organization

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organization

a social grouping designed to achieve certain goals. In the modern world much of the provision of goods and services is undertaken by organizations, and they are the main providers of paid employment. The core features of the modern organization were outlined by Max Weber (1864-1920) in his analysis of BUREAUCRACY. In his view the bureaucratic organization was the dominant mode of organization in modern industrial societies. Organizations of this sort are often also called formal organizations since they exist independently of the individuals who belong to them at any given time, and the roles and activities of organization members are formally prescribed at least to some extent. Informal organization, by contrast, is where the differentiation of roles (for example leader, follower) is not formally specified and where roles emerge naturally Small GROUPS are often referred to as informal organizations. They can be a source of difficulty within formal organizations because their respective roles and goals may conflict.

All formal organizations have a structure of roles and a set of arrangements to achieve the organization's objectives. This is known as the organization's design. It embraces the distribution of tasks that organization members perform and the mechanisms of coordination and control. Design is thus more than the simple lines of AUTHORITY and ACCOUNTABILITY shown in the ORGANIZATION CHART. In ORGANIZATIONAL ANALYSIS three dimensions of structure are usually seen as fundamental:

  1. centralization: the number of levels in the HIERARCHY and the extent to which decisions are taken at the top of the organization;
  2. specialization: the extent to which the total activities of the organization are broken down into specialized jobs for individuals. See JOB DESIGN AND REDESIGN;
  3. standardization: the extent to which the conduct of activities necessary to achieve the organization's goals are controlled and coordinated by standard, written rules.

Organizations differ along these dimensions. Small dynamic organizations in high growth sectors are often characterized by low centralization, specialization and standardization; by contrast, public administration often exhibits the opposite (see MECHANISTIC AND ORGANISMIC ORGANIZATIONS). See WORK ORGANIZATION, ORGANIZATIONAL STRUCTURE, PRODUCT-BASED STRUCTURE, FUNCTIONAL STRUCTURE, MATRIX STRUCTURE, H-FORM, TALL ORGANIZATION, FLAT ORGANIZATION.

organization

the structure of authority or power within a FIRM or public body. Generally, there will be a number of management levels in an organization, with a chief executive at the top of the pyramid-shaped organization and increasing numbers of senior, middle and junior managers further down the hierarchy, operatives, sales people and clerks forming the base of the pyramid. Lines of authority are established by the organization's structure, with orders being transmitted downwards in increasing detail and information feedback being transmitted upwards.

In the traditional THEORY OF THE FIRM, such organizational details are ignored, the firm being portrayed as a simple decisionmaking unit that responds exactly to orders initiated by its controlling ENTREPRENEUR. In practice, the structure and operations of large, complex organizations themselves will affect the decision-making process and the specification of organization objectives. See ORGANIZATION THEORY, BEHAVIOURAL THEORY OF THE FIRM, MFORM ORGANIZATION, U FORM ORGANIZATION, CORPORATE RE-ENGINEERING.

References in classic literature ?
It would not do, Ostrinski explained, for the proletariat of one nation to achieve the victory, for that nation would be crushed by the military power of the others; and so the Socialist movement was a world movement, an organization of all mankind to establish liberty and fraternity.
I mean a corps dog--the common property of the organization, like the corps steward or head servant; then there are other dogs, owned by individuals.
When doing this I sometimes speak before as many as four organizations in a single day.
One of the most encouraging signs in connection with the Tuskegee school is found in the fact that the organization is so thorough that the daily work of the school is not dependent upon the presence of any one individual.
Indeed it is extremely probable, that in other instances, particularly in the organization of the judicial power, the officers of the States will be clothed with the correspondent authority of the Union.
Schools can do no good; what will do good is an economic organization in which the people will become richer, will have more leisure--and then there will be schools.
Fuller knowledge of the organization which produced such terrible results served to increase rather than to lessen the horror which it inspired in the minds of men.
that the international organization of the socialists finally formulated their long-maturing policy on war.
Their heads were bloody, their organization had apparently been destroyed, yet out they came, along with their allies in the metal-working trades.
In organizations where leadership development has not been a priority, the lack of training, along with the gap in experience, will likely lead to the promotion of unprepared individuals and eventually, cases of serious mismanagement of resources.
Many nations have enacted laws to allow for the creation of nongovernmental not-for-profit organizations (NGOs).
Managing or lowering the cost of human capital has tended to be the primary focus of many organizations as a means of improving profitability in the short term.

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