ABSTRACT

It is the purpose of this paper to argue that this simple theory is inadequate, primarily because it fails to give due attention to the agency of choice by whoever have the power to direct the organization. We shall argue that this 'strategic choice' extends to the context within which the organization is operating, to the standards of performance against which the pressure of economic constraints has to be evaluated, and to the design of the organization's structure itself. Incorporation of the process whereby strategic decisions are made directs attention onto the degree of choice which can be exercised in respect of organizational design, whereas many available models direct attention exclusively onto the constraints involved. They imply in this way that organizational behaviour can be understood by reference to functional imperatives rather than to political action.