Organizational Theory

"Contingency theories dominate scholarly studies of organization behavior, design, performance, planning and management strategy. While they vary widely in subject matter, they have the common proposition that an organizational outcome is the consequency of a "fit" or match between two or more factors. "Fit" is the key concept in this proposition, and the core problem common to contingency theories is not defining this term clearly. This paper examines three ways to define and test this concept of fit: Selection, Interaction, and Systems approaches. A critical discussion of these three approaches will clarify much of the current confusion in the literature on contingency theories, and suggest ways that future theorizing and research can become more systematic and constructive."

"Just as modern mass production requires the standardization of commodities, so the social process requires standardization of man, and this standardization is called equality."

"Our species will not survive another 100 years if we don’t move from a competitive to a cooperative mode of existence. “Me first” is an obsolete, unsustainable perspective."

"Cooperation is an evolutionary riddle, as it defies the basic principles of natural selection. If during the course of evolution only the fittest survive, why should one sacrifice individual fitness for the benefit of unrelated others? Widespread cooperation in nature is indeed one of the most important challenge to Darwin’s theory of evolution and natural selection. Understanding the evolution of cooperation means understanding also the main evolutionary transitions that led from single-cell organisms to complex animal and human societies, and it is therefore little surprising that the subject consistently attracts attention across large contingents of social and natural sciences."

"Perfectionism, no less than isolationism or imperialism or power politics, may obstruct the paths to international peace. Let us not forget that the retreat to isolationism a quarter of a century ago was started not by a direct attack against international cooperation but against the alleged imperfections of the peace."

"The US is a force for division, not for cooperation... It's a force for trying to create a new cold war with China. If this takes hold - if that kind of approach is used, then we won't go back to normal, indeed we will spiral into greater controversy and greater danger in fact."

"Cooperation is difficult in the absence of communication."

"Anarchism is not compelled to outline a complete organization of a free society. To do so with any assumption of authority would be to place another barrier in the way of coming generations. The best thought of today may become the useless vagary of tomorrow, and to crystallize it into a creed is to make it unwieldy. We judge from experience that man is a gregarious animal, and instinctively affiliates with his kind co-operates, unites in groups, works to better advantage, combined with his fellow men than when alone. This would point to the formation of co-operative communities, of which our present trades-unions are embryonic patterns."

"All social cooperation on a larger scale than the most intimate social group requires a measure of coercion."

"Once more, I ask all participants to think what great cooperation means. I quote an example given by the Teacher: Forces which act against each other are mutually destroyed. Forces which act along parallel lines in the same direction manifest the sum of these energies, and forces which act separately are weakened, according to the angle of their divergency.... This fundamental law of physics is also a fundamental law of cooperation. Therefore, straighten out your divergencies so that your forces move in the same direction. Consider the consequences of divergencies. In true cooperation, no one is belittled, and he can help the better who knows and sees more. The more ignorant a person or a nation is, the less cooperation is in evidence."

"It is evident that many great and useful objects can be attained in this world only by co-operation. It is equally evident that there cannot be efficient cooperation if men proceed on the principle that they must not cooperate for one object unless they agree about other objects."

"The striving towards a true cooperation lies at the foundation of evolution. Only by the awakening of creativeness may the march of ignorance be destroyed... Instead of stock market speculation let there be striving for discoveries, supported by cooperative societies... I teach the useful when the indicated and cognized cooperation has been accepted and entered into... I wish to see cooperation not on paper and in assurances, but in action. It is right not to speak about love but to show it in action..."

"The history of all peoples is full of bloody and revolting pages. So much blood has been spilled for every new construction, every new teaching or religion! That is why humanity urgently must learn the two great concepts — Tolerance and Cooperation. On these two foundations the New Epoch will be built."

