Final answer:
Differentiation and integration are the fundamental concepts around which all organizations are organized, with differentiation referring to task specialization and integration pertaining to coordination of these tasks within a hierarchical structure of authority.
Step-by-step explanation:
There are two fundamental concepts around which all organizations are organized: differentiation and integration. Differentiation refers to how tasks within an organization are divided, specialized, and varied, while integration is about how these differentiated tasks are coordinated and made to work together. Organizations need to balance these two concepts in order to function effectively. Hierarchies of authority play a critical role in this process by establishing a clear chain of command and ensuring that decisions can be made and implemented throughout the organization.
The classic version of a bureaucracy embodies these concepts through its hierarchical structure, clear division of labor, and an employment of explicit rules. In bureaucracies, each person or group has specific roles to play, contributing to the effective functioning of the entire entity. However, as organizations adapt to rapid changes in technology, economics, and demographics, newer organizational structures are emerging, in which work is increasingly being delegated to teams rather than individuals, reflecting a shift in the traditional bureaucratic model.