Organizational theory

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Organizational theory is a series of interrelated concepts that involve the sociological study of the structures and operations of formal social organizations. It also seeks to explain how interrelated units of organization either connect or do not connect with each other. Organizational theory also concerns understanding how groups of individuals behave, which may differ from the behavior of an individual, often with a focus on goal-directed behaviour. Organizational theory covers both intra- and inter-organizational fields of study. In the early 20th century, theories of organizations initially took a rational perspective and have since become more diverse. A rational organization system has two significant parts: Specificity of Goals and Formalization. The division of labour is the specialization of individual labor roles, associated with increasing output and trade. Modernization theorist Frank Dobbin wrote that "modern institutions are transparently purposive and that we are in the...

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