Types of Organisations

Question 1

What are the common characteristics of an organisation as a system?

Answer 1

Every system is part of a larger system and, itself, encompasses many sub-systems

Every system has a specific purpose to which all its parts are designed to contribute

A system is complex - Any change in one variable will effect change in others

Equilibrium - A system strives to maintain balance between the various pressures affecting it, internal and external. Some systems experience more pressures to change than others, giving rise to stable and unstable systems.

Question 2

Explain the distinction between formal and informal organisation structures

Answer 2

Formal: Represented by the company organisation chart, the distribution of legitimate authority, written management rules and procedures, job descriptions etc.

Informal: Represented by individual and group behavior