Organisation: Philosophy, Structure and Morality

A central aim of this paper is synthesis between conflicting rational and contextual views of the firm. A coherent model of the firm is demonstrated that bounds the validity of both approaches. The model is intended to be prescriptive in concept but not in form. The concept should enable the evolution of structure from whatever form a firm currently takes. The synthesis in turn is relevant to several manifestations of the dichotomy including: mechanistic versus organic objective versus subjective collective versus individual centralisation versus delegation planned versus emergent strategy market exploitation versus market exploration negative versus positive feedback control versus liberty They are all manifestations of Porters Competitive Strategies in which a company may pursue only one of two strategies, Cost Leadership with its focus on perfection and Differentiation and a focus on infinity or diversification. It is intended that the paper should provide a framework in which these dichotomies can be explored but does not set out to directly address each one. Readers, hopefully, might test the integrity of the model on any of these associated conflicts that are not specifically addressed in this paper. A central aim of this paper is synthesis between conflicting rational and contextual views of the firm. A coherent model of the firm is demonstrated that bounds the validity of both approaches. The model is intended to be prescriptive in concept but not in form. The concept should enable the evolution of structure from whatever form a firm currently takes. The synthesis in turn is relevant to several manifestations of the dichotomy including: mechanistic versus organic objective versus subjective collective versus individual centralisation versus delegation planned versus emergent strategy market exploitation versus market exploration negative versus positive feedback control versus liberty They are all manifestations of Porters Competitive Strategies in which a company may pursue only one of two strategies, Cost Leadership with its focus on perfection and Differentiation and a focus on infinity or diversification. It is intended that the paper should provide a framework in which these dichotomies can be explored but does not set out to directly address each one. Readers, hopefully, might test the integrity of the model on any of these associated conflicts that are not specifically addressed in this paper.