Conclusion

Abstract

This chapter summarizes the main points of this book and then presents some conclusions. Barnard (1938) proposed four major concepts of organization: cooperative system and formal, complex formal, and informal organization. Then, Barnard (1948) added two more basic concepts: lateral organization and status system. Barnard started to argue that a cooperative system was a real organization; then, he went on to identify the essence of an organization and extracted an ideal organization such as a formal, informal, and complex formal organization; and finally, he proposed status system as a real organization. Thus, Barnard constructed a conceptual scheme for the theory of formal organization on the basis of his experience in exploring theoretically what an executive should do and how and why. Overall, Barnard presented organizing principles as well as organization forms. Those principles are based on interactions among people and unit organizations and how to connect them; they produce different organization forms by combining those principles. Organization forms are located in the matrix of formal-informal and horizontal-vertical axes. There are two formal organizations, a scalar organization and a lateral organization, while there are two informal organizations, an informal and an informal executive organization. Complex formal organizations are divided into two types: lateral and scalar organizations. A status system is a scalar organization with the function of a formal and informal organization.KeywordsFormal organizationInformal organizationComplex formal organizationOrganizing principlesVertical and horizontal integrationOrganization forms