New organizations originate by one or other of the four different methods:
(b) direct result of individual’s effort to organize,
(c) infant babies set off by an existing parent organization
(d) result of segmentation of existing organizations caused by schism rebellion or interposition of an external force. Organization comes into being when two or more persons begin to co-operate to a common end.
The size of the unit, therefore, usually is determined by the limitations of effective leadership.
These limitations depend upon,
(a) the complexity of purpose and technological conditions,
(b) the difficulty of the communication process,
(c) the extent to which communication is necessary,
(d) the complexity of the personal relationships involved, that is, of the social conditions.
A large organization of complex character consists not of the services of individuals directly but those of subsidiary unit organizations. In complex organizations, the necessities of communication result almost invariably in the localization of the executive functions of the subordinate unit organizations normally in one person.
The executive of several unit organizations as a group, usually with least one select other person as a superior, form an executive organization. Essential structural characteristics of complex organizations are determined by the effects of the communication upon the size of unit organization.
Persons are frequently in contact and interact with each other when their relationship are not a part of or governed by any formal organization. The characteristics of these contacts of interactions are that they occur or continue or repeated with in aggregate of such personal contracts and interactions and associated groupings of people.