SOCI 302 SOCIOLOGY OF ORGANIZATIONS AND INSTITUTIONS Spring 2011 Instructor: Deniz Yükseker

Why study organizations. What are the outcomes of organizations Why study organizations? What are the outcomes of organizations? Definition and typology of organizations

Organizations and Individuals We are surrounded by organizations We work in organizations We are the customers of organizations Organizations have economic outcomes Organizations are involved in stratification – of individuals and categories of individuals

Organizations and the Community Examples: college towns company towns army bases factories A closeby example: Koç University and Sarıyer

Societal outcomes of organizations Reciprocal relationship between organizations and their environments Organizational environment: society, other businesses, political power e.g. the impact of corporate power in society Interlocking board of directors, alliances between politicians, policy makers and industrialists, etc. Organizations actively seek to influence politics and policy making

Anticipated and unanticipated consequences of organizations “Normal” accidents (Charles Perrow) Organizations with complex technical systems can have catastrophic consequences Corporate crime “authority” leakage in organizations: long hierarchies and intensive specialization leads to lack of control over subunits

Social change and organizations Organizations are necessary to bring about social change e.g. the role of the “vanguard party” in the Bolshevik Revolution

Organizations may be agents of social change  “organizational weapons” But organizations need societal support in order to bring about social change

Organizations as resisters to social change Organizations may also impede social change Revolutionary regimes may become conservative over time Existing bureaucracies may impede social change

Organizations: Definitions and Typology

How to define organizations? Max Weber’s classic definition of organizations: “A social relationship which is either closed or limits the admission of outsiders by rules …. so far as its order is enforced by the action of specific individuals whose regular function this is, of a chief or ‘head’ and usually also an administrative staff.” Weber emphasizes the system in an organization.

Thus, for Weber, an organization … involves social relationships; has boundaries; has order (hierarchy of authority and a division of labor); and in organizations interaction is associative, that is, it carries out “purposive activities.” Thus, organizations have goals.

Note on associative action Weber talks about: Communal action: action which is oriented to the feeling of the actors that they belong together. Associational (societal) action: action oriented towards a rationally motivated adjustment of interests.

Chester Barnard’s classic definition of organization (1938): “A system of consciously coordinated activities or forces of two or more persons.” He emphasizes the members of organizations, not the system itself.

Thus, according to Barnard, organizations must have… Communications; Willingness by its members to contribute; and Common purposes.

Marx’s contribution to organizational theory Praxis (practical activity) Collective activity Individual activity Outcomes: Products, artefacts The activity itself Organizing process: the way work is carried out, power arrangements, labor process

Richard Hall’s definition An organization is a collectivity with a relatively identifiable boundary, a normative order, ranks of authority, communication systems, and membership coordinating systems; This collectivity exists on a relatively continuous basis, in an environment, and engages in activities related to a set of goals; The activities have outcomes for organizational members, for the organization itself, and for society.

How to classify organizations? Profit versus non-profit organizations Sectoral classification of organizations Typologies based on the functions of organizatons (Parsonsian functionalism): productive, political, integrative, pattern-maintenance organizations

Blau and Scott’s typology of organizations based on “who benefits” -- mutual benefit organizations -- businesses -- service organizations -- commonwealth organizations

Etzioni’s typology of organizations based on compliance Compliance: the manner in which lower participants respond to the authority system in an organization (recall Weber’s conceptualization of authority and compliance)

Backgrounder on Weber’s “Ideal Types” of Legitimate Domination Three types of legitimate domination Traditional domination Charismatic domination Rational legal domination Domination: the probability that certain specific commands will be obeyed by a given group of persons  voluntary compliance (consent) in addition to coercion

Backgrounder, cont’d If the validity of the claims to domination are based on 1- rational grounds  legal authority (belief in the legality of rules and the right of those in positions of authority to issue commands 2- traditional grounds  traditional authority (belief in the sanctity of immemorial traditions and the legitimacy of those exercising authority under them) 3- charismatic grounds  charismatic authority (devotion to the exceptional sanctity, heroism or exemplary character of an individual, and of the normative patterns revealed or ordained by him

Etzioni’s typology Types of authority: coercive, remunerative, normative Types of compliance: Alienative, instrumental/calculative, moral Nine possible types, but mostly the “congruent” ones: 1- Coercive-alienative 2- Remunerative-calculative 3- Normative-moral

Note on Weber’s “rational action” Parallel between Etzioni’s 2nd and 3rd congruent types of organizations (remunerative-calculative and normative-moral) and Weber’s notions of: goal-oriented rational action (both means and ends are rationally chosen) value-oriented rational action (ends may be based on values, but the means are rational)