Another forerunner of modern organization theorists was Andrew Ure, a professor of chemistry. An enthusiastic proponent of “the factory system,” Ure … - William H. Starbuck

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Another forerunner of modern organization theorists was Andrew Ure, a professor of chemistry. An enthusiastic proponent of “the factory system,” Ure (1835) took a step beyond Adam Smith. Whereas Smith’s pin factory was solely an example of division of labor, Ure pointed out that a factory poses organizational challenges. He asserted that every factory incorporates “three principles of action, or three organic systems”: (a) a “mechanical” system that integrates production processes, (b) a “moral” system that motivates and satisfies the needs of workers, and (c) a “commercial” system that seeks to sustain the firm through financial management and marketing. Harmonizing these three systems, said Ure, was the responsibility of managers.

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About William H. Starbuck

William Haynes Starbuck (born Sept. 20, 1934) is an American organizational theorist, and Emeritus Professor of Management at New York University. He contributed to the concepts of self-designing organizations, organizational design, environmental niches, organizational equilibriums made of antithetical processes, relativity through time of levels of aspiration as well as to behavioral research methods and epistemological status

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Alternative Names: William Haynes Starbuck
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In deciding whether a firm is knowledge-intensive, one ought to weigh its emphasis on esoteric expertise instead of widely shared knowledge. Everybody has knowledge, most of it widely shared, but some idiosyncratic and personal. If one defines knowledge broadly to encompass what everybody knows, every firm can appear knowledge-intensive. One loses the value of focusing on a special category of firms. Similarly, every firm has some unusual expertise. To make the knowledge-intensive firm a useful category, one has to require that exceptional expertise make important contributions. One should not label a firm as knowledge-intensive unless exceptional and valuable expertise dominates commonplace knowledge.

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“Organization theory,” a term that appeared in the middle of the twentieth century, has multiple meanings. When it first emerged, the term expressed faith in scientific research as a way to gain understanding of human beings and their interactions. Although scientific research had been occurring for several centuries, the idea that scientific research might enhance understanding of human behavior was considerably newer and rather few people appreciated it. Simon (1950, 1952-3, 1952) was a leading proponent for the creation of “organization theory”, which he imagined as including scientific management, industrial engineering, industrial psychology, the psychology of small groups, human-resources management, and strategy. The term “organization theory” also indicated an aspiration to state generalized, abstract propositions about a category of social systems called “organizations,” which was a very new concept. Before and during the 1800s, people had regarded armies, schools, churches, government agencies, and social clubs as belonging to distinct categories, and they had no name for the union of these categories. During the 1920s, some people began to perceive that diverse kinds of medium-sized social systems might share enough similarities to form a single, unified category. They adopted the term “organization” for this unified category.

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