Relationships between the individual and organizations

Loyalties to an organization strengthen the tie of relationships between the individual and the organization. Loyalties help coordinate decisions by assuring that the members of an organization will act in a predictable pattern. Problem involving loyalties develop when the individuals feels torn among the goals of different groups. At times the loyalty toward narrow group say a particular department of a company may conflict with the loyalty toward the broader group, the company.

Responsibility has always been an important concept in organization and usually refers to the obligation or duty of a person to act. The importance of responsibility in broader terms is the power of a personal code of orals to control the conduct of an individual. Organization behavior is affected by the entire moral framework of those within the organization. Effective organizational activities depend upon some common moral foundation.

Te approach to organization depends upon the assumptions that one makes concerning the type of people who operate in ‘an organization. Are they primarily rational beings? Do they try to maximize absolutely? Do they, be nature, like into a fit into organizations, or do they naturally have conflicts with organizations?

The economists make the assumption that people are economic, that they strive to maximize profits, and they act rationally and intelligently toward their goals. The psychologist points out that people have emotions and often respond in non-rational ways. Organization theorists assume that the administrative man tries to be rational and that he attempts to find a satisfactory solution that may not necessarily be the optimum. Administrative man thus tries to act rationally, although conscious of limitations and tendencies to act in a non-rational manner.

Most recently, comparative research across national boundaries has indicated that organization structures differ as they are affected by moral values, political systems, stages of economic development, educational systems, and culture. In adjusting to the multiple environments, multinational firms have developed complex overall structure s that permit variations for subsidiaries operating n different eternal environments.

Although some contingency theories have yet to identify and measure the effect of other specific variables on organization design, the current approach is to recognize that many environmental factors have a significant impact. Thus, the earlier trend to search for a single universal theory has given way to a search for the individual environmental variables that must be considered.