Formal Organizations

1. Formal Organizations Social Structure Unit 3

2. Formal Organizations and Bureaucracies Formal Organization: a group that is deliberately formed to achieve one or more long term goals Examples: schools, university, government agencies, hospitals Bureaucracies: a formal organization based on rationality and efficiency

3. Characteristics of Bureaucracies A division of labor based on the principle of specialization Each person is responsible for a certain task ? allowing each person to become an expert in that area A hierarchy of authority Power: the ability to control other�s behavior (even against their will) Authority: a socially approved use of power Bureaucracies are like pyramids, with power concentrated in a few at the top. Power decreases as you move down

4. Characteristics of Bureaucracies A system of rules and procedures Rules and procedures direct how things should be done and influence They stabilize the organization Written records of work and activities Files are created to keep records easing functioning and continuity Promotion based on merit and qualifications Jobs are filled based on the best qualified and people are promoted for the job they do not favoritism ? equality for all

5. Weber and Bureaucracy Weber originally feared the organization of bureaucracies as dehumanizing As industrialization developed Weber saw the advantage of efficient bureaucracies Preindustrial organizations were not capable of dealing with industrial decisions Industrial economies were more fast- moving Because Rationalization (the mindset emphasizing knowledge, reason and planning rather than tradition) was an increasing concept

6. Bureaucracies and People Bureaucracies are actually designed to protect people. Without all of the rules and procedures that make a bureaucracy impersonal, decisions would be arbitrary and without reason

7. Informal Structure w/in Organizations Bureaucracies are designed to be secondary groups, but primary relationships develop within them called informal organizations Informal organizations: groups within a formal organization in which personal relationships are guided by norms, rituals, and sentiments that are not part of the formal organization These groups form norms to control work behavior

8. Why do Informal Organizations Develop? Informal groups form to meet the needs of the people that are ignored by the formal organization Formal groups tend to be impersonal so these informal groups offer personal attention

9. Iron Law of Oligarchy Robert Michaels claims that to ensure that the goals are to achieved, power must be exercised Iron Law of Oligarchy: theory that power increasingly become concentrated in the hands of a few members of an organization Michaels� idea is that those in power want to stay in power

10. 3 Factors that lead to Oligarchy 1. Organizations need a hierarchy of authority to delegate decision making 2. The advantages allowed to those at the top allow them to consolidate their power (create a loyal staff, use resources to increase power) 3. Other members of the organization tend to defer to the leaders (give in to those in charge)