Organizational Design

The Concept of the Firm

Joseph McGuire


Abstract
Sociologists, psychologists, economists, mathematicians, all view the firm in different lights. Some think of it as a blind organism, bent on. survival at all costs. Others treat it as a rational being impelled solely by the desire to make a profit. Mathematicians chart its vagaries in terms of gaming theory and automationists look on it as a decision making machine. Sociologists analyze its group relationships and dynamics. All of which may prove, as this survey article indicates, that there is no universal definition for so complex a thing, and today s businessmen, seeking one, had best examine all such concepts with open eyes and an open mind.

California Management Review

Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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