Simple Structure: This includes sole proprietorships, where the manager or owner makes the majority of decisions. Niels Anders uses the elements of Luhmann's system theory to describe the differentiation of society and connect that to the evolution of the modern organization. According to Andersen, society is functionally differentiated into a wide range of systems with their own binary code. The binary codes set some distinctions between a positive and negative value and divide the world in two halves. Understandings of the world are made throughout one side of the binary code. Andersen says that an organizational system always communicates and creates meaning through a function system (binary code). In other words, an organization can only communicate through one side of one binary code at once. The population is made up of two groups: Generalists (usually large companies trying to achieve economies of scale) and Specialists (companies that serve the needs and desires of individual and specific tastes). Weber posits that officials in a bureaucracy have a property right to their office and attempt at exploitation by a superior means the abandonment of bureaucratic principles. He articulates that providing a status incentive to inferior officers helps them to maintain self-respect and fully participate in hierarchical frameworks. [14] Michel Crozier reexamined Weber's theory in 1964 and determined that bureaucracy is flawed because hierarchy causes officers to engage in selfish power struggles that damage the efficiency of the organization. [15] Summary of characteristics of Weberian bureaucracy [ edit ] However, sometimes it is difficult to measure centralization in an organization because some activities are centralized whilst others are decentralized.

a b Chandler, Alfred (1977). The Visible Hand. Cambridge: Cambridge University Press. ISBN 9780674940529. Scott, W. Richard, and Gerald F. Davis. Organizations and Organizing: Rational, Natural, and Open System Perspectives. Upper Saddle River, NJ: Pearson Prentice Hall, 2007. a b c d e Gingrich, Paul. 14 October 1999. " Rationalization and Bureaucracy." Introduction to Social Theory [Sociology 250]. Regina: University of Regina.Achterberg, Jan; Vriens, Dirk (2010). "Specific Design Principles: de Sitter's Organizational Structures". Organizations. Springer Berlin. pp.228–230. doi: 10.1007/978-3-642-14316-8_7. ISBN 978-3-642-14315-1 . Retrieved 30 December 2022. Status: this can be seen through status indicators. These include size and location of spaces occupied, as well as value of furniture and decorations, and equipment used by different workers.

Legal, Political and Economic: These sectors are grouped together as they influence one another. For example, trade restrictions on businesses are both a political and economic issue. Feminist organizations (for example, health centers and NGO’s) are less formal, and there tends to be more equality amongst everyone. Population ecologists study the death and birth rate of organizations. In addition, it is described that the survival of an organization depends on its environment. Organizations can go through three phases: Contingency Theory. Available at: http://www.12manage.com/methods_contingency_theory.html (accessed [ permanent dead link] 26/03/12) Achterberg, Jan; Vriens, Dirk (2010). "Introducing Organizations as Social Systems Conducting Experiments". Organizations. Springer Berlin. pp.9–10. doi: 10.1007/978-3-642-14316-8_1. ISBN 978-3-642-14315-1 . Retrieved 30 December 2022.

From this theory, critical organization theory emerged, concerning how power is delegated in an organization and the empowerment of employees.

There is an office hierarchy; a system of super- and sub-ordination in which higher offices supervise lower ones. It has been found that the greater distance between employees work places, the less likely they are to communicate. Technical, economic and physical demands (these are satisfied through the exchange of goods and services). A rational organization system has two significant parts: (1) specificity of goals and (2) formalization. Goal specification provides guidelines for specific tasks to be completed along with a regulated way for resources to be allocated. Formalization is a way to standardize organizational behavior. As a result, there will be stable expectations, which create the rational organizational system. [31] [32] Human Resource Area: Organization theory is evident in the recruitment, selection and training procedures of the organization.Used for services that are intangible, are unable to be stored and “consumed as they are produced” (Hatch and Cunliffe, 2006). Strategy Area: Organization theory is used to direct the accomplishment of the organizations goals.