Harold Geneen quote: “Every company has two organizational structures: the formal one is written on the charts; the other is the everyday liv…”

“Organization charts are subject to important limitations. A chart shows only formal authority relationships and omits the many significant informal and informational relationships.”

Harold Koontz (1909–1984)

Harold Koontz and Heinz Weihrich (2006) Essentials Of Management. p. 198.

“[Formal structures of formal organizations] never succeed in conquering the non-rational dimensions of organizational behavior.”

Philip Selznick (1919–2010) American sociologist

Source: "Foundations of the Theory of Organization," 1948, p. 25

“It is probable that one day we shall begin to draw organization charts as a series of linked groups rather than as a hierarchical structure of individual "reporting" relationships.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 175

“Every organization structure, even a poor one, can be charted, for a chart merely indicates how departments are tied together along the principal lines of authority. It is therefore somewhat surprising to find top managers occasionally taking pride in the fact that they do not have an organization chart or, if they do have one, feeling that the chart should be kept a secret.”

Harold Koontz (1909–1984)

Source: Principles of management, 1968, p. 379

“All large organizations have an internal power struggle over the goals and resources of the organization…. In the largest firms, there are two bases of control : formal ownership and authority. Those who own the firm control by virtue of ownership. Authority relations embedded in the organizational structure legitimate how managers can control organizations.”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 10 ; As cited in: François L'Italien, BÉHÉMOTH CAPITAL. Contribution à une théorie dialectique de la financiarisation de la grande corporation. Université Laval, 2012. p. 147 (Many of the following quotes came from this source)

“In today's volatile world, organizational design is an everyday, ongoing activity and challenge for every executive, whether managing a global enterprise or a small work team. Globalization, worldwide competition, deregulation, and ever-new technologies drive the ongoing reassessment of the organization. The executive response has been many new forms of organizational design: virtual, learning, modular, cellular, network, alliance, or spaghetti – to name a few. New organizational forms challenge old ways of organizing for efficiency and effectiveness. Yet fundamental design principles underlie any well-functioning organization. Organizations still require a formal design.”

Richard M. Burton (1939)

Richard M. Burton, ‎Børge Obel, ‎Gerardine DeSanctis (2011). Organizational Design: A Step-by-Step Approach. p. 3

“In today's volatile world, organizational design is an everyday, ongoing activity and challenge for every executive, whether managing a global enterprise or a small work team. Globalization, worldwide competition, deregulation, and ever-new technologies drive the ongoing reassessment of the organization. The executive response has been many new forms of organizational design: virtual, learning, modular, cellular, network, alliance, or spaghetti – to name a few. New organizational forms challenge old ways of organizing for efficiency and effectiveness. Yet fundamental design principles underlie any well-functioning organization. Organizations still require a formal design.”

Gerardine DeSanctis (1954–2005) American organizational theorist

Richard M. Burton ‎Børge Obel, ‎Gerardine DeSanctis (2011). Organizational Design: A Step-by-Step Approach. p. 3

“One must permit his people the freedom to seek added work and greater responsibility. In my organization, there are no formal job descriptions or organization charts.”

Hyman George Rickover (1900–1986) United States admiral

The Rickover Effect (1992)
Context: One must permit his people the freedom to seek added work and greater responsibility. In my organization, there are no formal job descriptions or organization charts. Responsibilities are defined in a general way, so that people are not circumscribed. All are permitted to do as they think best and to go to anyone and anywhere for help. Each person is then limited only by his own ability.

“Our society has so cluttered our lives with artifacts [man-made things]… and organizational structures that [our] moment to moment relationships with nature are almost impossible.”

Carroll Quigley (1910–1977) American historian

Oscar Iden Lecture Series, Lecture 3: "The State of Individuals" (1976)

“Many formal organizational structures arise as reflections of rationalized institutional rules. The elaboration of such rules in modern states and societies accounts in part for the expansion and increased complexity of formal organizational structures. Institutional rules function as myths which organizations incorporate, gaining legitimacy, resources, stability, and enhanced survival prospects. Organizations whose structures become isomorphic with the myths of the institutional environment-in contrast with those primarily structured by the demands of technical production and exchange-decrease internal coordination and control in order to maintain legitimacy. Structures are decoupled from each other and from ongoing activities. In place of coordination, inspection, and evaluation, a logic of confidence and good faith is employed.”

John W. Meyer (1935) Sociologist and professor at Stanford University

Meyer, John W., and Brian Rowan. " Institutionalized organizations: Formal structure as myth and ceremony http://www.sasse.se/akademiska/310/meyer%20rowan.pdf." American journal of sociology (1977): 340-363.

“Every company has two organizational structures: the formal one is written on the charts; the other is the everyday living relationship of the men and women in the organization.”

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