"An organization is not simply a group of people at a given place." What do you infer from this statement?
From this statement, we can infer that an organization must have other characteristics. The two most likely characteristics that an organization must have are A) formal relationships among the members and B) a purpose for existence.
An organization must have a purpose. In the case of a business, the purpose is to make money. In the case of a charity, it is to help a given population. In both cases, there is a clear goal.
Within an organization, there are formal relationships. There must be some amount of leadership and hierarchy within any organization. This sets an organization apart from a group of people who just happen to be in the same place at the same time.
From the statement, we can infer that an organization has to have characteristics like these.
A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. All organizations have a management structure that determines relationships between functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined tasks. Organizations are open systems in that they affect and are affected by the environment beyond their boundaries
1. Hierarchical Organization
The hierarchical organization is very effective in a relatively stable environment, where the efficient and predictable delivering of products is its main reason of existence. Following the rules and procedures is of the utmost importance here. This type of organizations are often characterized by a machine bureaucracy with a role culture.
2. Market Organization
In a more competitive environment, hierarchical organizations are no longer that effective, since they are too ‘internal minded’. A more external minded organization is required in such conditions. This type is called the market organization and is strongly focused on the result of the production processes. The economical and political environment is perceived is dangerous and is approached aggressively. The focus in this type of organization lies primarily on the results and productivity. The feeling that holds the company together is that feeling of being better than the competition. Here, a task culture dominates.
3. Family Organization
In a family organization (which is most often a professional bureaucracy) the idea that success is a consequence of individual development, teamwork and shared norms and values is paramount. The freedom of action for the individual employee is cherished. This type of organization is characterized by a lot of attention for the individual and a strong sense of solidarity. The culture in this type of company is a personal culture.
In an adhocracy, the temporary character of the organization is the central tenet. This is a consequence of the central position of innovation and fast adaptation to new situations. Hierarchical power levels are missing and someone’s influence can strongly fluctuate based on the problem that is being solved. In cultural perspective, creativity, entrepreneurship and a dynamical attitude dominate. The overall task is innovation and the production of unique and original services and products. The dominant culture in this type of organization is a combination of a task and personal culture.