Still, most organizations define their boundaries through differentiation of members from non-members via some criteria. For rational theorists, organizational boundaries contribute to organizational rationality.
People thus participate in organizations with a multitude of identities, values, and interests.
Often this source of individual diversity is an asset to the organization. Avon and Tupperware explicitly rely on external social contacts to generate much of their business. Organizations are currently experimenting with changes like flextime, daycare, and telecommuting to change how the organization impacts on external social life.