The relationship between organizations and environment is examined within the context of General Systems Theory. It is argued that the policy problem confronting the modern organization is to cope with environmental turbulence. Three modes of coping with fundamental uncertainty are identified. They are (a) the adoption of rules, (b) the hierarchical decomposition of functions and (c) the establishment of critical relationships. The strategies, it is concluded, serve to bridge the micro-macro divide in economic behaviour.
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