ADVERTISEMENTS:
The following points highlight the four important types of organisation. The types are: 1. Organisation under Charismatic Leadership 2. Organisation under Feudal Administration 3. Bureaucratic Organisation 4. Professional Type of Organization.
Type # 1. Organisation under Charismatic Leadership:
The underlying principle of such an organisation is the charisma of the boss of an organisation in the perception of those who serve there. Charismatic administration occurs whenever people in the organisation believe, in respect of the particular area of activity, that “history is the lengthened shadow of man”.
Such a faith in the leader develops when the leader is a man of genius and is credited with intelligence and wisdom far superior to those of others in the organisation.
ADVERTISEMENTS:
If, for instance, a reputed scientist heads an organisation in which all research activities are carried on in terms of his perception of what is to be done or what is good or bad for the organisation, the organisation may be said to be under a charismatic leadership. His perception alone counts, and nothing else.
Type # 2. Organisation under Feudal Administration:
Now-a-days the dealer for a company performs a number of functions for the company. He advertises the product to the community, renders the service provided for in the warranty, sometimes arranges financing the sale of the product, and does many other things.
The manufacture assumes that the dealer would do these in his own interest (which eventually furthers the interest of the manufacturer himself) if the dealer is given complete control of an area for his operations. The dealer, on the other hand, has some obligations to the manufacturing company which gives him dealership right over a particular area.
For instance, he is not allowed to sell a similar competitive product manufactured by another company. These rights and obligations are now-a-days written into a contract within the framework of the contract; the dealer enjoys a good measure of autonomy, with little or no interference from the manufacturing firm.
ADVERTISEMENTS:
This kind of administration concerning the manufacturer and the dealer is characterised as feudal inasmuch as it broadly follows the traditional (not contractual) pattern of relationship which prevailed among fief-holders and lords during the Middle Ages. Under feudalism, vassals held lands from lords-superior on condition of military service.
Type # 3. Bureaucratic Organisation:
Bureaucratic organisation is basically a rule-centred organisation. Only the rules, laid down in black and white, count. All the values and principles of the organisation are embodied in these rules. The personnel of the organisation from the top officials to the lowest subordinates hold office under certain conditions for which they draw a salary.
All of them have to go through some kind of an indoctrination process in order to familiarize themselves with those rules.
The rules may be concerned with company policies, political ideologies or religious dogmas, depending on the nature of activity of the company. Another unique feature of this kind of organisation is that bureaucrats are organised on a hierarchical basis.
Type # 4. Professional Type of Organization:
When the organisational activity is determined in terms of specialised knowledge of the trained members of the organisation rather than by a charismatic leader, or by tradition, or by bureaucrats, we get a professional type of organisation.
The distinguishing mark of this kind of organisation is that there is a wide delegation of responsibility to people who are assigned the job after their competence has been certified by a group of peers. Universities and hospitals are typical examples of this type of organisation.
After the competence of teachers and doctors is assessed, they are entrusted with a responsibility which is defined by the incumbents themselves. They enjoy a large measure of autonomy. It is assumed that they would make full use of their competence in their respective fields.
The top echelon of authority the Vice-Chancellor or the Principal of a Medical College – would not interfere with the job of a teacher in his class room or laboratory.
One reason, of course, is that it is not possible for anyone of them (if they do not belong to the discipline) to judge the competence of bio-physicists, political scientists, economists, etc. Consequently, extreme decentralisation of responsibility to men chosen for their competence is a distinctive feature of professional organisations.