Sunday, January 8, 2012

Evolution of Formal Organization

Over the past century the largest group of people gathered in small gatherings of neighbors, friends, and families.  In current times, people seem to lean more toward formal organizations.  Large secondary groups had assembled to accomplish their goals most efficiently as they can.  Formal organizations, such as, large corporations and government agencies are completely different from smaller organized groups.  In their lack of individualism and the past formally planned atmospheres, it is amazing when people think of 300 million members of United States Society that they could be organized to control the paving of roads, the IRS, education, to the United States Postal Service to perform their duties.  The United States rely on large formal organizations.  

There are several types of formal organizations, mainly three types, such as, utilitarian organizations, which covers the majority of people who choose to work or belong to an utilitarian organization that is a business government agency, or schools.  Most people choose to join one or another of these organizations to make some kind of income.  Normative organizations are the second form of organization.  People do not do this organization to make money, but to carry out a goal they think it is morally acceptable usually called voluntary associations.  These include community service groups like Amnesty International, the Parent Teacher Association, League Of Women Voters, the Red Cross, Political Parties, and religious organizations from the world’s point of view, the United States people and higher income countries are those that usually join these voluntary associations.  A coercive organization is the third of the formal types of organizations were people were forced to join organizations, such as, prisons or treatments (mental hospitals).  Coercive organizations usually have locked doors and barred windows and are managed security personnel. 

Organizations exist all over the world.  How the organization performs depends not only its own achievements and policies but also, depending on the organizations environment from outside the organization affects the operation of the organization.  Those factors are current events, technology, economic and political trends, the available workforce, and other organizations. 

Economic and political trends change the organization because all organizations are either hurt or helped by the current of economic or recession.  Industries from abroad make them face competition as changing in the laws, such as, environmental issues at home.  The rise of energy prices followed by the 2005 hurricanes that devastated the gulf states plus 2006 election that transferred Congress of the United States from republicans to democrats and the 2008 trends, which gave the White House and Congress of the United States democratic control, affecting government and business organizations.

Micah needs to understand that the difference between small groups and formal organizations. Activities are equally shared among all members.  Hierarchy is very informal or non existent, while the normal activities are general and informally applied.  The member criteria variable often based on personal kinship with variable relationships, while its communications are casual and face-to-face its focus is people oriented.  However, in formal organizations activities are distinct and highly specialized while hierarchy is clearly defined according to position.  In the normal of this group are clearly defined by rules and regulations.  The membership criterion is technical competence to carry out assigned tasks.  Their memberships are typically secondary with selective primary ties while communications are typically formal in writing since the formal organization focus is task-oriented.  The typical pyramid shape “Conventional Bureaucracy” is topped off by the CEO followed by the top executives, division leaders, middle managers, and ranking filed workers.  The pyramid has a clear chain of command orders go downward from the top of the pyramid to the bottom of the pyramid.  The reports of performances come upward from the bottom of the pyramid with organization having many rules and regulations.   Jobs are highly specialized while the football shape called “open, flexible organization” starts with the CEO followed by the senior managers and the numerous competing work teams.  The open, flexible organization with fewer levels or hierarchy, responsibility for generating ideas created throughout the whole organization, while a large number of workers perform their jobs in groups and have broad understanding of these organization operations. 

To switch from a formal organization to an open, flexible organization, his organization is the formal organization would have to get rid of the hierarchy system and just keeping a CEO and senior managers creating a more competing and active work teams.  Keeping in mind, with more open and flexible workers below the CEO and senior managers, he would be making decisions shared throughout the whole organization and that instead of having individual leaders, they would have teams, making equal decisions in their jobs.

The article called “Interaction of Learning Organization and Organizational Structure” states that without employees who consistently improved develop and study; there cannot be the learning organization.  At the same time, one must stress that the members of the organization who study do not guarantee that the whole organization, which the learning one as it becomes such only after the individual knowledge becomes the organization knowledge. 

The prediction between the Conventional Bureaucracy and Open, Flexible Organization is that if the Conventional Bureaucracy continues with their chain of command in the current economic market with high unemployment, the Conventional Bureaucracy that we are on will stay the same.  Hopefully within the next couple of years and the economy improves and the country gets rid of the trillion dollar national debt, it may eventually change to an open, flexible organization if democrats and republicans can be able to work in a bipartisan fashion. 

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