Organizational Theory

"A business of high principle generates greater drive and effectiveness because people know that they can do the right thing decisively and with confidence."

"Their high expectations for effectiveness were made possible by low expectations of what was to be."

"Extreme states of being, whether individual or collective, were once purposefully motivated. Some of those purposes no longer have meaning (expiation, salvation). The well-being of communities in so longer sought through means of doubtful effectiveness, but directly, through action. Under these conditions, extreme states of being fell into the domain of the arts, and not without a certain disadvantage. Literature (fiction) took the place of what had formerly been the spiritual life; poetry (the disorder of words) that of real states of trance. Art constituted a small free domain, outside action: to gain freedom it had to renounce the real world. This is a heavy price to pay, and most writers dream of recovering a lost reality. They must then pay in another sense, by renouncing freedom."

"Effectiveness relates to the accomplishment of the cooperative purpose which is social and non-personal in character. Efficiency relates to the satisfaction of individual motives and is personal in character."

"When a specific desired end is attained we shall say that the action is "effective." When the unsought consequences of the action are more important than the attainment of the desired end and are dissatisfactory, effective action, we shall say, is "inefficient." When the unsought consequences are unimportant or trivial, the action is "efficient."

"Delegation is the dynamics of management; it is the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organizational placement, can perform effectively, and so that he can get others to help him with what remains. How can he best share his burden? First, he must entrust to others the performance of part of the work he would otherwise have to do himself; secondly, he must provide a means of checking up on the work that is done for him to ensure that it is done as he wishes."

"The development (rather than the history) of operations research as a science consists of the development of its methods, concepts, and techniques. Operations research is neither a method nor a technique; it is or is becoming a science and as such is defined by a combination of the phenomena it studies."

"Operations research is a scientific approach to problem-solving for executive management."

"The development of information research has increased considerably the interaction of emerging information science with other disciplines. Librarianship has traditionally had links with education and classification and has drawn ideas from logic and philosophy. But during the last fifty years new insights and methods have been derived from sociology and social psychology, from computer science, from operations research and related quantitative approaches, from communications research, from linguistics, and most recently from the new hybrids: cognitive science and artificial intelligence."

"[The decisionmaking role of the firm has progressed from the neoclassical standpoint of profit maximization to sales maximization, utility maximization, and satisficing. From the Operation Research point of view] ...the ideal picture is that someone, presumable the firm that hires the operations researcher, hands him, on a silver platter, an objective function. By talking to the engineers, or by looking into a few scientific laws, he determines the policy alternatives available and also the model"

"Herbert A. Simon's scientific output goes far beyond the disciplines in which he has held professorships: political science, administration, psychology and information sciences. He has made contributions in the fields of science theory, applied mathematics, statistics, operations research, economics and business and public administration (and), in all areas in which he has conducted research, Simon has had something of importance to say.""

"It may be said that systems engineering is directed at the design and operating problems of production processes and units, while operations research is applied to problems in other areas of management such as sales, marketing, and external finance."

"The conclusions of most good operations research studies are obvious."

"We should no longer have trouble explaining the scope and methods of operations research to the layman. We already can say: operations research is the activity carried on by members of the Operational Research Society; its methods are those reported in our journal."

"The Mathematical School ; Although mathematical methods can be used by any school of management theory, and have been, I have chosen to group under a school those theorists who see management as a system of mathematical models and processes. Perhaps the most widely known group I arbitrarily so lump are the operations researchers or operations analysts, who have sometimes anointed themselves with the rather pretentious name of "management scientists." The abiding belief of this group is that, if management, or organization, or planning, or decision making is a logical process, it can be expressed in terms of mathematical symbols and relationships. The central approach of this school is the model, for it is through these devices that the problem is expressed in its basic relationships and in terms of selected goals or objectives."

"It is hard to say whether increasing complexity is the cause or the effect of man's effort to cope with his expanding environment. In either case a central feature of the trend has been the development of large and very complex systems which tie together modern society. These systems include abstract or non-physical systems, such as government and the economic system. They also include large physical systems like pipe line and power distribution systems, transportation and electrical communication systems. The growth of these systems has increased the need not only for over-all planning, but also for long-range development of the systems. This need has induced increased interest in the methods by which efficient planning and design can be accomplished in complex situations where no one scientific discipline can account for all the factors. Two similar disciplines which emerged about the time of World War II to cope with these problems are called systems engineering and operations research."

