Evaluating organizations according to an efficiency criterion would make it possible to predict the form organizations will take under certain conditions. Organization theory has not developed such a criterion because it has lacked a conceptual scheme capable of describing organizational efficiency in sufficiently microsopic terms. The transactions cost approach provides such a framework because it allows us to identify the conditions which give rise to the costs of mediating exchanges between individuals: goal incongruence and performance ambiguity. Different combinations of these causes distinguish three basic mechanisms of mediation or control: markets, which are efficient when performance ambiguity is low and goal incongruence is high; bureaucracies, which are efficient when both goal incongruence and performance ambiguity are moderately high; and clans, which are efficient when goal incongruence is low and performance ambiguity is high.

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Markets, Bureaucracies, and Clans.

The Social Psychology of Organizations.

\"What are your assumptions (implicit as well as explicit) about the most effective way to manage people?\" So began Douglas McGregor in this 1960 management classic. It was a seemingly simple question he asked, yet it led to a fundamental revolution in management. Today, with the rise of the global economy, the information revolution, and the growth of knowledge-driven work, McGregor's simple but provocative question continues to resonate-perhaps more powerfully than ever before. Heralded as one of the most important pieces of management literature ever written, a touchstone for scholars and a handbook for practitioners, The Human Side of Enterprise continues to receive the highest accolades nearly half a century after its initial publication. Influencing such major management gurus such as Peter Drucker and Warren Bennis, McGregor's revolutionary Theory Y-which contends that individuals are self-motivated and self-directed-and Theory X-in which employees must be commanded and controlled-has been widely taught in business schools, industrial relations schools, psychology departments, and professional development seminars for over four decades. In this special annotated edition of the worldwide management classic, Joel Cutcher-Gershenfeld, Senior Research Scientist in MIT's Sloan School of Management and Engineering Systems Division, shows us how today's leaders have successfully incorporated McGregor's methods into modern management styles and practices. The added quotes and commentary bring the content right into today's debates and business models. Now more than ever, the timeless wisdom of Douglas McGregor can light the path towards a management style that nurtures leadership capability, creates effective teams, ensures internal alignment, achieves high performance, and cultivates an authentic, value-driven workplace--lessons we all need to learn as we make our way in this brave new world of the 21st century.

The Human Side of Enterprise.

Growing disillusionment among new members of organizations has been traced to inadequacies in approaches to organizational entry. Current directions of research on organizational entry and their limitations are described, and a new perspective is proposed. The new perspective identifies key features of newcomers' entry experiences, including surprise, contrast, and change, and describes the sense-making processes by which individuals cope with their entry experiences. Implications for research and practice on organizational entry are drawn.

Surprise and sense making: what newcomers experience in entering unfamiliar organizational settings.

This article uses Ajzen's theory of planned behavior to build an entrepreneurial intention questionnaire (EIQ) and analyzes its psychometric properties. The entrepreneurial intention model is then ...

https://papers.ssrn.com/sol3/Delivery.cfm/etap_318.pdf?abstractid=1396448&mirid=5

Development and Cross-Cultural Application of a Specific Instrument to Measure Entrepreneurial Intentions

The paper has 2 major objectives: first, to identify control and delegation issues confronting multinational corporation managers; second, to develop a conceptual model to assist multinational corporation managers in selecting appropriate control systems and determining the extent of delegation to be provided to subsidiary managers. Finally, the paper suggests directions for future research.

/pdf/multinational-corporations-control-systems-and-delegation-4h5dr1m7wn.pdf

Multinational Corporations: Control Systems and Delegation Issues

Aspects of the “ideal types” of American (Type A) and Japanese (Type I) forms of organization are compared and related to their socio-cultural roots. A hybrid organizational “ideal type” (Type Z), which is particularly appropriate for many situations in today's changing American society, is presented.

Type Z Organization: Stability in the Midst of Mobility

Organization development is one of many American management techniques utilized overseas. Based on an empirically derived model of culture, the underlying values of OD are compared to those that predominate in 40 countries. Specific OD interventions are then examined separately to determine their fit with the values of these countries. The results help explain why OD has encountered problems and provide guidelines for selecting and carrying out interventions in a culturally sensitive manner.

Organization Development and National Culture: Where's the Fit?

Organizational control has traditionally been described within the framework of the ideal type of Weberian bureaucracy, in which rules and regulations specify desired behavior, and rewards are based on explicit performance measures. This paper describes an alternative organizational ideal type that relies on an organizational culture for control. In this type of system, behavior is specified by the organizational culture, and performance is maintained via mechanisms of social pressure. An example of this letter type of control is found in the Type Z organization, an American organizational form similar in many ways to the Japanese form. Particularly interesting is the way in which a Type Z organization manages overseas subsidiaries: by establishing the organizational culture in the subsidiary. The process by which this is accomplished and by which control is maintained are described in a comparative empirical study of the headquarters and subsidiary of a firm representative of each control type. The implications of this approach for management of the multinational firm and for the host country are also discussed.

The Transfer of Organizational Culture Overseas: An Approach to Control in the Multinational Corporation

A model of cultural control is developed and contrasted with the more familiar bureaucratic control model. This model is used to explain processes of strategic adaptation as observed in Japanese cultural control and American bureaucratic control firms. A discussion of the strategic costs and benefits to the organization associated with each type of control is then presented.

Alfred M. Jaeger

Papers

Multinational Corporations: Control Systems and Delegation Issues

Type Z Organization: Stability in the Midst of Mobility

Organization Development and National Culture: Where's the Fit?

The Transfer of Organizational Culture Overseas: An Approach to Control in the Multinational Corporation

Control systems and strategic adaptation: Lessons from the Japanese experience