Organizations in action

3 important questions on Organizations in action

How does Thompson differ from Mintzberg's theory conceptually?

Mintzberg approaches environments as a given. However, Thompson does not approach environment as a given, but as something you can adapt on.

What is the meaning of bounded rationality in Thompson's theory?

Thompson argues organizations are open systems (organizationals need to adapt) striving for predictability (as closed systems do).

Bounded rationality is the inside system influences its way to act in its environment. So, its basically maneuvering in an environment by balancing between predictability and adaptability (balancing between open and closed systems). So, under the condition of rationality organizations are open systems that strive for closeness.

Based on what two elements do organizations behave differently?

1. Based on different characteristics of technology (primary process)
2. Based on different characteristics in the environment. (exogenous factors)

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