6.4 Formal Organizations.

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Presentation transcript:

6.4 Formal Organizations

Components of Formal Organizations Formal organization: group created to achieve one or more long-term goals Examples: Schools General Motors Governments Charitable organizations National Football League

Components of Formal Organizations Bureaucracy: a formal organization based on rationality and efficiency This may sometimes lead to inefficiency (aka: red tape) There are 5 characteristics of a bureaucracy

Components of Formal Organizations Bureaucratic divisions: 1. Division of labor based on specialization Each person is responsible for certain functions Allows expertise in an individual area 2. Hierarchy of authority Power = ability to control the behavior of others Authority = appropriate use of power that comes from a legitimate source Power structure is shaped like a pyramid in bureaucracies

Components of Formal Organizations 3. A system of rules and procedures Decisions are made based on rules The rules set guidelines to follow and provide stability 4. Written records Records are kept to use for reference 5. Promotion based on merit & qualifications Qualifications determine advancement Nepotism discouraged

Advantages & Disadvantages Bureaucracies create stability Rationalization (using knowledge, planning, and reasoning) key component Disadvantages Undervalue people through impersonal treatment Rules may seem inappropriate or unnecessary Time

Informal Organizations Groups in a formal organization that are formed through personal relationships Develop because formal organizations may ignore the needs of individuals Offer support, stress relief, personal affections and protection within a formal organization

Iron Law of Oligarchy Power becomes concentrated at the hands of a few members of an organization Bureaucracies need an oligarchy to be effective

Bureaucracy & Oligarchy of St. Viator Fr. Egan Mrs. Manno Administration Department Chairs Faculty & Staff Seniors Juniors Sophomores Freshmen