Essence and concept of organization. Form of ownership of the organization. Organization life cycle

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Human society consists of many organizations that can be called associations of people pursuing certain goals. They have a number of differences. However, they all have a number of common characteristics. The essence and concept of organization will be discussed further.

Defining an organization

Considering the essence and concept of an organization, it is worth noting that it has many definitions. Learn more about the main ones. An organization is a form of cooperation between people who act together within a single structure. This is a system that is designed to perform certain functions.

Organization also refers to internal interaction and orderliness, consistency of autonomous or sufficiently differentiated departments, parts of a single whole. This definition is due to the special structure.

Considering the essence and concept of organization, it is worth noting one more definition. This is the total sum of all processes and actions that lead to the formation of parts of a singlewhole and improve their relationships.

This is also an association of people who together strive to achieve a goal, to implement a certain program. They operate on the basis of certain rules, regulated procedures.

Organization also means a social formation that is consciously coordinated and at the same time has appropriate boundaries. It works on an ongoing basis, striving to achieve common goals. Over time, previously established boundaries may change. Each member of the organization makes a certain contribution to the common cause. Informal coordination of the interaction of all participants in education is required.

Structure

The basic structures of an organization have certain characteristics. They determine how tasks should be distributed in order for the joint activity to be successful. The formation of the structure of the organization must be done so that all its components freely interact with each other, therefore, it has the following characteristics:

• Complexity. This is the degree of distribution of responsibilities, differentiation within the association. Such a concept includes the degree of specialization, as well as the number of hierarchical levels. Complexity determines the degree of distribution of structural elements over the territory.
• Formalization. These are rules that have been developed in advance to streamline the behavior of participants, regulating the acceptable actions of all the constituent elements of the group.
• The ratio of decentralization and centralization. This characteristicsystem is determined by the levels at which decisions are made and made.

It is worth noting that regardless of the structure, form and type, any organization has a mission that brings people together to achieve a higher goal.

Theoretical knowledge

Organization theory includes several different points of view and approaches to the definition of such a social entity:

1. Weber's bureaucratic theory. It was proposed by a German sociologist, economist, who formulated the concept of bureaucracy. This, in his opinion, is an organization that has characteristic properties. Today, the concept of bureaucracy is understood as the absurdity of rules, red tape, and even some cruelty. However, in organizational theory, such negative manifestations of bureaucracy are only potential. This quality combines versatility, performance and predictability. Such a system can be organized if the overall goals of the organization are known, and the work can be divided into separate components. Also, the end result that a bureaucratic organization aims for should be simple. This will enable central planning.
2. Theory of A. Fayol. This is a representative of the administrative school. Classical organizational theory in this case considers the association as a machine, which is a faceless system. It is built from formal connections, goals and has a multi-level hierarchy. The organization is presented in this case as a tool for solving the tasks. The person in it is abstract. A. Fayol divided the management procedure into five stages: organization, planning, selection of personnel and their placement, control and motivation.
3. Scientific Management by FW Taylor. This is a representative of the school of scientific management. He developed several methods of organizing labor, which were based on the use of timekeeping in studying the movements of workers. The tools and methods of labor in this case were standardized.
4. The natural theory of T. Parsons and R. Merton. It is assumed that the organization functions as a self-performing process. There is a subjective element in it, but it does not prevail in the general mass. At the same time, the organization of the system is a state that allows it to independently adjust itself under external or internal influences. The goal is only one of the possible outcomes of the work. At the same time, the deviation from the set task is considered not as an error, but as a natural quality of the entire system. This is due to the action of a number of factors that were not calculated in advance.

Systemacity

Considering the basics of building organizations, it is worth noting that the principle of consistency is applied in this process. This allows you to streamline the relationship between all the disparate elements. The system allows you to outline some integrity, which is built from interdependent components. Each of them makes a certain contribution to the whole.

Any organization is a system. They can be very different. So, for example, a car, household appliances, etc.etc. are systems. They consist of certain components, the joint work of which ensures the functioning of the whole community. Our whole life depends on the interaction of certain elements that affect its course.

Since people are the constituent elements of society, in combination with technology they perform a variety of tasks. Their functions can be compared with the work of the body. The individual parts interact to make the system work.

Among the requirements for an organization, the main one is a systematic approach. The object under study must be considered as a whole. At the same time, in the organization, the solution of particular problems is subject to general principles that are characteristic of the entire system.

When studying a system, analysis should not be limited only to the mechanism of functioning, it can be supplemented by internal patterns of development. It is worth considering that some elements of the system, which in some conditions are considered secondary in the study, may become the main ones in other conditions.

