“If there is a single assumption which pervades conventional organizational theory, it is that authority is the central, indispensable means of managerial control.”

—  Douglas McGregor

Source: The Human Side of Enterprise (1960), p. 18 (2006; 24)

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Douglas McGregor 22
American professor 1906–1964

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“Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization — hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc. — comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 15 (p. 21 in 2006 edition)

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“Two of the most widely adopted models of human resource management are the hard and soft versions. These are based on opposing views of human nature and managerial control strategies. The hard model is based on notions of tight strategic control, and an economic model of man according to Theory X, while the soft model is based on control through commitment and Theory Y. We argue that because these assumptions are so divergent, they cannot both properly be incorporated within a single model of human resource management.”

Lynda Gratton (1953) Business theorist

Catherine Truss, Lynda Gratton, Veronica Hope-Hailey, Patrick McGovern and Philip Stiles (1997). "Soft and hard models of human resource management: a reappraisal." Journal of Management Studies, 34(1), 53-73.

“Every managerial act rests on assumptions, generalizations, and hypotheses — that is to say, on theory. Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting; nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 6 (2006; 8)

“Contingency theory states that there is no single organizational structure that is highly effective for all organizations.”

Lex Donaldson (1947) British-Australian organizational sociologist

Lex Donaldson, "The normal science of structural contingency theory." Studying Organizations: Theory and Method. Thousand Oaks, Calif: Sage (1999): 51-70.
Context: Within organization studies, contingency theory has provided a coherent paradigm for the analysis of the structure of organizations. The paradigm has constituted a framework in which research progressed leading to the construction of a scientific body of knowledge... Contingency theory states that there is no single organizational structure that is highly effective for all organizations. It sees the structure that is optimal as varying according to certain factors such as organizational strategy or size. Thus the optimal structure is contingent upon these factors which are termed the contingency factors. For example, a small-sized organization, one that has few employees, is optimally structured by a centralized structure in which decision-making authority is concentrated at the top of the hierarchy, whereas a large organization, one that has many employees, is optimally structured by a decentralized structure in which decision-making authority is dispersed down to lower levels of the hierarchy.

“Knowledge accumulated during recent decades challenges and contradicts assumptions which are still axiomatic in conventional organizational theory. Unfortunately, those classical principles of organization — derived from inappropriate models, unrelated to the political, social, economic, and technological milieu, and based on erroneous assumptions about behavior — continue to influence our thinking about the management of the human resources of industry. Management's attempts to solve the problems arising from the inadequacy of these assumptions have often involved the search for new formulas, new techniques, new procedures. These generally yield disappointing results because they are adjustments to symptoms rather than causes. The real need is for new theory, changed assumptions, more understanding of the nature of human behavior in organizational settings.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 17 (2006: 24)

“Organizational theories have three origins: Max Weber’s original work on bureaucracies which came to define the theory for sociologists, a line of theory based in business schools that had as its focus, the improvement of management control over the work process, and the industrial organization literature in economics. Unlike many fields in sociology, organizational theory has been a multidisciplinary affair since World War II, and it is difficult to understand its central debates without considering its linkages to business schools and economics departments.”

Neil Fligstein (1951) American sociologist

Source: Organizations: Theoretical Debates and the Scope of Organizational Theory, 2001, p. 1

“I shall present a theory - which I call "the theory of the managerial revolution." During the past century, dozens, perhaps even hundreds, of "theories of history" have been elaborated. All of the theories, with the exception of those few which approximate to the theory of the managerial revolution, boil down to two and only two. The first of these predicts that capitalism will continue for an indefinite, but long, time, if not forever:' that is, that the major institutions of capitalist society, or at least most of them, will not be radically changed. The second predicts that capitalist society will be replaced by socialist society. The theory of the managerial revolution predicts that capitalist society will be replaced by "managerial society," that, in fact, the transition from capitalist society to managerial society is already well under way.”

James Burnham (1905–1987) American philosopher

Source: The Managerial Revolution, 1941, p. 7, as cited in: Albert Lepawsky (1949), Administration, p. 12-13

William H. Starbuck photo

“The history of organization theory contrasts with the history of managerial thought. When people began to compose texts about organized activities, between 2,000 and 3,000 years before the Christian era (BCE), they focused on managerial practices rather than on organizations as such. Several writers proposed general principles for managerial practice before 1000 BCE, so one can say that theories about managing have existed for at least 3000 years. However, these writings often said nothing about the organizational contexts in which managing was to occur. When the writers did make statements about organizations, they did not generalize. They wrote about specific organizations.”

William H. Starbuck (1934) American academic

Source: "The Origins of Organizational Theory," 2005, p. 143

“Behind every managerial decision or action are assumptions about human nature and human behavior.”

Douglas McGregor (1906–1964) American professor

Source: The Human Side of Enterprise (1960), p. 33

“All large organizations have an internal power struggle over the goals and resources of the organization…. In the largest firms, there are two bases of control : formal ownership and authority. Those who own the firm control by virtue of ownership. Authority relations embedded in the organizational structure legitimate how managers can control organizations.”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 10 ; As cited in: François L'Italien, BÉHÉMOTH CAPITAL. Contribution à une théorie dialectique de la financiarisation de la grande corporation. Université Laval, 2012. p. 147 (Many of the following quotes came from this source)

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