I. A.- VA. 1") I ‘ Q .5 ‘3 “A“: v‘. ‘| ‘F \ - W‘ ; . ‘ NS 0‘ ‘ h . b ‘ ~1. ~\‘..S C n ‘.‘. " u. \b“ 'v "L; A. R ‘ “‘~.. Sa- <\~ ABSTRACT ORGANIZATION AND ENVIRONMENT: A CASE STUDY OF A BRAZILIAN INSTITUTE OF TECHNOLOGICAL RESEARCH BY Luiz Fernando Terra Tallarico The study focused on organization theory, more specifically on the contingency theory of organizations. The differences in conceptual structures among theories led the author to choose one specific approach as a basis for the design of the study. J. D. Thompson was the contingency theoretician selected because of the detailed treatment given by him to the interaction between organization and environment in his book, Organizations in Action. Environmental politics viewed through a nonzero-sum power concept seemed to constitute a relevant area of study, particularly in terms of institutional deve10pment. Eighteen propositions were selected from Thompson's theory which were related to the concepts of power, depen- dence, task environment, domain, goals and organizational assessment. These were judged as composing a coherent whole upon which to base the design of the study. From the propositions, a normative model was derived and a ‘ us. I‘m 9 o: .2::I.Q h.$ :“:. R'Na‘D‘ Q}. "In. v.1 3.6.4. o - . """V‘B“a' , I'm '~Chv..b ..\,.. ‘ u u '.- .‘_,~" u blzs , ‘* hung! a O " u Dn;n" A, A a . ‘1...' U. V.‘. . d " A ‘3 u to . .. ‘ I: . as}- 'b'Vibu . . u I AVN-V' -~ v.-:. ...:’90‘ ,‘ ' h-... H Mo..'.— V.-‘:: O .. ..‘ A . . ho: '~:‘- 2" " vc:-.4- ‘_. . - ..l . u y." ., ' ..I .“c a Opfiv" -‘.'V. . I... ‘ . -" ' A t s‘ n .. :AA': H ~.4‘ Sf». _F a, y‘t'!~.: 9| 1 I “"J.‘ “A .y-‘ \: . H ‘ ExEc‘t; ‘0 Dv. '- \_ ‘ ‘ s. S: “eCt54 u \.. K: D:‘ ‘. . ‘b..: h.“ .ktt“-: ‘ C G h. r“\‘ s ‘1‘!“ ' n“ . \Q 1933.” ‘5 JA u _ “’ua . ‘_ «Z ‘ ‘1 . 3.. 1 L ‘ a Nh~ ‘6‘“ v I . \: A’~‘ , "ynh C Luiz Fernando Terra Tallarico case study was developed in order to verify whether the focal organization operated according to Thompson's prescriptions and to account for any possible discrepancies. The study was not designed primarily to test Thompson's theory or solely to assess the organization; it attempted to speculate about both. In order to operationalize Thompson's concepts, two interview guides were developed, one for the top management of the focal organization and the other for the members of the organization‘s task environment. Documentary evidence and.the author's personal observations supplemented these data. A public research institute operating in the area of food science and located in Brazil was the focal organi- zation chosen for study. Six of its top executives and nine executives belonging to task environment (external) Organizations were interviewed. The final results were that 13 of the 18 prOposi- tions selected were supported by the data collected. For the remaining five there was a complete lack of evidence. Finally, after emphasizing the difficulties of oPerationalizing Thompson's theory, it was suggested that the theory may be most useful as a guide for analyz- ing organizations. .A c ‘Q‘ ORGANIZATION AND ENVIRONMENT: A CASE STUDY OF A BRAZILIAN INSTITUTE OF TECHNOLOGICAL RESEARCH BY Luiz Fernando Terra Tallarico A DISSERTATION Submitted to Michigan State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Department of Management 1976 To Eneida With all my love ii ' ‘5 '9 .‘U'.~.". . ‘ I is: .~ ‘..‘ "d- .A.',.' t ‘ ~ ~' " -. .:.S 0‘ .... .. C no “r ‘ “t o k . I'M-cat. ‘I M‘» .LA A . 'k: . ACKNOWLE DGMENTS This dissertation is the combined result of the efforts of many persons. It is difficult to name all those who aided and to state each individual contribution precisely. Initially, a special note of thanks to the members of my dissertation committee: To Dr. Winston Oberg, Professor, Management Department, Michigan State University, and Chairman of the Committee, I am especially grateful for valuable coun— $61 and dedication. His suggestions and contributions added much to the dissertation, and his understanding, Encouragement, and help are deeply appreciated. To the late Dr. Hendrik 2warensteyn, Professor, Department of Business Law, Insurance, and Office Adminis- tration, Michigan State University, to whose memory I pay "5? deepest respect, I am grateful for all the knowledge I gained from him as a Professor, and also as a man. Particularly, I owe to him the solution of a crisis which arose during the program. To Dr. Carlos José Malferrari, Professor, Depart- mento de Administracao de Empresas de Sao Paulo, Fundacéo iii o‘. IA. O 0:. '0. JV row A » bl'v'. ‘5 0O v~3q o‘u‘e ,' d 'A ‘1‘ no“ a. 'An‘. ‘ I h,.., .. A.‘ ' Q ‘ “.1 :V:Iyu' 1; :7- ‘1' u...“‘ E uh“ I . 'fi::v~n 9L .. C'v-‘AUO‘. ‘.‘:‘ H‘ .‘l. . H" ‘uu..~. . O..- :---'+ “y“,‘; 1 JV“ U-v ‘ ' H u 0. ‘ - I “p h. ‘ ‘ ." I‘ cut: l-Au“' Q .*.~ \\ ., h “ l~"o C“:" 1 5......» C 1 . ‘ .~.'~'=.‘Vo u . ‘ Getfilio Vargas, Brazil, my thanks for his continuous support and help. I would also like to thank the Instituto de Tecnologia de Alimentos (ITAL), Campinas, Sao Paulo, and the Brazilian executives who agreed to partiCipate in this research. Their cooperation made this dissertation possible. I wish to acknowledge the generous financial support provided to me by the Escola de Administracéo de Empresas de Sao Paulo (EAESP), Fundacéo Getulio Vargas, the Ford Foundation, the International Center for the Advancement of Management Education (ICAME), Stanford University, and the Coordenacao de Aperfeicoamento de Pessoal de Nivel Superior (CAPES). I am grateful to Elizabeth Johnston for her Editorial help, and to Irene Orr for her patience and efficiency in typing the manuscript. Without the many years of support and assistance of nw'parents, Carlos and Zaira Tallarico, it is unlikely that this work would even have been attempted. Their Contributions are lovingly appreciated. Finally, my greatest debt is to my loving wife, Eneida, who has given me so much that is impossible to dascuibe here. Our love and the love for our two children, Fernando Henrique and Ana Beatriz, are the wellsprings of my life. iv .-‘.~‘PQA‘¢ i-.- “-‘O . Us. Ih-A-~“‘~ 1"."'h-.- a)“: ”-- O" 0‘ ‘ n c... J. H" A. ‘ .‘u ~" an "F.- ~.~.:r . '\’-~ " I... ‘s s‘. F n V‘h‘: DB's " I “v. r? “~ Ir’,‘\--; 3...! ._ --~ - Q " \ .ro¢—~~~ "’nv...“ A D .4- I s-\J~‘__- “A 9. d N “"U TABLE OF CONTENTS Page DEDICATION o o 'o o o o o o o o o o o o 0 ii ACKNOWLEDGMENTS o o o o o o o o o I o o o o i i i LISTTOF TABLES . . . . . . . . . . . . . . ix LIS T OF FIGURES O O O O Q 0 O O O O O O O O X Chapter I 0 INTRODUCTION 0 O O O O O O O O O O O 1 Foreword . . . . . . . . . . . . 1 Importance of the Topic . . . . . . . 3 Purpose of the Study . . . . . . . . 4 methOdOIOgY I O O O O O O O O O O 6 Type of Organization Selected . . . . 7 Selection of Subjects to be Interviewed . . . . . . . . 7 The Interview . . . . . . . . . 8 The Interview Guide . . . . . . . 9 How Interview Results were Analyzed . . 9 Limitations of the Study . . . . . . . 10 Limitations Regarding the Sample . . . 10 Limitations Of the Interview Guide . . 11 Format . . . . . . . . . . . . . 12 Chapter I Footnotes . . . . . . . . 13 11- ORGANIZATION AND ENVIRONMENT: HISTORICAL DEVELOPMENT OF THE THEORY AND REVIEW OF THE LITERATURE I O C O O C I C I O O l 5 Introduction . . . . . . . . . . . 15 The Environmental Impact on Organizations: Earlier Contributors . . . . . . . 16 Chester I. Barnard . . . . . . . 16 March and Simon . . . . . . . . 20 Victor Thompson . . . . . . . . 28 E. L. Trist and A. K. Rice . . . . . 29 Alfred Chandler . . . . . . . . 31 ‘I:ooa' '0.- ‘5‘ o . "0-. ‘1‘; ‘-.. P"\'-.~, ‘ VV~\‘;>' s Fl: “‘A. v _ ‘ A\‘ t.. C: 't! '11 ‘n ‘I Chapter III. IV. Stanley Udy . . R. H. Hall . . Harold Leavitt . Robert Blauner . Relevant Contributions Toward a Contingency Theory of Organizations Philip Selznick . . . . . . T. Burns and G. M. Stalker . . Charles Perrow . . . . . Joan Woodward . . . . . . Lawrence and Lorsch . . . D. S. Pugh . . . . . . . Contingency Theory of Organizations Present State of the Art . . Chapter II Footnotes . . . . CONCEPTUAL FRAMEWORK AND THE SCHEME OF PROPOSITIONS . . . . . . . . . . Introduction . . . . Conceptual Framework . Domain . . . . Task Environments Domain Consensus Interdependence . The Concepts of Goals . The Assessment of Organization Variables of Assessment . . Problem Definition . . . . . Propositions . . . . . . . Task Environment, Domain and Interdependence . . . . . . The Assessment of Organizations . Goals . . . . . . . . . . Summary . . . . . . . . . Propositions and Interview Questions . . O C O O O O O O O O O O O O O O O O O o 0 U) c o o o o o o o o o o o o o o o o o o o o o o o 0 CASE STUDY: A BRAZILIAN INSTITUTE OF RESEARCH Brief History of ITAL . . . . . . . Internal Organization . . . . . . . Identification of Task Environment Organizations . . . . . . . . . Perceptions of Task Environment Relationships . . . . . Perceptions Revealed by the Top Administrative Group of the Focal Organization . . . . . . . Power and Dependence Relationships . Task Environment Changes . . . . vi 63 63 64 67 68 69 73 74 74 77 78 78 82 86 86 92 93 97 103 109 110 110 126 I “Mar boot 0.. a R. J. an §.. “. ft.“ n \ " Vu- nfl| rt: A Chapter V. Domain Identification and Goal Formulation . The Assessment of the Organization . Perceptions Expressed by Members of Task Environment Organizations . . State Government . . . . .. . Federal Government . . . . .. Food and Agriculture Organization of the United Nations . . - . Food Industry . . . . . . . Summary of the Data . . . . . . Perceptions and Observations Made by the Researcher . . . . . . . Power and Dependence Relationships Task Environment Changes . . . Domain and Goal Formulation . . Organizational Assessment . . . Coalition Identification . . . Individual Power in the Coalition Coalition PhiloSOphy . . . . . Chapter IV Footnotes . . . . . . CONCLUSIONS . . . . . . . . . . Main Findings Regarding the Thompsonian Pr0positions Proposition Proposition Proposition Proposition Proposition Proposition PrOposition Proposition Proposition Proposition 10 PrOpositions 11 and 1 Proposition 13 . . Proposition 14 . . . Propositions 15, 16,and Proposition 18 . . . Restatement of PrOpositions . . . ITAL's Performance and the Prediction of the Normative Model . . . . Concluding Remarks . . . . . . Chapter V Footnotes . . . . . \OmdeIuwaH 2 0 Ho 0 o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o ooomooooooooooooooooo vii Page 129 138 142 142 167 172 179 188 189 189 192 194 194 196 197 198 207 209 209 210 212 214 215 216 217 218 219 220 221 221 223 224 224 226 227 230 236 238 ‘II- -. “.3 'ctq .o. -.Ig.b~v (I) O tn (1) O I V F...“ .tSt at V. f r O r. ;"'| I ‘CQ‘ 1 u.‘ ‘9 c A - Fa '.. ..,“’VV- ”.v‘. n—On b_‘.. . Page APPENDICES A. Questionnaire for T0p Administrative Group of the Focal Organization . . . . . . . 239 B. Questionnaire for Task Environment Organization Members About Their Interaction with the Focal Organization (Organization X) . . . . . . 253 C. Questionnaire Completed by the Coordinator of Agricultural Research, Secretary of Agriculture, State of Sao Paulo . . . . . 266 BIBLIOGRAPIIY O C O C O O O O O O O O O . O 2 86 viii Fab ,.4 v. \u .. ..A a C ‘41 ~.. «v. u. . u .3 L . C. 2. .“ ... A. .J «~u 6'. .n 1‘: . c 5 . RM» p~¥ I...“ 1.. 2.. .4... i . I r: .h I.” .2. l . 9. ~‘ RN. to I nib LIST OF TABLES Table Page 1. Summary of Top Management's Responses on ’ "Power and Dependence Relationships" . . . 199 2. Summary of Top Management's Responses on "Task Environment Changes" . . . . . . . 200 3. Summary of Top Management's Responses on "Domain and Goal Formulation" . . . . . . 201 4. Summary of Top Management's Responses on "The Assessment of the Organization" . . . 202 5. Summary of Task Environment Organizations' Responses on "Power and Dependence Relationships" . . . . . . . . . . . 203 6. Summary of Task Environment Organizations‘ Responses on "Task Environment Changes" . . 204 7- Summary of Task Environment Organizations' Responses on "Domain and Goal Formulation" . 205 3- Summary of Task Environment Organizations' Responses on "The Assessment of the Organizations" . . . . . . . . . . . 206 ix LIST OF FIGURES Figure Page 2.1 The Theory of Chester I. Barnard . . . . . 21 2.2 March and Simon Influence Model . . . . . . 22 2.3 The Decision to Participate . . . . . . . 24 2.4 The Decision to Produce . . . . . . . . 25 2.5 Three Communications Networks . . . . . . 37 2.6 Dimension of Variability and Certainty . . . 45 2.7 Technology and Structure . . . . . . . . 47 3-1 Thompson's Conceptual Framework (Normative Model) . . . . . . . . . . 72 3.2 Thompson's Four Assessment Situations . . . . 76 4.1 Organogram: "Institute of Food Technology" . . 98 4.2 Interactions Map . . . . . . . . . . . 112 4.3 Organogram: State Secretary of Agriculture and the Coordination of Agricultural Research . . . . . . . . . . . . . 144 CHAPTER I INTRODUCTION Foreword Recent literature in organization theory has emphasized the existence of a continuous and dynamic interaction between organizational units and forces which Operate in their specific external environments. Research studies by William Dill, Joan Woodward, Tom Burns and G. M. Stalker, and P. R. Lawrence and J. W. Lorsch,1 to name a few, have particularly raised the question of environmental impact on organizational struc- ture and functioning. Taken as a whole, the theorists who have advocated what has been called the "contingency theory of organiza- tions" make use of identical expository structures for theory building:2 the approach of studying organizations l”YIN-Bans of an Open-system strategy. In this strategy, the complex organization is viewed as a set of intere dependent parts which together make up a whole, each part contributing something and receiving something from the “dune, which in turn is interdependent with some larger enVironment. 3 '- P ..._:I.., . ‘h I In. . ll! 0—- I . ’ ". p-QO A‘“‘~ V I)...”a C ‘ n . .: «Au-«Hp. aT'“ " "“"rt ...- . ‘ . ..;-':‘.‘ Nil v~ K'v“~§» 1" "\I‘~."' “A * ‘:':::a~" :U h I... :6’."\ a a.“ ‘.‘ ~“V‘lj ~ nAn.‘ f“: ‘ a; b~“- .._- _ I ‘ ~ v..‘-‘-‘ ~§d§' ...‘~.‘ \‘: ‘ A on‘ _-o,‘ 'f‘ “-. ‘ .l‘.“|~C-. : 5-. ‘I ~ “flv‘ - r ‘v - ..‘ ._- u‘ ‘ -_‘ Although their expository structure can be said to be the same, this does not hold for their conceptual framework.4 Each author defines his personal preferences in what he selects to emphasize, which is ultimately translated into the variables and relationships to be studied. Considered in the light of theory building, this fact points out the existence of some lack of homogeneity of concept and method. Therefore, it seems that, for theoretical purposes, numerous empirical studies are necessary so that conceptual differences may be ironed out and strong evidence can be accumulated in support of the contingency theory of organizations. Aside from the need for additional testing of the theory which deals with the interaction of organization and environment, there is also a growing recognition of the importance of assessing its validity in developing countries. A. R. Negandhi and B. C. Reimann have already tested the contingency theory in a context of economic development.5 They concluded that "a slightly modified version of this theory still appeared to hold in a cul- tural setting very different indeed from industrially advanced nations like the United Kingdom and the United States." For the above reasons this study uses one specific theory, that of J. D. Thompson's, as a basis for its Rt- Hon n-n u... .r - ‘5 d. .445 n. a . E design. Also, it focuses on the assessment of this theory in one organization operating in a developing country. Importance of the Topic The impact of environmental variables upon internal organizational variables is in itself an important tOpic. When one adds to this the need to understand the behavior of the variables in a deveIOping context, the topic acquires new dimensions of significance. Economic development has been defined as the rate of increase in productivity and,6 in some cases, as the rate of increase in production of goods and services designed to satisfy the basic needs of the population of a nation. Hence, economic development must be concerned with the process of invention and availability of relevant industrial and agricultural techniques, with their rate of adOption and implementation, and with their efficient management and utilization for the benefit of society. Implicit in the above statement is the assumption that the Process of economic development requires the building of institutions and organizations to achieve the production and productivity goals of the country in question. Basically, it is a process of establishing new organiza- tions and adjusting the old ones to a new system of interactions in view of the required change. Therefore, it would seem to be reasonable to infer that the organiza- tions involved in the basic economic sectors where ‘W‘ ' "*an ' . I '0 5-05 h u'uow. . :':v-.‘ ‘ q Ivoongg.v‘l' . A 1 0n. R'IA": l A we: .ut.“ H ‘ I .3: 7'" "n n- o.1..vh.“‘ b. . C :nm,,‘__~“‘ .. nu ““‘mtu s I - ..,u_ a“ 5‘ . ‘v‘ n!» DCL _~ I 0 IA ‘ . ...“ Q ‘ ‘n‘ _ '-~ an .vqa‘ “I. c a ‘ \0- \q ‘20.:A . ,.~ ..‘.V ‘ R2- ‘0» , V“ 7:... . '- -.-..v“§ 1., § ‘ h C . ‘. u s fia‘llvfi‘v“ ‘-. i‘ ‘ -s. ~ I. \D“' S'~~‘ I ‘H‘ “.4 ~_‘ ‘ uv. “.- R“~ 7"»; er‘ . . y... “‘ t" -. “:~‘v’7~.‘~. ‘V-~°.~ ‘4 5-: . \.‘ ;‘ u§ Q'- VI. ‘ V. his . IS “:3 i k 5“ n ‘~ \ 'tk§. m I | “ ‘ol s~:\, development plans exist are organizations Operating by definition, in a dynamic environment in which change is the overall goal. Ideally, all organizations in a developing country should be deemed to Operate in an environment with such dynamic characteristics. Organizations Operating in critical sectors of the economy of developing countries may not reflect the characteristic response envisaged by the planning objec- tives set up at the national level. If this is the case, the task of planning becomes one of controlling environ- mental stimuli so that critical organizational sectors may respond and act toward the goals of economic development. Studies based on the contingency theory of organi- zations can be of crucial importance for developing nations if they enable one to derive normative statements for policy determination. The knowledge of the Operation 0f environmental and organizational variables can ulti~ mately suggest actions which are effective in achieving development goals. Purpose of the Study This study focuses on the analysis of the relationships between an organization's internal variables and its specific external environment, using the approach that has been called the contingency theory of organiza- tions. The investigation took place in a developing country , Brazil . As a: v.;' trappv‘vn . a... .oh..:~ U. “ ‘u-v . v .3“; i nigh. - ‘ . l‘ I\.:' ‘ "U‘U.§ . ‘ C "t :5“. :‘A "“W vyu ‘ _.n. V“..- NI‘."‘ 9. ‘..'.. h. :‘.-s:’ ’: 5 ‘~. - A... A; nos! 35 U. nah 7 .2"? hr u. ‘. Q.‘: - a ‘. 'I ’- H ‘ ' "‘8 V5 §“ ,, . '.-‘ ‘ “‘ I~‘Qz"'b ”‘5 «4” .I An -..: «A ‘V..'\'H",C & S r b . N “ NA 5...“.ng ,. ‘»\. Ls¥al Stu! ‘L. a: v.“ at (3f p L. 5m, . u“~u‘ . s‘: 1: *« f‘ v”: M. u‘ “l U“: 4.9"’c“ ‘ ‘§ As already pointed out, the differences in concep- tual frameworks among authors in this area of study present an almost insurmountable problem. Thus, a choice had to be made as to which specific approach to use in order to establish a basis for the design of this study. J. D. Thompson was the contingency theoretician selected.7 He deals in reasonable detail with those specific interactions between the organization and the environment which seemed to be of relevance for the situ- ation of economic development. Starting with a basic framework of concepts, Thompson develops a large array of prOpositions throughout his book. The purpose of this study, then, is to investi- gate the validity of some of his prOpositions for organizations in a developing economy, concentrating on the concepts of domain, task environments, power, and dependence. These concepts provided a basis for the empirical study developed here. They were selected because they comprised a coherent whole, separable from the rest of the theory. In addition, these concepts are Crucial if one's intention is to investigate the institu- tional level of organizations. The general Objective of this study can be stated as an attempt to use Thompson'sypropositions related to d°\main, task environments, and interdependence to consti- £315? a normative model for organizations in developing EEEEQtries and to collect data about one specific .' . .Ao- ay-:u- Q“ ..1-...&'-‘vll -. I I {I “I V (D 1! (V ‘ —-. _ ‘O‘V‘O\fi,~ an — ‘ --—.‘.Q:AH .. h—-——. . I-A - - .-.. ~Q'_F_II- CK on.-s-Vu..;; ._ . . Q-u " "u‘I cur FA —; u‘ - t . . .g‘ .;'::i‘ ”A." *5 ... A 1". -.__:.. 5° ‘ b v. ...~.:‘que ‘y ““ Q ‘1 't \n , '° ac!" ”A. ‘u c ‘ Va - V: . I D. . a “O- Q“ v‘ U 4I‘P 5" 'o- n. “~l u run. ¢~I b »q V. '“b " \ s.E?-‘;__ ‘VA 0-." ‘.~~‘ .‘ " ‘A. 1 I § ‘ «whar,., M' ' + § ‘3 a Gnu _ J“..;~V E ‘ ‘ “h_"'\ "‘e.“'~ .‘j I ‘L ‘~ ‘ a: 54., «Va: ‘5 age _— i .. a- as. . I . . r ‘ . in SC‘ » i. ‘E \l 1 ~§ ‘. h u.‘\‘:~ ‘ ‘5 +h“ “A:B \ m ‘0 :‘v:‘\ “~rO¥1 ‘ Vuifix ~“l I .. Iggy“ \. ‘t‘Q ‘ k 51;“. S i. s y I‘ t "~E".s; u q \I '1 U A u v, ..U ‘h ‘N cmganization in order to determine whether or not, and to what extent, the selected organization appears to be operating according to Thompson's prescriptions. Where discrepancies exist, further speculation should be made on their causes. 'gethodology The research method selected is the case8 or field study9 approach. This method implies taking one set of measurements on one unit. Examples of its use in the literature about organizations can be found in the work of Alvin Gouldner, Herbert Kaufman, Philip Selznick, and Alfred Stanton and Morris Schwartz.10 This approach is well adapted for providing an overall picture of the organization and information about the interdependence of its constituent parts. It is Particularly well suited to the combined use of a variety 0f data gathering methods, including direct observation, interviewing, and the analysis of documents and records. This advantage is crucial, for it means that the investi- gator can select from the research repertoire those methods that are the most apprOpriate for the study of a Siven problem. A variety of approaches allows one to examine subtle differences which otherwise would escape attention. Moreover, its.focus on social relations among individuals and groups in natural settings provides data ‘-"‘ 5 UN ‘ uraa. ‘4 . .Ig lav a *~ H Y- A‘ ‘*‘V§J u v o. U. u" S.»‘ ‘y p‘ bor ”.3 r ‘K‘ 1118‘: ::VA ‘§ b. 7:... s.:, a» ‘. 1‘ h\U of great importance for the study of organizations, data of a type not obtained by any other design.11 To develop this study, one organization was selected, and the necessary time was spent within it to conduct the investigation on the variables and relation- ships related to domain, task environment, power, and dependence. Interview guides were develOped and used to investigate the internal and environmental dimensions of existing relationships. (See Appendices A and E.) Type of Organization Selected The organization selected for this case study was a Brazilian public research institute in the area of food technology. It was chosen for two reasons: (1) the public sector is large and relevant in Brazil; and (2) a research institute is supposed to be an important organi- zation in a develOping nation, since it produces basic inputs for industrial and agricultural growth. Selection of Subjects to be Interviewed Selection of the executives to be interviewed invodsved a two-step procedure. First, six top executives of time public research institute were interviewed. The Purpose of the study and the kinds of questions to be askedwere explained to them. Their assessment of areas 05 Crucial environmental interaction provided nine additional names of persons to be interviewed outside the ' ' H N p 5‘ a ' 3 .A- . gird. V¢Hunb ‘- . “v-Anal ln‘i .. 'to:Ubt Olb . v; ‘ ‘ ,...: (i) tne ‘.. ‘ - ‘Iu. “*thural F .‘A-‘_ : ........C.a:s fr t 2:; A: . Msc‘ U. tn. C" U- hn'.. ‘5 . H Nu. ‘s‘ ° H 5s e‘.t :rfi ‘ \— Jz~‘ ' “ §“. 1:1 ‘ {33" s N"; A . ~;.~H= + “b Crr‘ * a :n‘; ‘ N ~ I ‘ n~rlc,“‘ U u‘ .‘r 5 fl 9 |'J l h .IKee re“,- L. ‘ \ 0‘ Der. ‘ y I \‘:: ‘N ‘$|J.n- L was cc ‘ ‘I “-:Hfi~ \ststef: . “ l ‘1 2‘ at“. “‘1'“ v“. "k ‘h ‘u -\~AA ‘ “tits a CC?» focal organization. When contacted, all agreed to a personal interview. The interviewees at the public research institute were (1) the director of the research department, (2) the director of the processing department, (3) the director of the engineering and planning department, (4) the director of the administration and maintenance department, (5) the head of the planning staff, and (6) the executive director. The nine interviewees outside the organization were: (1) the head of the office of Coordination of Agricultural Research of the state government, (2) two technicians from the State Council of TechnolOQY: (3) the head of the Science and Technology Project, a state government project, (4) a representative of EMBRAPA (Brazilian Agricultural Research Corporation), a federal government organization, (5) a representative of the Food and Agriculture Organization of the United Nations, and (6) three representatives of the Brazilian food industry. The Interview Despite the length of the interviews (each took frcm14 to 8 hours), the subjects were cooperative. Once the purpose of the study was understood, all seemed very interested in the topics discussed and gave them great attention. The interviews worked well. (Appendix C presents a complete report about how one interview was 5 ~ ‘5, a .4... b~ '0:- '-n ‘. - ‘ . .p \ AI .go‘vt V S , u A- v.8.- R. ‘agl .\ _.:~~ ‘V~¥-~-.-.ac a a Q C I s . as «k E l .d vs“ a. . s w.-. u. L. . r e t Cg is ‘Q ..a ‘5 developed.) All interviews were conducted by the writer between March and June 1973. The Interview Guide Two interview guides, one for each group of inter- viewees, were used. There were five major sets of ques- tions which were designed to elicit the information needed to explore the Thompsonian propositions. (A copy of the interview guide is presented in the Appendix.) The guide was pretested in two interviews to determine whether the wording was clearly understood and to determine the approximate length of time needed for a complete interview. (The data obtained in the pretest are not included in the study findings.) How Interview Results Were Analyzed The subjects' answers to and comments on the questions were content analyzed. Whenever pertinent, documents and printed materials were collected and.used When portions of them referred specifically to the purpose of the study. An attempt was made to summarize inter- Viewees' viewpoints, detect trends, and integrate these ‘With documentary evidence. Wherever relevant, inter- ‘Viewees' comments are reproduced to illustrate their pe rcept ions . The findings were compared to Thompson's concep- tMal framework and pr0positions and, according to the . . ' \- u- ‘ ‘: -F. R .‘p -...-... VJ-... -- . J vo-o'u-J Pr y- 4 .::.a.:" vb . h “a .- 5" ‘ by db . . ':-;'I~' f‘: A 5.-..— u‘.. ‘- ~ ‘.“‘O:A - .. 4 .- -O‘..V.‘. :-.,.' . pfi'v' ,. O on-.. V ‘- o I. ' ._:A .a- fin -‘ . ....,: bwr. ‘ ¢-- ‘ 't ”-n‘ :—._v\u ~‘n ‘ . "‘b. . ‘3 “- c ‘ .—A H. V. 5-. “A .O.. ~' . ‘e-v \A ""U . w 9 ~‘ s I ‘n m CH ‘u ‘e s. 's c.. v v" I .1 h 5,. - ~ I N u . ~ ‘ s ‘4 uK‘; I .‘. "s. ‘u, v‘. Fry ‘4‘ v u C.- -“«Z‘t; 35‘s, V ‘A O 5w ~h ‘ C. ‘i ‘_ N 5. a" ' 3~ . ‘vsa‘.. \uV‘ , ‘ ‘ ‘*ty . f‘ \_ V‘ \“~‘: ‘ ._ ‘ “‘.~ a «a a.- . ‘E v ‘ I u s ‘<:u -\‘ ‘ \‘f‘. \U'\ 10 insight gained, Thompson's concepts either were maintained, restated, or rejected. Limitations of the Study Because this is a study that uses Thompson's framework of concepts and prOpositions, it has an inherent limitation. It does not throw light on the entire contin- gency theory of organizations, nor does it attempt to resolve conflicts in the literature. But this is not the purpose. The study's focus and contribution are limited to the Thompsonian framework. Limitations Regarding the Sample In order to develop a more significant assessment Of'Thompson's propositions, it would be reasonable to use a Sample of many organizations in one or many areas of activity. However, this study was develOped in one single organization. The choice of the organization served a“tomatically to define those who would be interviewed Within the organization, and these subjects indicated WhiCh other peOple should be interviewed. The latter were P9rsons with whom they had developed some sort of interaction. The sampling and research procedure reduces the POSSibility of generalizing conclusions. The study findings are valid within the context of the specific organization selected, only for the fifteen persons - ! Aw .I .‘ Isa-pvt. H a..:. ' ot'ud, .... 5 R ". :::IOD baa: ‘ r ~.‘u..." "A, .J l;.‘..! V‘ - I “I Q‘ ‘~” ' a ‘ on. : ' ‘ .iA“ w ‘. 3 ~‘ .."' b..‘~~ c - . A; A. .'; ‘ v. 0-» I :':-.