In summary, organizations come into existence for a combination of reasons—because of the level of complexity which is beyond one person to handle, because of their ability to add value over and above that which any one individual could achieve, and because of their inherent efficiency and lack of uncertainty over a purely market-based system of individual transactions. So, we know why organizations exist and we have a working definition of a formal organization. But that is not typically how we think about organizations. To understand that, we need to consider a rather different approach.
