Foundations of the Theory of Organization

Author(s): Philip Selznick

Source: American Sociological Review, Vol. 13, No. 1 (Feb., 1948), pp. 25-35
Published by: American Sociological Association
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 FOUNDATIONS OF THE THEORY OF ORGANIZATION*
PHILIP SELZNICK
Universityof California,
Los Angeles

T RADES unions,governments,
corporations,
business formalstructurebecomessubject to calcu-
politicalparties,and the lable manipulation, an instrumentof rational
like are formalstructures in thesense action.
thattheyrepresent rationallyorderedinstru- But as we inspecttheseformalstructures
mentsfor the achievementof stated goals. we begin to see that theyneversucceedin
"Organization," we are told,"is thearrange- conqueringthe non-rationaldimensionsof
ment of personnelfor facilitatingthe ac- organizational behavior.The latterremainat
complishmentof some agreed purpose onceindispensable to thecontinuedexistence
throughthe allocationof functionsand re- of the systemof coordinationand at the
sponsibilities."'Or, definedmoregenerally, same time the sourceof friction,dilemma,
formalorganizationis "a systemof con- doubt,and ruin.This fundamental paradox
sciouslycoordinatedactivitiesor forcesof arisesfromthe factthatrationalactionsys-
two or morepersons."2 Viewedin thislight, temsare inescapablyimbeddedin an insti-
formalorganization is the structural expres- tutionalmatrix,in two significant senses:
sion of rationalaction.The mobilizationof (i) the actionsystem-or the formalstruc-
technicaland managerialskills requiresa ture of delegationand controlwhichis its
patternof coordination, a systematicorder- organizationalexpression-is itselfonly an
ing of positionsand dutieswhichdefinesa aspectof a concretesocialstructure madeup
chain of commandand makes possible the of individualswho may interactas wholes,
administrativeintegrationof specialized not simplyin termsof theirformalroles
functions.In this contextdelegationis the withinthe system; (2) the formalsystem,
primordialorganizationalact, a precarious and thesocialstructure withinwhichit finds
venturewhichrequiresthe continuouselab- concreteexistence,are alike subject to the
orationof formalmechanismsof coordina- pressureof an institutional environment to
tionand control.The securityof all partici- which some over-all adjustmentmust be
pants, and of the systemas a whole,gen- made. The formaladministrative designcan
eratesa persistentpressurefor the institu- neveradequatelyor fullyreflect theconcrete
tionalization of relationships,whichare thus organization to whichit refers,fortheobvi-
removedfromthe uncertainties of individ- ous reasonthatno abstractplan or pattern
ual fealty or sentiment.Moreover,it is can-or may,if it is to be useful-exhaust-
necessaryforthe relationswithinthe struc- ively describean empiricaltotality.At the
tureto be determined in sucha way thatin- same time,thatwhichis not includedin the
dividuals will be interchangeable and the abstractdesign(as reflected, forexample,in
organization will thusbe freeof dependence a staff-and-line organizationchart) is vitally
upon personalqualities.3In this way, the relevantto the maintenanceand develop-
mentof the formalsystemitself.
* Manuscriptreceived September9, 1947. Organizationmay be viewed from two
'John M. Gaus, "A Theory of Organization standpointswhich are analyticallydistinct
in Public Administration,"in The Frontiers of
Public Administration (Chicago: University of
but whichare empiricallyunitedin a con-
Chicago Press, 1936), p. 66. textof reciprocalconsequences.On the one
2 Chester I. Barnard, The Functions of the Ex- hand, any concreteorganizational systemis
ecutive (Cambridge: Harvard University Press, an economy;at thesame time,it is an adap-
1938), p. 73.
8 Cf. Talcott Parsons' generalization(after Max of action systems," in The Structure of Social
Weber) of the "law of the increasingrationality Action (New York: McGraw-Hill, IT37), p. 7.52.
25

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26 AMERICAN SOCIOLOGICAL REVIEW

tivesocial structure. Consideredas an econ- by morepersonalmeans.5We meetit again

