Types of Organization
There are various types of organizations for the study of which an organization typology is constructed. Typology is a set of types of something being studied in this case organization. Organization typology relates to the various categories into which organizations can be classified. These broad categories of typology are based on:
1 function or purpose,
2 primary beneficiaries,
Based on function or purpose:
1 economic organization: economic organizations are primarily those which are concerned with adding value as used by economists. Economic activities are those that help in earning livelihood. These can be classified as business and non business activities. Business activities have three basic characteristics profit motive, risk bearing, and creation of utilities. Such business activities may be in the form of trading commercial industrial and other direct services.
2 political organizations: political organizations are concerned with changing or adopting circumstances to attain valued goals. They are concerned with increasing the capacity of society or some part of it to accomplish desired ends. Examples of such organizations are various government agencies legislature government departments etc. such organizations to maintain peace and stability in the society.
3 integrative organizations: integrative organizations such as courts police departments social agencies and so on contribute to the efficiency with which the society operates. They are organizations for social control and maintenance keep things operating in desired fashion and keep out distributing influences. They are different from political organizations in the sense that the latter contribute to the effectiveness in the society while the former contribute efficiency to the society.
4 pattern maintenance: pattern maintenance organizations such as educational institutions theatrical groups' research institutions clubs churches and other religious institutions etc. are concerned with the long term issues of society values patterns and knowledge culture etc.
Based on primary Beneficiary:
1 mutual benefit associations: here the members are the primary beneficiaries. Examples of such organizations are political parties' trade unions professional associations' religious sects etc. though efficiency is expected not to interfere with the membership ability to decide democratically specific objectives in the organizations. The crucial issue facing this type of organizations is maintaining membership control that is internal democracy. This is difficult because of two reasons membership apathy and oligarch cal control.
2 business organizations: here the owners are the beneficiaries through the accomplishments of some immediate task. The owners are not primarily concerned with the nature of output that the organization is giving rather their main concern is the return of investments in the organization. The dominant problem of business organization is that of operating efficiency the achievement of maximum gain at minimum cost in order to further survival and growth in competition with other organizations.
3 service organizations: a service organization is one whose prime beneficiary is the part of the public in direct contact with the organization with whom and on whom its members work. Examples of such organizations are hospitals educational institutions social work agencies legal aid societies etc. the characteristics of such organizations are that clients are the beneficiaries but they do not have control them. They do not know what means will best serve their interest and they are vulnerable subject to exploitation and dependent on the integrity of professionals to whom they have come for help.
4 commonweal organizations: the basic characteristics of commonweal organizations are that public at large is their prime beneficiary often although not necessary to the execution of the very people who are the object of the organizations endeavour. Examples of such organizations are post office military service, police service, fire department other government agencies etc. most of these organizations either perform protecting services for the community or serve as its administrative arm.
Based on Control or Compliance: the basic of beneficiary is an external dimension identifying the organizational typology compliance as a base for organizational typology considers internal structure of the organizations. Compliance involves one party telling or directing another party to do something. A basic internal problem in any organization is members' compliance. This suggests that because of organizational relationships among individuals are subject to control by someone in the organization. It implies that individuals will perform different behaviour from those they might choose if they were not in the organization. Sometimes such relationships are known aerates power at other time as authority. In actual practice however the behaviour of individual is not affected merely by using power or authority by other person but his involvement in the organization also shapes his behaviour. Thus actual behaviour is affected by two dimension power and involvement.
Based on relations:
1 formal organization: the organization structure designed and established by management is called formal organization. The formal organization is officially set up to achieve certain goals. It is a system of clearly defined activities and relationships which are intended to divide and integrate the activities of the organization. Within the formal organization members undertake the assigned duties in cooperation with each other. They interact or communicate among themselves in the course of their work. Gradually they develop friendly relations and form small social groups based on friend ship are called informal organization. The informal organization is thus a system of social relationships among the members. It emerges on its own in a natural manner with in the formal organization.
2 informal organizations: the informal organization is a part of the formal organization. It cannot be separated. In other words a single organization has two facets the formal and the informal. They are two aspects of the same organization and are linked to each other. An organization is neither totally formal not totally informal. It is a combination of the two aspects. Formal organization is created by management for achieving organizational goals. Informal organization originates from within the formal organization to meet the cultural and social needs of members of the organization. When several individuals work together for achieving certain organization goals they come to know each other cultural interests and needs. They associate informally to fulfil such interests and needs. For example some person may be interested in music and some others may have interest in sports. Informal groups are formed on the basis of common interests. Further organizational members have need for friendships and for social interactions which give them social satisfaction. Informal organization enables members to have social interactions and to derive social satisfaction. Formal organization does not always provide an opportunity to members to exchange personal views and experiences. That is why informal organization emerges in which members move with each other in a natural and normal manner. Moreover it is not always possible to members to work and behave in a manner.
Based on Structure: there are six types of organization based on structure:
1 line organization or military organization,
2 line and staff organization,
3 functional organizations,
4 project organization,
5 matrix organization.