ABSTRACT

The organization theory which, both in the United States and in Europe, has for a long time served to explain and to support business operations, and which in point of fact still reflects the underlying thinking in many contemporary firms in America and in Europe, is based in essence on the principle that the business firm is a closed system, governed and controlled by the employer. This could be called a monistic system. In the firm, therefore, a univalent system is considered to prevail, provided by the employer. The relationships in the firm are then all unidirectional, irradiating from the top downwards.