This document discusses different types of organizations. It describes formal and informal organizations, with formal having defined structures and informal being loosely organized. Primary organizations claim complete member involvement, while secondary organizations only require limited commitment. Organizations can also be classified by their objectives, such as service organizations, economic organizations, religious organizations, protective organizations, government organizations, and social organizations.

1.  Subject: Principle of Management
 Topic : TYPES OF ORGANIZATION
 Date: 09/12/2022

2. TYPES OF ORGANIZATION
 Introduction
 Classification of Organizations
 Formal and Informal Organizations
 Primary and Secondary Organizations
 Basis for the Classification of Organizations

3. INTRODUCTION
 To a great extent, organizations are variable
as there are many different organizations as
there are persons who are their members.
 An organization can be the central focus of a
person‘s life or an incidental servant.
 An organization can be rigid, cold, and
impersonal and on the other hand it can have
warm and flexible relationships.
 In this unit, you are about to learn the different
types of organizations which may

4. Classification of
Organizations
 The traditional or generally accepted scheme for
classifying organizations is to label them as
―formal‖ or ―informal‖ depending on the degree
to which they are structured.
 Another way to classify organizations is as
primary or secondary organizations, according to
the emotional involvement of its members.
 These designations however, are only extremes
because it very difficult if not impossible to find a
completely formal or completely informal
organization and the same applies for primary and
secondary organizations

5. Formal and Informal
Organizations
 Formal Organizations
 A formal organization has a well defined
structure that may describe its authority,
power, accountability, and responsibility
relationships.
 The structure can also define the channels
through which communications flow Formal
organizations have clearly specified jobs for
every member
 The hierarchy of objectives of formal
organizations is explicitly stated Status,
prestige, pay, rank, and other perquisites are

6. Cont…
 Formal organizations are durable and planned
and because of their emphasis on order, they are
relatively inflexible Membership in formal
organizations is gained consciously, at a specific
time and usual y openly
 Examples of formal organization are large
business corporations, federal and state
governments and universities.
 Formal organizations can be converted to informal
 organization if the defined and structured
relationships are not enforced and are replaced by
new, unspecified, and uncontrolled relationships.

7. Informal Organizations
 Informal organizations are loosely organized,
flexible, ill defined and spontaneous.
 Membership in informal organizations may be
gained either consciously or unconsciously and it
is often difficult to determine the exact time when
a person became a member In informal
organization, one‘s membership or involvement
may just ―grow‖ through time.
 Examples of informal organization are a bridge
club, a dinner party, passersby who rescue the
injured in a car accident and a friendship Informal
organization can be converted to formal ones
when the relationships and activities are defined
and structured.

8. Primary and Secondary
Organizations
 Primary Organizations Primary organizations
claim the complete , personal and emotional
involvement of their members.
 They are characterized by personal , direct,
spontaneous, face-to-face relationships They are
based on mutual expectations rather than upon
precisely defined obligations.
 Primary organizations are satisfying ends in
themselves Examples of primary organizations
are some families, persons dedicated to their
professions, and organizations that support
causes dear to the hearts of their members.

9. Cont…
 Secondary Organization In secondary
organizations, relationships are intellectual,
rational and contractual Relationships tend to be
formal and impersonal with explicitly defined
obligations
 They are not satisfying ends in themselves, but
they have members because they can provide the
means such as pay to the members‘ ends.
 Members involve themselves in only limited ways
in these organizations. For many employees,
students, and soldiers, their respective
organizations represent only limited commitment.

10. Cont…
 In conclusion, organizations can have some
members for whom the organization is primary
and others of the same organization may
regard it as secondary.
 The potential for productivity in primary
organizations is immensely superior to that in
secondary organizations.
 In primary organization, the member is willing
to commit to total personal effort, whereas in
secondary organizations, personal
involvement is only partial.

11. Basis for the Classification of
Organizations
 Every organizations is formed to achieve some
purpose or purposes which can be broadly
described as satisfying the wants , needs, desires
or objectives of its members.
 Organizations can be classified according to the
particular objectives of its members that it seeks
to serve. For example
 1. Service organizations – these organizations
stand ready to assist persons without requiring
full pay from each recipient of service.
 They include charities, public school boards, park
and zoo commissions, high way departments , etc

12. Cont…
 Economic organization – these organizations provide goods and
services in return for some form of payment. Examples are
corporations, proprietorships, partnership, etc
 Religious organizations – these organizations provide for the
spiritual needs of members, for example, churches, synagogues,
sects, orders, etc.
 Protective organizations – these are organizations that protect
persons from harm for example, police departments, the military, fire
departments
 Government organizations – these are organizations that satisfy
the need for continuity for example, federal governments, states,
cities, courts, etc.
 Social organizations – these are organizations that serve the
social needs of persons for contact with others , identification, and
mutual support for example, fraternities, clubs, teams , etc.

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