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The Theory of Complex Formal Organization

In: Organization Theory by Chester Barnard

Author

Listed:
  • Kazuhito Isomura

    (Chuo University)

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.

Suggested Citation

  • Kazuhito Isomura, 2020. "The Theory of Complex Formal Organization," SpringerBriefs in Business, in: Organization Theory by Chester Barnard, chapter 0, pages 39-49, Springer.
    • Handle: RePEc:spr:spbrcp:978-981-15-9206-5_4
    DOI: 10.1007/978-981-15-9206-5_4
    as

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