omy, organizationis a systemof relation- in theconceptof administration as a process
shipswhichdefinethe availabilityof scarce of education,in whichthe winningof con-
resourcesand which may be manipulated sent and supportis conceivedto be a basic
in termsof efficiency and effectiveness. It is functionof leadership.6 In short,it is recog-
the economicaspect of organizationwhich nized thatcontroland consentcannotbe di-
commands the attentionof management vorced even withinformallyauthoritarian
techniciansand, forthe mostpart,students structures.
of public as well as privateadministration. The indivisibility of controland consent
Such problemsas thespan of executivecon- makesit necessaryto view formalorganiza-
trol,the role of staffor auxiliaryagencies, tions as cooperativesystems,wideningthe
the relationof headquartersto fieldoffices, frameof reference of thoseconcernedwith
and the relativemeritsof singleor multiple themanipulation of organizationalresources.
executiveboardsare typicalconcernsof the At thepointof action,of executivedecision,
scienceof administration. The coordinative the economicaspect of organizationpro-
scalar,and functional principles,as elements vides inadequatetools forcontrolover the
of the theoryof organization, are products concretestructure. This idea maybe readily
of the attemptto explicatethe mostgeneral graspedifattentionis directedto theroleof
featuresoforganization as a "technicalprob- the individual within the organizational
lem" or, in our terms,as an economy. economy.From the standpointof organiza-
Organizationas an economyis, however, tionas a formalsystem,personsare viewed
necessarilyconditioned by theorganicstates functionally, in respectto theirroles,as par-
of theconcretestructure, outsideof thesys- ticipantsin assigned segmentsof the co-
tematicsof delegationand control.This be- operativesystem.But in fact individuals
comesespeciallyevidentas the attentionof have a propensity to resistdepersonalization,
leadershipis directedtowardsuch problems to spillovertheboundariesof theirsegmen-
as the legitimacyof authorityand the dy- taryroles,to participateas wholes.The for-
namics of persuasion.It is recognizedim- mal systems(at an extreme,the disposition
plicitlyin actionand explicitlyin the work of "rifles"at a militaryperimeter)cannot
of a numberof studentsthat thepossibility take account of the deviationsthus intro-
of manipulating the systemof coordination duced,and consequently break down as in-
dependson the extentto whichthatsystem struments of controlwhenrelieduponalone.
is operatingwithinan environment of effec- The whole individualraises new problems
tive inducementto individualparticipants for the organization, partlybecause of the
and of conditionsin whichthe stabilityof needsof his ownpersonality, partlybecause
authorityis assured.This is in a sense the he brings with him a set of established
fundamental thesisof Barnard'sremarkable habits as well,perhaps,as commitments to
study,The Functionsof theExecutive.It is special groupsoutside of the organization.
also the underlying hypothesis whichmakes Unfortunately forthe adequacy of formal
it possible for Urwick to suggest that systemsof coordination, the needs of indi-
"proper"or formalchannelsin factfunction viduals do not permita single-minded at-
to "confirm and record"decisionsarrivedat tentionto the stated goals of the system
withinwhichtheyhave been assigned.The
4See Luther Gulick and Lydall Urwick (editors), hazard inherent in the act of delegationde-
Papers on the Science of Administration(New rivesessentiallyfromthisfact.Delegationis
York: Instituteof Public Administration,
Columbia
University,I937); Lydall Urwick, The Elements 5Urwick, The Elements of Administration,op.
of Administration (New York, Harper, I943); cit., p. 47.
James D. Mooney and Alan C. Reiley, The Prin- 6 See Gaus, op. cit. Studies of the problem of
ciples of Organization(New York: Harper, I939); morale are instancesof the same orientation,having
H. S. Derinison, Organization Engineering (New received considerableimpetus in recent years from
York: McGraw-Hill,I93I). the work of the Harvard Business School group.

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 FOUNDATIONS OF THE THEORY OF ORGANIZATION 27

an organizationalact, having to do with goals of the organization, but theymayalso

formalassignments of functions and powers. functionto widenthe available resourcesof
Theoretically,these assignmentsare made executive control and thus contributeto
to rolesor officialpositions,not to individ- ratherthan hinderthe achievementof the
uals as such. In fact, however,delegation statedobjectivesoftheorganization. The de-
necessarily involvesconcreteindividualswho viationstendto forcea shiftaway fromthe
have interests and goalswhichdo notalways purely formalsystemas the effectivede-
coincidewiththegoals of theformalsystem. terminantof behaviorto (i) a condition
As a consequence,individualpersonalities in whichinformal patternsbuttressthe for-
may offerresistanceto the demandsmade mal,as through themanipulation ofsentiment
uponthembytheofficial conditions ofdelega- withinthe organizationin favor of estab-
tion.These resistances are not accountedfor lishedauthority;or (2) a conditionwherein
withinthe categoriesof coordinationand the informalcontrolseffecta consistent
delegation,so that when they occur they modification of formalgoals, as in the case
must be consideredas unpredictableand of some bureaucraticpatterns.8This trend
accidental.Observations ofthistypeofsitua- willeventuallyresultin the formalization of
tionwithinformalstructures are sufficientlyerstwhileinformalactivities,withthe cycle
commonplace. A familiarexampleis thatof of deviationand transformation beginning
delegationto a subordinatewho is also re- again on a new level.
quired to train his own replacement.The The relevanceof informalstructuresto
subordinatemay resistthisdemandin order organizationalanalysis underlinesthe sig-
to maintainuniqueaccess to the"mysteries" nificanceof conceivingof formalorganiza-
of the job, and thus insurehis indispensa- tionsas cooperativesystems.When the to-
bilityto the organization. talityof interacting groupsand individuals
In large organizations,deviationsfrom becomesthe object of inquiry,the latteris
the formalsystemtend to become institu- not restricted by formal,legal,or procedural
tionalized,so that "unwritten laws" and in- dimensions. The stateof thesystememerges
formalassociationsare established.Institu- as a significant pointof analysis,as whenan
tionalizationremovessuch deviationsfrom internalsituationchargedwithconflict quali-
the realm of personalitydifferences, trans- fies and informsactions ostensiblydeter-
forming themintoa persistent structural as- minedby formalrelationsand objectives.A
pect of formalorganizations These insti- properunderstanding of the organizational
tutionalized rulesand modesof informalco- processmust make it possible to interpret
operationare normallyattemptsby partici- changesin the formalsystem-newappoint-
pants in the formalorganizationto control mentsor rules or reorganizations-intheir
the grouprelationswhichformthe environ- relationto the informaland unavowedties
mentof organizational decisions.The infor- of friendship, class loyalty,power cliques,
mal patterns(such as cliques) arise spon- or externalcommitment. This is what it
taneously,are based on personalrelation- means"to knowthe score."
ships,and are usuallydirectedto thecontrol The fact that the involvementof indi-
of somespecificsituation.They maybe gen- viduals as wholepersonalities tendsto limit
erated anywherewithina hierarchy,often theadequacyof formalsystemsof coordina-
withdeleterious consequencesforthe formal tiondoes not meanthatorganizational char-
acteristicsare thoseof individuals.The or-
7The creation of informal structureswithin ganic,emergent characterof the formalor-
various types of organizations has received ex- ganizationconsideredas a cooperativesys-
plicitrecognitionin recentyears. See F. J. Roethlis- temmustbe recognized. This meansthatthe
berger and W. J. Dickson, Management and the
Worker (Cambridge: Harvard University Press, 8 For an analysis of the latter in these terms,
I940), p. 524; also Barnard, op. cit., c. ix; and see Philip Selznick,"An Approach to a Theory of
Wilbert E. Moore, Industrial Relations and the Bureaucracy," American Sociological Review, Vol.
SocialOrder(NewYork:Macmillan,
I946), chap. xv. VIII, No. i (February, 1943).

