The structural viewpoint considers the roles people play, rather than the nature of the personalities in these roles. It deals with the structures in which roles are performed— the relationship of groups to each other, such as sales and production, and the degree of centralization or decentralization.

[People-processing institutions are] a type of social institution in which human beings constitute both the raw materials and the products of organizational work. Although all social institutions are involved in some degree in people-processing activities, the term is properly restricted to those whose primary goal is the shaping, reshaping, removing, overhauling, retooling, reassembling, and recording the physical, psychological, social, legal, or moral aspects of human objects.

Another discipline began to intrude upon the confident work and increasingly elaborate models of the human relations theorists (largely social psychologists) and the uneasy toying with bureaucracy of the "structionalists" (largely sociologists). Both tended to study economic organizations. A few, like Philip Selznick, were noting conflict and differences in goals (perhaps because he was studying a public agency, the Tennessee Valley Authority), but most ignored conflict or treated it as a pathological manifestation of breakdowns in communication or the ego trips of unreconstructed managers.

The hundreds of scientific studies of this phenomenon come to one general conclusion: Leadership is highly variable or "contingent" upon a large variety of important variables such as nature of task, size of the group, length of time the group has existed, type of personnel within the group and their relationships with each other, and amount of pressure the group is under. It docs not seem likely that we'll be able to devise a way to select the best leader for a particular situation. Even if we could, that situation would probably change in a short time and thus would require a somewhat different type of leader.

In a modern society, where large organizations have acquired unprecedented importance, social scientists have increasingly sought to understand the nature of organizational goals - what they are, what shapes or determines them, what their impact is upon the environment, and how they change.

It is surprising how much discipline is imposed upon theory by requiring that it ‘make a difference’ and provide guidance or useful illumination. I learned long ago from students in professional schools that questions of ‘so what’ or ‘what relevance does this have’ do not signify impatience with theory per se, much less anti-intellectualism, but only impatience with the obvious, general, remote, and vague statements that often parade as social science theory. One test of good theory is that it have practical implications.

While [bureaucratic] solutions have been frequently criticized by those within and without the organization, no alternative way has been found to cope with the problem of organizing large numbers of people to produce goods and services efficiently.

Then the works of Max Weber, first translated from the German in the 1940s — he wrote around 1910, incredibly — began to find their way into social science thought. At first, with his celebration of the efficiency of bureaucracy, he was received with only reluctant respect, and even with hostility. All writers were against bureaucracy. But it turned out, surprisingly, that managers were not. When asked, they acknowledged that they preferred clear lines of communication, clear specifications of authority and responsibility, and clear knowledge of whom they were responsible to. They were as wont to say "there ought to be a rule about this," as to say "there are too many rules around here," as wont to say "next week we've got to get organized," as to say "there is too much red tape." Gradually, studies began to show that bureaucratic organizations could change faster than non-bureaucratic ones, and that morale could be higher where there was clear evidence of bureaucracy.

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.