1. Organization Theories Transaction Cost Economics (TCE) – Opportunism, Information impactedness – efficiency, outsourcing vs. integration Agency Theory – Nexus of contracts. Fiduciary Duty. Principal-Agent legal structures. Alignment of interests, financial market controls. Output control vs. process control. Agency costs. Systems Theory – Open/Organic, Closed/Mechanistic, Socio-technical system, Micro uncertainty macro predictability Institutional Theory – Original Selznic: Institutions “infused with value distinct from that created to reach to basic profit/product objectives of the firm. Modern: Dimaggio and Powell: Instituional Isomorhism, Collective Rationality, Mimetic, Coercive, Legitimacy forces. Resource Based View – Unique Resources and Capabilities Packages. Core competencies. Resource Dependency – Power, Politics, trade-offs Population Ecology: – Consonance, Industry evolution, niches, survival of strategic groups, punctuated equilibrium A sociology vs. an organization theory – Sociology: A loosely coupled system or web of beliefs and practices that solve the common problem of living together sustainably. – Organization Theory: Reason why there are organizations and what they are as entities in and of themselves.

2. McGregor, 1967 Original Open Systems Organization Theory Organizations are open systems – Subsystems with an organization are also open systems Organizations are organic systems – Actively adaptive and dynamic. Neg-entropy. Organizations are socio-technical systems – Interactive-interdependent processes of people and technologies.

3. Selznick, 1957 Orignial Institutional Theory Organizations become Institutions Institutions are infused with value that is distinct from that created to reach to basic profit/product objectives of the firm. Institutional forces restrict change Leaders of institutions must be statesmen