"Operations research has many precursors and allied fields, including Taylorism (after Frederick W. Taylor), scientific management and management science, industrial engineering and systems analysis. As one early textbook explained, the roots of OR "are as old as science and the management function. Its name dates back only to 1940" (Churchman et al. 1957: 3). Certainly its practitioners have expended much energy and ink in search of an acceptable definition of OR. Morse tried unsuccessfully to halt the debate by declaring OR to be 'the activity carried on by members of the Operations Research Society' (Morse 1953: 159) But his colleagues were not so easily dissuaded from debate. Much of the concern with definition focused on the sometimes elusive distinctions between OR and neighbouring fields; the attempt to define, or redefine, OR was also born of the desire to allow the subject to evolve beyond the orthodoxy of wartime experience. Crucial considerations included the balance between model and application, and the complexity of the mathematics involved."

"By the end of the war the new game theoretic methods that had been developed by von Neumann and Morgenstern were added to the toolkit and mathematical techniques that operations research scientists deployed. These proved very valuable, and game theoretic approaches took on great importance after the war."

"OR is the securing of improvement in social systems by means of scientific method"

"The concern of OR with finding an optimum decision, policy, or design is one of its essential characteristics. It does not seek merely to define a better solution to a problem than the one in use; it seeks the best solution... [It] can be characterized as the application of scientific methods, techniques, and tools to problems involving the operations of systems so as to provide those in control of the operations with optimum solutions to the problems."

"Linear programming is viewed as a revolutionary development giving man the ability to state general objectives and to find, by means of the simplex method, optimal policy decisions for a broad class of practical decision problems of great complexity. In the real world, planning tends to be ad hoc because of the many special-interest groups with their multiple objectives."

"The 19th and first half of the 20th century conceived of the world as chaos. Chaos was the oft-quoted blind play of atoms, which, in mechanistic and positivistic philosophy, appeared to represent ultimate reality, with life as an accidental product of physical processes, and mind as an epi-phenomenon. It was chaos when, in the current theory of evolution, the living world appeared as a product of chance, the outcome of random mutations and survival in the mill of natural selection. In the same sense, human personality, in the theories of behaviorism as well as of psychoanalysis, was considered a chance product of nature and nurture, of a mixture of genes and an accidental sequence of events from early childhood to maturity. Now we are looking for another basic outlook on the world -- the world as organization. Such a conception -- if it can be substantiated -- would indeed change the basic categories upon which scientific thought rests, and profoundly influence practical attitudes. This trend is marked by the emergence of a bundle of new disciplines such as cybernetics, information theory, general system theory, theories of games, of decisions, of queuing and others; in practical applications, systems analysis, systems engineering, operations research, etc. They are different in basic assumptions, mathematical techniques and aims, and they are often unsatisfactory and sometimes contradictory. They agree, however, in being concerned, in one way or another, with "systems," "wholes" or "organizations"; and in their totality, they herald a new approach."

"The aim of management science is to display the best course of action in a given set of circumstances, and this must include all the circumstances."

"We may recognize the subject of management cybernetics — which is seen as a rich provider of models for doing Operations research."

"In another part of the management forest, the mechanistic school was gathering its forces and preparing to outflank the forces of light. First came the numbers men — the linear programmers, the budget experts, and the financial analysts — with their PERT systems and cost-benefit analyses. From another world, unburdened by most of the scientific management ideology and untouched by the human relations school, they began to parcel things out and give some meaning to those truisms, "plan ahead" and "keep records." Armed with emerging systems concepts, they carried the "mechanistic" analogy to its fullest—and it was very productive. Their work still goes on, largely untroubled by organizational theory; the theory, it seems clear, will have to adjust to them, rather than the other way around."

"Linear programming was developed as a discipline in the 1940's, motivated initially by the need to solve complex planning problems in wartime operations. Its development accelerated rapidly in the postwar period as many industries found valuable uses for linear programming. The founders of the subject are generally regarded as George B. Dantzig, who devised the simplex method in 1947, and John von Neumann, who established the theory of duality that same year. The Nobel prize in economics was awarded in 1975 to the mathematician Leonid Kantorovich (USSR) and the economist Tjalling Koopmans (USA) for their contributions to the theory of optimal allocation of resources, in which linear programming played a key role. Many industries use linear programming as a standard tool, e.g. to allocate a finite set of resources in an optimal way."

"Linear Programming is a generalization of Linear Algebra. It is capable of handling a variety of problems, ranging from finding schedules for airlines or movies in a theater to distributing oil from refineries to markets. The reason for this great versatility is the ease at which constraints can be incorporated into the model."

"Linear programming was a new branch of applied mathematics that – in the USA – came into being as a direct consequence of mathematicians’ war work. It was not done under contract with the AMP but by some of the mathematicians employed directly by the armed forces.15 The source was a concrete practical problem within the US Air Forces,16 a logistic problem that eventually led to the mathematical theory of linear programming, and from there to mathematical programming. The person normally associated with the origin of linear programming in the USA is George B. Dantzig. Dantzig was one of the mathematicians hired directly by the armed forces for the war effort. In 1941 he began working at the Combat Analysis Branch of the United States Air Force Headquarters Statistical Control under the leadership of Tex Thornstons. During the war Dantzig worked on what was called “programming planning” methods to calculate Air Force programs. An Air Force program was a kind of activity plan."

