Final answer:
Amitai Etzioni, not Henry Mintzberg, identified three types of formal organizations: coercive, utilitarian, and normative. Companies select a mode depending on their objectives, cultural goals, and the sector they are in, each with specific norms and structures shaping its formality.
Step-by-step explanation:
According to Amitai Etzioni, not Henry Mintzberg, there are three types of formal organizations: coercive, utilitarian, and normative. These categories describe the ways in which organizations structure themselves and the rationale behind individual participation.
Coercive organizations are those that people are pushed to join (prisons or rehab centers), utilitarian organizations are joined because of the need for a specific material reward (businesses and most jobs), and normative organizations are those joined on a voluntary basis because of shared affinities and goals (charity organizations or clubs). Each type of organization has its own set of formal norms, rules, and structures which contribute to its operational style--be it the dress code, chain of command or mode of address.
Companies may use these different modes based on their goals, the sector they operate in, and the culture they wish to cultivate. For instance, in a utilitarian company, performance and reward systems are typically formalized, while in normative organizations, there's often more room for social capital and volunteerism. Coercive organizations, less common in business, are seen in sectors like corrections or mandatory treatment facilities, where individuals are required to be there.