“[Formal structures of formal organizations] never succeed in conquering the non-rational dimensions of organizational behavior.”

—  Philip Selznick

Source: "Foundations of the Theory of Organization," 1948, p. 25

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Philip Selznick 20
American sociologist 1919–2010

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“The formalization of behavior takes formal power away from the workers and the managers who supervise them and concentrates it near the top of the line hierarchy and in the technostructure, thus centralizing the organization in both dimensions. The result is Type A decentralization. Training and indoctrination produces exactly the opposite effect: it develops expertise below the middle line, thereby decentralizing the structure in both dimensions (Type E). Putting these two conclusions together, we can see that specialization of the unskilled type centralizes the structure in both dimensions, whereas specialization of the skilled or professional type decentralizes it in both dimensions.”

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“Many formal organizational structures arise as reflections of rationalized institutional rules. The elaboration of such rules in modern states and societies accounts in part for the expansion and increased complexity of formal organizational structures. Institutional rules function as myths which organizations incorporate, gaining legitimacy, resources, stability, and enhanced survival prospects. Organizations whose structures become isomorphic with the myths of the institutional environment-in contrast with those primarily structured by the demands of technical production and exchange-decrease internal coordination and control in order to maintain legitimacy. Structures are decoupled from each other and from ongoing activities. In place of coordination, inspection, and evaluation, a logic of confidence and good faith is employed.”

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Philip Selznick (1919–2010) American sociologist

Source: "Foundations of the Theory of Organization," 1948, p. 25

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