"Cooperation must be based upon sound rules. This teaches orderliness; that is, it helps the acquirement of a rhythm. Thus even in daily work are expressed the great laws of the Universe. It is especially needed to become accustomed from childhood to continuous labor. Let the better evolution be built upon labor as the measure of value. Labor must be voluntary. Cooperation must be voluntary."

"Rule four: greed is not good. Being rapacious doesn't make you a capitalist, it makes you a sociopath. And in an economy as dependent upon cooperation at scale as ours, sociopathy is as bad for business as it is for society."

"We are ready to expand the friendly people-to-people exchanges and enhance exchanges and cooperation in science, technology, culture, education, and other areas... Enhanced interactions and cooperation between China and the United States serve the interests of our two peoples and are conducive to world peace and development. We should stay firmly rooted in the present while looking ahead to the future, and view and approach China-U.S. relations from a strategic and long-term perspective... We should, on the basis of the principles set forth in the three Sino-U.S. joint communiqués, respect each other as equals and promote closer exchanges and cooperation. This will enable us to make steady progress in advancing constructive and cooperative China-U.S. relations, and bring more benefits to our two peoples and people of the world... We are ready to work with the U.S. side in a spirit of seeking mutual benefit and win-win outcomes to properly address each other's concerns and facilitate the sound and the steady growth of bilateral economic cooperation and trade. We are ready to expand the friendly people-to-people exchanges and enhance exchanges and cooperation in science, technology, culture, education, and other areas."

"What we now know is that the economics that made me so rich isn't just wrong, it's backwards, because it turns out it isn't capital that creates economic growth, it's people; and it isn't self-interest that promotes the public good, it's reciprocity; and it isn't competition that produces our prosperity, it's cooperation. What we can now see is that an economics that is neither just nor inclusive can never sustain the high levels of social cooperation necessary to enable a modern society to thrive."

"If you believe that all living beings are family, you will treat them in a different way than if you think the natural world is a resource to be exploited. If you think other humans are inherently cooperative, you’ll approach a person differently than if you think that, ultimately, everyone is selfish and competitive. If you presume that technology can fix our biggest problems, you won’t feel the need to consider the underlying systems that caused those problems to arise in the first place."

"Like fish that don’t realize they’re swimming in water because it’s all they know, we tend to assume that our worldview simply describes the world the way it is—rather than recognizing it’s a constructed lens that shapes our thoughts and ideas into certain preconditioned patterns... The reason a worldview is so important is that it imbues virtually every aspect of the way people think, what they value, and how they act—without them even realizing it. Worldviews lead different cultures to respond to their reality in fundamentally different ways. If you believe that all living beings are family, you will treat them in a different way than if you think the natural world is a resource to be exploited. If you think other humans are inherently cooperative, you’ll approach a person differently than if you think that, ultimately, everyone is selfish and competitive. If you presume that technology can fix our biggest problems, you won’t feel the need to consider the underlying systems that caused those problems to arise in the first place."

"Competition has been shown to be useful up to a certain point and no further, but cooperation, which is the thing we must strive for today, begins where competition leaves off."

"Non-cooperation with evil is as much a duty as cooperation with good. Non-co-operation is a protest against an unwitting and unwilling participation in evil... The duty of non-co-operation with unjust men and kings is as strictly enjoined by all the religions as is the duty of co-operation with just men and kings. At times non-cooperation becomes as much a duty as cooperation. No one is bound to co-operate in one's own undoing or slavery. I cooperate with all that is good. I desire to non-cooperate with all that is evil... My non-co-operation has its root not in hatred, but in love... My non-cooperation, though it is part of my creed, is a prelude to co-operation. My non-co-operation is with methods and systems, never with men."

"In previous ages a nation's life and culture could be protected to some extent by the growth of armies in national competition. Today we must abandon competition and secure cooperation. This must be the central fact in all our considerations of international affairs; otherwise we face certain disaster."

"Widely dispersed knowledge concerning the important role of basic cooperative processes among living beings may lead to the acceptance of cooperation as a guiding principle both in social theory and as a basis for human behavior. Such a development when it occurs will alter the course of human history."

