1. 6.4
Formal Organizations

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

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

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