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1DB 4: EVOLUTION OF ORGANIZATIONSDiscussion Board 4: Evolution of OrganizationsStephanie GreenSchool of Business, Liberty UniversityBUSI 735: Understanding the OrganizationDr. Michael ColemanDecember 10, 2020
2DB 4: EVOLUTION OF ORGANIZATIONSDiscussion Board 4: Evolution of OrganizationsOrganizations, which is defined as social units of people that are structured and managed to pursue a common, agreed upon goal, were vastly different from the organizations of today. Today’s organizations are large, legally protected companies. When they were first started, they were small companies, often owned by families and integrated into the family’s lives. The companies could also create partnerships among themselves, create monopolies, and control the price of products and services through the collaboration with other similar companies (Scott & Davis, 2016; Suddaby & Foster, 2016). Furthermore, organizations, with a similar structure of today, were considered rare, as they were expensive to operate and the risk was high as the owners were held responsible for using their personal assets to pay off the organization’s debt if the organization was bankrupt. The rare ones were often owned or controlled by the government or millionaires. Furthermore, rail roads are linked to the development of the organizational structure. After the Civil War, entrepreneurs, through vertical integration, expanded their organizations. They used the rational organizational structure to improve the organizational design, long-range planning, reduce unit costs, and coordinate diverse functional activities. As a result, rail roads became associated with the development of the U-form or what is now considered a conventional structure composed of a central management unit with several organized departments. This structure was one of the organizational achievements during the nineteenth century (Scott & Davis, 2016; Suddaby & Foster, 2016; Oertel & Thommes, 2015). Overtime, organizations evolved and “were no longer arranged in a concentric, hierarchical pattern but began to function somewhat independently of one another, competing forthe loyalties and resources of individuals” (Scott & Davis, 2016, p.345). This change in organizations occurred near the twentieth century, which is known as the corporate revolution,
3DB 4: EVOLUTION OF ORGANIZATIONSwhich included the timeframe of a large number of mergers and acquisitions (M&As). During this timeframe, organizations came to become a dominate structure in society. They shape the careers, compensation, and kinds of lives people live in society. In addition, organizations impactchildcare, health insurance, friendships, and the feeling of safety felt by people. For example, by controlling the compensation, location, and careers of its employees, organizations can influence where they live, who they associate with, social class structure, social life, and family life (Scott & Davis, 2016; Oertel & Thommes, 2015). Furthermore, as organizations developed and evolved, they have gained three key features: separate legal identity, unlimited life, and limited

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Term
Summer
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TBA
Tags
Corporation, Limited Liability Company, Scott Davis

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