McKelvey, William W.; Kilmann, Ralph H.
August 1973
Academy of Management Proceedings (0065-0668);1973, p489
Conference Proceeding
The article reports on elements of organizational structure that can be altered to control costs. The authors focus on differentiation and integration within industrial organizations. It is suggested that organizations develop subsystems in an attempt to minimize costs and deal with issues of reciprocal interdependence. Studies dealing with the independent behaviors of individual subsystems within organizations are examined. The authors allege that select subsystems are even able to manage themselves and alter their individual structures in order to facilitate the decision making process. They argue in favor of purposefulness in subsystems. Organically formed subsystems are also discussed.


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