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28 AMERICAN SOCIOLOGICAL REVIEW
organizationreachesdecisions,takes action, important to set the framework of analysis,
and makes adjustments.Such a view raises and much is accomplishedalong this line
the questionof the relationbetweenorgan- when,forexample,thenatureofauthority in
izations and persons. The significanceof formalorganizations is reinterpreted to em-
theoreticalemphasisupon the cooperative phasize the factorsof cohesionand persua-
systemas such is derivedfromthe insight sion as against legal or coercivesources.9
that certainactions and consequencesare This redefinition is logicallythe same as
enjoinedindependently of thepersonalityof thatwhichintroducedthe conceptionof the
theindividualsinvolved.Thus,ifreference is selfas social.The latterhelpsmakepossible,
made to the "organization-paradox"-the but does notof itselffulfill, therequirements
tension created by the inhibitoryconse- fora dynamictheoryof personality. In the
quences of certaintypesof informalstruc- sameway,thedefinition of authority as con-
tures within organizations-thisdoes not ditionedby sociologicalfactorsof sentiment
mean that individuals themselvesare in and cohesion-or moregenerallythe defini-
quandaries.It is the natureof the interact- tion of formalorganizationsas cooperative
ing consequences of divergentinterests systems-onlysetsthestage,as an initialre-
withinthe organizationwhich creates the quirement, fortheformulation of a theoryof
condition,a resultwhichmay obtain inde- organization.
pendentlyof the consciousness or the quali-
ties of the individualparticipants.
Similarly, STRUCTURAL-FUNCTIONAL ANALYSIS
it seemsusefulto insistthatthereare quali- Cooperativesystemsare constituted of in-
ties and needs of leadership,havingto do dividualsinteracting as wholesin relationto
withpositionand role,whichare persistent a formalsystemof coordination. The con-
despitevariationsin the characteror per- cretestructure is therefore a resultantof the
sonalityof individualleadersthemselves. reciprocalinfluencesof the formaland in-
Rationalactionsystemsare characteristic formalaspectsof organization. Furthermore,
of both individualsand organizations. The thisstructure is itselfa totality,an adaptive
consciousattemptto mobilizeavailable in- "organism"reactingto influencesupon it
ternalresources(e.g., self-discipline)
forthe froman externalenvironment. These consid-
achievementof a stated goal referredto erationshelpto definetheobjectsofinquiry;
here as an economyor a formalsystem-is but to progressto a systemof predicates
one aspectof individualpsychology. But the abouttheseobjectsit is necessaryto set forth
personalityconsideredas a dynamicsystem an analyticalmethodwhichseemsto be fruit-
of interacting wishes,compulsions,and re- ful and significant. The methodmusthave
straintsdefinesa systemwhichis at once a relevanceto empiricalmaterials,whichis
essentialand yet potentiallydeleteriousto to say, it mustbe morespecificin its ref-
whatmaybe thoughtof as the "economyof erencethandiscussionsof thelogicor meth-
learning"or to individualrationalaction.At odologyof social science.
the same time,the individualpersonalityis The organonwhichmay be suggestedas
an adaptivestructure, and this,too,requires peculiarlyhelpfulin theanalysisof adaptive
a broader frameof referencefor analysis structureshas been referredto as "struc-
than the categoriesof rationality.On a dif- tural-functional analysis."''0 This method
ferentlevel, althoughanalogously,we have
pointedto theneedto considerorganizations 9Robert Michels, "Authority,"Encyclopedia of
the Social Sciences (New York: Macmillan, IW3I),
as cooperativesystemsand adaptivestruc- pp. 3I9ff.; also Barnard,op. cit., c. xii.
turesin orderto explainthe contextof and 1 For a presentationof this approach having
deviationsfromthe formalsystemsof dele- a more general referencethan the study of formal
gationand coordination. organizations,see Talcott Parsons, "The Present
and Prospects of Systematic Theory in
To recognizethe sociologicalrelevanceof Position
Sociology," in Georges Gurvitch and Wilbert E.
formalstructuresis not, however,to have Moore (ed.), Twentieth Century Sociology (New
constructeda theoryof organization.It is York: The Philosophical Library, I945).

