Types of Organizations

Types of Organizations

What is an Organization?

The term “Organization” is undoubtedly familiar to all of you. Yes, that’s right, the organization I’m referring to. Let me explain it again; an organization is an activity carried out by two or more people working together to achieve a common goal. Did you know? For the smooth running of a company’s activities, the organizational structure plays a crucial role in the future of a company.

The word “Organization” comes from the Greek language, Opyavon, Organo – Tool. It serves as a gathering place or a place where people come together systematically, with leadership, control, planning, and rational use of all resources such as methods, materials, environment, money, facilities, and infrastructure, effectively and efficiently to achieve community goals.

Types of Organizations

Various types of organizations can be categorized based on their nature of relationships, goals, leadership, and their relationship with society. Generally, there are two types: formal and informal. However, it should be noted that there is no clear indicator to determine them, as a formal organization can become informal, and vice versa.

1. Formal Organization

Some characteristics of formal organizations include orderly arrangement, clear structure, and good leadership. There are written rules specifying the rights and obligations of each member, preventing conflicts within. Formal organizations can last for a long time, emphasizing clear rules and contracts. They cannot be abandoned before the organization’s goals are achieved.

Examples of formal organizations include government organizations, businesses, and enterprises.

2. Informal Organization

Informal organizations, on the other hand, lack clear visions and missions, have voluntary leadership, and no restricting rules. Members are flexible in carrying out their tasks without the need to adhere to contracts. Examples are numerous, such as hobby groups, ownership of similar items, and others.

The two main types are:

Formal Organization: formed by a group of people or society with a well-formulated structure that explains its authority relationships, power, accountability, responsibilities, and legal strength.

Examples: large companies, government bodies, and universities.

Informal Organization: membership in informal organizations can be achieved consciously or unconsciously, often making it difficult to determine the time someone spends as a member. Examples include study groups, farmer associations, art groups, etc.

Forms of Organization

There are various forms of organizations in society, such as political, social, student, and business organizations. Let’s explain these forms:

1. Political Organization

Political organizations are part of a unit interested in shaping social challenges in a specific region by the legitimate government. Examples include political parties, religious councils, the military, and the police. Political organizations have various forms, including:

  • Monarchy: a form of government ruled by a person known as a king.
  • Democracy: a state based on the sovereignty of the people.
  • Oligarchy: a state ruled by a few political elites.

Occupations related to political organizations (political participation) include holding political or administrative positions, being a member of a political organization, holding office in a political organization, participating in elections (Election Commission).

2. Social Organization

Social organizations are groups of people or communities with a clear goal, forming a social institution or organization, legal or non-legal. These organizations serve as a means for community participation in nation-building and statehood.

3. Student Organization

Student organizations are groups consisting of students that provide a platform for talent, interests, and potential through extracurricular activities. Examples include student organizations like student associations, student councils, and student activity units.

4. Business Organization

Business organizations are entities formed by two or more people working coordinatively in a specific external environment with collective goals. The three main types of business organizations are sole proprietorship, partnership, and cooperatives.

Examples: corporations, partnerships, cooperatives, etc.

5. Technical Organization

Technical organizations consist of a group of people who must systematically and coordinatively fulfill specific tasks to meet the needs of society.

Examples: construction services, industries, and other service sectors fall under this category.

From the presentation of various types to forms of organizations we have read together, it turns out there is much to learn about organizations, both formal and informal.

1. Dwi Suci Farhatul Maula
2. Ristiana
3. Windi Antika
Student College of Pamulang University

Source: Jenis Jenis Organisasi

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