"There are two types of systems engineering - basis and applied. There is no need to attempt to define the term systems engineering in a manner acceptable to everybody, as Chalmer Jones brings out in his article herein. Systems engineering is, obviously, the engineering of a system. It usually, but not always, includes dynamic analysis, mathematical models, simulation, linear programming, data logging, computing, optimating, etc., etc. It connotes an optimum method, realized by modern engineering techniques. Basic systems engineering includes not only the control system but also all equipments within the system, including all host equipments for the control system. Applications engineering is — and always has been — all the engineering required to apply the hardware of a hardware manufacturer to the needs of the customer. Such applications engineering may include, and always has included where needed, dynamic analysis, mathematical models, simulation, linear programming, data logging, computing, and any technique needed to meet the end purpose - the fitting of an existing line of production hardware to a customer's needs. This is applied systems engineering."

"Linear relationships can be captured with a straight line on a graph. Linear relationships are easy to think about....Linear equations are solvable... Linear systems have an important modular virtue: you can take them apart, and put them together again — the pieces add up."

"Linear programming is viewed as a revolutionary development giving man the ability to state general objectives and to find, by means of the simplex method, optimal policy decisions for a broad class of practical decision problems of great complexity. In the real world, planning tends to be ad hoc because of the many special-interest groups with their multiple objectives."

"There is no America. There is no democracy. There is only IBM and ITT and AT&T and DuPont, Dow, Union Carbide, and Exxon. Those are the nations of the world today. What do you think the Russians talk about in their councils of state — Karl Marx? They get out their linear programming charts, statistical decision theories, minimax solutions, and compute the price-cost probabilities of their transactions and investments, just like we do. We no longer live in a world of nations and ideologies, Mr. Beale. The world is a college of corporations, inexorably determined by the immutable bylaws of business. The world is a business, Mr. Beale. It has been since man crawled out of the slime. And our children will live, Mr. Beale, to see that perfect world in which there's no war or famine, oppression or brutality — one vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock, all necessities provided, all anxieties tranquilized, all boredom amused."

"Scientific [mathematical] models have all these connotations. They are representations of states, objects, and events. They are idealized in the sense that they are less complicated than reality and hence easier to use for research purposes. These models are easier to manipulate and "carry" than the real thing. The simplicity of models, compared with reality, lies in the fact that only the relevant properties of reality are represented."

"The word model is used as a noun, adjective, and verb, and in each instance it has a slightly different connotation. As a noun "model" is a representation in the sense in which an architect constructs a small-scale model of a building or a physicist a large-scale model of an atom. As an adjective "model" implies a degree of perfection or idealization, as in reference to a model home, a model student, or a model husband. As an adjective "model" implies a degree or perfection or idealization, as in reference to a model home, a model student, or a model husband. As a verb "to model" means to demonstrate, to reveal, to show what a thing is like."

"In the past the man has been first; in the future the system must be first. This in no sense, however, implies that great men are not needed. On the contrary, the first object of any good system must be that of developing first-class men."

"We never had any use for Taylor nor any of the efficiency or scientific management crowd. They never realized that human toil was the last thing in the world you had to be efficient about; the only way to be really efficient is to eliminate it entirely, and this would have been heresy to any of the Taylor, Gant, Barth, Cook efficiency crowd. It is sad to contemplate that men of the technical ability of the names mentioned in this paragraph were so lame in their thinking and social outlook that they missed the boat so completely. Who in hell wants to be efficient with a shovel, and what sense would there be even if you succeeded? They should have had their heads opened with a shovel, it might have been more effective."

"With the triumph of scientific management, unions would have nothing left to do, and they would have been cleansed of their most evil feature: the restriction of output. To underscore this idea, Taylor fashioned the myth that 'there has never been a strike of men working under scientific management', trying to give it credibility by constant repetition. In similar fashion he incessantly linked his proposals to shorter hours of work, without bothering to produce evidence of "Taylorized" firms that reduced working hours, and he revised his famous tale of Schmidt carrying pig iron at Bethlehem Steel at least three times, obscuring some aspects of his study and stressing others, so that each successive version made Schmidt's exertions more impressive, more voluntary and more rewarding to him than the last. Unlike Harrington Emerson, Taylor was not a charlatan, but his ideological message required the suppression of all evidence of worker's dissent, of coercion, or of any human motives or aspirations other than those his vision of progress could encompass."