-;’;,J ‘5. ; ‘~- 5..“ y..~ ‘ . ..._ ‘ -l V:" A" -.I:.V.dbgu.‘ c . s..." L“ "I.” a "" e- a l“ . Av- . ~. -. I-‘ "':::'.':e. A n «9" I .. F 9 ~ ' h 1“. ~..:-: "1“ ‘ \- vI .z'v- ’ ‘H u- . I ‘C‘N..‘ §" y‘ a \. a \e,« 5“» 2 ~ _ “‘._‘~ A- -~‘. 'u‘ t K S . ‘ s‘... \‘.3 SA 3 - ‘2 .‘:~ \‘ h V )- ~‘QA I \ . y~ ‘fi “H N. ‘ § .“ I‘C. lI “. Ac " \ ‘ - Q ~ - .0 .“‘A "«"-: ‘h ll interviewed, and only within the Brazilian context. The results can evaluate and challenge Thompson's pr0positions in a particular organization, but they cannot establish the validity of these propositions for other organizations. The intrinsic limitations of such a small sample for a study which tries to draw conclusions about percep- tions must be recognized. However, the cooperative atti- tude of the interviewees and the interest with which they answered the questions provided valuable insights for the exploration of the propositions. Limitations of the Interview Guide The interview guide was satisfactory, but it was hardly perfect. First, some basic concepts orienting the Study had to be stated as introductory explanations of the questions. This may have hampered understanding, but Observation indicates that the subjects did comprehend both the concepts and the questions, although this may have required some effort. Second, the interview guide was too long. The length of the guide, coupled with the fact that most interviewees took a long time answering, made the inter- Views so lengthy that in—depth exploration of all questions W38 precluded. Third, it was impossible to record all comments in View of a general refusal to allow the interview to be recorded. Comments were written down by the interviewer, . Inn ~ . Add A . «g. n 0-D. is ‘ H in n f the I' 'hr'fi‘,‘~a r " l to..ug‘v~ .‘ . ‘ . . . fl on: H. V . :"A ".1 A“ g : cle.‘..v‘. '4‘ . . I‘m-w... Va A, . -*'-.“ 54‘ . --hw. ~. ‘ ‘ n‘ v“ -'..q H “‘0 " I.~‘>- 1 12 and it is possible that some information may have been lost in the process. However, great care was taken to reproduce the comments as faithfully as possible. Format An historical analysis of the development and evolution of the literature is presented in Chapter II. It summarizes some of the main contributions in the area as viewed by this writer. In Chapter III the conceptual framework used by Thompson is presented, along with the prOpositions used in this study. The perceptions, observations, and materials collected are presented in Chapter IV. A descriptive method was used to characterize the organization, and the format used in the interview guides was maintained in order to facilitate the ordering of the case study report. Chapter V presents the conclusions of the study. - AvnAp' (“5" .-..".‘. u!“ Q fl ‘1 o— ‘ v \O. . .- -. '“ Von.-._ - l'"-on- ‘ V ‘ I ‘.l-"v».\' - .-:.".’:“P‘v- -..._l ~"‘U-‘ ._§ - '_':“vu .— u-clu‘-‘-’ . ‘ q l“- \ ._" u..“ ‘ o . ..: ”:‘Qn ‘ [-4 -§.- I“ ‘- ‘v- n _ . _‘ 2" . Q. “-~- H \ Pv— Qtabbv." 3’ N U. H ., . .n’ n. o “fiv-_ .g‘. ‘ I“ .le\-4fl ‘ ‘ n. :2 a “‘3 “f n: A ‘a V‘ v.‘ u‘ _. .fi"A‘ -' in: "H, h “ ‘dr‘na‘ F F‘ s a e..- “:5 "‘~ ‘ .5 ‘3]2} . h «”53 .. ‘ ‘ ~ V! ‘ “yqa¥‘. ‘ ~ \ \"a‘ ‘j: .3». ‘ T U;~_ “3?:- .A N‘: ‘- .s."~~ ~. \» ) ‘ "- a r." ‘4... ‘Q.‘ ‘ d _ . I.‘(‘\‘.l\ CHAPTE R I --FOOTNOTES William R. Dill, "Environment as an Influence on Managerial Autonomy," Administrative Science Quarterly II (l956):409-43; Joan Woodward, Industrial Organization (London: Oxford University Press, 1965); Tom Burns and G. M. Stalker, The Management Of Innovation (London: Tavistock, 1961); and P. R. LawreHCe and J. W. Lorsch, Organization and Environment (Cambridge, Mass.: Harvard University Press, 1967).' Sherman Krupp, Patterns in Organizational Analysis: A Critical Examination (New York: Holt, Rinehart and'Winston, I961). 3J. D. Thompson, Organizations in Action (New York: McGraw-Hill, 1967). 4The concept is here used according to Krupp, Patterns in Organizational Analysis. 5A. R. Negandhi and B. C. Reimann, "A Contingency Theory of Organization Re-Examined in the Context of a [Eveloping Economy," Academy of Management Journal 15 (June l972):l37-46. 6The concept used here is based on one developed by Robert A. Solo, Economic Organizations and Social SYStems (Indianapolis: Bobbs Merril, 1967). Thompson, Organizations in Action. 8James Price, "Design of Proof in Organizational Research," Administrative Science Quarterly 13 (June 1968):121-34. 9W. Richard Scott and Peter M. Blau, Formal ggggnizations (San Francisco: Chandler Publishing Co., ). l3 V - ..::--Ar:AQV - n .‘Ob"v. ulv : .3 11 14 10Alvin W. Gouldner, Patterns of Industrial Bureaucracy (Glencoe: Free Press, 1954); Herbert Kaufman, The Forest Ranger (Baltimore: Johns Hopkins University Press,*1960); Philip Selznick, TVA and the Grass Roots (Berkeley: University of California Press, 1949); and Alfred Stanton and Morris S. Schwartz, The Mental Hospital (New York: Basic Books, 1954). 11Scott and Blau, Formal Organizations. "." U... . fl 0.. ~A .- n- u“. o 4 I‘ 'A‘ _ A ' _ .““° :"v 'f‘ in , ‘ CHAPTER II ORGANIZATION AND ENVIRONMENT: HISTORICAL DEVELOPMENT OF THE THEORY AND REVIEW OF THE LITERATURE Introduction This chapter presents an historical perspective of the develOpment of the area of organization theory, which studies the interaction between the organization and environmental variables. A review of the literature indicates the relevant theoretical contributions in the area. A literature review presents peculiar problems. In the field of organization theory, many new contribu- tions appear each year, adding to the large amount existing publications. Although this situation is peculiar to organizational theory, it is necessary recognize that an exhaustive survey is unfeasible. of not to A set 0f basic criteria therefore was adopted to reduce the difficulty to manageable proportions. 15 I . r . S; .2 a» I. . . .. .C L 4 n1 3.. r .... .3 r .3 C .. Q .. C .. l at I .1. .t .w- “I by 6 - n3 .. . Q.» :u In C» B: A: .2 i o 2. S r. I .2 . . S a. flu ‘ . «nu .n.. . o 5 . .d .wu . .2 I. 7. C I. U. ... v. .3 E .1 . r . v .3 a o .3 2 I: r S A: I . . a a: .5 a s (.0 I . . . 5 Y. a» 5 . r. a. 3. .a. uu .. .3 {a .s in “—w .7 u... d... . s .e .N .w c. i» u and". My. I— - aunt» on». Asv saw .5... .~\.~ h?“- 16 First, the Objective of the review would be to expose the reader to major developments and familiarize him with the present state of the art. Second, specific selections would be chosen for the following reasons: (1) Authors who use an Open-system approach to the study of organizations would be examined, since that approach is the basic expository structure which makes possible the study of environmental variables;1 (2) contributions not using such an approach would be deliberately excluded; and (3) adopting Krupp's orienta- tion,2 design theories, which are normative, would be omitted. In reviewing the materials selected, the intent is to stress the treatment given environmental variables and their interaction with internal organizational character- istics. Furthermore, some contributions are described in greater detail than others, either because they are con- sidered more relevant, or because they are deemed more deserving of extensive treatment for a prOper understanding Of the major variables they examine. The Environmental Impact on Organizations: EarIier Contributors Chester I. Barnard lBarnard's work is a landmark in the history of organization theory,3 primarily because of his pioneering . 4 . use of an exPOSitory structure, based on what 15 now V e I.-. .ruQ5NV' . . "a. ~v~ 1 a I bui‘onon'i I 4 ubcdbvil. - - \ v a 1 in f» 2‘ S .D . 7. J1 u . a “.3 3 .- . C O .n (4.“ O Y. S s et. - n v . I O a" . t .l a - x M... a a R b A: A V fi,U «‘0 Anb Ah» . ~ 0 .~ . A v 6 on I a 6 0 an .. a. .I .. a u u a V u . ~ and .‘ n I i. ‘ “H‘u BS }. . I U ~ 17 called the systems approach. His theory departs from classical theory, in the sense that the anatomy of formal organization,S so much in VOgue at that time, does not receive great emphasis. He deals with the variable structure but presents it in a broader system of social exchange. For Barnard, a formal organization is a system of consciously coordinated activities or forces of two or more persons (a COOperative system). An organization comes into being when (1) there are persons able to com- municate with each other (2) who are willing to contribute action (3) to accomplish a common purpose. Organization survival depends upon the maintenance of an equilibrium of the system. This equilibrium is primarily internal, a matter of proportions between the elements, but is ultimately and basically an equilibrium between the system and the total situation external to it. An organization is effective, in Barnard's terms, when its purpose is relevant to the environmental situ- ation and, consequently, it can attain its objectives.6 An organization is efficient when individual motives are satisfied in the interchange between the organization and the individual. Therefore, organizational survival depends on the two interrelated and interdependent pro- ‘cesses of attaining (l) effectiveness and (2) efficiency. (Dn one hand, the environment exerts pressures and requires is matching of organizational purposes and environmental I J. v. . . . .«u 2. 4. .. .. . .u. .. - a .o . C v {a at F. a a 1 I'll.- \.. a Q «a Q ¢ . . O U ‘ r . r .. h Q A 0‘ § Ann» C . I. “a ‘fim ‘ Q uh - “M\ n‘.‘ ‘1 A- “8 “ § &.5 “‘ ~V. K a 3 a“ 3 . . o. .n .. . :o ... t E “a. I ... E .3 C .2 4 a a .94 _. . w . . .h “9.. W. k. . t .. . . .2 z. e E C 2 a Z . a 6.3 R a .. . n. S . S 5 ~ . 3 . . s A: .m «C .. ... .1 . s .u 3. 4‘ y .3 Cy VI {A s; ..« e vs .1 ...\ r. 5 Q. a . . I . via Ru . o I G» n . ab .. r P» y: . n. 5 .l o a ‘ s V a v r a \- .uuw «aw» A.» A v a u .m u‘ Cs :n KS; :5 \n .V e :k .\n\ N: nu .3” we. . ,. u- .. . 2. .«d .2 A. u. a» k u. Q.» ~: a. ~: ‘11 .171 4‘ J \ .... L.“ A“ v.- ..» . . 1 . .- .. .k .3 .-.. .3 is ,. {s a... es .3 »s an .: . . : o v. en. oi ad . u 2. .. «a :1 :u v. 6.. us. $5 A v ..v -\~ A u an‘ 5... . s. .n.-\ l8 factors. On the other, individuals must be satisfied in their interaction with the organization and, therefore, willing to cooperate in the achievement of organizational purposes. Willingness to cooperate, except as a vague feeling or desire for association, cannot develop without an objective of OOOperation. Unless there is such an Objec- tive, it cannot be known or anticipated what specific efforts will be required of individuals nor, in many cases, what satisfactions they might Obtain. Barnard distinguishes between organization purpose and individual motives. He says that it is frequently assumed that common purpose and individual motive are or should be identical, but under modern conditions this rarely appears to be the case. Individual motives are necessarily internal, personal, and subjective; common purpose is necessarily external, impersonal, and objec- tive, even though its interpretation is subjective. The one exception occurs when the accomplishment of an organizational purpose becomes itself a source of personal satisfaction and a motive for many individuals in many organizations. Only in connection with family, patriotic, and religious organizations, and under special conditions, :may organization purpose become the only or even the major, individual motive. Barnard maintains that the possibility of accom- l?lishing a common purpose and the existence of persons . g- .. O 0-4" 3':;:'3 «vu v V. \'a ‘no .0 0' ”It- fl'l' . . ':.A” “I :oovouo . :‘m:-Q.~ ‘ o '5 " V.“ a, 9: .‘C...n.., i‘r‘. Truma- ‘ . ‘--Hu~. 4 he *.:-,_ .— Dua“. ‘...V- :‘zo.,‘ h. I“. DOA-n"; ‘k‘ :gvlcue b..: .. .;~“"‘ A: . ...‘.V‘ V‘ o C - ‘ ’O- : hV~ H‘U§..1‘L U“ . .‘N Q A'- “ Y‘~~I-\. .Vfign.‘. V ‘ “-- C ‘;:-,a I“. ’ I-..“s I; u .‘.‘ Q;- v- ‘Y ‘N . v-‘~flc¢‘»atl‘~_ V. c.‘. nu“ . ‘fl|H sun‘l‘b' ath Q.“ h. A u ”a 4U : ‘ Ta“ 1 "\b. ”LG ,. ‘."~ 1* a, . \‘a‘ ”l5,:~. . a ‘ ' 1‘1 z: x . b an ‘fi‘~ ““1" Ian . s a. c "n N.: Svya‘ 5 “N 1 ‘1“ h. V. \ A . ‘w‘H. IF O.‘ Vi‘v:_er i . Y! § "A v .3. ‘ ‘ ‘3 :‘fit I» V . l ‘ C ‘A §\J2 $L° 5“\ Com“ ‘J L“ n...‘ _ ‘\ A. b\~_ncy c \ \‘. ‘ v “:as x 19 whose desires might constitute motives for contributing to it are the Opposite poles of the system of cooperative effort. The process by which these potentialities become dynamic is that of communication. A common purpose must be known, and to be known it must be communicated in some way. Inducements to persons depend upon communications to them. Informal organizations become necessary to the operation of formal organization precisely because they provide the means for communication, cohesion, and pro— tection of the integrity of the individuals. In a sense, informal organizations link the purposes stated by the formal organization (cooperative purposes) to individual desires. The functions of the executive also appear to be devoted to that linkage: (l) maintenance of a system of communications, (2) securing essential services from indi- viduals, and (3) formulating and defining purposes and objectives. The efficiency of a cooperative (organizational) system, in Barnard's terms, is therefore a result of the interaction among individual desires, common purpose, and the system of communication. If the individual finds his nmtives being satisfied by what he does, he continues his cooperative effort, he is willing to OOOperate; otherwise, he is not. If he does not cooperate, this subtraction :from the cooperative system may be fatal to it. Therefore, (efficiency from the productive vieWpoint depends not only uPon what or how much is produced, but also upon what or “" lav-II r. 4v. ”a”! ‘L “'- ' fl‘fifln- - Ou- vJuy't‘r,‘ . I “ ".r 6 con!" 5 in .. 9‘0 A ‘“ one U ‘:F—n ubcna' as Va a A ‘ .._ \2‘ 0- 1 “.fiu" ‘:.“| ‘7- ‘:‘A L.‘ \ u i 9‘. . . V‘ tn: grflzl‘ - a L . ‘— .z‘fis "‘"c Ci 3‘; I.“ n \ ...: “w""‘ ca 5' ‘Ur F O. s ‘ ‘:’v. ”I I ‘§‘~(:~ . ‘u D . H ‘ -9 h‘! -v,‘ D b. 7"- v . “-t; -. O“ ‘.’ - 2 ‘ ‘ ‘ ‘:.:.-\ a“. \. H t Q 5 t— ,. .ls. \ t" e“: ‘ ¥ 5 1..--“ h: . :1‘ ‘A . by ~‘. ‘s C x ‘ . :M‘ .“ “ .. ‘ “‘13 .‘gu .s Q ‘ ‘ ‘k‘n 20 how many returns accrue for each individual contribution. The cooperative system must create a surplus of satisfac- tion to be efficient. Thus, the process of COOperation also includes that of satisfactory exchange. Efficiency in the offering of noneconomic inducement may be, in these terms, as vital as productive efficiency. Given this general framework, Barnard analyzes in detail the unit organization, the economy of incentives, the process of Specialization, and the theory of accep- tance of authority. These details of his theory may be disregarded here, for purpose of this work. Our main emphasis is upon Barnard's general theory of COOperation, primarily on its linkage with environmental variables. This aspect charac- terizes his theory's departure from a closed-system type of approach. (See Figure 2.1). March and Simon For James G. March and Herbert Simon, the postu- lates of traditional theory make rather severe assumptions about the environment of an individual in an organization, the impact of that environment on him, and his response to it.7 The environment is viewed by classical theory as a well-defined stimulus or system of stimuli. Each Stimulus evokes in the individual to whom it is directed a ‘vell-defined and predictable psychological set. This set 21 ENVIRONMENT INFORMAL STRUCTURE INDIVIDUAL COMMON P OSE COMMUNICATION . (Organizational) PURPOSE FORMAL STRUCTURE INDIVIDUAL INDIVIDUAL .‘__. PROCEDURES DISSATISFACI‘ION SATISFACTION SUBTRACTICN WILLINGNESS OR I ZATI ONAL FROM TO *— INCENTIVES COOPERATION COOPE RATE OTHER ACCEPTANCE ALTERNATIVES OF ‘ AVAILABLE AUTHORITY EFFICIENCY fl. & EFFECTIVENESS Figure 2.1.--The Theory of Chester I. Barnard. Q ‘ -v~ .q'zs a , onvou‘db . v . :OV-u .‘ ‘fi "~~-‘u ... "'3"; t V. ‘o...“¥.u -;u. ._\h‘ '--~ - n~ . . View H - \ \"--. ‘ :-.~ ..< s FN- ". A. P. A.‘: ..:‘ ‘u WA’ ‘ h s u. “A “‘W-‘cs 22 includes a prOgram for generating a specific behavioral response, the response that is "apprOpriate" to the stimulus in question. March and Simon view an organization as a system of interrelated social behaviors of a number of partici- pants. Behavior results from a stimulus (see Figure 2.2). Stimuli are perceived by individuals, they act upon memory, and memory is composed of values, perceptions, beliefs, experiences, programs, alternatives, and other knowledge stored in the psychological bank of the individual. Perceiving an external change in the environ- ment, the individual evokes or calls for certain of these stored values or perceptions which he believes particu- larly pertinent to the situation. This evoked set con- tains some behavior program which the individual will enact. The evoked set is that part of the memory which influences the behavior of the individual. Memory content nay move from an unevoked state. STIMULUS —-————q MEMORY _- EVOKED SET ————9{ BEHAVIOR Figure.2.2. March and Simon Influence Model. (I) ‘< y.‘ .‘ ‘ unnuova 5...: fi~boiouuu , . "O-‘u ‘ 3..-..-‘ sun q m" F .t..:.‘“ k“- " 1 ‘0.-.- (I: (U I 1 1 O I o y 5': V‘ w. ,. 'Io-n.“ “Id" 0 I;I:"‘Ar P ~"“"A\.¢' v Q ‘ ‘ .‘a :"H. - a... 5,“..8 G ‘I‘ - ‘ $~ N... Lue SC?“ \-. Y::‘ _ A ‘ eus‘e": P‘ : \I“fi R ~"-“a ‘ n Q .~ ‘8 F U o a; v “. “‘ Ch» V.‘ '§::‘ ' ‘-‘:e is a h‘vfi' ‘V (A ‘ ~‘l:fi “ SQL ~. 5 ‘.‘ s...‘; y g u ‘al \ -‘ ~33 ‘Q 5“: . \ \‘lct -r 23 Behavior can be changed in at least two ways: (1) by learning, or by changing the memory set of the individual; and (2) by changing the stimuli. Different stimuli may evoke different sets, which include different behavior proqrams, resulting in different behaviors. Stimuli may act upon the memory and obtain the desired behavior, or they may be misunderstood by the individual and evoke a different set than originally intended (unintended responses). March and Simon propose that the individual in an organization is essentially faced with two different decisions. The first is whether or not to participate, and the second is whether or not to produce. These reflect different considerations. The decision to parti- cipate is based on the concept of organization equilibrium, which refers to the balance of payments to members for their continued participation and contribution to the organization. (See Figure 2.3.) The motivation to pro— duce is a function of the character and perceived conse- quences of the evoked set of alternatives. These are weighted against the individual's goals and values. The evoked set of alternatives evolves from the cues the individual perceives within the environment, both internal and external to the organization. (See Figure 2.4.) March and Simon also treat the variables of group conflict in their theory. They say that conflict among organizational units arises from the following factors: ¥ 24 DECISION TO PARTICIPATE INDUCEMENT/ CONTRIBUTION BALANCE 1 PERCEIVED DESIRABILITY OF LEAVING THE JOB Figure 2.3.--The Decision Representatio n). __* PERCEIVED EASE OF MOVEMENT k r1: \ 2. . 7... ‘25... 2.5.3.... \ LL..." 2.... X. .>...~ 3...? 12> a .—. - a... '9. Tn. - 8:00”... o... mona¢>Hsoz 52mmmmmHo 25 % mgdds a 300 V QdDQH>HQZH * 8300mm 08 i 20H mHUMQ Iii ~ 9505 m3: onamonanmoH ii- mmfigzmmaqm ‘ + 395.3551?! 1 ogHmommm 1“ § zmemum F 239.05.354.35 - sum smug... mm... _ m§ua¢§m3¢ mo mm90¢m\ A u f. . r < . . . .v . . .. s . .I \ II C C L 6» Q. .h. si My” n .4 a .‘L .3 H. wk Q. Li“ o . L. C a. r .. f. n. .l U . t . S a. . . . C E C. t .. S t . . 4. .. «(H-o W.“ ‘5 H a S h a Au ‘15 “vs V.\ M» ..\‘ a» c Q\ . a n 3. a. 2 . .. v .7 m. . . a. z. . 5. .. . E r. . a. ... ... l A“ ... .1. L. S a. .9 ~. D. e .. c. «Q .. . I .5 A. A.» .. am. .5 L . r. F. U. . . . . . : . .K. S . (a v. .h Man #0. 3 .u ... a. .‘ x .5 L... n... .3 u... . . . n. .S .3 .a. . .. M... J. 3. x . I. . z... .. . . ... . .. . .. I. .. .n... m” .n u u... Mu mm. “A". u... .0“. Z... «1. .HI... he. .s .. ....I .M». {.k n: C. A . . \ . . s . .. 30 being two of the more prominent.9 From their studies of changing technoloqy in the coal mining industry and the redesign of work in Indian textile mills, they develOped, first, the important concept of the sociotechnical system and then the more general open-system definition of organizations. The idea of a sociotechnical system, as put forth by Trist,lo implies that any productive organization or part thereof is a combination of technology (task require- ments, physical layout, equipment available) and a social system (a system of relationships among those who must perform the job). The technology and the social system are mutually interactive, and each determines the other. In keeping with this concept, it would make just as little sense to say that the nature of the work will determine the nature of the organization which develOps among workers as it would be to say that the sociOpsychological characteristics of the workers will determine the manner in which a given job will be performed. The Hawthorne studies and Trist's coal mining studies have shown that (each determines the other to some degree.11 The open-system model of organizations, as dis- cussed by Rice,12 argues that any given organization imports various things from its environment, utilizes these imports in some kind of conversion process, and ‘then exports products, services, and waste materials Vfliich result from the conversion process. One important rpcrt lS V. . ~.~ K ‘ PEG»: v.5 \ ~. A“ .- Km. ( . 31 import is the information obtained from the environment pertaining to the primary task, that is, what the organi- zation must do in order to survive. Other imports are the raw materials, money, equipment, and peOple involved in the conversion to something which is exportable and meets some environmental demands. When the ideas of Trist and Rice are combined, the importance of multiple channels of interaction between the environment and the organization emerges. The organi- zation must deal not only with the demands and constraints imposed by the environment on raw materials, money, and consumer preferences, but also with the expectations, values, and norms of the people who must operate the work organization. The capacities, preferences, and expecta- tions of the employee are, from this point of View, not merely something he brings with him; they are also influenced by the nature of the job and the organizational structure during his working career. Consequently, an organization's concern must not only be directed toward better selection or training techniques, but also toward the design of the organization, taking into account the nature of the job (the technical system) and the nature of the people (the social system). Alfred Chandler Alfred Chandler's method is the comparative analysis of the case histories of a few pioneering firms, 4‘ b a ‘ A..‘ P. t- “ '5 .b A‘ «Q An "‘ J l \ ‘V..~ IRID yap-y l--~ vobl“v :- Iv .- on». .A ot :.'u‘~‘|‘ 5....va :.-.~.-o~‘5 .. ‘ .‘.¢\F . Q q C ‘ L D a: .h . x ‘ S s L \ Po w... 9 a: A. a. ... Q .. v. .1 .2 a :1. . . mu ~b .Q» . . N.» Q. .. Ln A. c. T. C u .. a . .s .. z. e i t c .. .. a .- .. n .. u . .K ‘a‘ t». I. . . t s . . 32 supplemented by a brief review of the administrative his- tories of nearly one hundred other major U.S. companies.13 The basic thesis is deceptively simple: Organization structure follows from, and is guided by, strategic decisions. Chandler sees new strategic choices arising from environmental changes: "Strategic growth resulted from an awareness of the opportunities and needs--created by changing pOpulation income, and technology-~to employ existing or expanding resources more profitably."l4 Throughout his study Chandler makes it clear that he sees different kinds of organization as necessary for c0ping effectively with different strategies and environments. He cites the role of environmental change as the key factor in the choice of appropriate structure: As long as an enterprise belonged in an industry whose markets, sources of raw materials, and pro- duction processes remained relatively unchaged, few entrepreneurial decisions had to be reached. In that situation, such a weakness was not criti- cal, but where technology, markets, and sources of supply were changing rapidly, the defects of such a structure became more obvious.15 Unlike the authors discussed previously, Chandler focused on the large and relatively infrequent strategic shifts in major corporations. In this sense he was not interested in the differences created by technologies, functional specialization, or environmental congeniality. Nevertheless, he concluded that different environmental conditions demand different structures. To Chandler also, 5 1' u 1" "s ‘. ‘u x‘ . . .\‘: .3 «q i a S ‘ . «my» Mac. “n a A.» n. Cx : t x: E .w .1 I S . .2 st .... ‘4‘ \. .. .: s. -. ‘7, 33 it was the rate of environmental change--in technology, markets, and source of supply--that created the pressure for strategic and subsequently structural change. Stanley Udy Stanley Udy employed a strikingly different method for examining the relationship between technology and organization structure.16 He sought broad generalizations about variation in organization structure relative to its social setting and the technology involved. He decided to study nonindustrial societies and drew his evidence primarily from the Human Relations Area Files, a compila- tion of anthropological descriptions of some 150 separate societies. From this source Udy developed a sample of 426 organizations carrying out various forms of agricultural work, hunting, fishing, collection, construction, manu- facturing, and stock-raising. The societies, scattered throughout the world, represented all major social groups and several widely separated periods of history. He categorized the attributes of each of these organizations as well as the technology and the social setting. Udy's major conclusion concerned the strength of the association between organization and technology: Given a systematization of the possible range of variation of technological processes, it was found that certain aspects of authority, division of labor, solidarity, proprietorship, and recruitment structure could be predicted as to general trend from technology alone. +3» .0- .I‘ |- ; h .- “ .. SS 0 5 E 0v..-...' " ‘Vvu. “fl 5‘“ 5.-» ’nrn neg. "' .u' a n‘ ;\ .b. \N‘ \a\ r a .... t i . . .. i a T. v C .. a i. we .1 . r~§ an“ .s\ uh :‘ .‘s \: 5“ K\\ Rx ._ I 3. T. 2. r L . .e .. .. ..:. l . r e r ; r s e : In. «a. .3 «\~ a y \\ a» x: $5 ‘\ C \ fin 34 Across the full sweep of the known nonindustrial societies, Udy's evidence clearly indicates that the facts of techno- logy alone have a distinct and persistent influence on the structure of viable organizations. Since Udy focused on organizations doing non- industrial tasks, probably under relatively stable tech- nical and market conditions, we cannot make direct and specific connections between his study and the others described here. But his very broad-based work does lend impressive support to the very general conclusion that organizations doing different tasks must be structured differently. Beyond this general point, his findings also are particularly relevant for the design of any modern international organization Operating in many cultural settings. R. H. Hall A study by R. H. Hall contrasted organizational structures of two fundamentally different kinds in ten organizations, focusing on task technology at the depart- mental level rather thanyat the level of an entire organization.18 His research was based on two hypotheses. First, departments dealing with uniform events and traditional skills (for example, an assembly line) require different organizational arrangements than do departments engaged in tasks that require nonuniform and nonroutine social and creative skills (such as research, i 9 a 43 V‘u‘. u...fl" 1 2:31 lea] éu U. A . ;V‘:I I a, 'fi“... um... & .34 a: x .2 x t r 2. 3 . r. _ .. 3 3 r 3 S. i E e . . .. 3 e .. 35 sales, or advertising). Second, hierarchical organiza- tional levels whose tasks are not uniform require different organizational arrangements than those whose tasks are uniform. Hall further hypothesized that departments and levels characterized by routine tasks are also charac- terized by Max Weber's bureaucratic model of organization. 19 the most effective organization (the According to Weber, bureaucratic) has several elements: 1. a well-defined hierarchy of authority; 2. a division of labor based on functional speciali- zation; 3. a system of rules covering the rights and duties of position incumbents; 4. a system of procedures for dealing with work situations; 5. impersonality of interpersonal relationships; and 6. selection for employment and promotion based on technical competence. Hall examined the degree to which each of the above characteristics was present in different departments and at different organizational levels by conceiving of each characteristic as a dimension. He develOped a scale for each, designed to measure employee perceptions of the organization. These scales were administered to a random sample of personnel in ten organizations, five profit- xnaking and five governmental. 