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Major subtheories for a behavioral theory of the firm: theories of organizational goals, org expectations, org choice and org. control.
Conception of organization: "It is a coalition of individuals, some of them organized into subcoalitions."... " any theory of organizational goals must deal succesfully with the obvious potential for internal goal conflict inherent in a colalition of diverse individuals and groups" (Pg 27)
The goal formation process for a coalition:
1.- bargaining process by which the composition and general terms of the coalition are fixed
2.- the internal organizational proceses of control by which objectives are stabilized and elaborated
3.- the proecess of adjustement to esperience by which coalition agreements are altered in responseto environmental changes.
" We have argued that the goals of a business firm are a series of more or less independent constraints imposed on the organization through a process of bargaining among potential coalition members and elaborated over time in response to short time pressures. Goals arise in such a form because the firm is, in fact, a coalition of participants with disparate demands, changing foci of attention, and limited ability to attend to all organization problems simultaneously" (pg 43)
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If you teach this subject, or are a self-directed doing-it-on-your-own student, check out this text. Recommended. Reviewed by Gerry Stern, author of Stern's SourceFinder: The Master Directory to HR and Business Information and Resources, Stern's CyberSpace SourceFinder and founder, HRconsultant.com Management InfoCenter