"In the most advanced areas of this civilization, the social controls have been introjected to the point where even individual protest is affected at its roots... The manifold processes of introjection seem to be ossified in almost mechanical reactions. The result is, not adjustment but mimesis: an immediate identification of the individual with his society and, through it, with the society as a whole. This immediate, automatic identification (which may have been characteristic of primitive forms of association) reappears in high industrial civilization; its new “immediacy,” however, is the product of a sophisticated, scientific management and organization. In this process, the “inner” dimension of the mind in which opposition to the status quo can take root is whittled down. The loss of this dimension, in which the power of negative thinking—the critical power of Reason—is at home, is the ideological counterpart to the very material process in which advanced industrial society silences and reconciles the opposition..."

"By the time of Frederick Winslow Taylor's death, the gospel of industrial efficiency preached by American scientific managers was commonplace on both sides of the Atlantic. In the following years of world war, reconstruction, and adjustment, scientific management attracted a new generation of advocates and practitioners, many of whom would have perplexed and shocked Taylor and his immediate circle. Of the entrepreneurs of scientific management who succeeded Frank Gilbreth, Harrington Emerson, Richard Feiss, and other pioneers, none was more successful than (1886-1944). Unlike Tay­lor and his colleagues, Bedaux was and still is a mysterious figure. Secretive to a fault, he avoided professional contacts, refused to write for popular or technical journals, and spurned publicity. Yet he was a master salesman whose operations were global in scope and impact. Only in recent years, with the discovery of the papers of the British Bedaux Company, is it possible to gauge the impact of Bedaux and his extraordinary career."

"Much is said about scientific management of work. It is a narrow view which restricts the science which secures efficiency of operation to movements of the muscles. The chief opportunity for science is the discovery of the relations of a man to his work — including his relations to others who take part — which will enlist his intelligent interest in what he is doing. Efficiency in production often demands division of labor. But it is reduced to mechanical routine unless workers see the technical, intellectual, and social relationships involved in what they do, and engage in their work because of the motivation furnished by such perceptions. The tendency to reduce such things as efficiency of activity and scientific management to purely technical externals is evidence of the one-sided stimulation of thought given to those in control of industry — those who supply its aims. Because of their lack of all-round and well-balanced social interest, there is not sufficient stimulus for attention to the human factors and relationships in industry. Intelligence is narrowed to the factors concerned with technical production and marketing of goods. No doubt, a very acute and intense intelligence in these narrow lines can be developed, but the failure to take into account the significant social factors means none the less an absence of mind, and a corresponding distortion of emotional life."

"Commons provided the cardinal reason for the unions' absence of hostility to Taylorism: "... the unions have generally come to the point of confining their attention to wages — that is, to distribution — leaving to employers the question of production." ... The "management's rights" clause found in every U.S. union contract ... vests the sole right to set work methods, job design, assignments, etc. with management. ... In fact, well before the War the idea began spreading that unionization, with its standard "management's rights" clause contracts, was the best approach for fitting the Taylorist yoke on the workers. The efficacy of this "trojan horse" tactic of union mediation led Thompson to prescribe industrial unionism over the AFL's craft unionism as the best way the secure the Taylor system in industry."

"Despite the pseudo-scientific apologies for the Taylorist approach, the public readily developed a very negative view of it. As the Taylor Society admitted with surprising candor, scientific management was widely seen as "the degradation of workmen into obedient oxen under the direction of a small body of experts—into men debarred from creative participation in their work.""

"One nation controlled by the media; information age of hysteria."

"An efficient telecommunications network is the foundation upon which an information society is built."

"Understanding how maps work and why maps work (or do not work) as representations in their own right and as prompts to further representations, and what it means for a map to work, are critical issues as we embark on a visual information age."

"The Information Age offers much to mankind, and I would like to think that we will rise to the challenges it presents. But it is vital to remember that information — in the sense of raw data — is not knowledge, that knowledge is not wisdom, and that wisdom is not foresight. But information is the first essential step to all of these."

"In the information age, the barriers [to entry into programming] just aren't there. The barriers are self imposed. If you want to set off and go develop some grand new thing, you don't need millions of dollars of capitalization. You need enough pizza and Diet Coke to stick in your refrigerator, a cheap PC to work on, and the dedication to go through with it. We slept on floors. We waded across rivers."

"The Information age is well upon us in seven major fields — learning, diagnostics, management, physical planning, finance, entertainment and communication."

"In the information age, you don't teach philosophy as they did after feudalism. You perform it. If Aristotle were alive today he'd have a talk show."

"The information age is an age of permanently getting stuck. Greater and greater speed is demanded. New software, new hardware, new structures, new cultural techniques. Life-long learning? Yes. But the company can't fire the secretary every six months, just because she can't cope with the new version of Excel. They can count their keystrokes, measure their productivity … but! They will never be able to sanction their inability! Because that is immanent."