What is an Organization
An organization is a consciously coordinated social entity. with a
relatively identifiable boundary, that functions on a relatively
continuous basis to achieve a common goal or set of goals. That`s a
mouthful of words. so let us break it down into its more relevant parts,
The words consciously coordinated imply management. Social
entity means that the unit is composed of people or groups of people
who interact with each other. The interaction patterns that people
follow in an organization do not just emerge; rat_her, they are
premeditated. Therefore. because organizations are social entities, the
interaction patterns of their members must be balanced and
harmonized to minimize redundancy yet ensure that critical tasks are
being completed. The result is that our definition assumes explicitly
the need for coordinating the interaction patterns of people.
An organization has a relatively identyiable boundary. This
boundary can change over time, and it may not always be perfectly
clear. but a definable boundary must exist in order to distinguish
members from nonmembers. It tends to be achieved by explicit or
implicit contracts between members and their organizations. ln most
employment relationships, there is an implicit contract where work is
exchanged for pay. ln social or voluntary organizations, members
contribute in return for prestige, social interaction, or the satisfaction of
helping others. But every organization has a boundary that
differentiates who is and who is not part of that organization.
People in an organization have some continuing bond. This bond,
of course, does not mean lifelong membership. On the contrary,
organizations face constant change in their memberships. although
while they are members, the people in an organization participate with
some degree of regularity. For a salesperson at Sears Roebuck, that
may require being at work eight hours a day, tive days a week. At the
other extreme. someone functioning on a relatively continuous basis as
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a member of the National Organization for Women may attend only
few meetings a year or merely pay the annua.l dues.
Finally. organizations exist to achieve something. These
"something" are goals, and they usually are either unattainable by
individuals working alone or. if attainable individually, are achieved
more efficiently through group effort. While it is not necessary for all
members to endorse the organization’s goals thlly, our definition
implies general agreement with the mission ofthe organization.
? What is Organization Structure
Our definition of organization recognizes the need for formally
coordination the interaction patterns of organization members.
Organization structure stipulates how tasks are to be allocated. who
reports to whom. and the formal coordination mechanisms and
interaction patterns that will be followed.
? What is Organization Design
Our third term, organization design. emphasizes the management side
of organization theory. Organization design is concerned with
constructing and changing an organization’s structure to achieve the
organizations goals. Constructing or changing an organization is not
unlike building or remodeling a house. Both begin with an end goal.
The designer then creates a means or plan for achieving that goal. In
house construction, that plan is a blueprint, In organization building,
the analogous document is an organization chart.
? What is Organization Theory
From our previous definitions, it is not too difficult to deduce what we
mean by the term organization theory. It is the discipline that studies
the structure and design of organizations, Organization theory refers to
both the descriptive and prescriptive aspects of the discipline. It
describes how organizations are actually stnictured and offers
suggestions on how they can be constructed to improve their
effectiveness.
? Why Study Organization Theory
Organizations are the dominant form of institutions in our society.
Organizations pervade all aspects of contemporary life-society as a
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whole, the economy, as well as our personal lives. It is not
unreasonable, then, to expect us to want to understand this
phenomenon that is so intertwined in our lives.
At a more sophisticated level, you may want to replace your
intuitive theories of organization with ones that have been derived
scientifically and systematically.
When we use the phrase systematic study, we mean looking at
relationships, attempting to attribute causes and effects, and basing our
conclusions on scientific evidence; that is, data gathered under
controlled conditions and measured and interpreted in a reasonably
rigorous manner. The objective is to replace intuition or that “gut
feeling” one has as to “why organizations are designed as they are” or
"what works best when” with scientifically based theories.
Probably the most popular reason for studying organization
theory (OT) is that you are interested in pursuing a career in
management. You want to know how organizations operate, have that
knowledge based on some scientific evidence, and then use this
knowledge for constructing and changing an organization`s structure to
achieve the organization’s goals. In other words, you expect to practice
organization design as a manager, administrator, personnel analyst,
organizational specialist or the like.
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