1]"... “A“ a.\ . 4 .. . : a e 3. u . . ... _ n C I. r. n. . .3. E F.. J. C r a. r .1 C Q J 3 . w. i .. f .. i S c. .3 .. S C . . r S . b .1 C S ; . E V» . . l .1 .C l r. S . . .3 n .nu «L a a. .2 e. I. n. a. .vs s..s .: 3 . . A. . .l 2. 5 ..~ w. A e at .Q as 1 A .pm ~. v. v. Lu .b . . .s A» L. .s ‘5. 2n in 2‘ . C. :u “u. r. . .. .. by v. 3“ .3 t. . g .3 a: 36 Hall found that, consistent with his first hypo- thesis, nonroutine departments were perceived to be significantly different from routine departments in hier- archy of authority, division of labor, and specified procedure. No significant differences were found in the remaining three dimensions (specified rights and duties, impersonality, and criteria for hiring and promotion). To test his second hypothesis, Hall administered his scale statements to 116 executives and 187 nonexecu- tives. Here he assumed that, because their tasks are less routine, executives work in a less bureaucratic setting. He found his assumption to be true for four of the dimen- sions: emphasis on hierarchy, division of labor, specified procedure, and impersonality. From the studies by Joan Woodward and P. R. Lawrence and G. W. Lorsch, to be reviewed later, one will see variations within and among organizations; from the Hall study one sees variations within organizations. Task technology within an organization appears to have an effect on organizational procedure similar to the effect of technology within an industry. Harold Leavitt Harold Leavitt and his colleagues used small groups to conduct various problem-solving activities under 20 experimentally controlled conditions. The situation with which they experimented most extensively involved ,. o‘cuc go's. ape b‘. ." ‘b. ,. w' “U .. Q 1 E . V II .II C E r a E S . y . .. 5 : a he .2 . 1 r. I t .L .2 C r V. .3 as awn“ .3 \a‘ :18 .‘fl .~ \ «N\ “luv . s... QC : s a C QC Qx w- .15 :n N: C s p .5 H y ‘ s — H\ ‘B .Q .2 r .. a: it a a _ .. s ..I. Mun \«w\ 37 five people, each of whom was given a cup containing five marbles of different colors. One marble was duplicated in all five cups, and subjects were asked to exchange written communications until all five had learned which color marble they had in common. The experimental variations on this problem were introduced by controlling the channels available for communication. (See Figure 2.5.) I II III U 0 E D C B Source: H. Leavitt Figure 2.5. Three Communications Networks. Using one of the three networks shown in Figure 2.5, each group worked through the problem again and again, with a new set of marbles each time. Leavitt found that on these simple tasks, Network I was far more efficient that II, which in turn was more efficient than III. However, when the researchers asked their subjects how they felt about their experiences, they received quite a different picture. Network III people were happier, on the average, than Network II or I people. Furthermore, when a bright new idea for improve- ment of Operations was introduced into each of the 5" burr; UQIU “A ‘8'... >— s K. - . ..':‘ c:-\—. ‘ \'_- ~ "A -‘--.dr “fit- .5 .c T. .T. u... E E .1... .C “yaw ~u.v§ uu1¢~: S S 1.1 3 a. 9.1.; I Co (a e; F... “a C CfC .3 C a: 38 networks, the rapid acceptance of the new idea was more likely in III than in I. These observations led to an additional experimen- tal change. The researcher introduced "noisy" marbles-- marbles of unusual colors for which there were no common names. They again found that Network III had certain advantages over I: It was able to adapt by develOping a new code, some agreed-upon set of names of the colors. Network I seemed to have much greater difficulty in adapting. Leavitt summarized these findings as follows: So by certain industrial engineering-type criteria (speed, clarity of organization and job descrip- tions, parsimonious use of paper and so on), the highly routinized, noninvolving, centralized Net- work I seems to work best. But if our criteria of effectiveness are more ephemeral, more general (like acceptance of creativity, flexi- bility in dealing with novel problems, generally high morale, and loyalty), then the more egalitarian or decentralized Network III seems to work better.21 These experimental findings fit very neatly with some of the studies reviewed here. Different kinds of organizations are required to perform different kinds of tasks efficiently. Broad speaking, if tasks and tech- nology suffer the impact of environmental changes, structure must necessarily adapt to those changes. Robert Blauner Robert Blauner made a very interesting study about the relationship of one environmental variable, type of , aqnan .u- ‘m .vbtuav‘v ‘ L "fly by .‘~'( .5. ‘ w ' A :’ _"‘ a 'tlu55u, I ' ‘v‘ ‘ Q : ‘F‘. ""“b. ~ p. r ,- o .. I‘Ooch“.- ‘.§.\-‘:.“ . "l“;v- -. A ‘..“ I ~— I d ~~u..‘..“ ‘ Q ‘ ‘ ‘- QJ“? fl. ‘- ~va“‘ 3~~ 39 technology, to the degree of alienation of industrial workers.22 Of the four types of industrial workers studied, he found evidence for different patterns of alienation depending upon the nature of the technolOgy involved in their work. He defined alienation as being the result of four different psychological states which are in principle independent of each other: (1) sense of powerlessness or inability to influence the work situation; (2) loss of meaning in the work; (3) sense of social isolation, or lack of feeling of belonging to an organization, work group, or occupational group; and (4) self—estrangement or a sense that work is merely a means to an end, lack of any involvement with work. The main findings of Blauner's study are that automobile workers on assembly lines are alienated by all four criteria. At the other extreme, members of the printing trades felt a sense of influence, meaning, and integration into their occupational group and deep involvement in their work. Textile workers' attitudes resembled those of automobile workers, but they were highly integrated into communities in which the tradi- tional values taught them not to expect a sense of influence or meaning. These values, in combination with paternalistic management practices, made them feel reasonably content with their lot despite the strong forces encouraging alienation. The fourth group, chemical R12u‘ 6‘..“' H . 40 workers have a great deal of responsibility for controlling the process, considerable autonomy and freedom, a close sense of integration with others on the shift and in the plant, and high involvement in the work because of the high responsibility. The variation among these four types of workers illustrates the danger of generalizing about alienation among factory workers and the utility of more refined con- cepts of alienation and technology, even beyond the ones Blauner has develOped. Relevant Contributions Toward a Contingency Theory of Organizations Philip Selznick For Philip Selznick, the organization is an 23 It is a technical instrument adaptive social structure. for mobilizing human energies and directing them toward set aims. It is a mechanism which adapts to its environ- ment and is molded by forces tangential to its rational, ordered structure and stated goals. The organization may be viewed as a dynamic conditioning field which shapes the behavior of those at its helm and as a living social unit which must come to terms with the environment. Thus, Selznick's work is consistent with the natural system point of view. The core of Selznick's theory is the focus on external organizations and how they may be fundamentally 'e‘ l 3' ‘ ufl‘VA‘V‘Q a. ’nuh V's .“_.yuuv A" a «a A v a. 9- : . ab G» O. .‘nvvq ytAv-u ‘ .cV'... a . “ a h '— be. .: .2 .3. “Le a5 . z 41 important in defining the nature of the organization. He introduces the concept of c00ptation as an adjustment pro- cess which facilitates the probabilities of survival of the organization. This mechanism is used when the struc- ture of the organization is inconsistent with the external environment imposing pressures on it. It is the process of absorbing new elements into leadership or policy deter- mination positions in an attempt to accommodate to the existing environment. In effect, through cooptation, power is shared with other interest groups. A flow of information may be provided to those who have been coopted, and the organization benefits from the group resources thus provided. Cooptation also allows adaptation of decisions to lower, or local, levels of the organization. Therefore, other organizations within the environment which have been c00pted share the character- istics and the nature of the coopting organization. Another variable which Selznick analyzes is ideology. He claims that organizations are like people, searching for stability and meaning. Instability in the environment results in the development of a sustaining ideoloqy, especially when the organization is threatened by the surrounding environment. This ideology, which must be based on accepted political and moral values, serves as a parameter for decisions. ' v . ~— A. J Y» '." -‘ V... as... q .‘.“o|‘. u C F. . T” C I .c .... ... . ... . . C L. .... :_. I I v. v . a .. we. ... .. ..a. a. .1 S E .. e a C . . . ._ r i u: r. . ..... r .a. r 3. .: T. .f r J‘ 2. a E. 3. E ix .3 .... 3 .2 .2. I T. C s. I .1 :. C 2. r .... .2 .5 a. .. . a. z . .. o 2. C . . 3 n. L... c s s: C s x x... 42 Selznick also points out the unanticipated conse- quendes of individual activities in an organization and highlights the problems that could occur. Selznick does not describe alternative organiza- tion forms that might be appropriate in various types of environment. He simply describes the need for adaptation and some mechanisms by which it might occur. T. Burns and G. M. Stalker Victor Thompson pointed out the impact of an environmental variable, while Selznick described the need for organizational adaptation and some mechanisms of adaptation. Tom Burns and G. M. Stalker go one step further,24 providing important insights into alternative organization forms. Their work suggests that in the analysis of organizations the important variable to be considered is the environment. Essentially, in a rela- tively stable situation, a mechanistic (or bureaucratic) structure may be substantially more effective than one which approaches a more democratic ideal. However, in a highly variable or volatile environment, more flexible forms, which Burns and Stalker call organic, would be appropriate. They state that both types (mechanistic and organic) represent a "rational" form of organization, for they both may be explicitly and deliberately created and maintained to exploit the human resources of a concern in in." D "' -A-‘O- . a; ,uv .c E I C. E .3 .n‘. H. A: «H» ~— a w s e C : . z. .nu #5 . AV .. . nu hlv . . 5 a. e C S E g A,“ In v; .. w u a. q . .1 a. o s a .ue~ I o u p u. S 6. ~ A ~§ :.:‘1~ ab 43 the most efficient manner feasible under given circum- stances. They emphasize the need to avoid the suggestion that either system is superior under all circumstances to the other: "In particular nothing in our experience justifies the assumption that mechanistic systems should be superseded by organic in conditions of stability."25 "The beginning of administrative wisdom is the awareness that there is no one optimum type of management system."26 Charles Perrow The theory develOped by Charles Perrow form his personal observation and research adds more to the con- structs of Selznick and Burns and Stalker.27 He presents an idea not develOped elsewhere, for although his formu- lation includes the extreme ends of the organization spectrum, he also describes "mixed" forms and some atten- dant problems for participants in them. He conceives of variability and certainty as dimensions of the variable technology. Perrow considers that the individual who is assigned to do a specific task receives stimuli to which he must respond. He searches his mind to decide what kind of a response to make. If the stimulus is familiar, little search behavior is required, and an automatic response is given. In this case, the problem would be analyzable. If the stimulus is unfamiliar, considerable search behavior is required, and the individual would confront an unanalyzable problem. as“?! “‘v .‘4 A. «a .3 u . :u F .V . . ‘ —. a» : . . .t .m. v. .2 «3 av. .. V“. VA. ‘V “c. v D-~ § \ hr 44 Therefore, certainty involves for him two possible states, both related to the familiarity of stimuli. The other dimension of technology, variability, also assumes two states, high and low variability, reflecting the degree of stability of the tasks performed by the individual. Perrow combines these two dimensions and their possible states in a two-by-two matrix, the cells being organizational forms which emerge from the four combina- tions of the dimensions. (See Figure 2.6.) If one were discussing only routine and non- routine organizations, or bureaucratic and nonbureaucratic structures (mechanistic and organic in Burns's and Stakler's terms), only cells 4 and 2 of Figure 2.6 would be relevant. However, organizations can fall into cate- gories l and 3, although they would cluster rather close to the center of the figure (center of the continuum line). To analyze the relationship between technology and structure of the organization, Perrow established four dimensions for the variable structure and two management groups. The four dimensions of structure are: (1) dis- cretion of subgroups; (2) power of subgroups; (3) basis of coordination within a group; and (4) interdependence of groups. The two management groups are middle management (technical level) and lower management (supervisory level). He then builds up a new matrix to represent 45 zoazHazoo\\ .hucwmunou can wuwawnmwum> mo cowmcmfiwo aouumm.mmHHM£U X m e \ . \ mom mo common .G.~ muamam "mousom huswmuumu mo monomo I- ,AJ- Riv. V VI 'Ql'-. S or-~~¢~ 50"... s‘ ~—‘ .2 C E .. I. a: A. .2 .2 3 fie C 1 I» ha 46 states of these dimensions in both management levels for each organization type in cells 1, 2, 3, and 4. (See Figure 2.7.) Perrow's concept of variability of particular environmental sectors and of the way this is linked to structure and its dimensions is basic and important in the theory he develOps. He makes clear that structure deci- sions may not be at the discretion of individuals inside the organization. Joan Woodward The studies reported by Joan Woodward are perhaps some of the most revealing comparative studies of organi- zational structures to date.28 She and her associates studied one hundred British firms, ranging in size from one hundred to eight thousand employees. The focus was on formal organizational structure and Operating procedures. The firms were divided into three groups, according to their degree of success: average, above average, and below average. Every attempt was made to base the assess- ment of success on objective material, although the researchers had to use their own judgment in weighing various factors. After some preliminary attempts to correlate success with form and size of organization, Woodward and associates hit upon the idea of classifying the firms into three groups according to complexity of technology: I \ n... .Zu.=—7~”-.—T-.— .u.-~. z... -—.—.~3 . ‘ . . "L, v2.3: ~2u.~.~...-~ ma..-= vv~.~‘ -o~.~3 wan—.rwa— N7: . —.-.<~L-..v—. X fa \v-h—zs In \‘ZAv~.~.2~v~.uu. nan v v~...~.~.z~ z.-.~.uomsm AuOOEmmmcmz manofizc 3358... Aucmsmmmcmz MO3OAV c0wmw>uomom Ausoammmsmz maccazc Hmoacaowe 's b.» S a: :u Q“"\ *r}. - an,“ . L¢ u - 5.3:5.‘ byfinfl nvfl {.mu‘» 5 .03 .u. .3 ‘ ‘1. VA} ya A H .» .I‘e—V A t V. a». R but 2"“ “ § “vA-l..-“ U .‘V‘uv 5 2.. 48 (1) unit and small batch production, (2) large batch and mass production, and (3) long-run process production of the same product, such as chemicals. When so classified, a strong relation between organizational structure and success appeared within each group. The successful unit production firms had organizational characteristics in common with each other, as did the above average large batch production firms and the above average process production firms. The successful firms at the top and bottom of the scale of technological complexity tended toward (1) less emphasis on clear-cut, written definition of duties, (2) greater delegation of authority, (3) more permissive management, (4) less tightly organized work forces, and (5) less organizational consciousness. The successful firms in the middle technology group used more production administration and greater supervision of production Operators. Control procedures were more elaborate, sanctions more rigorously applied, and written communications tended to be more frequent than in the firms at either of the two technological extremes. Thus, successful large batch firms tended to be organized along classical lines, with duties and responsi- bilities clearly defined, unity of command, a clear distinction between staff and line, and a chief executive ‘who confined his span of control to no more than five or six immediate subordinates. On the other hand, successful 49 firms in the other two categories tended to have a less classical type of organization. As a result of these findings, Woodward suggests that the classical principles may have been drawn from observations of large batch production industries, for many people tend to regard this type of industry as typical of modern times. Within this limited range of technology, she points out, the form of organization suggested by classical theory seems to be associated with success, but outside this range, the most suitable form of organization is not bound by classical principles. Following this analysis the Woodward investigators selected twenty firms for a more intensive study. This second study not only confirmed the link between techno- logy and the applicability of the organizational princi- ples, but also demonstrated that this link is causal rather than coincidental. However, it also showed that the relationships were more complex than they seemed from the preliminary study. Specifically, the investigators found that, at the extremes of the technical scale, the physical work imposed very narrow restrictions on the type of organization possible, and, in the middle range, the physical work set limits to what could be done organiza- tionally, but left more range for management choice. With the suggestion that successful organizations in different industries with different technologies are characterized by different organizational structure, the V‘ ,- Q A‘."'- v~“' III. I .fiué‘ V»..». 3 S .v."‘ u 5.54.. .ate 5"! -d... “..¢..;~V' d .3 .V. .O C t E a. he at . a. .s a. A. .q .s s . .. a... 50 Woodward studies Opened the way toward the formulation of a contingency theory of organizations. Lawrence and Lorsch P. R. Lawrence and J. W. Lorsch view the organiza- tion as an open system whose internal characteristics must fit external demands from the environment. They describe the internal relationship of members of the organization as intertwined and'as influenced by "the nature of the task being performed, the form of relationships, rewards, and controls, and by the existing ideas within the organi- zation about how a well-accepted member should behave."29 It is their view that these internal factors must be integrated and function harmoniously if the organization is to perform effectively. However, organizational differentiation, the difference in cognitive and emotional orientation among members in different functional departments, also exists. Managers in various functional units can be expected to differ from one another in goal, time, and interpersonal orientation. Furthermore, formality of structure will differ between departments and between organizations. Thus, because the members of each department develOp different interests and differing points of view, they Often find it difficult to reach agreement on integrated prOgrams of action. Lawrence and Lorsch argue that the integration, which they define as "the quality of the 2,-«1 .veo‘hl' . «5" .2 . .: .1 r .. ... 3 L 2. 51 collaboration," does not, as classical theorists assume, automatically follow from organizational design. For effective integration, the conflicts emerging from dif- fering goal, time, and interpersonal differences must be resolved. To Lawrence and Lorsch, the environment of the organization determines both character and degree of differentiation and the mode of integration. In particu- lar, they consider two aspects of the environment as I dominant: the certainty of information or knowledge about events and the dominant competitive issue in the industry. They therefore maintain that environmental uncertainty and competitive demand will affect the organization in terms of differentiation and integration: greater innovation and environmental uncertainty would be reflected in greater differentiation of goal, time, and interpersonal orientation and of organization structure. Lawrence's and Lorsch's research was carried out in two phases. First, a series of six detailed case studies were conducted among firms in the plastics industry. These enabled a qualitative analysis of the relations among environment, differentiation, and inte- gration. Second, a highly effective and a less effective organization in each of the plastics, food, and container industries were compared. These three industries were chosen because they displayed important differences among 2'5 F4 uoéui all 4 bl.0".v1— | oFe e Lot . N‘- “C... 6",‘V. o..A~l amt-u Y‘“"‘ i. C ;. . e. .3 up. T. a. a. .5“ a... . . , IN Vub “‘ «H» .‘A .‘ Y. a. e? .s‘ Au 52 the environmental dimensions of certainty and competitive demand. In the plastics industry, it was found that con- tinually emerging technological developments created an environment of high uncertainty in which the dominant competitive issue for firms was the capacity to innovate. The major competitive issue in the food industry was also innovation, but to a somewhat lesser extent. In the con- tainer industry, on the other hand, the main competitive issue was the ability to provide customer service. It was also found that food and plastics firms worked under condi- tions of change and uncertainty, whereas container companies worked under conditions of relative stability. With respect to differentiation, the general conclusion was that the actual amounts of goal, time, interpersonal and structural differentiation were in line with the authors' prediction that environmental factors of uncertainty and motivation would be associated with increased differentiation. Lawrence and Lorsch discovered that the most successful organizations tended to maintain states of differentiation and integration consistent with the diversity of the parts of the environment and the required interdependence of these parts. In all three industries, high performing firms deviated less from the theoretical amount of differentiation required by the environment. Lawrence and Lorsch concluded that the more the parts of Ola .pug hath. e” v _: e .1 . . . E . .- L.“ L“ . V .. S e. u an I .4.“ . I. .«u i.“ h“ .‘ .3 . x s: C u .5 .4 . . .. _ e t t ”D . . a. .2 2. «3 Reg vn :5 HI yak i. .q\ N \ A .. x. x \. .Au n: A t . u a t .1 Qw re. P: .a V .fle A v a o. m: x... R» .X. A: ... \ Q a . . . . s .. .. . .1 .3. .u .H... ..:. . .... .;. u. .. .r.. .2 a t. : . us it v s a. .s- 4‘ a . 53 the environment differ in certainty and time of feedback, and the less dominant any part is, the more differentiated are the pairs of the units in the high performing organiza- tions. In addition to effects on differentiation, environ- mental factors were found to require qualitative differ- ences in modes of integration. The highly differentiated plastics industry used formal integrating departments, the less differentiated food industry used individual integra- tors, and the least differentiated container industry used direct managerial contact. It was also found that all effective integrators or integrating units had positional influence, sufficient' knowledge and information to make decisions, and influence based on competence; furthermore, they all used confronta- tion to resolve conflict, as Opposed to smoothing over or forcing. In organizations with effective integration, the reward system emphasized unified effort rather than individual achievement. Therefore, Lawrence and Lorsch prOposed that, relative to performance, the effective organization must exhibit the degree of differentiation and integration demanded by the environment. They found that the state of differentiation in the effective organization was consis- tent with the diversity of the parts of the environment, 54 while the state of integration achieved was consistent with the environmental demands for interdependence. D. S. Pugh Several studies develOped by Pugh and his associ- ates aimed at a better understanding of organizational structure.30 Initially, five primary dimensions of organization structure were defined and Operationalized: (l) specialization, (2) standardization, (3) formalization, (4) centralization, and (5) configuration. From compara- tive data on these dimensions in fifty-two different work organizations in England, scales were constructed to measure sixty-four component variables. This made it possible to construct a profile characteristic of the structure of an organization to compare it directly with that of other organizations. Principal components analysis was used to help in the interpretation of inter- correlations among the scales. The resulting factors suggested four basic dimensions of structure, concep- tualized as (l) structuring of activities, (2) concentra— tion of authority, (3) line control of work flow, and (4) size of supportive component. In a second step,31 Pugh and his associates examined aspects of organizational context that had been held to be relevant to organizational structure. Seven primary concepts--(l) origin and history, (2) ownership and control, (3) size, (4) charter, (5) technology, a“ “a. D I ‘6? Nb- in y...‘ ‘- uni. '1 -..\I a ,n LP, I uh '3 u C»... BA. . .- .3 «x A c ’2‘ C~ . . . . . A» Q» 3. 2.. w; ..m 2. w . .2 s .—.. .1.‘ . { Qx may . ..n s: it Q\ Na. .‘ . . a. C . C .t I. .. -i {J . .. r 3. my «D *7 .. v. 1) to «C .. C s -s a... v‘ u L. 5‘ 1.x .: C. ... 2. \. nu _ . 1 . _. a 2. ... _... .e a. - . 2 .Z x. . .9 .2 .. ... saw ... no a... e. rm .1. .1 L. a; 4‘ n. . .5 . . .u .s. .t .D . . .. 55 (6) location, and (7) dependence on other organizations-- were analyzed, and operationally defined scales were constructed. These were used as independent variables in a multivariate regression analysis to predict the under- lying dimensions of organization structure previously established. The size of the correlations obtained on a sample of forty-six organizations in the English Midlands indicates that these aspects are salient. The framework of contextual and structural variables is seen as making possible processual studies on a much more rigorous comparative basis than before. In a subsequent study,32 Pugh presented the taxonomy of structures of work organizations based on three previously established empirical dimensions: (1) structuring of activities, (2) concentration of authority, and (3) line control of work flow. On the basis of a sample of fifty-two organizations in the English Midlands, clusters of organizations on these three dimensions were examined, and a sevenfold classification of organization structures was developed. These are: (1) full bureaucracy, (2) nascent full bureaucracy, (3) work flow bureaucracy, (4) nascent work flow bureau- cracy, (5) prework flow bureaucracy, (6) personnel bureaucracy, and (7) implicity structured organizations. The characteristic contextual features of the classes of organization were demonstrated--size, technology, depen- dence on other organizations, and ownership--and a 56 possible developmental sequence was suggested. The results of this study indicate that the concept of a simple bureaucratic type is no longer useful, since bureaucracy takes different forms according to different settings. These results agree with those of the contingency theorists earlier reviewed. Contingency Theory of Organizations: Present State of the Art _Although a substantial number of contributions have been reviewed, many have been omitted. The work of A. L. Stinchcombe, B. M. Bass, and L. E. Fouraker, the contingency studies related to conflict resolution, Fred Fiedler's work on leadership, and the research by V. H. Vroom, A. N. Turner and P. R. Lawrence, Robert Duncan, Shirley Terreberry, and many more might have been included.33 What was presented was the general evolution of the literature from its initial concern with environmental impact upon the organization through a more contemporary and more specific line of inquiry. These developments have generated what has been called the contingency theory of organizations, which has become a very promising area of investigation. The basic assumption underlying such a theory is that organizational variables are complexly interrelated with one another and with conditions in the environment.34 57 The definition of a contingency theory of organi- zation provides a basic expository structure that consti- tutes only an initial strategy for the study of organizations.35 By reading the most outstanding represen- tatives of this theory, such as Woodward, Lawrence and Lorsch, and Thompson,36 one realizes that there are pro- found differences among them. They differ in their analytic structure and in their conceptual framework, which constitutes an unsurmountable problem for integration of the theory. These differences also present a problem for the individual interested in research on contingency theory: Should he develop his own analytical and concep- tual framework and thus add to the already serious lack of homOgeneity? A sound alternative would be to select a theorist whose ideas are appealing to the researcher and contribute to the development of that theory by testing propositions contained in it. Repeated efforts of this kind, to prove or challenge the legitimacy of a particular theory, would help develOp a path for theoretical research. As strong inference accumulates in one area,37 the direction of subsequent steps would become more clear. At this juncture, a reasonable number of contin- gency theories of organizations are available for testing. They should be seriously scrutinized before additional "theories" are created. ~ . up... . Fr ‘0‘». y. .. «f btsétt‘ 2"».