Human behavior is predictable, but, as in physical science, accurate prediction hinges on the correctness of underlying theoretical assumptions. Ther… - Douglas McGregor

We live today in a world which only faintly resembles that of a half century ago. The standard of living, the level of education, and the political complexion of the United States today profoundly affect both the possibilities and limitations of organizational behavior. In addition, technological changes are bringing about changes in all types of organization. In the military, for example, it is becoming increasingly difficult to manage a weapons team in the field as a typical infantry unit was managed a couple of decades ago. Such a team requires a high degree of autonomy. Instead of following explicit orders from superiors, it must be able to adjust its behavior to fit local circumstances within the context of relatively broad objectives. (It is interesting to note the attempts that are made — by "programming" for example — to retain central control over the operations of such units. Established theories of control are not abandoned easily, even in the face of clear evidence of their inappropriateness.) Underlying the principles of classical organization theory are a number of assumptions about human behavior which are at best only partially true.

Every managerial act rests on assumptions, generalizations, and hypotheses — that is to say, on theory. Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting; nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable.

The key question for top management is what are your assumptions (implicit as well as explicit) about the most effective way to manage people?