"The theme of this book, and the underlying premise of the external perspective on organizations, is that organizational activities and outcomes are accounted for by the context in which the organization is embedded."

“The neglect of context, it is argued, leads to the development of theories that do not have the potential of understanding development and change over time or for understanding the subtle nuances of interaction that are critical in apprehending what is really occurring.”

“Every piece of data suggests that workplaces are in dire shape and there is low levels of trust in leaders. For instance, data on employee engagement from Gallup show that worldwide only about 13% of employees report being engaged with their work, and in the U.S., the number is barely higher at 20%. Job satisfaction has declined almost linearly since 1987 to the present. The Edelman Trust index indicates that the public at large has low trust in leaders, while other surveys show that employees do not expect their own leaders to make ethical decisions or to consistently tell them the truth about difficult situations.”

“The theories in this chapter, focusing on the individual level of analysis, differ somewhat from those in the next chapter, in which a more organizational level of analysis is employed. Although all of the theories are essentially cognitive and social definitionist in nature, particularly as developed in the general sociological literature, there are at least two important subgroups within the social constructionist perspective.”

“According to the resource dependence perspective, firms do not merely respond to external constraint and control through compliance to environmental demands. Rather, a variety of strategies may be undertaken to somehow alter the situation confronting the organization to make compliance less necessary.”

“The domain of organization theory is coming to resemble more of a weed patch than a well-tended garden. Theories of the middle range proliferate, along with measures, terms, concepts, and research paradigms. It is often difficult to discern in what direction knowledge of organizations is progressing — or if, it is progressing at all. Researchers, students of organization theory, and those who look to such theory for some guidance about issues of management and administration confront an almost bewildering array of variables, perspectives, and inferred prescriptions.”

“In New Directions for Organization Theory, Jeffrey Pfeffer offers a comprehensive analysis and overview of the field of organization theory and its research literature. This work traces the evolution of organization studies, particularly its more recent history, and highlights the principle concepts and controversies characterizing the study of organizations. Pfeffer argues that the world of organizations has changed in several important ways, including the increasing externalization of employment and the growing use of contingent workers; the changing size distribution of organizations, with a larger proportion of smaller organizations; the increasing influence of external capital markets on organizational decision-making and a concomitant decrease in managerial autonomy; and increasing salary inequality within organizations in the US compared both to the past and to other industrialized nations. These changes and their public policy implications make it especially important to understand organizations as social entities. But Pfeffer questions whether the research literature of organization studies has either addressed these changes and their causes or made much of a contribution to the discussion of public policy...”