Evolution of Formal Organizations
Nothing is escapable from change. In fact that is the one thing most can depend on; change. It is as the old saying goes, “nothing ever stays the same”. Organizations have been around for many years and in order for them to stay around they will inevitably have to change from time to time. As the older generations of workers start to retire, formal organizations will start to change in order to be more flexible to the younger new workers that will be taking their place.
For several decades, the majority of formal organizations used the conventional bureaucracy method, which consists of many levels similar to a pyramid. This method starts with the CEO, or top people, in the organization of which have the most authority over the people under them. These people decided the rules and regulations for everyone else to follow. It would then go to follow that the ones on the bottom have no authority and are simply there to do what they are told. Because of the pyramid affect organized structure is formed. It is because of this structure that there is always someone to comply with; a supervisor. Within this structure, every employee has a specific responsibility they must uphold and report on to said supervisor. It is because of this bureaucracy there is no equality with the organization, and the lowest on the totem pole is at the mercy of the high ups within the organization.
Back in the beginning of the 1900’s, managers only had a few things that were required for them to do. They would review each employee, that employee’s performance, and then estimate how much time the employee needed to do their job. This became ineffective in producing proper quality, as well as quantity.
Due to the lack of efficiencies a new management style was created; Scientific Management. This new style allowed employees to receive incentives for a job well done, in turn showing that the organization appreciated a productive employee.
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