"Unity, peace and security will come through the recognition—intelligently assessed—of the evils which have led to the present world situation, and then through the taking of those wise, compassionate and understanding steps which will lead to the establishing of right human relations, to the substitution of cooperation for the present competitive system, and by the education of the masses in every land as to the nature of true goodwill and its hitherto unused potency. Sharing and cooperation must be taught instead of greed and competition."

"What at this moment appears to prevent world unity... ? The answer is not hard to find and involves all nations: nationalism, capitalism, competition, blind stupid greed. The mass of men need arousing to see that good comes to all men alike and not just to a few privileged groups, and to learn also that "hatred ceases not by hatred but that hatred ceases by love". This love is not a sentiment, but practical goodwill, expressing itself through individuals, in communities and among nations... The world economic council (or whatever body represents the resources of the world) must free itself from fraudulent politics, capitalistic influence and its devious scheming; it must set the resources of the earth free for the use of humanity. This will be a lengthy task but it will be possible when world need is better appreciated. An enlightened public opinion will make the decisions of the economic council practical and possible. Sharing and cooperation must be taught instead of greed and competition."

"I watched on TV when America sent men to the moon, and there were a lot of people whose names weren't given who helped make it possible. You don't have the names of those who run the computers and other things. But they worked together and this is what you have to have ... Chinese, American, Jewish, black and white, people working side by side. [...] We must all live together and work together no matter what race or nationality. If you have an opportunity to accomplish something that will make things better for someone coming behind you, and you don't do that, you are wasting your time on this earth."

"No nation's security and well-being can be lastingly achieved in isolation but only in effective cooperation with fellow-nations."

"Decentralized systems are the quintessential patrons of simplicity. They allow complexity to rise to a level at which it is sustainable, and no higher."

"Anarchists reject centralization of authority and the concept of a . All groups are free associations formed out of committees not revolutionaries disciplined by fear of authority. When the size of the work-groups (which could be fanned around Labor, fundraising, anti-racism, women’s rights, food and housing, etc.) becomes cumbersome, the organizations can be decentralized into two or several more autonomous organizations, still united in one large federation. This enables the group to expand limitlessly while maintaining its anarchic form of decentralized self-management. It is sort of like the scientific theory of a biological cell, dividing and redividing, but in a political sense."

"But it may come as a surprise to learn that for Rothbard the New Left's most "crucial contribution to both ends and means... is its concept of '.'"... ; This may seem less surprising once one realizes that for Rothbard the free market is the fullest realization of participatory democracy... The political appeal of participatory democracy for Rothbard was its requirement of decentralization, and its rejection of a layer of political "representatives" above the people."

"Well, I think it just goes back to the values that I grew up with in the punk rock world because it was this decentralised world, and so we just made our own way—like we'd be antigovernment or, you know—but we really didn't complain a lot; we were more action-oriented, like, people were publishing fanzines, we were setting up shows, we were getting in vans and touring around, and we were associating with other people, so…y'know, I just like that idea."

"I find myself just a little annoyed at the tendency of all of us to adopt certain clichés about decentralization and then glibly announce that we're for it. I have been somewhat amused at some of my colleagues who are most vocal in expounding the virtues of decentralization and yet quite unconsciously are apt to be busily engaged in developing their own personal control over activities for which they are responsible."

"A company's culture is often buried so deeply inside rituals, assumptions, attitudes, and values that it becomes transparent to an organization's members only when, for some reason, it changes."

"We keep a change in place by helping to create a new, supportive, and sufficiently strong organizational culture."

"[Corporate programming] is often done to the point where the individual is completely submerged in corporate "culture" with no outlet for unique talents and skills. Corporate practices can be directly hostile to individuals with exceptional skills and initiative in technical matters. I consider such management of technical people cruel and wasteful."