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 FOUNDATIONS OF THE THEORY OF ORGANIZATION 29

may be characterized in a sentence:Struc- ganizations, but somesuggestive formulation

tural-functional analysis relates contempo- is neededin theinterests of settingforththe
rary and variable behaviorto a presump- typeof analysisunderdiscussion.In formal
tivelystable systemof needs and mecha- organizations, the "maintenanceof the sys-
nisms.This means that a given empirical tem" as a genericneed may be specifiedin
systemis deemedto have basic needs,essen- termsof the followingimperatives:
tiallyrelatedto self-maintenance; thesystem (i) The securityof the organization as a
develops repetitivemeans of self-defense; wholein relationto social forcesin its en-
and day-to-dayactivity is interpretedin vironment.This imperativerequires con-
termsof the function servedby thatactivity tinuousattentionto the possibilitiesof en-
forthe maintenance and defenseof the sys- croachment and to theforestalling of threat-
tem.Put thusgenerally, the approachis ap- ened aggressions or deleterious(thoughper-
plicable on any level in which the deter- haps unintended)consequencesfromthe ac-
minate"states" of empiricallyisolable sys- tionsof others.
tems undergo self-impelledand repetitive (2) The stabilityof the lines of author-
transformations whenimpingedupon by ex- ityand communication. One ofthepersistent
ternal conditions.This self-impulsion sug- reference-pointsof administrative decisionis
gests the relevanceof the term"dynamic," the weighingof consequencesfor the con-
whichis oftenused in referring to physio- tinuedcapacityof leadershipto controland
logical, psychological, or social systemsto to have access to the personnelor ranks.
which this type of analysis has been ap- (3) The stabilityof informalrelations
plied." withinthe organization.Ties of sentiment
It is a postulateof the structural-func-and self-interest are evolvedas unacknowl-
tional approachthat the basic need of all edged but effective mechanismsof adjust-
empiricalsystemsis the maintenanceof the mentof individualsand sub-groupsto the
integrity and continuity of thesystemitself. conditionsof life withinthe organization.
Of course,such a postulateis primarily use- These tiesrepresent a cementing of relation-
ful in directingattentionto a set of "de- shipswhichsustainsthe formalauthority in
rivedimperatives"or needs whichare suf- day-to-dayoperationsand widensopportu-
ficiently concreteto characterize the system nitiesforeffective communication.'3 Conse-
at hand.12 It is perhapsrash to attempta quently,attemptsto "upset" the informal
catalogueof theseimperatives forformalor- structure, eitherfrontally or as an indirect
consequenceof formalreorganization, will
"Structure" refers to both the relationships normallybe met with considerableresist-
within the system (formal plus informalpatterns
in organization) and the set of needs and modes ance.
of satisfactionwhich characterizethe given type (4) The continuity of policyand of the
of empiricalsystem.As the utilizationof this type sourcesof its determination. For each level
of analysis proceeds, the concept of "need" will withinthe organization, and forthe organ-
requirefurtherclarification. In particular,the impu-
tation of a "stable set of needs" to organizational
izationas a whole,it is necessarythatthere
systemsmust not functionas a new instincttheory. be a sensethatactiontakenin thelightof a
At the same time,we cannot avoid using these in- givenpolicywillnotbe placed in continuous
ductions as to generic needs, for they help us to jeopardy.Arbitrary or unpredictable changes
stake out our area of inquiry.The authoris indebted in policyundermine
the significanceof (and
to Robert K. Merton who has, in correspondence,
raised some importantobjections to the use of the thereforethe attention to) day-to-day action
term "need" in this context. by injectinga noteof capriciousness. At the
"2For "derived imperative"see Bronislaw Mali- same time,the organization will seek stable
nowski, The Dynamics of Culture Change (New roots (or firmstatutoryauthorityor popu-
Haven: Yale UniversityPress, I945), pp. 44ff.For
the use of "need" in place of "motive" see the
lar mandate) so that a sense of the perma-
same author's A Scientific Theory of Culture "8They may also destroythose relationships,as
(Chapel Hill: Universityof North Carolina Press, noted above, but the need remains, generating
I944), pp. 89-go. one of the persistentdilemmasof leadership.