Studying the typology and classification of organizations, it is worth noting that there are open and closed systems. This feature determines how the object of study responds to external influences. The systemic qualities of an organization are:

• integrity;
• emergence;
• homeostasis.

Required components and features

The essence and concept of an organization should be considered from the standpoint of its mandatory components. Yes, it has several mandatorycomponents:

1. Technical component. It is a community of material components. These include buildings, equipment, working conditions, special technologies, and so on. It is this set of features that determines the composition of the organization's participants, its employees.
2. Social component. This is a community of participants, as well as their formal and informal associations. This component also includes connections that arise between all participants, norms of interaction and behavior, spheres of influence.
3. Socio-technical component. This is a set of jobs or the number of members of the organization.

Signs

An organization has a number of characteristics:

• Integrity. The system is formed from many separate elements that interact with each other.
• Clear form. The relationship of all elements must be ordered.
• Common goal. All elements work to achieve a single result.

Varieties

Studying the definition of an organization, the types of organizations should be noted that they differ in a number of ways. There are two main varieties:

1. Informal organization. This is a group of people that arose spontaneously. They are in regular contact with each other as they have common interests.
2. Formal organization. This is a legal entity, the goals of which are enshrined in the constituent documentation. The functioning of such an association is stipulated in regulations, acts, etc. They regulate the responsibility of each participant, as well as theirrights.

It is worth noting that formal organizations are divided into commercial and non-commercial types. In the first case, this is a company that is engaged in the systematic receipt of profit in the course of its core business. At the same time, a commercial organization uses certain property, sells goods or provides services.

Non-profit organization is not intended to make a profit. Her income is not shared between members.

Other classifications

Organizations can differ in a whole list of characteristics, so there are a great many of them. First of all, they differ in the form of ownership of the organization. The following forms are known:

• state;
• private;
• public;
• municipal.

In addition to the form of ownership, organizations may have different characteristics. According to the intended purpose, companies are distinguished that are engaged in the production of products, the provision of services, the performance of certain works.

By breadth of production profile, companies can be specialized or diversified. In the first case, the organization is engaged in the production of products of one profile. Companies of the second type, wanting to reduce the degree of risk, produce several different products at once.

Also distinguish scientific, industrial and scientific-production enterprises. The number of production stages may also differ. According to this criterion, one distinguishesand multistage organizations. By location of the company can be:

• in one geographical point;
• in the same territory;
• in different geographic locations.

Life cycle

It is worth paying attention to the concept and stages of the life cycle of an organization. Each association has its own stages of development. The life cycle is a set of stages that any organization goes through during its life cycle. In total there are 5 stages of such a cycle:

1. The stage of entrepreneurship. This is the creation of the company, its birth. During this period, goals are still unclear. To move to the next stage, a creative process on the part of managers is applied. This requires stability in the flow of resources.
2. The stage of collectivity. There is an increase in the welfare of the company, its development. At the same time, the rules are formalized, high obligations appear. At this stage, the company forms a mission, is engaged in the development of innovative processes.
3. Stage management. This is the period of maturity of the company. Its structure is stabilizing, and the role of leadership is increasing many times over. Emphasis is placed on the efficiency of the company's development.
4. The stage of developing the structure. There is a recession, which requires the complexity of the structure of the organization. There is decentralization and diversification in the market.
5. The stage of leaving the market. There is a high turnover of staff, conflicts arise within the team and with partners.

Development stages

Development of the organizationalso goes through several stages.

These are slightly different from the phased life cycle and can be as follows:

• Birth. At this stage, the goal of the company is survival. It must be able to enter the market. In this case, the management method is chosen through decision-making by one person. Profit maximization is required.
• Childhood. Profit during this stage is short-term. The company ensures its own existence by a small group of managers (like-minded people). The organizational model is profit optimization.
• Boyhood. The company's goal at this stage is accelerated growth. It aims to win a large share of the market. The method of management at this stage involves the delegation of powers of managers to middle managers. Profit in this case becomes planned.
• Early maturity. The organization needs systematic growth, but it can become multilateral, which is a problem. There is a decentralization of power. The company is well positioned in the market.
• The prime of life. A balanced growth is required, for which a centralized management method is chosen. The company needs autonomy, assumes social responsibility.
• Full maturity. The goal of the company at this stage of development is uniqueness, but it is important to maintain a balance of interests. Management is collegial. The company acquires the features of a social institution.
• Aging. Organization needsstability, so it strengthens the service. The leadership in its activities relies on traditions, bureaucracy is growing.
• Update. The company strives to rejuvenate and restore its former positions. An adversarial control method is chosen. The company is reborn like a Phoenix.