- ‘5 Van 58 It is this task the present study proposes to undertake. Portions of J. D. Thompson's work were selected for investigation,38 and a form of Operationali- zation was conceived which would limit the study to feasible dimensions. For this reason, a review of Thompson's work was omitted here. In the next chapter his framework and the prOpositions selected from his book will be discussed. CHAPTE R I I -- FOOTNOTE S lKrupp, Pattern in Organization Analysis (New York: Holt, Rinehart and Winston, 196177'PP. 56:57. 21bid., p. 75. 3Chester I. Barnard, The Functions of the Execu- tive (Cambridge, Mass.: Harvard University Press, I938). The following review is a summary of this book. 4Krupp, Pattern in Organization Analysis, pp. 56-57. 5William Scott, "Organization Theory: An Overview and Appraisal," Journal of the Academy of Management 4 (April l961):7-26. 6Barnard clearly was concerned with the environ- ment, which was remarkable considering that the book was written in 1938. 7James G. March and Herbert Simon. Organizations (New York: Wiley, 1958). 8Victor Thompson, Modern Organization (New York: Knopf, 1961). 9E. L. Trist et al., Organizational Choice (London: Tavistock Publications, 1963); and'A. K. Rice, The Enter- prise and Its Environment (London: Tavistock Publications, 1983). 10Trist et al., Organizational Choice, as quoted in Edgar Schein, Organizational Psychology (Englewood Cliffs: Prentice-Hall, 1965). 59 ..- v c V. (JIlllll a s Nib BR. .At‘ VA 0 5 VA .‘ . llm \INd . s gnu afi» Lb .1 u . -na w. "r .L .1 a. “Q u,“ an: u. ~V- NV: Hr .- au .4 r“ v. r. i. ..\. .U . u A v «,1v 5 . 60 11For example, see Elton Mayo and George F. F. Lombard, Teamwork and Labor Turnover in the Aircraft Industry_of Southern CaliforniaOTBoston, Mass.: Harvard University Press, 1944). 12Rice, The Enterprise, as quoted in Schein, Organizational Psychology. l3Alfred Chandler, Strategy and Structure: Chapters in the History of Industrial Enterprise (Cambridge, Mass.: MIT Press, 1962). 14Ibid., p. 15, as quoted in Lawrence and Lorsch, Organization and Environment. 15Ibid., p. 41, as quoted in Lawrence and Lorsch, Organization and Environment. l6Stanley Udy, Organization of Work: A Compara- tive Analysis of Production Among Non-Industrial Peoples (New Haven: HRFA Press, 1959). l7Ibid., p. 126. 18R. H. Hall, "Intraorganizational Structural Variation," Administrative Science Quarterly 7 (December 1967):295-308. 19Max Weber, The Theory of Social and Economic Organization, trans. by A. M. Henderson and‘TElcott Parsons (New York: The Free Press, 1947), as quoted in A. C. Filley and Robert House, Managerial Process and Organizational Behavior (Glenview, 111.: Scott, Foresman, 1989)) PP. BI;8§. ZOHar°1d J. LeaVittr"Unhuman Organization," Harvard Business Review (July-August 1962):90-98. 211bid., p. 95. 22R. Blauner. Alienation and Freedom (Chicago: University of Chicago Press, 1964). 23Selznick, TVA. fi‘fi \. 1“. b, \fin~ h SHL \‘l ~“"Vr it may be one of many competitors approaching the client or clients. 10 Task Environments The concept of task environment denotes those parts of the environment which are relevant or potentially relevant to goal setting and goal attainment.11 William 11111 found the task environments of two Norwegian firms to be composed of four major sectors: (1) customers (kMJth distributors and users); (2) suppliers of materials, ladxar, capital, equipment, and work space; (3) competitors for both markets and resources; and (4) regulatory gzxyups, including governmental agencies, unions, and r A -; 3" v. hula"- . ‘. 23.10 "# ’1‘,‘ ‘1‘ "l ~q ' «CLLQ‘. lite . 3 E a \ QC E ‘c 1 4 at. q . A. no :1 it .r. .Q . (a no .. .nu 11 :1 .t .4 1. Au .. :1 l. 2. E C. t C 1 1 >1 r .Q r . ‘ .1 ,.... S r. 3 Lu : a c s .. u .2 t 1 . _ m... r f. . . a .l ... o .i, .i. Q a . n t .J S a .3 C 68 interfirm associations.12 William Evan employs the term "organization set" for this purpose.13 Just as no two domains are identical, no two task environments are identical. The individuals, other organi- zations, and aggregates which constitute the task environ- ment for a particular organization are determined by the requirements of the technology, the boundaries of the domain, and the composition of the larger environment. The relationship between an organization and its task environment is essentially one of exchange; unless the organization is judged by those in contact with it as offering something desirable, it will not receive the inputs necessary for survival. Domain Consensus Domain consensus defines a set of expectations both for members of an organization and for others with whom they interact about what the organization will and will not do. It provides, although imperfectly, an image of the organization's role in a larger system, which in turn serves as a guide for the ordering of action in certain directions and not in others. Using the concept of domain consensus, we need not assume that the formal statement of goals found in charters, articles of incor- poration, or institutional advertising is in fact the criterion upon which rationality is judged and choices of 69 action alternatives are made. The concept of domain consensus can be clearly separated from individual goals or motives. Interdependence Task environments of complex organizations turn out to be multifaceted or pluralistic, composed of several or many distinguishable others potentially relevant in establishing domain consensus. This pluralism is signifi- cant for complex organizations because it means that an organization must exchange with not one but several elements, each of which is itself involved in a network of interdependence, with its own domain and task environ- ment. In the process of working out solutions to its problems, an element of the task environment may find it necessary or desirable to discontinue support of an organization. Thus, task environments pose contingencies for organizations. Task environments also impose constraints. The capacities of supporting organizations and the absence of feasible alternatives may fix absolute limits to the support which may be available to an organization at a given time. Richard Carlson notes that some organizations have no control over selection of clientele, and that the clientele likewise lacks an option.14 He refers to these as "domesticated" because they are not compelled to attend 9X15: ‘v H” V‘ CH 2 2.. 1.. C —... H.“ C .t I. 3 ~ e 5“ "Q.1 70 to all of their needs, since society guarantees their existence. Since the dependence of an organization on its task environment introduces not only constraints but also contingencies, Thompson expects that organizations subject to norms of rationality will attempt to manage dependence. Building on a conception advanced by Richard Emerson,15 Thompson says that an organization is dependent on some element of its task environment (1) in prOportion to the organization's need for resources or performances which that element can provide and (2) in inverse prOpor- tion to the ability of other elements to provide the same resource or performance. Emerson points out that dependence can be seen as the obverse of power. Thus, an organization has power, relative to an element of its task environment, to the extent that the organization has capacity to satisfy needs of that element and to the extent that the organiza- tion monopolizes that capacity. This approach to dependence and power frees us from the necessity of viewing power as resulting from a set of relationships between the organization and the several elements of its pluralistic task environment. Also, the power-dependence (nancept advanced by Thompson provides an important escape from the "zero-sum" concept of power, which assumes that .in a system composed of A and B, the power of A is power gained at the expense of B. By considering power in the ccntE: C o. A~ poss;: t‘fi- ‘14 I.‘ ‘i. It “ Dd . 1 C .u S . .2 O a at .3 .1 z. a» r 1. J ~N‘ “I“ \u‘ ‘b N ‘ S .‘l‘ S .q .. Pu ~... .3 .. a n. .l.. su. .: .1. .v ..v4 Cu .uu -.. a. is :5 t y «fin ah wt . 5 An» Al» RP6 : ~18" arc. 71 context of interdependence, Thompson admits the possibility of A and B becoming increasingly powerful with regard to each other, that is, the possibility that increased inter- dependence may result in increased net power. It is this possibility on which coalitions rest. The concepts of domain, task environments, and interdependence as advanced by Thompson form a basis for a series of prOpositions made in Chapter III of his book. Adding to these the concepts of goals and of the assessment of organizations, we can compose a whole that seems to be very comprehensive. In the relationships between organiza- tions and task environment elements the basis for the establishment of a certain configuration for the defini- tion of power and dependence is the issue of goals and domain determination. Contingencies and constraints posed by task environment elements refer specifically to this issue. If goals and domain become important elements of this relationship between the organization and task environment elements, it seems that those elements will be constantly evaluating the focal organization. (See Figure 3.1.) Therefore, the assessment of organization, as prOposed by Thompson, is also taken into the conceptual framework used in this research. This concept and that of goals remain to be defined. 72 ENVIROHMENT INTERACTION FOCAL ELEMENTS pt ORGAN I ZATION 1 POWER AND DEPENDENCE DofififiN ORGANIZATION GOALS PERFORMANCE ORGANIZATIONAL ASSESSMENT Figure 3.l.--Thompson's Conceptual Framework (Normative Model). The Concept of Goals Thompson uses "goal" to refer only to some imagined state of affairs which may conceivably be attained or approached at some future time. He considers goals for an organization as intended future domains for the organization.16 Goals for the organization will usually be held by individuals or categories having no affiliation with the organization. But his fundamental definition is that organiza- tional goals are the future domains intended by those in the dominant coalition.17 By this he means organizational goals are established by individuals, but interdependent individuals who collectively have sufficient control of organizational resources to commit them in certain direc- tions and to withhold them from others. The dominant coalition is composed of individuals in a focal organiza- tion and, in its task environment, of organizations which act in a combination or joint venture. Their interest in controlling policies for resource allocation within the focal organization defines a pattern for their combined behavior. This is entirely consistent with the view of Imichard Cyert and James March,18 who insist that "side payments, far from being the incidental distribution of a fixed, transferable booty, represent the central process (If goal specification. That is, a significant number of these payments are in the form of policy commitments."19 A l“‘ \J‘a: ‘ 5538 Cl 33' t} M“... I .\ 'v‘lfi - Ill". . \ I Nb 6 ‘c r \d I \I K V bk.‘ r‘ \‘H C nu 16. um. r 1.1 ”KM n ANN n ‘1‘ t a Q; n o H.» 3% Av v « ? 1 L s C C « 74 The Assessment of Organizations As purposive entities, complex organizations are constantly being evaluated both by elements of the task environment and by components of the organizations them- selves. According to Thompson, under norms of rationality we might expect organizations to be evaluated in terms of maximum attainment of purposes. The assumption that organizations maximize, or seek to, is frequently made about organizations engaged in the private sector of the economy. The maximizing assumption is challenged, however, by those who believe organizations satisfice, or seek to attain acceptable or desirable states.20 Even if we con- cede that organizations sometimes maximize, the organiza- tional question is whether the organizations has any way of knowing that it has done so. Variables of Assessment Assessment inevitably involves some standard of desirability against which actual or conceivable effects of causal actions can be evaluated. Assessment also requires knowledge of effects. Cultures provide general standards of desirability. In Western culture, for example, it is considered normal to prefer health over illness, wealth over poverty, life over death, rationality over irrationality, success over failure. Difficulties can arise when we are asked to 75 choose between health and wealth, for this involves a com- parison of two dimensions rather than high and low points on a single dimension. People, and organizations, do make choices in multidimensional situations, using some sort of calculus which facilitates preferential ranking of effects regardless of the dimension on which they occur. Thompson, therefore, considers that it is not unrealistic to con- ceive of the variable standard of desirability as varying from crystallized to ambiguous. In simple closed systems, knowledge of cause and effect relationships may be complete. In the complicated open system, however, causal actions often have multiple effects, and the knowledge of cause and effect relation- ships may be incomplete. Thus, the variable knowledge about cause and effect may vary from complete to incom- plete. By combining the two dimensions of assessment and working with their extreme values, Thompson classifies four types of assessment situations. These are shown in Figure 3.2. In Cell I, where cause and effect understanding is believed complete and a standard of desirability is crystallized, we would expect the maximizing approach to assessment. In Operational terms this generally is known as the efficiency test and refers to the degree to which perfection is approached. 76 Beliefs about cause/effect knowledge Complete Incomplete Standards Crystallized I II 9.2: Desirability Ambiguous III IV Figure 3.2. Thompson's Four Assessment Situations. In Cell II, where a standard of desirability is crystallized but the assessor believes his knowledge of cause and effect is incomplete, the efficiency test is inapproPriate, for there is no way of assessing the net effects of causal action. In this case, the apprOpriate test is not the economic but the instrumental one--whether a desired state of affairs is achieved. In the instrumen- tal test, the assessor is forced to seek another standard of satisfactoriness. When standards of desirability are ambiguous (Cells III and IV) the assessor must find other means of resolving his dilemma. When standards of desirability are ambiguous, or when cause and effect knowledge is believed incomplete, organizations turn to social reference groups. 77 Problem Definition Within the context of the conceptual framework proposed by Thompson, the general problem is to investigate the relationships of one organization with its task environment. More specifically, the objective of this project is to develOp a case study of a Brazilian public research and development institute in order to investigate (l) the configuration and nature of task environment relationships; (2) the process of goal formulation and domain determination; and (3) the way organizational assessment is developed. The results of the investigation will then seek to determine whether or not, and to what extent, the selected organization appears to be operating according to Thompson's prescriptions. Therefore, his conceptual framework and his prOpositions constitute a "normative model," a pattern through which the collected data will be analyzed. However, discrepancies from the "normative model" may be found. Where they exist, a deeper analysis will be required to identify (1) whether the organization could achieve greater gains in effectiveness by conforming to the pattern, (2) or whether success, despite the violation, means that some modification of Thompson's PIOPOSitions is in order. A." 5 UV ‘ s, (I) (D (D ' I 78 Consequently, the study is not designed primarily as a test of Thompson's theory, nor is it aimed primarily at the assessment of the selected organization. Rather, it seeks to speculate about both questions. PrOpositions The selection of propositions was guided primarily by the intent to develop an investigation geared toward the institutional level of organizations. This level seems to be of deep significance to the question of economic develOpment. Second, an attempt was made to select propositions which would compose a comprehensive and coherent whole constituting a clear and unambiguous basis for the research study. Therefore, the following prOpositions were selected. These seemed, to the author, to meet the above requirements. Task Environment, Domain, and Interdependence From Thompson's Chapter 3, "Domains of Organized Action," several propositions may be drawn. Proposition 1: Under norms of rationality organizations seek to minimize the power of task environ- ment elements over them by maintaining alternatives. 79 Since dependence introduces constraints or con- tingencies, the problem for the organization is to avoid becoming subservient to elements of the task environment. PrOposition 2: Organizations subject to rationality norms and competing for support will seek prestige. Acquiring prestige is the easiest way to acquire power. To the extent that an environmental element finds it prestigious to exchange with an organization, the organization has gained a measure of power over that element without making any commitments; that is, it has gained power without yielding power. Proposition 3: When support capacity is concentrated in one or a few elements of the task environ- ment, organizations under norms of rationality seek power relative to those on whom they are dependent. The proposition assumes that power is a way of handling what would otherwise be serious contingencies, and that rationality is not achieved by completely powerless (dependent) organizations. It is expected, therefore, that organizations subject to rationality norms and constrained by monopolized or nearly monopolized capacity for support, will maneuver toward achieving a balance of power. 80 Proposition 4: When support capacity is concentrated and balanced against concentrated demands, the prganization involved will attempt to handle their dependence through contract- 1.119- Contracting refers here to the negotiation of an agreement for the exchange of performances in the future. PrOposition 5: When support capacity is concentrated but demand diSpersed, the weaker organization will attempt to handle its dependence through COOpting. Coopting has been defined as the process of absorbing new elements into the leadership or policy determining structure of an organization as a means of averting threats to its stability or existence.21 Coopting increases the certainty of future support by the organization. It is a more constraining form of COOpera- tion than contracting, for to the extent that COOperation is effective, it places an element of the environment in a position to raise questions and perhaps exert influence on other aspects of the organization. Prpposition 6: When support capacity is concentrated and balanced against concentrated demands, but the power achieved through contracting is With anoth The “St as pol 0r . as d‘m mic, a) ROM t '“un S O ‘l l‘ Era: .OSitiOn 81 inadequate, the organizations involved will attempt to coalesce. Coalescing refers to a combination or joint venture with another organization or organizations in the environ— ment» .A coalition may be unstable or may have a stated terminal point, but to the extent that it is Operative, theiorganizations involved act as one with respect to some operational goals. Coalition not only provides a basis for exchange but also requires a commitment to future joint decision making. It is therefore a more constraining form of COOperation than coopting. Proposition 1: The more sectors in which the organization subject to rationality norms is con- strained, the more power the organization will seek over remaining sectors of its task environment. The management of interorganizational relations is just as political as the management of a political party or of international relationships. It can also be just as dynamic, as environments change and propel some elements out of and new elements into a task environment. PrOposition 8: The organization facing many constraints and unable to achieve power in other sectors of its task environment will seek to enlarge the task environment. 82 Captive organizations frequently find themselves boxed in on several sides, to the point where norms of rationality are threatened or overwhelmed. It is at this point that captive organizations often join forces to establish noncaptive, evaluating organizations which develOp yardsticks of rationality and set standards of accreditation. The Assessment of Organizations From Thompson's Chapter 7, "The Assessment of Organizations," several propositions arise. Proposition 9: Under norms of rationality, assessors prefer efficiency tests over instrumental tests, and instrumental tests over social tests. Where efficiency tests are valid, they provide a tangibility that is indisputable. Assessment cannot be challenged, and the test is the strictest possible. With the instrumental test, however, assessment (and hence assessors) can be uneasy, for there always is the possi- bility that a better way exists. Where social referents are involved, differences of Opinion are possible; more- <3vern the referrent may be rather unstable. Proposition 10: At the institutional level, organizations subject to norms of rationality measure varions x mares: the con; VariEty . (12d of : “93:11.23 t0 Satis draw the \V Osit P\ Svaanti .ue re fe itSelf' 83 their fitness for future action in satisficing terms. Organizations face futures which by definition are uncertain. They can never be sure what effects they would like to bring about in this uncertain future. The organization's fitness is also of concern to task environment elements. These elements contribute in various ways to the organization and have different interests to be satisfied through the relationship. Thus, the complex organization is constantly being assessed by a variety of assessors, each inclined to employ a different kind of yardstick. On the question of fitness of the organization for future action, organizations must resort to satisficing measures. But from what sources do they draw their standards of satisfactoriness? Proposition 11: Under norms of rationality, organizations facing relatively stable task environ- ments seek to demonstrate fitness for future action by demonstrating historical improvement. Lacking an absolute or crystallized scale for (evaluation, the organization must find a relative one, and time reference group in this case is the organization itself, at an earlier period. Because the historical q 9"“. .yv A K: e vs 84 improvement test is widely used, growth of an organization is often considered a sign of health. Proposition 12: Under norms of rationality, organizations facing dynamic task environments seek to score favorably in relation to comparable organizations. Lacking absolute criteria of fitness, and being unable to assume that improvement over its past capability is a reflection of its future, the complex organization turns to social references to demonstrate that it is doing as well as or better than others in its category. But with multiple assessors to be satisfied and scarce resources, the organization may not be able to demonstrate improvement on all criteria. Proposition 13: When the organization cannot h0pe to show improvement on all relevant dimensions, it seeks to hold constant on some and show improvements on those of interest to task environment elements on which the organization is most dependent. When the organization needs a task environment element more than the element needs the organization, the (organization will attempt to score well on dimensions of interest to that element. Proposr _ w . “'5“ s ‘ ‘ V3054 ‘ 1900C . \J '4. a... “0308‘ \ 85 Proposition 14: Under norms of rationality, complex organizations are more alert and emphasize scoring well on those criteria which are most visible to important task environ- ment elements. Proposition 15: When organizations find it difficult to score on intrinsic criteria, they seek extrinsic measures of fitness for the future. Proposition 16: When task environment elements lack technical ability to assess performance, organizations seek extrinsic measures of fitness for future action. Proposition 17: When cause and effect knowledge is believed incomplete, organizations seek extrinsic measures of fitness for future action. Finding it difficult to judge the quality of its output, an organization Seeks to measure its output primarily in terms of the requirements of the task eulvironment. But it might be that an organization could be engaged in such a specialized undertaking with highly refined technology that few elements of its task environ— ment would be capable of evaluating it. Thompson tries to predict these situations in the above four prOpositions. Exercis S.,. ‘QQY a C ‘OC‘IJ - Sin 615» ““erlt 86 Goals From Thompson's Chapter 9, "Discretion and Its Exercise," the following prOpositions may be adduced. Proposition 18: The more dynamic the technology and task environment, the more rapid the political process in the organization and the more frequent the changes in organizational goals. Thompson assumes that changes in technology or task environment provide an opportunity to adjust the power structure. He expects the task environment to signal, more less rapidly, the emergence of new dependen- cies and thus the basis for new power positins. These ultimately will be represented by changes in organizational goals. Summary Propositions 1 to 18 are to be evaluated by this study within the limits of one specific organization, focusing on its relationships with task environment el ements . Propositions and Interview Questions Analysis of documents and personal Observation axre used in case study methodolOQY; they will be employed here as be the n have bee the abox EH orgg Organize intervie 0f the 1 emirom with the “31:95 p 10C a‘CiOr flexibn facilite to the E WOuld RC tiOn' WI IElate C 87 here as extensively as possible. However, interviews will be the main source for data. Hence, interview questions have been devised in order to Operationalize concretely the above prOpositions, providing a means for coherent and organized investigation. The delimitation of the sample to one single organization automatically defined the subjects to the interviewed: (1) members of the top administrative group of the focal organization and (2) members of the task environment organizations involved in direct interaction with the focal organization. Accordingly, two question- naires were constructed to account for the different location of the interview subjects. (See Appendices A and B.) Questions were formulated to allow relative flexibility in the interview. This was done in order to facilitate the reporting of instances and facts peculiar to the subject's experience. Purely objective answers would not permit a thorough understanding of the situa- tion, which would make it difficult or impossible to relate data to some of the propositions. Both questionnaires are similar and follow the 'Same organization. Interview questions in Section A identify the subject's position and the nature of his interaction within the focal organization or task environ- rmant. The objective is to obtain a clear configuration of the pre so that re accuracy. Se mderstan 88 of the present task environment for the focal organization so that relationships can be mapped out with some accuracy. Section B was designed to provide data for an understanding of relationships between the focal organiza- tion and each element of its task environment. Most of the questions seek precise answers within a five-point scale in order to determine objectively the nature of power and dependence relationships. However, some examples are asked for to illustrate the answers given. The interrelated questions of Section C focus on the subjects' ideas about future intended Changes, or possible ideal changes, in the organization's task environment. Inquiry is also made into past changes. Identification of the focal organization's present domain and its process of goal formulation are investigated by questions contained in Section D. Finally, Section E was designed to elicit the subject's perception of the process of assessment of the focal organization. Both questionnaires were designed to generate sufficient data from Sections A through D to evaluate propositions l to 8 and proposition 18. The questions contained in Section E sought to test propositions 9 to 17. An important strategy allowed by both question- naires is the comparison of perceptions of subjects within 89 the focal organization with each other, and with subjects located in the task environment. This permits a continuous checking of the information provided. To conclude, it should be mentioned that the design formulated by this study was initially inspired by Lawrence's and Lorsch's environmental questionnaire and by Robert Kahn's and associates' design for role-set . . 