As with all theories, we can learn something from agency theory and transaction-costs economics, since they emphasize something others hide. But as w… - Charles Perrow

Covers the history and tradition, the precedents and established commitments involved in all past action. These limit, though not determine, the present actions that any one group may take. If any single thing deserved the designation “the institution” or “the hospital” it would be this.”

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 [a power based model of organization] sees organizations a intentional human constructions but not necessarily rational systems guided by official goals; as bargaining areas rather than cooperative systems; as systems of power rather than coercive institutions reflecting cultural norms, and as resources for other organizations and groups rather than closed systems. If we define organizations, then, as intentional human constructions wherein people and groups within and without the organization compete for outputs of interest them under conditions of unequal power, we have posed the issue of effectiveness quite differently