Prolegomena to a Theory of Organization

Abstract : This is the first two parts of the proposed manuscript. The ultimate form of a theory of organization will undoubtedly be highly mathematical, but the ground work must be laid in careful description, which, since it precedes the theory, is qualitative and approximate in nature. A framework is discussed within which to make these initial descriptive analyses of organizations. The framework deals solely with the centrally directed organizations. This is analyzed in terms of inner and outer activities, the delegation and arrangement of competences (a neutral word introduced to avoid such terms as organs), and the systems of signaling. Game-theoretic ideas are drawn upon considerably. There is also some discussion within the proposed framework of the concepts of learning, input-output, costs and size of organizations.