Psy360Gs

Structure is the actual foundation that a company is built on. Every business owner is going to have a different structure based on the type of industry they are in and what they are trying to achieve in their organization. Management looks at their organizations objectives and their business strategy and builds from those elements. We understand that upper management is where all of the decisions are made. Once the decisions are made, middle management relays information to department heads where they lay the ground work for getting the actual work process started. This is usually the hardest part of the process. Here is where you determine the actual manpower that is needed, what tools or equipment is necessary and how long it’s going to take. When we look at a company that manufactures multiple items, they must know the market that they are trying to sell to and who is their competition. A lot of homework goes into running a business. The more prepared you are the better the end result is going to be. You need to have different divisions looking into the different aspects of producing the product. That is never going to be an easy task. A lot of brainstorming is done. Lastly, the most important part of the process is the actual cost to get it done and what is the profit going to be if any once it’s complete.

According to “The Concept of Formal Organizations,” (Peter M. Blau & W. Richard Scott) we have social organizations and formal organizations. A social organization is based on the conditions around them and can be a branch of a work organization. It’s more of a club setting that is not as strict as a working relationship would be. It’s basically more of a leisure type of atmosphere where everyone involved enjoys the cause that they are working towards. A formal organization has more rules and may not be a flexible as you may like but again, everyone involved likes working towards the cause. As our book states, “The Concept of Formal Organization,...