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.

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 dominant group, reflecting the imperatives of the particular task that is most critical (to the organization), their own background characteristics (distinctive perspectives based on their training, career lines, and areas of competence) and the unofficial uses to which they put the organization for their own ends.

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Most studies of the internal operation of complex organizations, if they mention goals at all, have taken official statements of goals at face value. This may be justified if only a limited problem is being investigated, but even then it contributes to the view that goals are not problematical. In this view, goals have no effect upon activities other than in the grossest terms; or it can be taken for granted that the only problem is to adjust means to given and stable ends. This reflects a distinctive "model" of organizational behavior, which Gouldner has characterized as the rational model. Its proponents see the managerial elite as using rational and logical means to pursue clear and discrete ends set forth in official statements of goals, while the worker is seen as governed by non-rationalistic, traditionalistic orientations.

Techniques are performed upon raw materials. The state of art of analyzing the characteristics of the raw materials is likely to determine what kind of technology will be used. (Tools are also necessary, of course, but by and large, the construction of tools is a simpler problem than the analysis of the nature of the material and generally follows the analysis.) To understand the nature of the material means to be able to control it better and achieve predictability and efficiency in transformation. We are not referring here to the 'essence of the material, only the way the organization perceives it to be ... The other relevant characteristic of the raw material, besides the understandability of Its nature, is Its stability and variability; that is, whether the material can be treated in a standardized fashion or whether continual adjustment to it is necessary. Organizations uniformly seek to standardize their raw material In order to minimize exceptional situations. This is the point of de-individualizing processes found in military academies, monasteries and prisons, and the superiority of the synthetic shoe material Corfam over leather.

I consider all large organizations troublesome, including governmental and nonprofit organizations. They concentrate power in the hands of their top management; the larger the organization, the greater the power being concentrated. There are degrees of concentration of course, and some large organizations are so disorganized that they lose much of their potential power. But size is generally correlated with these kinds of power: By deciding where to locate they determine economic opportunities for some communities and deny it to others. Their hiring decisions affect the life chances of people, and can, unless checked, favor religious, ethnic, racial, and political affiliations. As consumers of resources, they can favor certain producers over others, and not necessarily on the grounds of “efficiency.” They can mobilize political resources to insure favored treatment better than small organizations.

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.

As with all theories, we can learn something from agency theory and transaction-costs economics, since they emphasize something others hide. But as with all theories, they also distort; in fact, I will argue that their distortions outweigh the value of what they highlight.

To call for decentralization, representative bureaucracy, collegial authority, or employee-centered, innovative or organic organizations - to mention only a few of the highly normative prescriptions that are being offered by social scientists today - is to call for a type of structure that can be realized only with a certain type of technology, unless we are willing to pay a high cost in terms of output. Given a routine technology, the much maligned Weberian bureaucracy probably constitutes the socially optimum form of organizational structure.