Basic Concepts for a Theory of Organization

Classical and behavioral theories can be reconciled if organization is regarded as an input-processing-output system. If material and financial resources are disregarded, all organizations utilize human performances, expectations, and interactions as inputs. In newly formed groups and organizations, these three variables act upon each other to generate structure, operations, and interpersonnel. The latter three variables, once they become differentiated and are utilized in task performance, act as processors to transform the inputs further into product, drive, and cohesiveness as outputs. The hypothesized relationships between the output variables are in accord with research findings and reconcile long standing discrepancies.