22 questionnaires. r. . ”a, «nu. To CHAPTER III--FOOTNOTES 1Thompson, Organization in Action. . 2The term here is given the dimensions established in Krupp, Pattern in Organizational Analysis. 3Alvin W. Gouldner, "Organizational Analysis," in Robert K. Meaton, Leonard Broom, and Leonard S. Cottrell, Jr., eds., Sociology Today (New York: Basic Books, 1959). 4Thompson, Organizations in Action, pp. 6—7. 51bid., p. 8. 61bid., p. 10. 7Talcott Parsons, Structure and Process in Modern Societies (New York: Free Press, 1960). 8Thompson, Organizations in Action, p. 10. 91bid., p. 26. loIbid., p. 27. 11Ibid., p. 27. 12William R. Dill, "Environment as an Influence on Managerial Autonomy," Administrative Science Quarterly 2 (March 1958):409-43. 13William M. Evan, "The Organization-Set: Toward a Theory of Interorganizational Relations," in James D. gmpson, ed., Approaches to Organizational Design (PlttSburgh: University of Pittsburgh Press, 1966). 90 Z r .._ .fl‘ ~.~- 152E fry add Co «3.0 S 3 .t r .. .1. .3 a F. K... no .G a: 2... 3 \ 91 14Richard O. Carlson, "Environmental Constraints and Organizational Consequences: The Public School and Its Clients," in Behavioral Science and Education Adminis- tration (Chicago: NatiOnaI'Society fOr the'Study of Education, 1964), 262-76. 15Richard M. Emerson, "Power-Dependence Relations," American Sociological Review 27 (February 1962):185-209. 16Thompson, Organizations in Action, p. 127. 17Ibid., p. 128. 18Richard M. Cyert and James G. March, A Behavioral Theory of the Firm (Englewood Cliffs: Prentice-Ha11, 1963). 19Ibid., p. 30. 20This view is represented by Herbert A. Simon in Models of Man, Social and Rational (New York: John Wiley & Sons, 1957 ; James G. MarEh and Herbert A. Simon, Organizations (New York: John Wiley & Sons, 1958); Cyert and March, Behavioral Theory of the Firm; W. J. Baumol, Bpsiness BehaviOr, Value and Growfh (New York: Macmillan, 1959); and JuIius Margdlis, "The Analysis of the Firm: Rationalism, Conventionalism and Behavioralism," Journal of Business 31 (July 1958):187-99. ““"‘ 21Selznick, TVA. 22Lawrence and Lorsch, Organization and Environ- ment; and Robert L. Kahn; Donald M. Wolfe; Robert P. Quinn; and J. D. Snoek, Organizational Stress: Studies :25 Role Conflict and AmbiguityITNew York: JOhn Wi1ey & Sons, 1964). CHAPTER IV CASE STUDY: A BRAZILIAN INSTITUTE OF RESEARCH This chapter's objective is to present, in a systematic manner, the information collected according to the case study methodology. The basic information source was interviews with members of the top administration of the focal organization and of elements of its task environ- ment. Questionnaires were developed for this purpose. Responses to the questions as well as selected focal organization documents and the personal observation of the researcher will be reported upon in order to provide insight into the analysis of the propositions presented in the previous chapter. The information gathered will be reported in the following sequence: (1) brief history of the focal organi- zation; (2) description of the internal organization; (3) identification of task environment elements and descrip- tion of the nature of the relationship; (4) perceptions of tine t0p administrative group of the focal organization; 92 :5) pe: 5) th 0 at: Ono Te 93 (5) perceptions of the task environment elements; and (6) the researcher's own perceptions. Biief Histogy of ITAL The Instituto de Tecnologia de Alimentos (Institute of Food Technology) or ITAL, is the organization selected for this study. Still in an embryonic state, ITAL came into existence on 27 January 1963. At that time a Laboratory of Food Technology was created as a research unit within the Instituto Agrondmico, an agricultural research organization subordinated to the Secretary of Agriculture of the State of Sao Paulo and located in the city of Campinas.l The Laboratory of Food Technology acquired autonomous status on 18 December 1964.2 At that time it became a new organization under the State Secretary of .Agriculture. This autonomy resulted from an agreement between the Brazilian government and the United Nations. 'rhe new organization took the name Centro TrOpical de Pesquisas e Tecnologia de Alimentos (TrOpical Center of JResearch on Food Technology). The parties involved in the agreement were the Government of the State of Sao Paulo, representing the Brazilian government, the Food and Agri- culture Organization (FAO) , and the United Nations Development Program. offlm. of Rese 94 On 14 July 1969 decree number 52,167 of the Governor of the State of Sao Paulo reorganized the Tropical Center of Research on Food Technology into the Institute of Food Technology, or ITAL, with the following official objec- tives:4 --To promote research and implementation of techniques and methods of preparation, storage, processing, packing, distribution, and utilization of foodstuffs. --To cooperate with universities in the training of specialists on food technology. --To cooperate with organizations engaged in the training, at various levels, of industry, personnel, students, and graduates. --To advise official credit institutions of the financing of projects related to the food industry. --To perform related tasks as deemed necessary. Presently, ITAL's physical facilities occupy an area of 60,000 square meters. Its location in the city «of Campinas, about 60 miles from the Sao Paulo metropoli- tan area, makes its research resources easily accessible to £1.1arge concentration of agricultural enterprises and also to the majority of enterprises in the food production business. ITAL's modern equipment and buildings represent a total investment of US$5.6 million to date, of which US$2.1 million was contributed by the Brazilian gcve incl 9 . fie are ' Braz: tech: I V 95 government.5 The organization's physical facilities include 13 pilot plants, 13 specialized laboratories, and areas where administrative units Operate. As part of the international agreement ITAL and FAQ work together in a joint program of research and development to aid the expansion and improvement of the Brazilian food industry. The United Nations also provides technical assistance to ITAL in the form of visiting international experts, fellowships for training of ITAL personnel in foreign universities, and equipment, machinery, laboratory instruments, fixtures, technical publications, and so forth.6 ITAL is presently qualified to offer the Brazilian food industry the following services: --Chemica1, biochemical, and microbiological analysis of raw materials of agricultural and animal origin. --Sensory evaluation of processed foods. --Quality control of processed products and determination of standards. --Research and development on canned food, cold preservation, freezing, fermentation, food dehydration, breadmaking, and noodles. --Advice on artificial ripening of fruits under lcontrolled temperature and humidity conditions. --Studies on the feasibility of new production processes. 96 --Improvement in food production methods. --Formu1ation of high protein content and low cost foods. --Improvement in traditional products formulas. --Processing of significant quantities of food products for market trial purposes. --Technical advice on transportation and handling of fruits and vegetables, grain, storage, roots, packing materials, and so forth. --Equipment specification and design of plans for new industrial plants. --Short intensive courses especially designed for food industry personnel. --Longer intensive courses for training specialized technical personnel. --In-training service for professionals and industry personnel. --Other research activities that are important for the development of the Brazilian food industry. According to an FAO publication,7 the success attained by ITAL in its endeavors has led the government of the state of Sao Paulo to create a Department of Food Technology at the University of Campinas (UNICAMP). Also, the government has created a technical school for education of middle level technicians. The FAO publication also x In Cu . . . 4 L... D. t e ‘1‘ V e I e \lfl PA» 4‘ 3‘ is h s')‘ ' t ‘0: et . ‘ S r 0. em - ‘1 K . . Ha my. 8 97 notes that ITAL has been involved in research and study agreements with other Brazilian states.8 Furthermore, it reports that as a consequence of project contracting and agreements with other state governments, only 40 percent (of ITAL's budget is composed of funds from the state of 850 Paulo. Internal Organization ITAL's organizational structure is represented in IPiJgure 4.1. The hierarchical design shows an executive Cijgrector in the top position. In direct line of subordi- Iiertion to him are the four selfvcontained units of admin- istration: the research, processing, engineering and planning, and administration and maintenance departments. The planning staff, the library, and the training and Prflolicity units also report to him. The three technical departments and the Department of. Administration and MaiJitenance constitute the first line of command. The Research Department, in charge of basic food research, has six organizational subunits under its direct Control. The Processing Department is responsible for the deveIOpment of industrial processes for food production and has nine subunits under its direct superivision. The Engineering and Planning Department handles industrial Projects and unit Operations. It is composed of six sub- “nitS- The three technical departments exercise a joint suPet‘Vision over the thirteen pilot plants. 1 . e 1 1...: .E E \...__.._\ C \ E TECHNICAL COUNCIL 98 [EXECUTIVE DI REC'I‘ORJL I LIBRARY l [PUBLIC RELATIONS I FAQ-ITAL PROJECT PLANNING STAFF TRAINING AND PUBLICITY .1 A.L. LPRINTING J LPHOTOGRAPHY J RESEARCH r-—‘ PROCESSING ENGINEERING AND __ ADMINISTRATICN AND DEPARI'IEN'I‘ DEPARTMENT PLANNING DEPARI'MENT MAINI'ENANCE DEPARTMENT EVALUATIW AND __ ' — L—d Q F ITY CWTROL DEHYDRATED PRODUCTS DESIGN FINANCE r—{iENSOH ANALYSIS—J iCOFFEE AND STIMULANTS J i STORAGE l tUDGET AND COSTS —] (IREALS FLOUR AND A I .J v ' PA I ST '1‘ STICS BREADHAKING '— CKAG NC EXPENDITURES l MICROBIOLOGY j bi ENOLOCY J HEXPEDITING AND FILES | @1051. cum I TEGiNICAL UNIT Source: H EQUIPMENT PROJECTS 1 b—|flJSTRIAL FERMENTATION ] - OIL AND FATS 4 PI SH P RODUC'I‘S I iVEGETABIES AND LEAVES—J Paulo, 1972), p. 4. Figure 4.1.--Organogram: ‘—liuICES AND SOFT DRINKS J Instituto de Tecnologia de Alimentos (550 Paulo: —-l:u:w HATERIAL--PREP—.J "" UNIT OPERATIONS __’ pxun'puuns (1 to 13) “Institute of Food Technology." H PERSONNEL 1 TRANSPORTATIW AND MATERIALS RECEPTION .4 MAINTENANCE J Secretaria da Agriculture do Estado de 850 99 The Administration and Maintenance Department 3provides the essential services for the functioning of the 'three technical departments. It is in charge of support ‘activities such as finance, budget control, and personnel. The FAQ-ITAL project was placed in a formal line of Inorizontal interaction with the executive director (see Iiigure 4.1). In fact, FAO maintains a project manager Viithin ITAL's administrative building. This manager, IHPAL'S international director, handles a series of activi- tzies related to the United Nations-Brazilian government ag reement . The Permanent Coordinating Council is composed of Inenmbers of ITAL's top administrative group (executive ciiarector and the department managers) representatives of true federal and state governments, and representatives of ttue food industry. Basically, this council supervises the international aid programs dealing with (1) visits of international experts to ITAl; (2) allocation of scholar- Shi£> funds for ITAL's experts to study abroad; (3) super- ViSjJJn of equipment and machinery for ITAL's laboratories and pilot plants; and (4) the program of technical publi- cations.9 The council usually meets once a year. The Technical Council is also under direct command 0f the executive director. This council is composed of the following members: (1) the directors of the three technical departments; (2) the planning staff manager; Brazi of p: 100 (3) the director of the administration and maintenance (department; and (4) the executive director. Meetings are laeld at least twice a month to deliberate on such issues 235 hiring new technical personnel, administrative control (Bf scholarships for study overseas, technical trips in IBrazil or abroad, changes in work programs, and evaluation c>f project proposals. The FAQ-ITAL project manager participates in top management meetings in which all members of the Technical (ZCVuncil participate. These meetings are held as they loeecome necessary to discuss general policy issues for the organization. The directors of the technical departments hold weekly meetings with their subunit managers and the techni- cal personnel under their supervision. The objective of these meetings is to control and discuss projects being developed and all other scientific or technical problems jJl'the department. The publication of relevant research results is also discussed. External relationships are conducted primarily by the executive director, either by telephone or personally as it seems necessary. It was observed that department direCtors also maintain direct contacts with environment elements. Nevertheless, these interactions occur under the Supervision of, and within the directives established by, the executive director. There is an almost continuous IE: ruj 101 .interaction with food industry representatives as a conse- cquence of industrial project development. Furthermore, a constant interaction has occurred with the various units (3f the state and federal governments. A representative (of the federal government is in contact with ITAL's top aadministration at least once every fifteen days. An interesting develOpment within ITAL's organiza- izional structure was the creation of project committees. Zalthough these are not represented in the formal organogram, they have permeated the traditional vertical lines of cxammand. Basically, such a committee's main objective is to control research p rules were , follow up, and correct the development of rojects for which ITAL is responsible. Operational set up as follows: For each research project contracted by ITAL, a team is organized. This team is composed of members of the technical areas involved in the project. Each becomes responsible for per- formance in the technical areas under his responsibility. A project manager is nominated with the consent of the technical departments, the executive director, and the planning staff manager. The project manager thus becomes responsible for the development of the entire project. He must establish the research plan and divide the 102 research into specific tasks to be performed in each technical department. The project manager establishes schedules and controls individual performance in order to meet the planned schedules. --The project manager then submits his plans and budget to the Technical Council. --After the Technical Council approves, the project manager's tasks begin. He exerts horizontal supervision over the performance of various members assigned to the project. This supervision often cuts across departments and sometimes includes units belonging to other research institutes within the state adminis- tration. --The technical and financial success of the project is a responsibility of the project manager. Further investigation revealed that this project (or matrix) organization came into existence at ITAL as a consequence of the joint; effort of a study committee formed by members of the Conselho Nacional de Pesquisas (CNqu National Research Council),of the Ministry of Education and the National Academy of Science (USA). This Committee studied technological and scientific research in Brazil, and one of its recommendations was that all Stat Ovez disc EGSE 103 .research institute personnel should read a book by Lawrence 10 ITAL's 00. Bass, The Management of Technical Programs. ‘tOp management reports that Bass's book, when analyzed in annall internal work groups, elicited very positive reac- irions from the technical personnel. Bass suggested a type (of project organization with which ITAL experimented and tflaen fully adopted when it proved so successful. ITAL apparently has been quite successful in using ea.:matrix organization. This is evidenced by the fact that state and federal governments have delegated to ITAL (axrerall supervision in the planning and control of inter- diiAsciplinary research projects, even those involving other research institutes in the state of Sao Paulo. Identification of Task Environment Organizations The larger environment is usually vast, complex, anti scarcely identifiable in terms of its direct impact UPCHI the focal organization. The Thompsonian definition Provides a means for operationalizing the concept of enVironment by narrowing it down to elements which are "Potentially relevant for goal formulation" within the focal organization. The use of this concept makes it Possible to identify relevant elements of ITAL's task environment. In studying the history of the relationships inV01ved, it will be easier to relate observed internal States to specific environmental influences. 104 Following the conceptual framework presented in (Chapter III, interview results revealed that the present task environment for the Institute of Food technology is composed of the following major elements: (a) state govern- lnent units of administration; (b) federal government units (3f administration; (c) international organizations; (d) 'the Brazilian food industry; and (e) the educational system, :including universities and technical schools. However, this initial identification is too general axnd.imprecise in terms of the Thompsonian concept. Each of tflne organizations mentioned above is divided into a Inllltitude of units which in different degrees interact with IIPAL, the focal organization. This situation posed the problem of what degrees of interaction should be considered rrelevant. It Was decided to leave the answer to this ques- ‘tirnn for the future, after interviews and other information (Killected could better reveal who the relevant members of the task environment were. During the almost three months during which inter- Views with ITAL's tOp management were conducted, the config- ‘mnation of that organization's task environment became qnadually clearer. An active external group with which the focal organization maintained a higher degree of interaction could then be identified. The following, for the purposes Of this study, form the task environment for the focal organization: Fed Inte \ Ent'vi rc 105 State Government-- 1. The office of Coordination of Agricultural Research of the Secretary of Agriculture, state of Sao Paulo 2. The State Council of Technology of the Secretary of Planning, state of Sao Paulo Federal Government-- 1. The Brazilian Enterprise of Agricultural Research (EMBRAPA) within the Ministry of Agriculture 2. The National Integrated Plan for Food Technology (PLANITA) of the Ministry of Agriculture IIIIternational Organizations-— 1. The Food and Agriculture Organization (FAO) of the United Nations 2. The United States Agency for International Development USAID) Food Industry-- 1. Various food manufacturing companies operating in Brazil IEéillcational Systems-- 1. Universities and technical schools. Programs devoted to food science and food technology. The Scheme of Formal Relations. To better under— Stand the present formal configuration of ITAL's task environment, each external relationship will be analyzed (mm ment Eoca tasf- earl SE-rx CC??? 106 from the viewpoint of the legal and legitimizing instru- ments which define its operational relationships with the focal organization. State administration elements are present in ITAL's task environment for historical reasons, as mentioned earlier. As part of the larger state government public services, the focal organization is under direct line of command of the Secretary of Agriculture. This relationship is defined under state laws, rules, and regulations. The link with the state government extends to the Secretary of I?1anning, who exerts functional authority over ITAL. This Inole has been translated into more general policy decisions itssued by the State Council of Technology, which is in <211arge of obtaining compliance from the various state irresearch and development institutions with performance (Dixjectives set up by the planning agency. Completing the Cligrcle of formal links with the state administration, the £31263te units in charge of budget control, personnel, and IPllltchasing policies interact with the focal organization ‘t(> supervise the compliance to norms and rules established 135’ the state administration for each of these general 333€2as. The federal government enters the scene through an a‘JJI‘eement with ITAL for the development of projects in the aresaof food technology which were considered of relevance £01? national policy. The terms are spelled out in the 107 Plano Nacional Integrado de Tecnologia de Alimentos (PLANITA, the National Integrated Plan for Food Technology). Specific projects are to be developed by ITAL for various areas of food technology in various states of Brazil. The federal government provides funds which are tied to the performance of project activities by ITAL's technical personnel. PLANITA's execution is supervised by the Empresa Brasileira de Pesquisa Agropecuéria (EMBRAPA, Brazilian Public Enterprise for Agricultural Research), a federal government corporation created to stimulate, control, and develop agricultural research in the nation. PLANITA is a: five-year plan which began operation in 1973. It involves overall payments from the federal government to IHTAL amounting to about 20 percent of the focal organiza- tLion's present annual budget. The Food and Agriculture Organization (FAO) of the (Jrlited Nations has been the dominant international rela- iszonship, although there are others, among them associa- ti ons with foreign universities. FAO has been a member of JZUDAJJS task environment since the early days by force of title international agreement previously mentioned. At the present moment, 1 another international a9 reement has just been completed with the United States Agency for International DevelOpment (USAID). It provides Inschnical assistance programs to ITAL, and it aims to 108 link the focal organization to a consortium of 0.8. universities. Objectives such as graduate education for ITAL's technical personnel and scientific and technical information exchange of various types constitute the basis of this agreement. The food industry is a required member of ITAL's task environment by force of the focal organization's own official objectives. ITAL's main function is to produce relevant technology such that applied scientific knowledge can be made available to the Brazilian entrepreneurial universe. ITAL's contributions in this area are to be geared to the increase in the rate of production and pro- ductivity of the food industry in Brazil. Although the early policy directives did not make this objective explicit, at the present moment there is an intensive effort to support technological activities in the food industry. ITAL has no legal obligation to maintain constant interaction with the educational system; however, it has (already assisted the state government in its effort to «create a Food Science Department at the University of (Jampinas. Cooperation in the installation and development (Df'a Technical School in the same city has also been provided by ITAL . PLANITA's objectives incorporate the desire of the federal government to secure ITAL's technical help for 1111iversities and research institutes in Northeast Brazil, 109 a region of economic stagnation. A formal means of inter- action was thus established such that ITAL has become a center for the diffusion of scientific knowledge to other regions of the nation. Perceptions of Task Environment Relationships This section will report on the perceptions of :members of the focal organization and task environment organizations as expressed in the interviews. Because data ‘were collected through the case study method, the answers obtained did not lend themselves to statistical analysis. However, a means for tabulating them, whenever this seemed feasible, was developed. Thus, two criteria were used in reporting respondents' perceptions. First, the focal organization's top management's perceptions could be grouped according to the answers given to the interview questions. Subject's situations were .identical in terms of analyzing and evaluating task environ- Inent relationships. All were members of ITAL's top manage- Inent group and therefore represented the internal View about 1ihese interactions. A simple means of tabulating their (1) if all six respondents agreed "all (Eunswers was established: (Dr) something, their perceptions were reported as EEfgspondents‘agree;" (2) if four or five respondents agreed, ‘llie term "most respondents agree" was used; (3) if three Ji‘espondents agreed, ”half the respondents agree" was used; 110 (4) agreement by only two respondents was reported as "a and (5) if only one person provided a certain Ininority; anwer, "one respondent" was the term used. Second, tabulating the views of task environment (organization respondents would make little sense here since (each respondent occupies a different organizational situa- ‘tion. Besides, the reasoning of each interviewee could be lost through devices which would group his answers. ]?urthermore, this could jeopardize the possibility of 'tracing and checking answers with the perceptions of the 'top administrative group in the focal reorganization. 'Therefore, it was decided to report each interview with a 'task environment organization member in an isolated manner, an exception being made for the food industry, where the three interviews with food company's managers were grouped together. Perceptions Revealed by the Top Administrative Group of the Focal Organization This section presents data collected from subject's ‘auaswers to questions in sections A to E of the interview SJWiide, which were specially designed for the top management (>1? the focal organization. (See Appendix A.) Power and Dependence Relationships For clarity of presentation, the perceptions of EPCvaer and dependence relationships of each task environment If“ (n (l) l I") '1 '(1 lll organization will be taken separately, and the order of presentation will follow that shown in Table 4.1. State Government Mpg; respondents agreed about the importance of the state government in relation to ITAL's attainment of good performance. Such a relationship was deemed extremely important in view of ITAL's position as part of the state administrative machinery and thus heavily dependent on state government funds as part of its annual budget. This situa- tion has led to subordination to state general policies and rules in matters such as personnel, materials and equipment purchases, and budgetary procedures. Presently, the state contribution to ITAL's annual budget is approximately 60 percent. 