Evolution of Formal Organizations Paper Term Example | Topics and Well Written Essays - 1000 words

Evolution of Formal Organizations - Term Paper Example The emergence of formal organizations began in Europe, where businesses incorporated their workers into a sort of club within the organizational structure of the business where there was a clear hierarchical system. The owners of the business and their families also belonged to this club and no employee was exempt from membership, which acted as a deterrent against leaving to the employees (Kornblum, 2011). According to Kornblum, as more and business ventures and industries emerged the economies of scale started playing a key role and specialization and division of labor became practical and profitable. This led to the development of a well organized system, in how the running of these establishments were conducted, and where the workers were not required to devotedly belong to their employer’s club or group. Responsibilities and duties were delegated to employees under the manager who could double up as the owner of the corporation. These managers sought out ways to maximize their workers output through various means like longer working hours, which they did without incentives or overtime compensation (Kornblum, 2011). Earlier formal organizations did not offer opportunities for advancement in position or salary especially to the minority groups and women. The policies, rules and regulations that defined these outfits as formal organizations were not adhered to but were just a formality for purposes of registration with the relevant authorities. The chain of command was designed in such a way that each department had a manger or supervisor to whom every worker in that unit bore responsibility. The supervisors or midlevel managers also had a higher authority to report to, and this went on up to the top management. Even if, the top management bore the overall responsibility for the overall performance of the company, they had little hands on participation and involvement in the on goings of the establishments they administered. This created a precedent wh ere the worker’s welfare was neglected, which led to the development of resentment towards the management of the organization causing a decline in employee output and the firm’s productiveness. This led to the formation of worker’s unions, which advocated for better terms and conditions in the work place coupled with considerate social welfare compensation. Companies that recognized the benefits of a more flexible organizational structure reaped the benefits of improved employee motivational levels and increased productivity. This makes workers feel obligated to perform well for a company that they are actively involved in than where they are taken just as a means to an end. Compared to today’s formal organizations earlier establishments had an authority structure that resembled a pyramid where remarkably few people with power were at the top while the majority and powerless people were at the bottom (Kornblum, 2011). In the mid 1900’s, this struct uring gave no room for employees to contribute, in the policy making process, or give their ideas on how best to attain their company’s goals. In today’s formal organizations, workers are involved in the formulation of company policies, and they are consulted on the best possible ways for their firms to accomplish their objectives. This makes formal