"Action often creates the orderly relations that originally were mere presumptions summarized in a cause map. Thus language trappings of organizations such as strategic plans are important components in the process of creating order. They hold events together long enough and tightly enough in people's heads so that they act in the belief that their actions will be influential and make sense."

"Technical problems can be remediated. A dishonest corporate culture is much harder to fix."

"Although the '60s counterculture has been much maligned and discredited, it attempted to provide what we still desperately need: a spirited culture of refusal, a counter-life to the reigning corporate culture of death. We don't need to return to that counterculture, but we do need to take up its challenge again. If the work we do produces mostly bad, ugly, and destructive things, those things in turn will tend to re-create us in their image. We need to turn to good, useful, and beautiful work. We need to ask, as Thoreau and Ruskin did, What are the life-giving things? Such important questions are answered for us in the present by the corporate state, while we are left with the most trivial decisions: what programs to watch on TV and what model car to buy."

"In the literature of problem solving, the topic I am now taking up is called "problem representation." In the past 30 years, a great deal has been learned about how people solve problems by searching selectively through a problem space defined by a particular problem representation. Much less has been learned about how people acquire a representation for dealing with a new problem—one they haven't previously encountered."

"Information impactedness is a derivative condition that arises mainly because of uncertainty and opportunism, though bounded rationality is involved as well. It exists when true underlying circumstances relevant to the transaction, or related set of transactions, are known to one or more parties but cannot be costlessly discerned by or displayed for others."

"Both from these scanty data and from an examination of the postulates of the economic models it appears probable that, however adaptive the behavior of organisms in learning and choice situations, this adaptiveness falls far short of the ideal of ‘maximizing’ postulated in economic theory. Evidently, organisms adapt well enough to‘satisfice’; theydo not, in general, ‘optimize’."

"A comparative examination of the models of adaptive behavior employed in psychology (e.g., learning theories), and of the models of rational behavior employed in economics, shows that in almost all respects the latter postulate a much greater complexity in the choice mechanisms, and a much larger capacity in the organism for obtaining information and performing computations, than do the former. Moreover, in the limited range of situations where the predictions of the two theories have been compared (...), the learning theories appear to account for the observed behavior rather better than do the theories of rational behavior."

"The problem can be approached initially either by inquiring into the properties of the choosing organism, or by inquiring into the environment of choice."

"The first consequence of the principle of bounded rationality is that the intended rationality of an actor requires him to construct a simplified model of the real situation in order to deal with it. He behaves rationally with respect to this model, and such behavior is not even approximately optimal with respect to the real world. To predict his behavior we must understand the way in which this simplified model is constructed, and its construction will certainly be related to his psychological properties as a perceiving, thinking, and learning animal."

"The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world — or even for a reasonable approximation to such objective rationality."

"Broadly stated, the task is to replace the global rationality of economic man with a kind of rational behavior that is compatible with the access to information and the computational capacities that are actually possessed by organisms, including man, in the kinds of environments in which such organisms exist."

"In Administrative Behavior, bounded rationality is largely characterized as a residual category — rationality is bounded when it falls short of omniscience. And the failures of omniscience are largely failures of knowing all the alternatives, uncertainty about relevant exogenous events, and inability to calculate consequences. There was needed a more positive and formal characterization of the mechanisms of choice under conditions of bounded rationality... Two concepts are central to the characterization: search and satisficing."

"… I shall assume that the concept of ‘economic man’(...) is in need of fairly drastic revision, and shall put forth some suggestions as to the direction the revision might take."

"Simon’s conventionalism leads to a decision paradigm, according to which understanding problems of coordination is impossible without taking into consideration individual cognitive limits and social representations of reality."

"Bounded rationality means that people make quite reasonable decisions based on the information they have. But they don't have perfect information, especially about more distant parts of the system. [...] We don't even interpret perfectly the imperfect information that we do have, say behavioral scientists. [...] Which is to say, we don't even make decisions that optimize our own individual good, much less the good of the system as a whole."