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30 AMERICAN SOCIOLOGICAL REVIEW
nency and legitimacyof its acts will be is of primeimportanceforthe understand-
achieved. ing of bureaucratic behavior,forit is of the
(5) A homogeneity of outlookwith re- essence of the latter that action formally
spectto themeaningand role of the organ- undertakenforsubstantivegoals be weighed
ization. The minimizationof disaffectionand transformed in termsof itsconsequences
requiresa unityderivedfroma commonun- forthepositionof the officialdom.
derstandingof what the characterof the Formal organizationsas cooperativesys-
organizationis meant to be. When this tems on the one hand, and individualper-
homogeneity breaksdown,as in situationsof sonalitieson the other,involvestructural-
internalconflictover basic issues,the con- functionalhomologies,a point which may
tinuedexistenceof the organizationis en- help to clarifythe nature of this type of
dangered.On the other hand, one of the analysis.If we say thatthe individualhas a
signsof "healthy"organization is theability stable set of needs,mostgenerallythe need
to effectivelyorientnew membersand read- formaintaining and defendingthe integrity
ily sloughoffthosewho cannotbe adapted of his personality or ego; thatthereare rec-
to the establishedoutlook. ognizable certain repetitive mechanisms
This catalogueof needscannotbe thought whichare utilizedby the ego in its defense
of as final,but it approximatesthe stable (rationalization, projection,regression,etc.);
systemgenerallycharacteristic of formal or- and that overt and variable behavior may
ganizations.These imperativesare derived, be interpreted in termsofits relationto these
in the sense that theyrepresentthe condi- needs and mechanisms-onthe basis of this
tionsforsurvivalor self-maintenance of co- logic we may discernthe typicalpatternof
operativesystemsof organizedaction.An in- structural-functional analysis as set forth
spectionof these needs suggeststhat or- above. In this sense,it is possibleto speak
ganizationalsurvivalis intimately connected of a "Freudian model" for organizational
withthe struggleforrelativeprestige,both analysis.This does not mean that the sub-
fortheorganization and forelementsand in- stantiveinsightsof individualpsychology
dividualswithinit. It may therefore be use- may be applied to organizations, as in vul-
ful to referto a prestige-survival motifin gar extrapolationsfromthe individualego
organizational behavioras a short-hand way to wholenationsor (by a no less vulgarin-
ofrelatingbehaviorto needs,especiallywhen version) fromstrikesto frustrated workers.
the exact nature of the needs remainsin It is the logic, the type of analysiswhich
doubt.However,it mustbe emphasizedthat is pertinent.
prestige-survival in organizationsdoes not This homologyis also instructive in rela-
derivesimplyfromlike motivesin individ- tionto theapplicability of generalizationsto
uals. Loyaltyand self-sacrifice may be indi- concretecases. The dynamictheoryof per-
vidualexpressions of organizational or group sonalitystates a set of possible predicates
egotismand self-consciousness. abouttheego and its mechanisms of defense,
The concept of organizationalneed di- which informus concerningthe propensi-
rectsanalysisto theinternalrelevanceof or- ties of individualpersonalities undercertain
ganizationalbehavior.This is especiallyper- generalcircumstances. But thesepredicates
tinentwith respectto discretionary action provideonly tools for the analysisof par-
undertakenby agentsmanifestly in pursuit ticularindividuals,and each concretecase
of formalgoals. The questionthenbecomes mustbe examinedto tell whichoperateand
one of relatingthe specificact of discretion in what degree.They are not primarilyor-
to somepresumptively stable organizational gans of prediction.In the same way, the
need.In otherwords,it is not simplyaction predicateswithinthe theoryof organization
plainlyorientedinternally(such as in-serv- will providetools for the analysis of par-
ice training)but also actionpresumablyor- ticular cases. Each organization,like each
iented externallywhich must be inspected personality,representsa resultantof com-
forits relevanceto internalconditions. This plex forces,an empiricalentitywhich no

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 FOUNDATIONS OF THE THEORY OF ORGANIZATION 31

singlerelationor no simpleformulacan ex- searchouttheunderlying factorsin organiza-

plain.The problemof analysisbecomesthat tional action,whichrequiresa kind of in-
ofselectingamongthepossiblepredicatesset tensiveanalysisof the same orderas psy-
forthin the theoryof organizationthose choanalyticprobing.
whichilluminateour understanding of the A frameof reference whichinvitesatten-
materialsat hand. tion to the constraintsupon behaviorwill
The settingof structural-functional analy- tendto highlight tensionsand dilemmas,the
sis as appliedto organizations requiressome characteristicparadoxes generatedin the
qualification,however.Let us entertainthe courseof action.The dilemmamay be said
suggestionthat the interesting problemin to be the handmaidenof structural-func-
social scienceis not so muchwhymen act tionalanalysis,forit introducesthe concept
the way theydo as whymenin certaincir- of commitment or involvement as fundamen-
cumstancesmustact the way theydo. This tal to organizationalanalysis. A dilemma
emphasisupon constraint,if accepted,re- in humanbehavioris represented by an in-
leases us froman ubiquitousattentionto be- escapablecommitment whichcannotbe rec-
havior in general,and especiallyfromany onciledwiththeneedsof theorganismor the
unduefixationupon statistics.On the other social system. There are many spurious
hand,it has whatwouldseemto be thesalu- dilemmaswhichhave to do withverbalcon-
tary consequenceof focusinginquiryupon tradictions, but inherentdilemmasto which
certainnecessaryrelationshipsof the type we referare of a moreprofoundsort,for
"if . . . then,"forexample: If the cultural theyreflect thebasic natureof theempirical
level of the rankand filemembersof a for- systemin question.An economicordercom-
mallydemocraticorganizationis below that mittedto profitas its sustainingincentive
necessaryforparticipation in theformulation may,in Marxistterms,sow the seed of its
of policy,then therewill be pressureupon own destruction. Again,the anguishof man,
theleadersto use thetoolsof demagogy. torn betweenfinitudeand pride, is not a
Is such a statementuniversalin its ap- matterof arbitrary and replaceableassump-
plicability?Surelynot in the sense thatone tionsbut is a reflection of the psychological
can predictwithoutremainderthenatureof needs of the humanorganism,and is con-
all or even most politicalgroupsin a de- cretizedin his commitment to the institu-
mocracy.Concretebehavioris a resultant, tionswhichcommandhis life; he is in the
a complexvector,shaped by the operation worldand of it, inescapablyinvolvedin its
of a numberof suchgeneralconstraints. But goals and demands; at the same time,the
thereis a testof generalapplicability:it is needsof thespiritare compelling, proposing
thatof notingwhethertherelationmade ex- modesof salvationwhichhave continuously
plicitmustbe takeninto accountin action. disquietingconsequences for worldly in-
This criterion representsan empiricaltestof volvements. In stillanothercontext,theneed
the significance of social sciencegeneraliza- of thehumanorganismforaffection and re-
tions.If a theoryis significant it will state sponse necessitatesa commitment to ele-
a relationwhich will either (i) be taken ments of the culture which can provide
intoaccountas an elementof achievingcon- them; but the rule of the super-egois un-
trol; or (2) be ignoredonly at the risk of certainsince it cannotbe completelyrecon-
losingcontroland will evidenceitselfin a ciledwiththeneedforlibidinalsatisfactions.
ramification of objectiveor unintendedcon- Applyingthis principleto organizations
sequences.'4It is a corollaryof this prin- we may note that thereis a generalsource
ciple of significancethat investigation must
The analysis of this assessment within the con-
14See R. M. MacIver's discussion of the "dy- text of organizedaction yields the implicitknowl-
namic assessment"which "bringsthe externalworld edge which guides the choice among alternatives.
selectivelyinto the subjective realm, conferringon See also Robert K. Merton, "The Unanticipated
it subjective significancefor the ends of action." Consequences of Purposive Social Action," Ameri-
Social Causation (Boston: Ginn,I942), chaps. II, I2. can Sociological Review, I, 6 (December, I936).

