capability see: Dave Ulrich and Dale Lake. 1990. Organizational Capability: Competing from the Inside/Out. New York: Wiley.Teece, D. J., Pisano, G., & Shuen, A. 1997. Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. Dave Ulrich and Norm Smallwood. 2004. Capitalizing on capabilities. Harvard Busi-ness Review. 119-128.4. Arthur Yeung and Dave Ulrich. 2019. Reinventing the Organization: How Companies Can Deliver Radically Greater Value in Fast-Changing Markets. Boston: Harvard Business Press.