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Organizational theorists, at least since the pioneering work of Burns and Stalker, 1961 and Joan Woodward, 1965 and others in what came to be called the contingency school, have recognized that centralization is appropriate for organizations with routine tasks, and decentralization for those with nonroutine tasks. For an early statement see Perrow 1967, and Lawrence and Lorch, 1967.

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Some of these by-products [of official goals] may become so important to the participants who make up the institution as to constitute unofficial goals. “I would not be interested in this hospital unless it...” did something or other. “The trouble with this place is everyone is so concerned with” this or that pursuit. Where these blanks are not filled in with good patient care, teaching and research we have unofficial goals of some group or individual, and thus we have uses to which the institution is put other than the avowed ones.

American society today is shaped not nearly as much by vast open spaces as it is by vast, bureaucratic organizations. Over half the working population toils away at enterprises with 500 or more employees--up from zero percent in 1800. Is this institutional immensity the logical outcome of technological forces in an all-efficient market, as some have argued?

By technology is meant the actions that an individual performs upon an object, with or without the aid of tools or mechanical devices, in order to make some change in that object. The object, or 'raw material', may be a living being, human or otherwise, a symbol, or an Inanimate object. People are raw materials in people-changing or people-processing organizations; symbols are materials in banks, advertising agencies, and some research organizations; the interactions of people are raw materials to be manipulated by administrators in organizations; boards of directors, committees, and councils are usually Involved with the changing or processing of symbols and human interactions, and so on.

Multiple leadership, as a stable system of goal determination and policy setting, is most likely to be found in organizations where there are multiple goals and where these goals lack precise criteria of achievement and allow considerable tolerances with regard to achievement. Organizations with a single goal [i.e., proprietary hospitals] or a clear hierarchy of goals provide little basis for multiple leadership. Multiple leadership arises because important group interests diverge, and each group has the power to protect its interests.