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32 AMERICAN SOCIOLOGICAL REVIEW

of tensionobservablein the split between system,he selectedthose needs whose ex-

"the motionand the act." Plans and pro- pressionis blockedin someway,so thatsuch
grams reflectthe freedomof technicalor termsas repression, inhibition,and frustra-
ideal choice,but organizedactioncannotes- tion became crucial. All conduct may be
cape involvement, a commitment to person- thoughtof as derivedfromneed, and all
nel or institutionsor procedureswhicheffec- adjustmentrepresents thereductionof need.
tivelyqualifiesthe initialplan. Der Mensch But not all needs are relevantto the sys-
denkt,Gott lenkt.In organizedaction,this tematicsof dynamicpsychology;and it is
ultimatewisdomfindsa temporalmeaning not adjustmentas suchbut reactionto frus-
in the recalcitranceof the tools of action. trationwhich generatesthe characteristic
We are inescapablycommitted to themedia- modes of defensivebehavior.
tion of humanstructures whichare at once Organizational analysis,too,mustfindits
indispensableto our goals and at the same selectiveprinciple;otherwisethe indiscrimi-
timestandbetweenthemand ourselves.The nate attemptsto relateactivityfunctionally
selectionof agentsgeneratesimmediately a to needs will producelittle in the way of
bifurcationof interest,expressedin new significanttheory.Such a principlemight
centersof need and power,placingeffective read as follows:Our frameof reference is to
constraintsupon the arena of action, and selectout thoseneeds whichcannotbe ful-
resultingin tensionswhichare nevercom- flled withinapprovedavenuesof expression
pletely resolved.This is part of what it and thusmusthave recourseto such adap-
meansto say thatthereis a "logic"of action tivemechanisms as ideologyand to the ma-
whichimpelsus forwardfromone undesired nipulationofformalprocessesand structures
position to another. Commitmentto dy- in termsof informalgoals. This formulation
namic,self-activating tools is of the nature has many difficulties, and is not presented
of organizedaction; at the same time,the as conclusive,but it suggeststhe kind of
need forcontinuity of authority, policy,and principlewhichis likelyto separatethequick
characterare pressing,and requirean un- and the dead, the meaningful and the trite,
ceasingeffort to mastertheinstruments gen- in the studyof cooperativesystemsin or-
eratedin the courseof action.This generic ganizedaction.15
tensionis specifiedwithinthe termsof each The frameof reference outlinedhere for
cooperativesystem.But for all we finda thetheoryof organization maynowbe iden-
persistentrelationshipbetween need and tifiedas involvingthefollowing majorideas:
commitment in which the latter not only (i) theconceptof organizations as coopera-
qualifiesthe formerbut unites with it to tivesystems, adaptivesocialstructures, made
producea continuous stateoftension.In this up of interactingindividuals,sub-groups,
way,thenotionof constraint in and informalplus formalrelationships;(2)
(as reflected
tensionor paradox) at oncewidensand more structural-functional analysis,whichrelates
closely specifiesthe frameof referencefor variable aspects of organization(such as
organizational analysis. goals) to stable needs and self-defensive
For Malinowski,thecoreof functionalismmechanisms; (3) the concept of recalci-
was containedin the view that a cultural tranceas a qualityof the toolsof social ac-
fact mustbe analyzedin its setting.More- tion,involvinga break in the continuumof
over,he apparentlyconceivedof his method adjustmentand definingan environment of
as pertinent to the analysisof all aspectsof constraint,commitment, and tension.This
culturalsystems.But thereis a morespe- frameof reference is suggestedas providing
cificproblem,one involving a principleofse- a specifiablearea of relationswithinwhich
lectionwhichservesto guide inquiryalong
significantlines.Freud conceivedof the hu- "This is not meant to deprecate the study of
organizationsas economies or formal systems.The
man organismas an adaptivestructure, but latter represent an independent level, abstracted
he was not concernedwithall humanneeds, from organizational structuresas cooperative or
nor with all phases of adaptation.For his adaptive systems ("organisms").

