The way information flows through the organization affects work processes and outcomes, so knowing organization theory can help IT specialists identify, understand, and serve the organization’s informational needs as they design and promote the use of their information systems.

The accomplishment of an objective requires collective effort, men set up an organization designed to coordinate the activities of many persons and to furnish incentives for others to join them for this purpose.

Political parties, clubs, and professional organizations are examples of mutual benefit organizations.

The fundamental problem of these organizations is operating efficiency and achievement of maximum gain at minimum cost for further survival and growth in competition with other organization. This type of organization has also a high failure rate. Survival and sustainability are other important problems that business organizations handle.

These organizations are generally funded by small fees, donations, grants, contributions by members, or government assistance. The main beneficiaries of non-profit organizations are customers and communities.

These organizations, which are basically for social services, are formed to offer standard services for the majority of the population. Police offices, army forces, courts, fire services, and other public institutions are examples of these organizations.

Organization theory discipline, which is about modern organizations, mainly emerged in the second half of the 19th century when the industrial civilization appeared. Prior to industrial civilization, successful organizations were active, especially in governmental and military issues. However, no researches and studies about these practices were conducted and therefore no wide knowledge to be used universally was discovered. After the industrial civilization began, structures of production and consumption began changing, too. Production mechanisms shifted to fabrication methods in small size establishments. Achievement of production efficiency came as a result of cooperation. Consequently, a systematic knowledge began accumulating in the field of organization studies. If we are to separate this field into historical periods, we can shortly mention three periods: Classical management school, behavioral school, and modern management schools of thought.

1. One best way: Organizational issues must be examined through observations and analyses on the scientific base. Owing to this knowledge obtained from scientific methods, it is possible to develop one valid and correct business model for all organizations. A way to make a business effectively and efficiently must be found.

2. Scientific selection of personnel: Even though personnel has certain restrictions, the management can offer necessary training for personnel and improve their capacities. The management must understand what is required for maximum efficiency and offer the relevant training using scientific methods.

3. Financial incentives: Taylor knew that making use of the correct person did not guarantee efficiency and suggested that financial incentives must be used regarding the performance of employees.

4. Functional foremanship: Taylor argued and defended that managers must make plans, while the employees must work according to divided and specialized jobs in direction with this planning.

Division of work, authority, responsibility, discipline, unity of command, unity of direction, subordination of individual interests, remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps.

The aspects of ideal bureaucracy theory can be summarized as the following six items: A well-defined hierarchy of authority, clear division of work, a system of rules covering the rights and duties of all employees, a system of procedures for dealing with the work situation, impersonality of interpersonal relationships, selection and promotion based on technical competence.

This approach is the one that decides various communication and interaction areas between different units of modern organization and their environment and shows which way to go. The system is an integral structure whose parts communicate and interact with each other. More than one component with the mutual internal dependency on each other in a system make up a goal-oriented entity.

The most important characteristic of open systems is their interaction with systems other than themselves. For example, Toyota obtains some mechanical parts from independent suppliers, workers from society and investors via the stock market. Apart from this, it sells its outputs to customers outside the business.

The contingency theory that regards the organization as a system argues that only one ever-successful management and organization style is not possible. The success of organizational structures will change depending on the conditions. This theory especially focuses on conditions, organization’s environment, technology, size, and variables. The most effective system must be created after researching and examining environmental conditions and organization’s situation. 

The organization obtains inputs from its environment:

• Raw materials

• Money and capital

• Human resources

• Information and knowledge

• Customers of service organizations

Formalization: This means concentration on adherence to certain principles and methods while operating in an organization.

Professionalism: This is about the formal education and improvement level of employees.

Centralization: This is about the distribution of the decision-making authority across different levels.

Personnel ratios: This means how the personnel is dispersed into various functions and departments in a company.

Hierarchy of authority: This concept actually indicates a chain of command and a span of control.

Size, organizational technology, Goals and Strategies, Environment, Organizational Culture, Performance and outputs of activities in busineses.

Intense Competition, Ethical and social responsibilities, Digitalization, Globalization, Innovation 

Organization culture expresses common values, norms, beliefs, and notions shared by the employees of an organization, which signifies the informal side of the organization. Organization culture is likened to a cement holding all employees together. Organization culture has a complicated relation with the environment. Employees are socialized by cultural institutions (family, society, school, etc.) until they are included herein. When individuals become a member of an organization, they interact culturally and all values intermingle, which leads organizations to take the form of a combination of national, organizational, industrial, professional cultures. Sometimes, organizational culture does not play along with regional or national culture.

Efficiency is the criterion for the capability of doing things right during the value creation process and effectiveness is the measure of realizing the plans made beforehand, while productivity means producing an output with the least possible input.

One of the most important digitalization factors that influence all organizations is Industry 4 concept, a digitalization process. . Industry 4.0 concept is generally associated with goals and expectations for high levels of productivity; however, innovations to be brought by Industry 4.0 to organizations will not be restricted to older principles. New opportunities for the development of new products and processes in organizations will come to the fore. That is why expectations about Industry 4.0 are extensive and high.