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Organization Theory
(1970s)
Organization theory is a modern theory of the firm which states that the goals and activities of a firm are the results of its organizational structure.
Organization theory challenges the traditional assumption of profit maximization by management, which is now seen as content to earn just satisfactory profits.
Also see: theory of the firm, satisficing, agency theory, theory of the growth of the firm, managerial theories of the firm, bureaucracy
Source:
O E Williamson, Markets and Hierarchies, Analysis and Antitrust Implications: A Study in the Economics of Internal Organizations (New York, 1975);
J B Barney and W G Ouchi, eds, Organizational Economics (San Francisco and London, 1986)
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