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 FOUNDATIONS OF THE THEORY OF ORGANIZATION 33
predicatesin the theoryof organization will circumstances. A theoryof transformations
be sought,and at the same time setting in organization wouldspecifythosestatesof
forthprinciplesof selectionand relevance the systemwhichresultedtypicallyin pre-
in our approachto the data of organization. dictable,or at least understandable, changes
It will be noted that we have set forth in suchaspectsoforganization as goals,lead-
this frameof referencewithinthe over-all ership,doctrine, efficiency, effectiveness,and
contextof social action.The significance of size. These empiricalgeneralizations would
eventsmay be definedby theirplace and be systematized as theywererelatedto the
operationalrole in a means-endscheme.If stableneedsof thecooperativesystem.
functionalanalysis searches out the ele- Changes in the characteristics of organ-
mentsimportantfor the maintenanceof a izationsmay occuras a resultof manydif-
givenstructure, and thatstructure is one of ferentconditions,not always or necessarily
the materialsto be manipulatedin action, relatedto the processesof organizationas
thenthat whichis functionalin respectto such. But the theoryof organizationmust
the structure is also functional in respectto be selective,so that explanationsof trans-
the action system.This providesa ground formationswill be sought withinits own
for the significance of functionally derived assumptionsor frameof reference. Consider
theories.At thesame time,relevanceto con- the questionof size. Organizationsmay ex-
trol in action is the empiricaltest of their pand formanyreasons-the availabilityof
applicabilityor truth. markets, legislativedelegations, theswingof
opinion-whichmay be accidentalfromthe
COOPTATION AS A MECHANISM OF
pointof view of the organizational process.
ADJUSTMENT To explorechangesin size (as of, say, a
The frameof reference statedabove is in tradesunion) as relatedto changesin non-
fact an amalgam of definition, resolution, organizationalconditionsmay be necessi-
and substantivetheory.There is an element tatedby thehistorical eventsto be described,
of definition in conceivingof formalorgan- but it will not of itselfadvance the fron-
izations as cooperativesystems,thoughof tiers of the theoryof organization.How-
coursethe interactionof informaland for- ever,if "the innatepropensityof all organ-
mal patternsis a question of fact; in a izationsto expand"is assertedas a function
sense,we are resolvingto employstructural- of "the inherentinstabilityof incentives'6
functionalanalysis on the assumptionthat thentransformations havebeenstatedwithin
it willbe fruitful to do so, thoughhere,too, the termsof the theoryof organizationit-
thespecification of needsor derivedimpera- self.It is likelythatin manycases the gen-
tivesis a matterforempiricalinquiry;and eralizationin questionmay represent onlya
our predicationof recalcitrance as a quality minoraspect of the empiricalchanges,but
of the tools of action is itselfa substantive theseorganizational relationsmustbe made
theory, perhapsfundamental to a generalun- explicitif the theoryis to receivedevelop-
derstanding of the natureof social action. ment.
A theoryof organizationrequiresmore In a frameof referencewhich specifies
than a generalframeof reference, though needs and anticipatesthe formulation of a
the latteris indispensableto informthe ap- set of self-defensive responsesor mecha-
proach of inquiryto any givenset of ma- nisms,the latter appear to constituteone
terials.Whatis necessaryis theconstruction kindof empiricalgeneralization or "possible
of generalizationsconcerningtransforma-predicate"withinthe generaltheory.The
tionswithinand amongcooperativesystems. needs of organizations(whateverinvestiga-
These generalizationsrepresent,from the tionmay determine themto be) are posited
standpoint of particular cases, possible as attributesof all organizations, but the
predicateswhich are relevantto the ma- responsesto disequilibrium will be varied.
terials as we know them in general,but
whichare not necessarilycontrolling in all 6
Barnard, op. cit., pp. I58-9.

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34 AMERICAN SOCIOLOGICAL REVIEW

The mechanisms used by the systemin ful- uresor attemptsomehowto win theconsent
fillment of its needs will be repetitiveand of the governed.One meansof winningcon-
thusmaybe describedas a specifiable set of sentis to cooptelementsintotheleadership
assertionswithinthe theoryof organization, or organization,usually elementswhichin
but any givenorganization may or may not some way reflectthe sentiment, or possess
have recourseto the characteristic modesof theconfidence oftherelevantpublicor mass.
response.Certainlyno given organization As a result,it is expectedthat the new ele-
will employall of the possiblemechanisms mentswill lend respectability or legitimacy
whichare theoretically available.WhenBar- to theorgansof controland thusreestablish
nard speaks of an "innatepropensity of or- the stabilityof formalauthority.This proc-
ganizationto expand" he is in fact formu- ess is widelyused,and in manydifferent con-
lating one of the general mechanisms, texts.It is met in colonialcountries, where
namely,expansion,whichis a characteristic the organs of alien controlreaffirm their
mode of responseavailable to an organiza- legitimacyby cooptingnative leaders into
tion underpressurefromwithin.These re- thecolonialadministration. We findit in the
sponsesnecessarilyinvolvea transformationphenomenonof "crisis-patriotism" wherein
(in thiscase, size) of somestructural aspect normallydisfranchised groupsare temporar-
of theorganization. ily given representationin the councilsof
Other examples of the self-defensivegovernment in orderto win theirsolidarity
mechanismsavailable to organizationsmay in a time of nationalstress.Cooptationis
deriveprimarilyfromthe responseof these presentlybeing consideredby the United
organizationsto the institutionalenviron- StatesArmyin its studyofproposalsto give
mentsin whichtheylive. The tendencyto enlisted personnel representationin the
constructideologies,reflecting the need to court-martial machinery-aclearlyadaptive
come to termswith major social forces,is responseto stressesmade explicitduringthe
one such mechanism.Less well understood war, the lack of confidence in the adminis-
as a mechanism of organizationaladjustment trationof armyjustice.The "unity"parties
is whatwe maytermcooptation.Somestate- of totalitarianstates are anotherformof
mentof themeaningof thisconceptmayaid cooptation; companyunions or some em-
in clarifyingtheforegoing analysis. ployee representationplans in industryare
Cooptationis theprocessofabsorbingnew stillanother.In each of thesecases, the re-
elementsintotheleadershipor policy-deter- sponseof formalauthority(privateor pub-
miningstructureof an organizationas a lic, in a largeorganization or a smallone) is
meansof avertingthreatsto its stabilityor an attemptto correcta state of imbalance
existence.This is a defensivemechanism, by formalmeasures.It will be noted,more-
formulated as one of a numberof possible over,thatwhatis sharedis the responsibil-
predicatesavailable for the interpretationityforpowerratherthanpoweritself.These
of organizationalbehavior.Cooptationtells conditionsdefinewhat we shall referto as
us somethingabout the process by which formalcooptation.
an institutional environment impingesitself (2) Cooptationmay be a responseto the
upon an organizationand effects changesin pressureof specificcentersof power.This
its leadershipand policy. Formal authority is not necessarilya matterof legitimacyor
mayresortto cooptationunderthefollowing of a generaland diffuselack of confidence.
generalconditions: These may be well established;and yet or-
(i) When thereexistsa hiatus between ganizedforceswhichare able to threatenthe
consentand control,so that the legitimacy formalauthoritymay effectively shape its
of the formalauthorityis called into ques- structure and policy.The organization in re-
tion.The "indivisibility" of consentand con- spectto itsinstitutionalenvironment-or the
trol refers,of course,to an optimumsitua- leadershipin respectto its ranks-musttake
tion.Wherecontrollacks an adequatemeas- theseforcesintoaccount.As a consequence,
ureofconsent, itmayrevertto coercivemeas- the outside elementsmay be broughtinto