511 respondents said that interaction with state administration occurs almost constantly in the daily life of the organization. Such a relationship does not present difficulties for ITAL at the moment. Two reasons were given .for this compatibility. First, positions in the state .admdnistration are now filled on the basis of technical iibility. Therefore, the Secretary of Agriculture of the Estate of Sao Paulo now places in ITAL's structure individuals with similar educational backgrounds. The mentality of State officials in charge of the interaction with ITAL also 11213 changed, and the quality of the relationship has 112 .mm: mcoauomumucHll.N.v musmwm .cm>ao>cw aawummmmowc mum mumnEmE 03» can» duos muons mc0fium5uam cw udooo me cofluomumucw mo cacao oasmcac m «cmucmmmummu mum mcoHuomuwucw pushed on» waco mus menu cH "muoz .c0wumuwccmuo Hmoom on» on cmumamu muomnnsm mcfl>ao>cw mucmsmam ucmECOHw>cw xmmu OGOEM cowuomumucH .mcofiumuacmmuo ucmscouw>cm xmmu nuaB coauomumucH mHoocom HMOflccomBII mmemoozH mmflufimum>flcoll o .m seamwm I, oo qmoneaooom uv \\ I. \ \ l I \. / \ mumsuOu xx \\ Aqordination of Agricultural Research of the Secretary of Z\griculture. The basic problem is that homogeneous 114 treatment is given any candidate for positions in the organization, despite differences in university degrees and other personal qualifications. State personnel policies dictate that a candidate holding a Ph.D. degree be hired at the same career starting point as a technician of inferior educational background. This has ultimately resulted in a very inadequate salary policy compared to wages offered equivalent technicians and scientists in the market. Over time, respondents say, ITAL has lost extremely qualified personnel either to industry or the universities. Sugges- tions to alleviate this problem have even included the idea of removing ITAL from the state administration (perhaps making it a public corporation) thus achieving a higher degree of autonomy. At the moment, the aggregated contracts contained in PLANITA have enabled ITAL to pay differential increments on personnel salaries, so that a more equitable and stable situation has been attained. Respondents stated that PLANITA's main organizational aim was to create and maintain the necessary conditions for continuous participa- tion and motivation of ITAL's technical personnel. Thus, although the policy areas of personnel and purchasing used to be a constant source of conflict with the state administration, these potential conflicts have been smoothed over through the procedures noted above. Concerning ITAL's budgetary dependence on state government funds, all respondents felt that their 115 organization continually needed these resources. It was also stated that competing organizations did not threaten the continuity of this support from the state. Although there are priorities in making state budget allocations, ITAL has been given priority and has received more resources than other similar organizations. gng_of the respondents added that this situation is a result of ITAL's widespread prestige. All respondents said that other organizations may sometimes provide the same resources as the state. They also stated that this support by other organizations is not of inferior quality. Furthermore, ITAL has not been com- pletely forbidden to seek additional external support. Examples to illustrate this assertion were the increased contribution of the federal government and of the food industry to ITAL's annual budget. Relative to ITAL's importance to the state govern- ment, all subjects' agreed that the state needs services from the focal organization all the time. These take the form of research outputs which contribute toward the attainment of targets established by state development plans in the area of food technology. This relative dependence of the state government on the focal organization for the output in food research activities is not unique, for the federal government also seeks the same objectives in its interactions with ITAL. However, most respondents believe 116 that ITAL does not pursue a policy of stimulating competi- tion for the use of its outputs; they did not consider the possibility of interrupting their services to the state administration. All respondents recognized that no other organization can provide such services for the state government. Therefore, respondents recognize ITAL's monopolistic position in relation to the state government. Finally, all respondents view the relationships between the state government and ITAL as one of mutual dependence. The state provides ITAL with crucial funds for survival, and ITAL reciprocates by providing the state with the results of its research efforts, which are valu- able for the achievement of state development targets. As an example, one of the respondents stated that research on food technology has contributed to agricultural development by providing the means for food industrialization, which can ultimately generate conditions for price stability in postharvest periods. Besides, food research may create new varieties of agricultural products in order to increase agricultural productivity. Thus, food research can contri- bute substantially to the economic development of the nation. Respondents stated that the balance of dependence between ITAL and the state government has been maintained. Federal Government The description of the relationship with the federal government, which follows, is based on perceptions tha1 inte tioz Int: tan1 "- n01c Anot tea: prov 117 that mpg; of the respondents held about this environmental interaction. Focal organization respondents perceive this rela- tionship, which is developed through PLANITA (National Integrated Plan for Food Technology), as extremely impor- tant for ITAL. PLANITA provides about 20 percent of ITAL's total annual budget, and is expected that the volume of these resources will increase in the future. Presently, interaction between the focal organiza- tion and PLANITA occurs almost constantly. The objective of the plan is to promote the development of agricultural industries through the adoption of new and improved tech- nologies and the creation of new agricultural enterprises. Another goal is the training of experts in the area of food technology who will provide a basis for the development of new food research institutes located in less developed regions of the country. Mg§t_respondents see ITAL in a unique position to provide the federal government with the means of attaining the mentioned objectives. In view of this crucial need of the federal government and of ITAL for supplements to its annual budget so that some internal problems can be solved, a situation of mutual dependence has been established between the two organizations. The exchange process benefits both organizations, but efforts are required from both to obtain such results. \Nt. 118 Respondents report a very favorable relationship exists between ITAL and the PLANITA administration. No serious difficulties were pointed out, even with respect to other units of the federal government. Members of PLANITA's administration are on good terms with ITAL's technical personnel and top management. Members with similar positions often have a similar educational back- ground and sometimes have attended the same university. ITAL was viewed by m9§t_respondents as being in a monopolistic situation in relation to the federal govern- ment, for no other organization in the nation can produce outputs at such a level of technical quality. Nevertheless, there were no reports of negative consequences or problems created by this situation, neither in the form of abuses on the part of ITAL, nor in the form of attitudes on the part of the federal government. International Institutions Concerning international institutions, respondents' preferred to concentrate on relationships with the Food and Agriculture Organization of the United Nations. FAO has played a definite role in ITAL's history, as previously mentioned. The official agreement with FAQ is now nearing expiration, but a similar agreement will begin to operate in the next few months with the United States Agency for International Development (USAID). No further investigation 119 was made of this new agreement, as no actual operational interaction had occurred at the time of the interviews. All respondents considered the relationship with the FAO as extremely important, primarily because of its role in building ITAL. A full-time expert has been provided to ITAL the last eight years, and FAO contributions have helped ITAL purchase imported laboratory equipment. These and other efforts have made the FAO's contribution crucial to the focal organization. The FAO expert, located within the central adminis- tration building, next door to ITAL's executive director, was considered by respondents as a definite member of the organization. He has usually been informed and has partici- pated in decisions on most of the subjects with which the top administration deals. Therefore, interaction between both organizations occurs very frequently. FAO's direct contribution at present is the crea- tion of a new organizational unit responsible for the development of market research for food products (national and international markets). Other contributions have included technical assistance in the areas of packaging and food dehydration and in the hiring of international experts for the solution of specific technological and scientific problems. These experts have filled a gap when ITAL's personnel has lacked the technical ability to analyze and solve a problem. In most cases, a national counterpart is trained at ITAL during the expert's stay. 120 Although mgst respondents perceived no difficul- ties in the FAQ-ITAL relationship, it was pointed out that at one time a certain amount of red-tape had existed in order to obtain FAO's formal authorization for expendi— tures. Specifically, there had been some unnecessary delays due to the need for approval of equipment purchases from the central office in Rome. Respondents reported that FAO's budget contribu- tions to ITAL is about 3 percent of the total. However, the FAO connection allows the focal organization to avoid some state rules and regulations and obtain necessary equipment through imports. ITAL also has been able to utilize FAO's international links and influence to solve some of its Specific technical problems. FAO was reported to have acted as a "broker" for ITAL's foreign affairs. Half the respondents, using a budgetary yardstick, stated that there is no crucial need for resources of such a small magnitude. Another half viewed the overall FAO contribution as nonquantifiable and recognized the total importance of the role it has played in ITAL's development. All respondents did agree that other organizations, in Brazil and abroad, need the same resources and services from FAO. As the FAG—ITAL agreement nears its end, respon- dents expressed their hopes that the same role would be assumed by other international organizations, such as USAID, and that the quality of FAO's services would be Inaintained. 121 All respondents saw the relationship with FAO as one of mutual dependence. They reported that ITAL has needed the FAO's help, and FAQ was provided with an effi- cient means of developing a program which contributed to the fulfillment of its main goals. In fact, FAO officially recognizes in its publications the success of the project developed at ITAL.12 Food Industry Answers to interview questions revealed that all respondents agreed in the evaluation of ITAL's interaction with the food industry. The relationship was qualified as 'extremely important. Basically, the raison d'étre of the focal organization was to make direct technological contri- butions to enterprises operating in the area of manufactur- ing of foodstuffs in Brazil. At present, interaction with the industry is said to occur almost constantly, primarily because of specific projects being contracted with individual food producers. Proceedings from these projects, according to respondents, contribute about 20 percent to ITAL's annual budget, and :most respondents indicated this percentage should be greater in the future. All respondents engaged in a retrospective analysis caf the relationship with the food industry. They said that iJ1 the early periods of organizational life the food 122 industry, in general, was not sure about ITAL's seriousness as a research institution. This was said to have been due to industry's widespread distrust toward governmental institutions. Respondents added that, gradually, by force of public relations efforts on the part of ITAL, clients from industry began to utilize more and more of ITAL's services. Furthermore, at the beginning, uncertainties about ITAL's performance led the food industry to fear the possibility of their industrial secrets being revealed through the development of projects at ITAL. All respondents characterized state government attitudes at the time ITAL's management decided to develop ’projects for the food industry. The state was said to object to the development of industrial projects through direct contracting. Because of this attitude, ITAL person- nel created a kind of private special fund for research from which payments were made for materials and services related to industrial projects. The evolution of this unofficial situation reached the point where a private foundation was established out of ITAL's personnel's own resources. Through this foundation, a parallel device was created, geared to the marketing and management of industrial projects. Respondents added that there is now no need for such a covert relationship, since the state government has changed from its previous attitude to an open recognition of the legitimacy of industrial contracts 123 for research and development projects. The Secretary of Agriculture is said to act now in a supervisory capacity in contracts with the food industry. Funds originated by industrial contracts are included in the budget. According to respondents, ITAL has developed very fruitful relations with the food industry. The industry is scattered throughout the nation but ITAL's clientele is located mainly in the state of Sao Paulo, where a higher concentration exists. ITAL is said to have maintained a constant and valuable interaction with the Associacao Brasileira das Indfistrias de Alimentos (ABIA, the Brazilian Food Industry Association). All types of food manufactur- ing concerns utilize ITAL's facilities: multinational enterprises, large-size Brazilian enterprises, and small and middle-size Brazilian enterprises. Respondents stated that, in the future, the second and third groups will receive greater attention. Multinational corporations usually have research facilities available to them, locally or abroad, or both. Therefore, their need for ITAL's support is much less critical. All respondents evaluated ITAL's relationship with the food industry and reported a balanced situation. The industry has had unquestionable benefits from technological projects, while ITAL has received various stimuli for the acquisition of new capabilities in research and for the expansion of its clientele. 124 Finally, respondents noted that ITAL has provided special training programs for industry personnel in the areas of technology required by the companies. Universities and the Educational System Two groups of respondents, each representing half the interviewees, held different opinions about the inter- action of ITAL with universities and the educational system in general. Half of the respondents considered relationships with the educational system as not too impor- tant and saw the only motive for interaction as the inter- change of research results. This was said normally to occur within the limits of the individual researcher's discretion and by means of publication of articles in scientific journals. This group also said that there is no substantial flow of resources from universities or from the educational system to ITAL, which makes this relation- ship of negligible importance. Another half of the group rated the relationship as quite important exactly because of the technical and scientific exchange. One specific example was given of a university utilizing relevant know? ledge produced by ITAL. This group reasoned that the maintenance of good relations with universities can contri— bute to the improvement of relationships with other elements of ITAL's task environment. In other words, the 125 prestige of the focal organization can be increased through good interaction with the educational system. Respondents offered additional examples of ITAL's activities being made available for use by universities and the educational system: (1) special training programs for students from universities and technical schools; (2) scientific and technological information from ITAL's own publications and its library services; (3) conferences on specific tOpics of food technology delivered by ITAL‘s technical personnel at universities and technical schools; and (4) research equipment made available, usually upon solicitation. All respondents said that no difficulties whatso- ever have occurred in the organization's interaction with universities and the educational system, with one exception. The case involved the Department of Food Technology of the University of Campinas (UNICAMP), located in the same city as ITAL, and was described by respondents with some reluc— tance. The Department of Food Technology of Unicamp was created and Operated in its early days as an adjunct of the focal organization. Respondents pointed out that various ITAL technicians and scientists taught courses for the department, and some classes actually took place within ITAL's classroom and laboratory facilities. A crisis caused a disruption in this harmonious relationship. 126 ITAL's executive director at that time (around l970) resigned his position to become chairman of the Department of Food Technology at UNICAMP. Some ITAL scientists followed him and left the organization for faculty positions. Respondents' insinuated that the origins of the personnel crisis lay in the state government's rigid reaction against contracting industrial projects through the private foundation already mentioned. This foundation had been created under the support of the former executive director. As a consequence of the above situation, the ITAL-UNICAMP relationship was interrupted, and no interac- tion has occurred since. Most respondents said that this has continued to be a poor relationship primarily because the Department of Food Technology wants it that way. According to them, ITAL would welcome the reestablishment of a warm relationship. All reSpondents felt the relationship with univerv sities and the educational system was not subject to an evaluation on the basis of power and dependence. Task Environment Changes All respondents considered ITAL's relationships with the state and federal governments and the food indus- try extremely stable at the time the interviews took place. The relationship with FAO was judged not too stable. Although respondents noted that interaction with 127 universities occurs most frequently at the individual researcher level, most expressed the feeling that this relationship was somewhat stable. The historical and traditional link with the state government was identified by respondents as one of the major reasons for the perceived stability of interaction with this element of ITAL's task environment, although one interviewee saw this relationship as within the limited discretion of the focal organization (ITAL). The basic questions raised by reSpondents were: "Who else would be willing to be responsible for the large state contribution to ITAL's total budget?" "How much would a research project really cost the food industry if it were not for the heavy state funding?" "Could projects be easily sold to the industrial clientele on the basis of real costs?" Another factor contributing to the stability of the interaction with the state government was suggested by one respondent. He pointed out that FAO and USAID are always more inclined to allocate resources to organizations which are under direct governmental control. Thus, as shown in all the comments, there is a perception of secondary benefits which flow to the focal organization as a consequence of the maintenance of stable relationships with the state government. In terms of the federal government, the reasons for stability of the relationship were not very well defined. 128 There seemed to be more of an expectation of a future flow of resources and services than presently exists. Respon- dents saw interaction occurring mainly through contracts in which the federal government is essentially a client of the focal organization. In the future, interviewees believed ITAL undoubtedly would be able to provide satis- factory services, not only in terms of contract require- ments, but also in terms of motivating behavior and shaping attitudes in order to help the federal government achieve its goals. According to respondents, this will constitute a basis for stable interaction. FAO's participation in the focal organization's internal affairs is nearing an end, but, as was previously stated, the main objectives of such a relationship were judged to have been thoroughly attained. The universities and the educational system were seen as continuing to receive services presently available to them. No major changes in this relationship were anticipated. Also, no relevant difficulties were foreseen for the maintenance of this and other task environment interactions. Most respondents said that the present set of external interactions was efficient in terms of enabling the focal organization to achieve its objectives. One divergent opinion, however, was that the ideal arrangement would be one in which ITAL would enjoy greater autonomy 129 than at present. A majority of respondents disagreed, seeing the future as a continuation of present task environ- ment relationships. No specific plans for change were reported, other than the growth of current activities. As for past attempts to change the set of external relationships, two examples were mentioned by respondents. The first refers to an old idea of grouping all state research institutes into one large organization. This was seen as a device for limiting direct state control, allow- ing for more flexibility in decision making at the level of each individual research organization. However, it was reported that this idea was rejected by the State Secretary of Agriculture in the past because there was no disposition to transfer the control over state research institutes. The second example, already mentioned, refers to the crea- tion of a foundation by a former ITAL executive director in order to provide a means of dealing with food industry contracts. This practice also has been rejected by the State Secretary of Agriculture. Respondents were unanimous in the opinion that the future will bring easier and improved interactions with task environment organizations. Domain Identification and Goal Formulation All respondents offered a list of outputs actually produced by ITAL during the period in which the interviews took place. These are listed below. 130 --Laboratory analysis of different types. --Development of new food products. --Development of Specific technology upon detailed requirements. --Implementation of projects contracted with the food industry. This often includes com- plete design for equipment and plant layout, input-output specifications, plant capacity, and so forth. --Services such as evaluation of specific packaging films, evaluation of containers, production of experimental lots of products for market research purposes, and certifica- tion of product quality to comply with export rules and norms. --Studies for the development of Special purpose machinery and equipment, including the actual fabrication by ITAL's technical person- nel of some unusual equipment, based on their own design. --Studies of specific prOpertieS of raw. materials in order to obtain standardized quality or size to facilitate the manufac— turing process. --Biochemical studies for quality control of raw materials and processed products. 131 --Engineering studies for food production in general. --Pilot production runs for demonstration and training purposes. --Market trials for products developed by ITAL and for which there is a prospective indus- trial buyer. --Training of industry personnel and technical school students, including courses, confer- ences, and actual equipment and laboratory demonstrations designed to fit clients' needs. --Production of scientific and technical infor- mation through ITAL's technical bulletin, as well as publication of articles in inter- national journals, books, syllabi, and so forth, for use during courses and conferences. ITAL's main output orientation was said to be the problem solving or research and develOpment approach. Respondents emphasized the need for applied research in view of the present stage of development of the Brazilian economy. However, ITAL's executive director pointed out that, in the near future, there will also be a parallel emphasis on basic research in order to produce relevant knowledge within Brazil's own environmental conditions. It was indicated by this respondent that a balanced emphasis which included basic research would create a 132 necessary expansion of knowledge in some areas, such that substantial advances could be made in applied research. The Brazilian food industry was identified by respondents as the main user of ITAL's outputs. However, the federal government is increasingly becoming an impor- tant user. Through contracting, ITAL has intensified its training services for universities and research institu- tions from less developed areas of the nation, and Specific products, such as high protein foodstuffs for school chil- dren and balanced meals for the military, have been develOped under these federal government contracts. Respondents also listed the inputs utilized by ITAL. --Scientifically and technically trained personnel, usually recruited from among university graduates through a selection procedure prescribed by state government personnel rules. Certain individuals have preferred not to accept the positions because of low salaries and poor fringe bene- fits, and the turnover rate for scientific and technical personnel has been high. --Training of ITAL's personnel has taken place both on the job and abroad (usually through work toward a degree in an American University). 133 --Equipment and machinery for pilot plants and laboratories. --Raw materials for pilot projects and experiments. -—Laboratory materials. --Scientific and technological information through ITAL's library services. With reSpect to materials, a variety of suppliers was said to be used, according to specific needs. A number of contracts have been entered into with American and European universities and research institutions to provide a constant flow of scientific information. The supply of technical and scientific personnel falls short of the demand, and ITAL usually must provide for internal and external training before each individual can play a productive role. The users of ITAL's output are mostly located in the state of Sao Paulo, although there has been a recent increase in the number of users located elsewhere in Brazil. Suppliers, to a large extent, are located in the state of Sao Paulo, with a higher concentration in the area of Campinas, the exception being international purchases and personnel recruitment. One of the respondents pointed out that changes in the input-output configuration have been characteristic of ITAL. All respondents noted that the recent increased 134 participation of the federal government and the food indus- try has required new input-output arrangements. Addi- tional changes on the output Side include the introduction of new areas of research such as meat, sea food, and dairy products. All respondents were quite satisfied with ITAL's present input-output transactions. They believe ITAL presently is following much more closely the original policy of technological research than it has in the past. A direct contribution to the food industry is now a feasible goal, for example. Respondents presented two different opinions about ITAL's present goals. Two reported the official goals of the organization, presented at the beginning of this chapter, as the ones ITAL was pursuing at the time of the interviews. The remaining respondents preferred to state more explicitly the present operational goals of the focal organization and the list that follows was compiled from their statements. --To improve the interaction with external organizations through rationalization of the means of communication and operation._ --To search for a more dynamic and flexible organizational structure. --To increase interactions with the food industry in order to ascertain the technical problems to be solved. 