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A number of factors determine how organizations are structured. These include the organization’s goals, social customs and mores, the beliefs and values of the founders or managers, environmental constraints, and available technology. As mentioned earlier, size, though an element of structure, is also a determinant because it influences all the other elements.

Organizational goals clearly influence the way an organization is designed. The high value placed on productivity and quality as well as shareholder value had a major influence on the redesign of Westinghouse as a more diversified and decentralized firm. Indeed, goals are the prime determinants of structure. If one is in the business of producing hamburgers, the goal of delivering a gourmet product at a moderate price leads to different structuring arrangements than does the goal of delivering a reliable product quickly at a low price.

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Eric Raymond

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Classical theories and the principles derived from them continue to be popular today with some modifications. Many criticisms have been directed at the classicists. Several major ones are discussed here. Many of the writers in the classical school of management developed their ideas on the basis of their experiences as managers or consultants with only certain types of organizations. For instance, Taylor’s and Fayol’s work came primarily from their experiences with large manufacturing firms that were experiencing stable environments. It may be unwise to generalize from those situations to others—especially to young, high-technology firms of today that are confronted daily with changes in their competitors’ products.

To read more about classical management theories

Eric Raymond

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In the world of business and finance, mishaps can occur anytime. When something untoward happens, a company can be sued in court because in the eyes of the law, it is a separate legal entity. In such instances, the company needs a certified statutory agent to receive the Service of Process, failing which, the State can impose a severe penalty, such as revocation of the business license. It is essential to have a statutory agent on hand at all times.

The statutory agent also receives paperwork for the annual renewal of the company’s charter. The address of the statutory agent is highly important in this regard, as he or she is the one that receives most legal documents and will then forward it to the company; the person in the company who maintains contact and receives those documents is usually the secretary. Some states do not use the term statutory agent, but rather registered agent.

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