ABSTRACT

The survey conducted in the Australian Public Service is an adapted version of the results of considerable research carried out by the Cranfield Management Development Centre team over a number of years in the private and public sectors. The foundations of organizational demography research is based on the structuralist sociological theories that emphasize the importance of numbers and proportions for understanding interaction processes in social aggregates. Broader, qualitative organizational goals, beyond traditional profit maximization are developed for performance, such as clear vision, unity of strategic direction and quality of dialogue. Tushman and Romanelli find that the internal coordination requirement associated with an organization’s strategy increases structural elaboration, which creates inertia that promotes the maintenance of the status quo, even if such clear dysfunctional consequences, as performance downturns, are evident. Social psychological research on decision making in groups shows that members’ perceptions of similarity with others, particularly in values, beliefs and attitudes, increase group identification and cohesion.