armies , hospitals , and police departments are included within this meaning , whereas families and friendship groups are not . 4 Schein defines an organization as the rational coordination of the activities of a number of people for the achievement of some common explicit purpose or goal , through division of labor and function and a hierarchy of authority and responsibility . 5 Blau and Scott identify four types of formal organizations by asking the question of cui bono , or who benefits : ( 1 ) mutual benefit associations , such as police labor unions , where the primary beneficiary is the membership ; ( 2 ) business concerns , such as Lynn Peavey , which sells crime scene equipment and supplies , where the owner is the prime beneficiary ; ( 3 ) service organizations , such as community mental health centers , where a specific client group is the prime beneficiary ; and ( 4 ) commonweal organizations , such as the Department of Defense and law enforcement agencies , where the beneficiary is the public at large . 6 Each of these four types of formal organizations has its own central issues . 7 Mutual benefit associations , such as police unions , face the crucial problem of maintaining the internal democratic processes — providing for participation and control by their membership . For businesses , the central issue is maximizing profits in a competitive environment . Service organizations are faced with the conflict between administrative regulations and provision of the services judged by the professional to be most appropriate . In the case of a community mental health center , an illustration is that , following a reduction in funding , a regulation is placed into effect that requires all clients to be treated in group sessions when the psychiatric social worker believes the only effective treatment for a particular client is to be seen individually . The key issue for law enforcement agencies and other types of commonweal organizations is finding a way to accommodate pressures from two sources : ( 1 ) external democratic control and ( 2 ) internal control . The public expects to have external democratic control of its police department through its elected and appointed representatives . This external democratic control feature also has the expectation that the internal workings of the police department will be effective and efficient , but not also democratic . This is because