135 ——To develop new research areas in response to an identified need. --To improve the nutritional value of food and to reduce food prices in Brazil. --To design and in some cases fabricate equipment and machinery for the food industry. --To develop all projects contracted through PLANITA. --To transfer Specific areas of food research to regions where it can be better developed (that is, closer to raw materials). --To stimulate c00perative contracting of research projects on the part of users. --To create a center of documentation and retrieval of information on food science. --To develop an aggressive sales effort in order to increase industrial project contracting and the implementation of technology already developed. --To improve research effort on frozen and canned foodstuffs, including packaging and intrinsic quality. All respondents said that there was no need to change ITAL's present aims, except for an additional effort to develop the capability to provide market analysis and market trials for food products. They considered the 136 present goals aS already providing enough activities and work for the future, probably more than ITAL will be able to handle in the next three or four years. All of ITAL's top administrative group indicated that past operational goals differ to a very great extent from present ones. In the past, the Secretary of Agricul- ture had a very traditional orientation, which included a strong enforcement of bureaucratic rules and a routine approach to decision making and problem solving. The increased specialization of ITAL's technical personnel and the development of its research capability has led to a change in mentality on the part of state officials and were important factors contributing to the current improve- ment in the quality of the interaction between both organi- zations. "Now there is more cooperation than ever" was a phrase used many times during the interviews. There seemed to be a predisposition among respondents for a closer integration of ITAL's services with governmental planning. According to one respondent, "ITAL, state, and federal governments have a common objective: to develop means for the economic development of Brazil." One specific example illustrates this statement. It refers to the pilot plant for research on meat products, built to provide technolo- gical support for the government's export policy. Funds were provided by the state government and FAQ to cover construction and equipment costs. Thus, a new operational 137 goal-—meat products research--was introduced because of ITAL's commitment to governmental plans. Following the trend suggested by this example, all respondents indicated the existence of a strong relation- ship between organizational goals and task environment organizations' influence. ITAL's goals seem to have been established in close agreement with members of the task environment. Respondents added that the state and federal governments and the food industry have made definite and sometimes successful attempts to introduce new goals and to change or redefine old ones. Some examples suggest that there have been instances when a new industrial pro- ject was contracted and the project contractor freely pur- chased new research equipment to facilitate creation of a whole new area of research. The role of the state and federal governments in shaping ITAL's operational goals in relation to develOpment plans already has been mentioned. Respondents could not identify specific areas of administrative policy as being subject to greater influence from one particular member of ITAL's task environment. All respondents felt that governmental elements have tried to influence the organization's total administrative policy. The food industry was said to exert only incidental influ- ence on output policy, by force of project contracting. Regarding the expectations of task environment elements with reSpect to ITAL's goals and policies, the 138 general evaluation of all respondents was that there has been agreement to a large extent. In other words, organizations in the external set have concurred about what ITAL should or should not do. The reasons given for this consensus were: (1) ITAL has successfully performed the actions required by task environment elements; (2) the present administration has emphasized the need to satisfy task environment elements; (3) ITAL's services and output have met the task environment's expectations; and (4) the idea of achieving efficiency in the system of technology production has been an ideal binding all elements--within and without the organization--together. The Assessment of the Organization The investigation revealed that all members of ITAL's top administrative group perceive of their organi- zation as a quite successful endeavor. They pointed out that most of the objectives previously established for the organization had already been attained. User satisfaction was also mentioned as an indicator of success. AS one respondent said, "clients who are satisfied with ITAL's performance in past projects have contracted new projects with the organization." Furthermore, "governmental units within the state and federal administrations have demon- strated their explicit recognition of the seriousness of ITAL as a research organization in the area of food 139 technology." Other respondents stated: "we are now a very prestigious organization in Brazil and abroad"; "we have had a past history of real contributions made to the development of food technology in Brazil, and many external organizations and individuals have recognized this"; "we still hope to be able to contribute much more to economic development in Brazil." In answering the set of questions on the interview guide concerning the relative importance of Specific indi- cators of organizational performance, all respondents made similar responses. A tabulation of these answers revealed five indicators which were deemed of crucial importance: (1) improvements in the quality of output; (2) quality of the technical personnel; (3) improvements in the rate of innovation and creation of new products and services; (4) the level of the organization's contribution toward the achievement of governmental goals; and (5) the develOpment of activities which prepare the organization for future action. Respondents classified several indicators of performance as of secondary importance: the quality of management; the prestige of the organization with the external public; satisfactory overall performance compared to similar organizations; and improvements in the amount of physical production of research projects. 140 Respondents made several comments about performance indicators: "These [five] crucial indicators and ITAL's good performance in relation to them have placed ITAL in a very prestigious position in relation to governmental organizations"; "government would not have allocated funds on food technology research if ITAL were not scoring well on these indicators"; "why do clients [from industry] keep on contracting more projects with ITAL? Without a good score on the three top indicators, they would never contract for a second research project." All reSpondents identified the relevant judges of their organization in the task environment and classified them in terms of their perceived importance for ITAL. The rankings are (1) state government, (2) the food industry and the federal government, and (3) international institu- tions and organizations. Only one respondent even considered the universities and the educational system as a member of the judge's group. Respondents recognized that ITALIS most recent scores on the five crucial indicators pleased task environ- ment organizations to a considerable extent. ITAL‘s commit? ment to quality of research output and its effort to maintain and increase that quality were cited as basic reasons for the reported satisfaction of task environment organizations. The quality of the technical personnel and the rate of innovation and creation of new products were 141 indicators respondents said were difficult for ITAL to score well on. AS one stated, "there is a high turnover rate of technical personnel, and this has required a great deal of effort to maintain their participation, in view of higher salaries attached to other job alternatives, such as universities or the food industry." AS to the second indicator, one respondent argued "the development of new products is a source of uncertainty because, in addition to quality and other technical problems, market conditions directly affect the possibility of application of research output." All respondents answered affirmatively when asked whether the task environment organizations had the techni- cal ability to comprehend ITAL's technical and scientific operations. State and federal government and food industry personnel were considered by respondents to be well educated, at least in relevant areas, and their technical competence was rated quite high. Respondents' believed that ITAL‘s Operations are predictable to a very large extent. Reasons given were ITAL's orientation toward feasible goals and its manage- ment's control and utilization of resources, so that most technical problems have been within the range of possible solutions. ITAL‘s orientation to applied research contri- butes to this predictability, respondents remarked that basic research, in general, is a source of greater risk 142 and uncertainty. The applied research orientation also was seen as simplifying the decision process within ITAL: "Our operations are initiated by a specific problem for which a client wants a solution," and "with very definite objectives to attain, there is no need for an elaborate decision process." Perceptions Expressed by Members of Task Environment Organizations Data reported here were collected from interviews with members of organizations identified as components of ITAL's task environment. Individuals were selected because they interacted directly with ITAL, and they occupied key positions in their respective organizations. State Government Four state government employees were selected to be interviewed. They were affiliated with two organizational units, the office of Coordination of Agricultural Research within the State Secretary of Agriculture and the State Council of Technology, a unit within the State Secretary of Planning. Coordination of Agricultural Research The top executive in the office of Coordination of Agricultural Research was interviewed. His educational background is in agricultural engineering. He stated that 143 interaction with ITAL is an important part of his job, occurring primarily through direct contact with ITAL's executive director and top administrative group. The office of the Coordinator of Agricultural Research has direct supervision of state institutes of agricultural research (see Figure 4.3), which includes ITAL's line of command. Direct interaction between ITAL and this external organization arises over technical prOblems related to project development, budget planning and financial control (the coordinator's office is in charge of state allocations to ITAL, and personnel, purchasing, and other areas of organizational policy. The office of the coordinator reported that a sub- stantial amount of decision making is delegated to ITAl in order to accelerate the decision process on routine matters. In policy matters, the office of the coordinator exercises greater control, and in this area there has been a constant dialogue with ITAL's management. The office of Coordination of Agricultural Research maintains a planning staff in charge of developing studies and surveys on the performance of research institutes for which it is responsible. This staff also discusses and studies the planning and programming of ITAL's and other institutes' activities, follows up performance, and evaluates results. Planning staff members have a solid technical background in the area of agricultural research. 144 OFFICE OF THE SECRETARY OF AGRICULTURE COORDINATION OF TECHNICAL 'ASSISTANCE INSTITUTE OF AGRICULTURAL ECONOMICS COORDINATION OF AGRICULTURAL RESEARCH COORDINATION OF RESEARCH ON NATURAL RESOURCES INSTITUTE OF AGRONOMY INSTITUTE OF INSTITUTE OF 8 Technical Divisions INSTITUTE OF FOOD TECHNOLOGY (ITAL) BIOLOGY ZOOTECHNICS 7 Technical 5 Technical Divisions Divisions 3 Technical Divisions Source: Governo do Estado de Sao Paulo, Diretrizes de Atuacao da Secretaria da Agricultura—-Desenvolvimento Agricola: Um Grande Desafio (Sao Paulo: June 1972), pp. 79-83. Figure 4.3.--Organogram: State Secretary of Agriculture and the Coordination of Agricultural Research. 145 Power and Dependence RelationshipS.--The respondent reported having interacted with ITAL's top management at times when other individuals external to the organization also were present. Among these third parties were a Brazilian food company representative, PLANITA staff, employees of the federal government‘s Ministry of Planning, and representatives of the federal government's Ministry of Agriculture. The office of Coordination of Agricultural Research has been an official organizational unit within the State Secretary of Agriculture since 1968, and the present t0p executive has held the position since 1971. Among other organizations supervised by the office (see Figure 4.3), the respondent reported that ITAL is the most active in terms of its response to the requirements usually made by the office of the coordinator. Most of these requirements relate to project contracting and agree- ments to which ITAL is a part. He added that "ITAL has been the research institute with which I have had more interaction than any other . . . . 'ITAL'S project turn- over rate is very high; people there are rapid and effi- cient . . . . More than 95 percent of my decisions in relation to ITAL have been uncomplicated, because we have been in agreement most of the time . . . . I am really very proud of ITAL . . . ." The respondent judged that the relationship between the office of Agricultural Research and ITAL is extremely 146 important for the latter. By definition, the coordinator's office exercises a great deal of bureaucratic control over ITAL that, if rigidly applied, could ultimately stymie the organization. However, this has not occurred, and there have been no difficulties whatsoever in dealing with ITAL. The respondent believed the modifications that took place in ITAL's top management in 1971 were fundamental for the achievement of the present efficiency of interaction between both organizations. He added: "The work ethic in ITAL changed after the new administration took office The respondent reported that he and the present ITAL executive director took office at approximately the same time (1971). Shortly thereafter, a new policy for ITAL's industrial project contracting was adopted, as well as a new policy to supplement salaries of technicians and scientists. A Similar philosophy on the part of the manage- ment of the two organizations has contributed to overcoming former limitations to realization of ITAL'S policies. As reported by the respondent, ITAL constantly needs resources and services from the office of coordina- tion. Funds have flowed at an annual rate of about 70 percent of ITAL's total budget. Also, the agreements and contracts between ITAL and other public or private organi- zations must be approved by the office of Coordinator of Agricultural Research. The respondent did not think this 147 flow of resources and services to ITAL would be inter- rupted in the future. He also reported that there had been no competition for these resources, Since they had been allocated in the execution of specific plans. Federal government and the food industry have begun to allocate funds tied to the execution of Specific pro- jects, and their present contribution is approximately 30 percent of ITAL's total annual budget. The coordinator said his office welcomed this situation and, in fact, had directly participated in the development of these two new external relationships. The need for ITAL to perform well was viewed as crucial by the coordinator. First, the achievement of the office's planning targets partially depends on ITAL's success. Second, ITAL's good performance offers excellent support in the office's struggle to obtain greater budget allocations from the Secretary of Agriculture. The respon- dent offered as an example the substantial resources recently obtained to build a new meat research plant at ITAL. In his view, if the money had been solicited for an organization other than ITAL, it probably would not have been forthcoming. The respondent believed no other organization could provide his office with services identical to ITAL's. Furthermore, no other organization in Brazil offered the same high quality. The respondent added: "Compared to other institutes in the field of food technology, or even 148 in the area of agricultural research, ITAL has had the best performance." The respondent defined the interaction between the two organizations as one of mutual dependence; both parties hold objectives in common, and each contributes to the other. In evaluating the relationship between ITAL and the federal government, the respondent considered it crucial from ITAL's point of view. "Through this relation- ship," he stated, "ITAL has been able to provide a satisfac- tory solution to the question of payment of equitable remuneration to its technical and scientific personnel." On this matter, the respondent's office has done its utmost to help ITAL achieve success in the PLANITA agreement. Furthermore, the office of Coordination has used ITAL's example to urge other research institutes to adOpt such a policy. Despite repeated urging, no positive responses have been forthcoming from these other institutions. Task Environment ChangeS.--The respondent defined the relationship between the office of Coordination of Agricultural Research and ITAL as extremely stable. ITAL has been a very productive organization, maintaining high quality in research activities, something sought by the office from all organizations under its control. In addition, there is an actual supervisory link between the two. Nevertheless, the respondent pointed out that in public administration there is always a high risk of 149 interrupted interaction because of constant transformations. New personnel may disrupt productive functional relation- ships previously developed. At present, the respondent feels his office and ITAL‘s top management have a perfect community of objectives; personal friendships also have smoothed the interaction. Mutual loyalty and an open attitude about Sharing responsibility and participating in decisions were two other contributing factors cited. In distinguishing ITAL's top management from that of other organizations under his office's direct supervision, the reSpondent indicated that it is important for the management of a research institute always to be prepared to assume responsibility and produce a continuous flow of information for decision making. According to the respon- dent,ITAL'S management does so. The respondent also viewed as quite stable the relationship between ITAL and the food industry, the federal government, and international organizations. He mentioned that relations have been so good that other institutes of research are jealous. The present configuration of ITAL's task environment was viewed by the respondent as efficient and sufficient, to a considerable extent, for the organization‘s good performance. Future changes were not considered likely. In his opinion, ITAL has found its path of development. The respondent positively stated that he does not consider changes in ITAL's task environment desirable. 150 Such changes would not be welcomed by his office because the present structure has been so efficient. In terms of past attempts to change task environ- ment relationships, the respondent indicated the recent introduction of the federal government and the food industry. He added that before the official recognition of these two relationships, ITAL's attempts to channel contracts through a private foundation threatened the organizational links with the state administration. Domain and Goal Formulation.--The respondent con- sidered all of ITAL's input-output transactions important; none was more important than another. Research of a wide variety derived from contracts with the food industry and government, consultancy activities, courses for segments of the food industry or for technical schools, publications, and so forth, are the types of activities which define ITAL's operations. The respondent made clear that he is quite satisfied with ITAL's transactions, although there is always room for improvement. The reSpondent offered three examples of recent output innovations at ITAL: the dairy products research plant; the meat products research plant; and the fish products research plant. Through these activities, ITAL planned to expand into new food research fields. The office of Coordination of Agricultural Research was an active participant in the effort to develop the new projects. Through them, ITAL learned better methods for planning and 151 scheduling its activities. At the time of the interview, a five-year plan for ITAL was in preparation; it included these three new areas of research and others. The respondent reported being considerably familiar with ITAL's goals and policies. In fact, he considered it extremely important for his organization to keep abreast of these matters. The three new areas of food research (meat, dairy, and fish products) were cited as examples of the involvement and participation of his organization. The coordinator believes his office has influenced the deter- mination of ITAL's goals and policies to a very great extent. This was also said to be true for other areas of policy, such as personnel, finance, and purchasing. The respondent stated that he does not desire future changes in ITAL's goals and policies, at least in the short run. Present goals and policies might be improved upon, but major changes would not be welcomed. Finally, the respondent felt that the office of Coordination of Agricultural Research and the other members of ITAL's task environment are in agreement about what ITAL's goals and policies should be. This is because governmental and food industry policies are directed toward economic development, and ITAL has provided both with the tools to achieve important targets. Organizational Assessment.--The respondent viewed ITAL as an extremely successful organization in relation to the management of its scientific activities. However, 152 he said that ITAL was not the best research institute under the office of Coordination of Agricultural Research in terms of the management of bureaucratic or routine activities. Referring to his career experience, the reSpon- dent said that the best research organization in terms of technical and scientific activities usually is the worst in adjusting to state bureaucratic rules, and vice versa. The respondent ranked ITAL's indicators of per- formance as follows: (1) quality of technical personnel; (2) contribution toward the achievement of governmental goals; (3) overall improvement through time; (4) overall performance satisfactory compared to similar organizations; (5) prestige with the external public; and (6) improvement in the rate of innovation and creation of new products and services. The respondent said that ITAL has Shown improvements in terms of these six indicators and that recent scores have pleased his office considerably. He also stated that his office and its technical personnel have been able to under- stand ITAL'S technical activities to a considerable extent. Generally Speaking, the respondent added, at ITAL it has not been difficult to plan for the achievement of objective and measurable goals. It has been harder to elaborate on and predict the details of activities to achieve larger objectives. Nevertheless, the decision process at ITAL was judged, to a considerable extent, as being generally simple and efficient. This was attributed 153 to the guidelines contained in state and federal plans concerning food technology. Aside from planned targets, ITAL's top management must define programs and schedules for future needs, but it has been an active participator in the formulation of food technology goals at the state and federal levels. State Council of Technology Respondents from the State Council of Technology (SCT) were members of its team of technical experts. Their educational background includes university degrees in the areas of engineering and economics. They reported being in direct interaction with ITAL through the nature of their jobs. It was indicated that other SCT personnel have interacted with ITAL, primarily during the development of projects for technological research contracted by ITAL with the food industry and through the PLANITA contract, to which SCT has contributed about 25 percent of the funds. In conjunCtion the state government's Project for Science and Technology,13 SCT launched, in 1971, a program called "Counter of Technology."14 The objective was to establish a link between state institutes of research, the supply side for technology, and Brazilian industrial organizations, the demand Side. The program was basically a tremendous marketing effort to inform Brazilian enter- prises about the availability of technology and related services in state research institutes. This program was 154 said to have facilitated group interaction between ITAL, the food industry, agencies of the state administration, and the sources of financing. A number of seminars were developed to fulfill this objective. Power and Dgpendence RelationshipS.--AS a direct consequence of the Counter of Technology, SCT has had constant interaction with ITAL. Respondents reported that no disagreements have emerged so far. They also stated that the link with SCT has been of fundamental importance for ITAL. SCT has budgetary control over state institutes of research, which gives it veto power over the planning and programming of internal activities. Other state institutes of research have also required time, attention, and services from SCT. At present SCT is studying means of giving greater administrative autonomy to the research institutes. However, respondents believed all research institutes will continue to have some degree of dependence on state government. SCT'S extension services has asked ITAL to (1) create a department for diffusion of technology; (2) create an organizational unit in charge of technological fore- casts; and (3) develop a realistic policy to maintain researchers' salaries at competitive levels. In general, SCT wants ITAL to become a very efficient organization in technical, managerial, and financial matters. 155 Respondents considered that, in the area of food technology, no other organizatin's achievements can match ITAL's. The quality of ITAL's activities is very high, and it seems unlikely that other organizations will super- sede it in the future. Respondents believed ITAL is not dependent on SCT, rather, SCT has cooperated with ITAL to achieve better interaction with industry. Some amount of bargaining occurs between the two organizations. For example, ITAL hired some Specialized personnel for a demonstration project on trOpical fruits in which SCT was interested. SCT wanted the project to be developed and used its influence to obtain authorization for hiring personnel from the Secretary of Agriculture. Another matter in which SCT acted posi- tively was in developing salary supplements for ITAL's technical personnel. Task Environment Changg§.--Respondents termed SCT'S relationship with ITAL as extremely stable. They added that both organizations Share a similar philOSOphy. SCT has constantly tried to motivate state research institutes to adopt a c00perative approach in the effort to integrate units involved in the system of technolOgy production. Respondents believed ITAL might eventually achieve greater levels of autonomy from the state administration, but the present relationship with SCT is unlikely to be interrupted in the future. 156 In relation to other task environment organizations, respondents predicted the maintenance of stable relation- ships for ITAL. An exception was the interaction with UNICAMP'S Department of Food Technology; respondents felt the deteriorated relationship would continue for some time. A change in ITAL's task environment was predicted by respondents in the near future. A new public corpora- tion has been created: COPEME'S main objectives are to promote and develop Brazilian exports and it necessarily will interact with public research institutes to advance its objectives. Respondents reported their desire for the develop- ment of a national network for technological information exchange to which ITAL would contribute in the area of food technology. Domain and Goal Formulation.