The Theory of Complex Formal Organization

Kazuhito Isomura ()
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Kazuhito Isomura: Chuo University

Chapter Chapter 4 in Organization Theory by Chester Barnard, 2020, pp 39-49 from Springer

Abstract: Abstract A society is composed of a network of formal organizations. There are superior and subordinate organizations, with the most comprehensive being states and churches. Moreover, a complex of informal organizations is overlaid and embedded therein. This is called an “organization society”, and an individual contributes to multiple formal organizations at the same time. The origin of a formal organization comes from spontaneous or deliberate creation; some organizations are produced from a parent organization, and others are divided into two or more organizations. All organizations grow from a small organization called a “unit organization.” A unit organization is limited in terms of size because of the limitation of communication and leadership. Therefore, when it is beyond its size limit, a large unit organization is divided into multiple unit organizations; then they are combined vertically or horizontally. Thus, a large organization is basically produced by combining two or more unit organizations. When two or more organizations are combined vertically, executive and operational organizations are created. A leader contributes to both executive and operational organizations as a connecter of these two organizations.

Keywords: Superior and subordinate organization; Complex formal organization; Unit organization; Size limit; Communication; Executive organization; Operational organization; Leader (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbrcp:978-981-15-9206-5_4

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DOI: 10.1007/978-981-15-9206-5_4

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