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" "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.
Charles B. Perrow (born February 9, 1925) is an American Emeritus Professor of sociology at and visiting professor at . He is the author of several books and many articles on organizations, and is primarily concerned with the impact of large organizations on society. Perrow graduated in 1960 at the University of California, Berkeley, supervised by Philip Selznick, with the unpublished Ph.D. dissertation, entitled "Authority, Goals, and Prestige in a General Hospital." Perrow's research interests broadened over the years. Nowadays they include "the development of bureaucracy in the 19th Century; the radical movements of the 1960s; Marxian theories of industrialization and of contemporary crises; accidents in such high risk systems as nuclear plants, air transport, DNA research and chemical plants; protecting the nation’s critical infrastructure; the prospects for democratic work organizations; and the origins of U.S. capitalism (source: yale.edu)."
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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.
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.