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 FOUNDATIONS OF THE THEORY OF ORGANIZATION 35
the leadershipor policy-determining struc- entsrespondto it as individuals,theremay
ture,may be givena place as a recognition be a rude awakeningwhen organizationof
of and concessionto the resourcestheycan those constituentson a non-governmental
independently command.The representationbasis createsnucleiof powerwhichare able
of intereststhroughadministrative constitu- effectively to demanda sharingof power.1
enciesis a typicalexampleof this process. The significance of cooptationfororgan-
Or, withinan organization, individualsupon izationalanalysisis not simplythatthereis
whomthe groupis dependentfor fundsor a changein or a broadeningof leadership,
otherresourcesmay insistupon and receive and that this is an adaptive response,but
a sharein the determination of policy.This also thatthischangeis consequential forthe
formof cooptationis typicallyexpressedin characterand roleoftheorganization. Coop-
informalterms,for the problemis not one tation involves commitment, so that the
of responding to a state of imbalancewith groupsto whichadaptationhas been made
respectto the"peopleas a whole"but rather constrainthe fieldof choiceavailableto the
one of meetingthe pressureof specificindi- organizationor leadershipin question.The
vidualsor interest-groups whichare in a po- character of the coopted elements will
sitionto enforcedemands.The latterare in- necessarilyshape (inhibitor broaden) the
terestedin the substanceof powerand not modes of action available to the leadership
its forms.Moreover,an open acknowledge- whichhas won adaptationand securityat
mentof capitulationto specificinterests may the price of commitment. The conceptof
itselfundermine thesenseoflegitmacy ofthe cooptationthusimplicitysets forththe ma-
formal authoritywithin the community. jor pointsof the frameof reference outlined
Consequently, thereis a positivepressureto above: it is an adaptive responseof a co-
refrainfromexplicitrecognition of the re- operativesystemto a stableneed,generating
lationshipestablished.This formof the co- transformations whichreflectconstraints en-
optativemechanism, havingto do with the forcedby therecalcitrant toolsof action.
sharingof power as a responseto specific
pressures,may be termedinformalcoopta-
7 It is perhaps useful to restrictthe concept
tion. of cooptation to formal organizations,but in fact
Cooptationreflectsa state of tensionbe- it probably reflectsa process characteristicof all
tween formalauthorityand social power. group leaderships.This has received some recogni-
The former is embodiedin a particularstruc- tion in the analysis of class structure,whereinthe
ture and leadership,but the latterhas to ruling class is interpretedas protectingits own
stabilityby absorbingnew elements.Thus Michels
do with subjective and objective factors made the point that "an aristocracycannot main-
which controlthe loyalties and potential tain an enduring stability by sealing itself off
manipulability of the community. Wherethe hermetically."See Robert Michels, Umschichtungen
formalauthorityis an expressionof social in den herrschendenKlassen nach dem Kriege
(Stuttgart: Kohlhammer, I934), p. 39; also Gaetano
power,its stabilityis assured.On the other Mosca, The Ruling Class (New York: McGraw-
hand, when it becomes divorcedfromthe Hill, I939), p. 4I3ff. The alliance or amalgama-
sourcesof social powerits continuedexist- tion of classes in the face of a commonthreatmay
ence is threatened.This threatmay arise be reflectedin formal and informalcooptative re-
fromthe sheer alienationof sentimentor sponses among formal organizations sensitive to
class pressures.In a forthcoming volume, TVA and
fromthe fact that other leadershipshave the Grass Roots, the author has made extensiveuse
controlover the sources of social power. of the concept of cooptationin analyzingsome as-
Wherea formalauthorityhas been accus- pects of the organizationalbehaviorof a government
tomedto the assumptionthat its constitu- agency.

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