A Social System Analysis of the Effectiveness of an Economic Organization Otto Carlo Sampson Jr
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Iowa State University Capstones, Theses and Retrospective Theses and Dissertations Dissertations 1973 A social system analysis of the effectiveness of an economic organization Otto Carlo Sampson Jr. Iowa State University Follow this and additional works at: https://lib.dr.iastate.edu/rtd Part of the Sociology Commons Recommended Citation Sampson, Otto Carlo Jr., "A social system analysis of the effectiveness of an economic organization" (1973). Retrospective Theses and Dissertations. 4972. https://lib.dr.iastate.edu/rtd/4972 This Dissertation is brought to you for free and open access by the Iowa State University Capstones, Theses and Dissertations at Iowa State University Digital Repository. It has been accepted for inclusion in Retrospective Theses and Dissertations by an authorized administrator of Iowa State University Digital Repository. For more information, please contact [email protected]. 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Xerox University Microfilms 300 North Zeeb Road Ann Arbor, Michigan 48106 73-25,252 SAMPSON, Jr., Otto Carlo, 1929- A SOCIAL SYSTEM ANALYSIS OF THE EFFECTIVENESS OF AN ECONOMIC ORGANIZATION. Iowa State University, Ph.D., 1973 Sociology, general university microfilms,. A XjcîvOX.Company . Ann Arbor, michigan THIS DISSERTATION HAS BEEN MICROFILMED EXACTLY A3 RECEIVED. A social system ajialysis of the effectiveness of an economic orgsunization by Otto Carlo Sampson, Jr. A Dissertation Submitted to the Graduate Faculty in Partial Fulfillment of The Requirements for the Degree of DOCTOR OF PHILOSOPHY Department: Sociology and Anthropology Major: Sociology Approved: Signature was redacted for privacy. e of Major Work Signature was redacted for privacy. For the Major DepartmentDepartmen Signature was redacted for privacy. For the Graduate College Iowa State University Ames, Iowa 1973 ii TABLE OF CONTENTS Page CHAPTER 1. INTRODUCTION 1 Statement of Problematic 1 Dissertation Objectives 9 Approach Followed 10 CHAPTER 2. FARMER COOPERATIVES 13 Introduction 13 Meaning and Importance of Farmer Cooperatives 13 Development and Growth of Farmer Cooperatives 15 CHAPTER 3. THEORETICAL FRAMEWORK 23 Introduction 23 What and Why of Theory 24 Organizational Theory 29 Formal Organizations 40 Orgemizational Effectiveness 60 Two Models and Approaches to the Assessment of Orgaoiizational Effectiveness 68 Selected Empirical Studies of Orgaaiizational Effectiveness 73 Orientation, Means, and Ends 85 Social Processes and Effectiveness 90 Derivation of Hypotheses 94 CHAPTER 4. METHODS 119 Introduction 119 iii Page CHAPTER 5. FINDINGS 139 Introduction 139 CHAPTER 6. DISCUSSION AND IMPLICATIONS 176 CHAPTER 7. SUMMARY 207 LITERATURE CITED 219 ACKNOWLEDGEMENTS 227 APPENDIX A 230 APPENDIX B 248 APPENDIX C 256 APPENDIX D 257 APPENDIX E 260 1 CHAPTER 1. INTRODUCTION Statement of Problematic The rapid growth of con^lex organizations is one of the distinguishing characteristics of modem societies. Deliberately planned formal structures appear imperative to the satisfaction of most human needs auid interests in these societies. Almost everything social is in some way affected by one or more formal organizations (Etzioni, 1964:1)o Major technological, ecological, and social changes have resulted in organization societies in which there is greater dependence upon formal, impersonal relations between people in many areas of human relations. The decline in the agraricin way of life has been accompanied by complex patterns of industrial-urban living. In the past, the Gemeinschaft environ ment facilitated a preponderance of interpersonal relations based on intimate feelings and a high degree of informality. The pres ent trend is toward a more Gesellschaft environment in which inter personal relations are increasingly formal, Both rural and urban segments cf the population aire being affected by this dominating trend. In modern societies, emphasis on sentiment appears to be less important than en^>hasis on such factors as contract ajid ra tional calculation. One of the best sociological illustrations 2 of these chamges is the phenomenal increase in the number and complexity of formal organizations. Sociological interest in formal orgemizations can be traced to the founding of the discipline in the nineteenth century. How ever, one of the first persons to produce a classical work explain ing the trend toward increasing rationality and greater orgaaiiza- tional conplexity was Meuc Weber (1947:329-341) whose discussion of bureaucracy did much to capture the attention of students of formal organizations. His ideal type bureaucracy provided the conceptual framework upon which many studies of formal organiza tions have been based. Weber was particularly concerned with patterns of authority auid the rational aspects of formal orgainiza- tions. For some writers, Weber's es^hasis on the rational and formal aspects of humain behavior has become the basis for criti cism (Mouzelis, 1969:38 and Gouldner, 1965:402-404), They argue 1*7O"»0>" T* O 'TT O4-V* v-3 4-4 ^1 ^ O /">f V»1 ^^ 3» T T o devoting insufficient attention to informal groups found within formal structures. Another criticism has been directed against his assertion that the goals of formal organizations are delib erately planned, that is, Weber failed to stress the unplanned cuid irrational aspects of such organizations. In addition, Etzioni (1961:xiii) says Weber's model of bureaucracy places too much em phasis on the similarities of formal orgsuiizations and too little enphasis on how they differ. 3 A common characteristic of all formal organizations is their focus on the achievement of goals. Yet, there axe divergent per- ^ectives concerning the nature of goals. For instance, writers such as Etzioni (1964) stress the primacy of goals in keeping the organization intact, while writers such as Hall (1970:3) argue that goals may at times constrain orgamizational activ ities. Etzioni (1964:5) says: Goals also constitute a source of legit imacy which justifies the activities of an organization and, indeed, its very existence. Moreover, goals serve as stand ards by which members of an organization and outsiders caai assess the success of the organization — i.e., its effectiveness and efficiency. In spite of the diverse perspectives concerning goals, much has been written about organizational effectiveness in terms of the achievement of formal goals. However, there is a paucity of empirical studies of orgaoiizational goals, as well as orgarni za- tional effectiveness. Furthermore, the research findings tend to be inconsistent. Most of the writings on organizational goals and orgamiza- tional effectiveness have been published since World War II (For exanple, see Comrey elt al.. 1952; Georgopoulos and Tannenbaum, 1957; Etzioni, 1964; Hall, 1970; and Perrow, 1961), Ghorpade (1971:173) says studies of orgainizational goal;, have been treated in a cursory and simplistic fashion. Prior to World War II, stud ies of formal organizations tended to stress the psychological 4 aspects of participation in orgaoiizations, auid little attention was given to such topics as organizational goals and organiza tional effectiveness (Blau, 1962:289). According to Blau (1962: 289), "Empirical research eîqplicitly oriented to problems of bureaucratic organization began to appear only sifter World War II, primarily in the form of case studies, such as Selznick's study of the TVA and Gouldner's study of industrial bureaucracy." The primary concern in this dissertation is with orgamiza- tional effectiveness. Therefore, some attention will be given to the nature of organizational goals. The need for empirical studies of organizational effectiveness is