Chapter Preview 4

Chapter Preview · Section 4Formal Organization (pages 190–196)

A formal organization is created to achieve some goal. Most are bureaucratic. The existence of primary groups and relationships within formal organizations can either help or hinder the achievement of the goals.

6-4 Interactive Activity 1

A. A

B. B

C. C

D. D

Section 4-Polling Question

Which are formal organizations?

A. High schools

B. Government agencies

C. Hospital

D. All of the above

A B C D

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Section 4

The Nature of Formal Organizations

• A formal organization is deliberately created to achieve one or more long-term goals.

• A bureaucracy is a formal organization based on rationality and efficiency.

A. A

B. B

C. C

Section 4

A B C

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Do you agree that bureaucracies can be inefficient?

A. Agree

B. Disagree

C. Not sure

Section 4

Major Characteristics of Bureaucracies

• A bureaucracy is a division of labor based on the principle of specialization.

Public School District Organization Chart

Section 4

Major Characteristics of Bureaucracies (cont.)

• A bureaucracy is a hierarchy of authority.

• Power refers to the ability to control the behavior of others, even against their will.

• Authority is the exercise of legitimate power—power that derives from a recognized or approved source.

Section 4

Major Characteristics of Bureaucracies (cont.)

• Bureaucracies are systems of rules and procedures.

• They include written records of work and activities.

• People in bureaucracies are promoted on the basis of merit and qualifications.

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A. A

B. B

Section 4

In a bureaucracy, the greatest amount of authority is concentrated in a few positions at the top.

A. True

B. False

A B

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• 6-4 Interactive 2

Section 4

Max Weber and Bureaucracy

• Rationalization—the mind-set emphasizing knowledge, reason, and planning rather than tradition and superstition—was on the rise as the industrial economy developed.

Section 4

Max Weber and Bureaucracy (cont.)

• Weber believed that a bureaucracy could offer steadiness, precision, continuity, speed, efficiency, and minimum cost since the industrial economy was moving so quickly.

• Bureaucracy is designed to protect individuals despite its negative reputation.

Membership in Labor Unions

A. A

B. B

C. C

D. D

Section 4

A B C D

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According to Weber, what did bureaucracy offer?

A. Weakness

B. Chaos

C. Nothing

D. Efficiency

Section 4

Informal Structure Within Organizations

• Bureaucracies are designed to act as secondary groups, but primary relationships still emerge as part of the informal organization.

Human Development

Section 4

Informal Structure Within Organizations (cont.)

• An informal organization is comprised of groups within a formal organization.

• In informal organizations, personal relationships are guided by norms, rituals, and sentiments that are not part of the formal organization.

• Informal groups exist to meet needs ignored by the formal organization.

A. A

B. B

C. C

D. D

Section 4

A B C D

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Informal groups serve the following purposes EXCEPT

A. Protection

B. Personal affection

C. Humor

D. Teaching authority

• Interactive Map

Section 4

Iron Law of Oligarchy

• According to the iron law of oligarchy, power increasingly tends to become more and more concentrated in the hands of fewer members of any organization.

• Those in power want to remain in power.

Section 4

Iron Law of Oligarchy (cont.)

• Three organizational factors encourage oligarchy:

– Organizations need a hierarchy of authority to delegate decision making.

– The advantages held by those at the top allow them to consolidate their powers.

– Other members of the organization tend to defer to leaders.

A. A

B. B

C. C

D. D

Section 4

A B C D

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Do you agree with Robert Michels about this Law of Oligarchy?

A. Strongly agree

B. Somewhat agree

C. Somewhat disagree

D. Strongly disagree

Figure 6.3

Public School District Organization Chart

Snapshot

Membership in Labor Unions

Source: U.S. Department of Labor, Bureau of Labor Statistics, 2005.

World View

Human Development

Source: United Nations Development Programme, Human Development Report 2004.

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Vocab 18

formal organization

a group deliberately created to achieve one or more long-term goals

Vocab 19

bureaucracy

a formal organization based on rationality and efficiency

Vocab 20

power

the ability to control the behavior of others

Vocab 21

authority

the legitimate or socially approved use of power

Vocab 22

rationalization

the mind-set emphasizing knowledge, reason, and planning

Vocab 23

informal organization

groups within a formal organization in which personal relationships are guided by norms, rituals, and sentiments that are not part of the formal organization

Vocab 24

iron law of oligarchy

theory that power increasingly becomes concentrated in the hands of a few members of any organization