Organisations, especially large organisations are generally 'complex', having many inter-related facets and areas that need to be co-ordinated, managed together to achieve efficiencies and effectiveness in achieving stated goals and objectives. Organisations also need to be 'adaptive', they need to respond to ongoing changes in the environments in which they operate e.g. the political, social, economic and technological conditions that together form the environment in which organisations operate.
Even if you do not aspire to be a manager, organisational theory should be of interest to you. We live in a world of organisations - work, university, clubs, trade unions, professional bodies, shops, and so on. Organisational theory can help explain how they work and why they work in the ways they do. Understanding how they work may even enable you to get the best out of each of them!
Drucker: suggests three criteria for effective organisations:
They must be organised for business performance
Their structure should contain the least number of management levels
Organisational structure should facilitate