ABSTRACT

In traditional organisations authority is legitimised by custom and a long standing belief in the natural right to rule. In charismatic organisations, authority is legitimised by a belief in the personal qualities of the leader, their strength and personality. In bureaucratic organisations, authority is based on an acceptance of the law and formal rules and impersonal principles. In public sector organisations generally there is a demand for treatment to be uniform, procedures to be regular, and there must be accountability for operations. Small businesses, such as general practice, do not really benefit from a structural analysis, that is, whether the organisational hierarchy is flat or tall, and whether the work is divided by function or location. Organisations come in all shapes and sizes. Traditionally, organisations can be distinguished in terms of two generic groups: private enterprise and public sector.