An organisation (or organization — see spelling differences) is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment. The word itself is derived from the Greek word ὄργανον (organon) meaning tool. The term is used in both daily and scientific English in multiple ways.
In the social sciences, organisations are studied by researchers from several disciplines, the most common of which are sociology, economics, political science, psychology, management, and organisational communication. The broad area is commonly referred to as organisational studies, organisational behaviour or organisation analysis. Therefore, a number of different theories and perspectives exist, some of which are compatible, and others that are competing.
Organisation – process-related: an entity is being (re-)organised (organisation as task or action).
Organisation – functional: organisation as a function of how entities like businesses or state authorities are used (organisation as a permanent structure).
Organisation – institutional: an entity is an organisation (organisation as an actual purposeful structure within a social context)
Organisation in sociology
In sociology "organisation" is understood as planned, coordinated and purposeful action of human beings to construct or compile a common tangible or intangible product. This action is usually framed by formal membership and form (institutional rules). Sociology distinguishes the term organisation into planned formal and unplanned informal (i.e. spontaneously formed) organisations. Sociology analyses organisations in the first line from an institutional perspective. In this sense, organisation is a permanent arrangement of elements. These elements and their actions are determined by rules so that a certain task can be fulfilled through a system of coordinated division of labour.
An organisation is defined by the elements that are part of it (who belongs to the organisation and who does not?), its communication (which elements communicate and how do they communicate?), its autonomy (Max Weber termed autonomy in this context: Autokephalie)(which changes are executed autonomously by the organisation or its elements?) and its rules of action compared to outside events (what causes an organisation to act as a collective actor?).
By coordinated and planned cooperation of the elements, the organisation is able to solve tasks that lie beyond the abilities of the single elements. The price paid by the elements is the limitation of the degrees of freedom of the elements. Advantages of organisations are enhancement (more of the same), addition (combination of different features), and extension. Disadvantages can be inertness (through co-ordination) and loss of interaction.
Organisations in virtual worlds
In a virtual world (such as Second Life) "organisation[s]" is understood as planned, coordinated and purposeful action of human beings and computer AIs in order to construct and/or compile a common intangible product or service to its community. Just as "an organisation in sociology" this action is usually framed by formal membership and form (institutional rules). As in Second Life an organisation is usually used for making money (i.e. Power Products inc. - or like in World Of Warcraft: the clan Farmers Organisation-) and security, some are also wicked and evil organisations- usually called griefer/troller groups/organisations such as the Pirates of Tibia that roams Tibia. Many fail to realise that Wikipedia is a wiki, and thus subject to the review and editing of others, and also that they will be aware of any slander put upon them in this medium. These would not be classified as organisations in the "real world" because they are not truly "alive". Some organisations in Virtual Worlds have a very important roles in Real Life activities.
Some of these "clans" exist between virtual worlds, sometimes migrating between them, as newer versions of software come out, or games better suited to the system of clans. Some games, such as the aforementioned World of Warcraft and Dungeon Siege have extensive clan systems, consisting of hundreds of members. This gives rise to entire "mini societies", where you can buy and sell equipment, using real world or virtual money. This is a good example of how societies can form.
Organisation theories
Weberian organisation theory (refer to Max Weber's chapter on Bureaucracy in his book 'Economy and Society')
Marxist organisation analysis
Scientific management (mainly following Frederick W. Taylor)
Human Relations Studies (going back to the Hawthorne studies, Maslow and Hertzberg)
Administrative theories (with work by e.g. Henri Fayol and Chester Barnard)
Contingency theory
New institutionalism and new institutional economics
Network analysis
Economic sociology
Organisation ecology (or demography of organisations)
Transaction cost economics
Agency theory (sometimes called principal - agent theory)
Studies of organisation culture
Postmodern organisation studies
Labour Process Theory
Critical Management Studies
Complexity Theory and Organisations
Transaction cost theory/Transaction cost Economics (TCE)
Garbage can model
Actor-Network Theory and the 'Montreal School'
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