--Respondents stated that it is important for SCT to participate in formulating ITAL's objectives. However, SCT attempts to act as a mediator between the supply and demand for technology, rather than advance Specific objectives. An example of SCT'S activities as a mediator was the development of research on meat, fish, and fruit products. Respondents added that SCT is satisfied with ITAL's outputs. A certain degree of independence and self- sufficiency in financial and administrative matters remains 157 to be achieved by ITAL, and the question is how to opera- tionalize this idea in an acceptable form. It was reported that SCT has been trying to influ- ence the improvement of ITAL's managerial capabilities. Respondents pointed out that there was considerable agree- ment among task environment organizations as to ITAL's goals and policies. Organizational Assessment.--Respondents indicated that any judgment about success or failure of ITAL depended on what aspects were taken into consideration. Using services to the community as a criterion, ITAL is a very successful organization. However, if the yardstick is some measure of economic efficiency, then ITAL is not successful, mostly because it is not a self-supporting and economically independent organization. To become self-supporting, according to respon- dents, ITAL should: (1) organize and develop activities related to technological forecasting; (2) emphasize tech- nology diffusion by being more aggresive in marketing technology; and (3) implement cost control as a basis for a pricing policy and controlling economic efficiency. ReSpondents chose seven performance indicators they considered important in evaluating ITAL's activities. They preferred not to rank these in importance because a research institute is dynamic, and what is important at one time may not be relevant at others. The performance 158 indicators chosen were (1) prestige of the organization with the external public; (2) quality of the technical personnel; (3) quality of management; (4) improvements in the rate of innovation and creation of new products and services; (5) financial status (self-supporting); and (6) improvements in the quality of output. SCT respondents preferred to evaluate ITAL in terms of its overall policies. At the moment, they think ITAL has shown improvement in terms of all important indicators with the exception of financial status. Cost control has not been emphasized by ITAL's management. Respondents also felt ITAL's structure of Opera- tions allows for planning and forecasting activities. The establishment of goals has been made easier at ITAL because they are derived from state and federal government plans. Furthermore, respondents considered the decision process at ITAL as simple and thought there had been no major conflicts about what courses of action to adopt. Project Science and TechnologyL State Secretary of Planning The respondent from Project Science and Technology is a university professor in charge of the coordination of the project, developed by the Secretary of Planning and the State Council of Technology. The program is being phased out because its main objectives have been achieved. Because the project was the source for the Counter of 159 Technology and because the respondent was in constant direct interaction with ITAL's top management, it was decided to include him among the individuals interviewed. Project Science and Technology sought, in relation to Brazilian business enterprises, to (1) improve the quality and degree of standardization of products; (2) adapt new technologies to Brazilian conditions; (3) develop new products and processes; and (4) develop technological research. These objectives were part of a general strategy for expanding the Brazilian export market.15 Brazilian businessmen were offered financing for the purchase of laboratory and quality control equipment, for personnel training (at the technical level), and for technical assistance in the areas of quality control," technological research, and new products development as well as information on sources of technology, both local and foreign. The respondent proved to be very well informed about ITAL's activities. Power and Dgpendence RelationshipS.--The respondent coordinated meetings between ITAL's top management and executives of the food industry, acting as a broker between the two. For example, the respondent arranged for ITAL management and representatives of the meat processing industry to discuss problems and possible solutions. The respondent brought USAID and other international agencies 160 into the picture to provide solutions ITAL was not prepared to offer. Accordingly, foreign advisers offered technical assistance a number of times, and the training of Brazilian counterparts also took place. In another instance, Project Science and Technology created a link between banking and financial institutions and research organizations to provide the necessary financ- ing of technology projects development. In this area, Project Science and Technology sought to establish a means to direct financial resources so that, seeing that financ- ing was available, industry and the institutes of research would commit themselves to marketing research outputs. This effort was needed in view of the reluctance of some institutes to change their traditional attitude about being a state supported organization, only remotely linked to the nation's industrial development. The respondent added that the experience with ITAL in promoting such a philosophy was the most successful during his term as project coordinator. The respondent stated that his relationship with ITAL extended over an lB-month period, from January 1972 to June 1973. During that time, he had frequent inter- action with ITAL--"several times a week." The major problem the respondent encountered related to the definition of policies for market research for food products in ITAL. The Secretary of Agriculture did not seem to agree with ITAL's intended policies, but 161 the matter was solved through the reSpondent's intervention. ITAL is now working on the organization of its market research team. The respondent viewed his relationship with ITAL during the development of Project Science and Technology as quite important for ITAL. Efforts made during that period definitely contributed to the legitimation of ITAL's policies in relation to the external environment. Also, substantial resources have begun to flow to ITAL as a result of Project Science and Technology. The respondent stated that his relationship with ITAL was not at all strained, although some difficulty was created when the Secretary of Agriculture became involved. Nevertheless, he felt all of ITAL's problems fall within the range of normal, a state of affairs he attributed to the top management group as a whole being loyal to the organization (which he called "institutional loyalty"). He reported that ITAL needed resources and ser- vices from him during his term with Project Science and Technology. Resources took the form of influence on budget planning and efforts to obtain funds from inter- national agencies such as USAID. In addition, the project controlled funds for financing technology projects. The respondent said there was never any competition for these funds because the state institutes involved always established their share in a friendly fashion. However, red tape sometimes delayed the utilization of 162 resources by ITAL and other institutions. For example, any contract with industry or government must have the final approval of the office of Coordinator of Agricultural Research if the contract exceeds 500.000 cruzeiros. The reSpondent reported that Project Science and Technology needed a positive reSponse from ITAL for its new policies. ITAL's acceptance could prompt a change in attitude in other state research institutes. ITAL was used for a demonstration effect so that other Similar organiza- tions would seek to open up new areas of research, be more aggressive in marketing of their Specific areas of techno- logy, and emphasize the develOpment of products for the export market. ITAL's overall response to Project Science and Technology was positive. However, the respondent reported that ITAL was too Slow in producing new technology. He wanted ITAL to function at a pace similar to that in the entrepreneurial sector of the economy. According to the respondent, the private sector of the economy definitely needs services from ITAL, and it has shown interest in obtaining them. The origin of this relationship occurred during the life of Project Science and Technology, when the state government wanted to reduce the state's contribution to ITAL's budget. The respondent did not agree and wanted ITAL's budget to be supplemented by an increase in contracting to compensate for the 163 reduction in state funds. The respondent worked with representatives of the state and federal governments, and it was agreed that funds up to 50 percent of ITAL's total budget Should be provided by the private sector through project contracts with the food industry. It was also reported by the respondent an unsuccessful attempt made by some technological research institutes to achieve the status of public corporations. ITAL also was involved in this movement to obtain more autonomy from the state administration.v During the operating life of Project Science and Technology, there was no serious dependence of ITAL on that project, according to the respondent. He felt ITAL was more dependent on the State Council of Technology and the Secretary of Agriculture, primarily because they have more long-standing and formal means of interaction with ITAL. In evaluating other task environment relationships, the respondent stated that companies in the food industry are coming to ITAL more frequently. Therefore, ITAL generally has been passive rather than active in soliciting projects since its backlog has reached the point where it would be unwise to take on more work. "They think they may not be able to handle a substantial increase on the demand side," the respondent remarked, but he does not agree. "Being aggressive in terms of marketing does not necessarily mean that a substantial growth in the workload will occur." 164 He points out that a number of projects already are com- pletely developed and the only task required would be to marketing them. The respondent judged the relationship with the food industry, the financial sector (for project financing), and the university system as the most crucial ones for ITAL. He was unhappy about ITAL's poor relationship with the University of Campinas. He also considered the absence of an internal cost control mechanism as the source of some difficulties in the interaction with the above-mentioned crucial elements. Task Environment Changes.--In view of the lack of stability of the respondent's interaction with ITAL, some questions in the interview guide were not applicable. Nevertheless, he considered a possible future change in ITAL's task environment might result from the diffusion of the idea of project contracting in Brazil. More Speci- fically, he saw the develOpment of competition to ITAL as extremely likely. The probable source will be research activities in Brazil by international institutes of research. The Stanford Research Institute, for example, is interested in sending personnel in Brazil to develop and market projects on technology. The facilities of head- quarters would be available through satellite communication, which would enable more rapid and less costly responses to enterprises' needs for technology. The respondent thought 165 this possibility might pressure ITAL into improving its managerial and research capabilities, and .he predicted that ITAL would make a positive response in such a Situation. ngain and Goal Formglation.--Project Science and Technology had a major concern in ITAL's output Side, in particular, its production of food technology for the Brazilian market. This concern was especially great during the period in which the respondent's interaction occurred. Accordingly, he promoted meetings in which ITAL's top management and industry representatives exchanged informa- tion and thus provided ITAL with a general picture of the demand for food technology research. The respondent felt this influenced the formulation of ITAL's future policies. He reported having concentrated his efforts on attempts to influence ITAL's scientific, technological, financial, and personnel training policies. He stated that he was not completely satisfied with ITAL because of high costs and poor accounting procedures which failed to provide infor- mation for decision making. As a result, ITAL was not managing its financial resources efficiently. The respondent reported using budgetary pressure to exert influence on the formulation of ITAL's policies. He also thought there is little agreement among external organizations about ITAL's future goals and policies. According to him, there Should be a balance between basic and applied research efforts there. The government does 166 not have a comprehensive position on this subject, and decisions in this area have not been coherent. Organizational Assessment.--ITAL was judged by the respondent to be quite successful when compared to Similar organizations. However, if financial status and costs are used as criteria, it is not too successful. The respondent selected performance indicators he thought should be used in evaluating ITAL and ranked them in order of importance: (1) financial status; (2) quality of technical personnel; (3) quality of management; (4) achievement of operational goals; and (5) level of contri- bution toward the achievement of national, state, or local goals. In his Opinion however, the State Council of Technology of the Secretary of Planning is not yet prepared fully to understand and evaluate ITAL'S operations. "What is necessary is to train a group in the area of research management--at the Stanford Research Institute or the Denver Institute—-in order to develop better means of evaluating research organizations." The respondent believed ITAL's Operations could be planned in order to achieve some measurable goals. Also, he found the decision process simple, and he thought ITAL's top management can clearly see and choose paths for action. 167 Federal Government The federal government respondent, an agricultural engineer, is general coordinator of the National Integrated Plan for Food Technology (PLANITA) of the Ministry of Agriculture. He also is a member of the Brazilian Enter- prise Of Agricultural Research (EMBRAPA), a public corpora- tion created to develOp agricultural research institutions. The respondent supervises planning for agriculture research in institutions all over the country. Therefore, his job requires constant interaction with ITAL's top management. The respondent stated that PLANITA relies heavily on ITAL. "ITAL is the organization which sets the patterns for my activities of control and integration of efforts in the area of technological research." For example, if the respondent needs to issue a technical Opinion on the admis- sion of a new institute of research to EMBRAPA, he usually consults with experts from ITAL. ITAL technicians make a complete evaluation of the prOposed institute and are a tremendous source of expert advice for EMBRAPA. Power and Dependence Relatiogships The respondent carefully delineated the present exchange process between ITAL and the federal government. Through PLANITA's project contracting, resources amounting to 12 million cruzeiros (US$2 million) were to flow to 168 ITAL during 1973-1976. In addition, federal funds from the National Fund for the Development of Science and Technology were allocated to ITAL. Basically, these two sources pro- vide funding to ITAL through project contracts. Typical projects are research and development of high protein food contents for less developed areas of the nation, technical assistance to other food research institutes or universi- ties in Brazil, and development of balanced meals for the military. The respondent stated that there is very little probability this flow of funds will be interrupted. In fact, the federal government may increase allocations to ITAL if national planning requires more activities in this area. ITAL was viewed by respondents as being the main organization in its field and the only one with such a high technical level; thus it will continue to receive federal support. - Substantial federal support also is provided to ITAL's technical personnel abroad in the form of scholar- ships for training. This support may take the form of direct payments or efforts to Obtain resources from inter- national agencies. From ITAL, the federal government expects to receive continuously: (l) fulfillment of agreed upon con- tracts; (2) support for personnel training in other Similar research institutes; (3) technical assistance in creating 169 and organizing new institutes; and (4) permanent consulting services. The respondent reported that his interaction with ITAL was along the line of controlled autonomy, control being exercised mostly through the flow of resources to ITAL. Task Environment Changes The respondent considered the interaction between ITAL and the federal government as quite stable, primarily because the exchange has been satisfying in terms of the mutual expectations. Accordingly, he did not consider likely a future interruption of this relationship. Further- more, at the time of the interview, he stated that there were no difficulties whatsoever which might damage the relationship. The present configuration of ITAL's task environ- ment was viewed by the respondent as satisfying. He felt the possibility of substantial changes in the near future was very unlikely. With respect to past attempts to change, the respon- dent recalled a time when the federal government began to Operate within ITAL's task environment. ITAL faced a tremendous problem in 1969 because it was difficult to keep highly trained personnel due to noncompetitive salaries. Within the state government there were no means to solve the problem because of very rigid wage policies. ITAL 170 sought solutions, and the federal government became involved. After several meetings, in which the respondent participated, the federal government agreed to provide support through the National Fund for Development of Science and Technology. The idea was to provide support with no strings attached. At this juncture, the respondent prOposed that the federal government should tie the resource flow to Specific pro- jects so that precise services would be required from ITAL. PLANITA, which resulted from the adoption of this approach, awarded a large contract for a number of research projects to ITAL. Through this project contracting approach, the federal government became an important new member of ITAL's task environment. Salary additions to scientists and technicians were made possible on the basis of the indi- vidual's contribution to each project. Domain and Goal Formulatign The respondent said he had spent a fair amount of effort in attempting to influence ITAL's Operational goals and administrative policies. For example, research on coconuts and cashews were included in PLANITA's projects through his direct influences. Such research had relevance for the less developed regions of the nation. The respon- dent also influenced the adoption by ITAL of research projects in the areas of meat, dairy products, tr0pical fruits, and fish. 171 However, he said he is much more involved with the overall objectives of ITAL, such as general policies for initiating new technology. His personal influence on such matters is only informal, but ITAL's top management was said to be very receptive to his suggestions. One of the reasons given by the respondent for harmonious relationships with ITAL is that he has occupied other public offices which involved interaction with ITAL personnel. In addition, his undergraduate training was similar to that of ITAL's management. In his opinion, what distinguishes and differenti- ates ITAL from other research institutes is the dynamic response that its management offers to the stimuli which the organization receives. AS a result of integrating efforts on the part of ITAL and other external organizations, the respondent saw great homogeneity among task environment organizations in relation to ITAL's goals and performance. Organizational Assessment The respondent considered ITAL a‘ quite successful organization because its performance as a whole has been satisfactory. He also gave a list of performance indica- tors in order of importance: (1) quality of technical 3personnel; (2) financial status; (3) improvements in the .rate of innovation and creation Of new products and 172 services; (4) achievement of some operational goals; (5) level of contribution toward the achievement of national, state or local goals; (6) overall performance satisfac- tory compared to similar organizations; (7) quality of management; and (8) prestige of the organization with the external public. The respondent felt financial status was important for two reasons: (1) the achievement of higher levels of autonomy and a self-supporting position is directly depen- dent on solid financial management, and (2) the increase in project contracts, which is basic to reaching this ideal, depends on good project management, which includes efficient financial and cost control. Finally, the respondent felt that ITAL follows more comfortably the directives stemming from interaction with the federal as opposed to the state government. In fact, he thought ITAL had been more loyal to federal government plans which influence internal policies than to any other element of its task environment. Food and Agriculture Organization of the United Nations The respondent, a FAQ official, supervises the joint project of the FAO, the state of Sao Paulo, and the federal government. His title is international director of ITAL, and he has a very close interaction with the 173 institute's top management. He is considered a regular staff member. He has been a project manager for FAO and the United Nations Development Program (UNDP) for fifteen years. His basic function is to integrate FAO and state and federal government activities in relation to ITAL. A high frequency of interaction with ITAL's executive director was reported by the respondent. His deep involvement, which includes participation in internal decision making, was very well received according to organi- zation respondents. However, relations were not always so harmonious. Under the previous administration, FAO repre- sentative and the executive director diverged with respect to overall administrative policies. Now, the respondent felt, there is more of a meeting of the minds and thus everything seems to be going well. Power and Dependence Relationship FAO'S interaction with ITAL dates from the insti- tute's early days. The initial interest of the government of the state of Sao Paulo in establishing a food research institute was channeled to FAO. An earlier state project funded at US$40,000 was converted, through FAO'S interven- tion, into a US$5,000,000 project. The University of California's Department Of Food Science was contracted to produce improved plants and equipment plans. FAO'S project idea was to provide all means necessary for the solution of technological problems for the Brazilian food industry. 174 The initial agreement called for five years of FAO participation. Two extensions increased the period to eight years. The agreement was to expire in December 1973 and was not to be extended because FAO considered ITAL sufficiently developed to follow its own path without direct and constant external support. FAO's assistance to ITAL has been in three basic areas. First, it Offered financial support for the hiring of international experts in food science. These came to ITAL to solve a specific research problem, put a laboratory in Operation, train ITAL's personnel, and suggest improve- ments in their areas of specialization. Among others, FAO brought in experts on food preprocessing and cashews. Second, FAO provided financial resources for the purchase of modern machinery and equipment of all sorts manufactured abroad. The respondent estimated that FAO contributed above US$500,000 in such equipment. Third, FAO scholar- ships enabled ITAL personnel to pursue M.A. and Ph.D. degrees abroad. FAO has acted very selectively to provide help that no one else could. Where possible, other international organizations were called upon for needed support. The respondent saw FAO'S participation as extremely important for ITAL and gave an example. When an inter- national specialist on sensorial analysis was hired to solve some problems at ITAL, his extremely rare capabilities were not used by ITAL for training its own personnel, or 175 for any other important activity beyond the limits of the Specific problem he was solving. The FAO participant pointed out that in the future such specialists should be used for in-house training, and this important procedure was incor- porated into ITAL's policy. Although FAO has provided resources and has acted as a broker for ITAL internationally, its only requirement is that the institute develOp a high degree of capability and quality of research. ITAL's success as an organization is a source of pride to FAO personnel and gives them the feeling that their organization has made a sound contribu- tion to Brazil. The respondent did not view the FAO relationship with ITAL as requiring the dependence of that organization. Basically, there was a substantial amount of mutual cooperation. Initially there was some dependence on FAO because of lack of Brazilian "know-how" in the area of food technology. The respondent stated that ITAL has had very amiable and efficient relationships with other elements of its task environment. His own personal forecast is that the federal government will gradually assume a position of greater importance than the other task environment organi- zations. AS to the university system, the respondent confirmed the existence of poor relationships, and he sees .nO possibility of immediate change. 176 Task Environment Changes The respondent reported extreme stability in the ITAL-FAQ relationship during the agreement period. No major difficulties existed except for those mentioned with the previous executive director, who was more traditional and closed minded in his attitudes. The present director is dynamic and Open minded, and this fact, added to FAO'S knowledge of ITAL's problems, has created good and efficient interaction between both organizations. The respondent also viewed as quite stable the relationships ITAL maintains with other task environment elements. This is due to a conscious policy of managing the external environment and to the existence of a high degree of understanding and cooperation on the part of the external organizations. Thus the respondent judged the present arrangement of ITAL's task environment as ideal to a considerable extent. "It seems to be a very logical arrangement given the present conditions," he said. Nevertheless, he predicted that one major change (was likely to occur. There will be a greater interest on 'the part of international institutions in using ITAL's facilities due to the increase in competition in the export Inarket for processed foodstuffs. The emphasis on quality control will be greater, and this will require improved technical ability. Therefore, agreements with international 177 agencies will occur more frequently than before in view of the need to improve quality. The respondent thought this change would be very beneficial to ITAL. Domain and Goal_Formulation In relation to ITAL's present output policies, the respondent stated that he is only somewhat satisfied. Although much has been done in the area of food technology in Brazil, he personally did not agree with the constant addition of new areas of research, such as meat, dairy products, and fish. Rather than diversify, ITAL should increase the depth of its knowledge and capabilities in the areas already developed. Otherwise, in the long run, ITAL will necessarily be subdivided into smaller institutes of research. The respondent argued that is very difficult to Obtain positive results when SO many areas of research are involved. Nevertheless, he conceded that present output--research results, publications, courses, project contracts, and training of industry personnel--has been of an acceptable level of quality. Unrestricted collaboration was reported by the respondent as his attitude toward meetings with ITAL's top :management. This attitude has been the norm rather than a definite attempt to determine Operational objectives. AS a member of the Board of Directors of the ITAL- FAO project and as ITAL's international director, the respondent reported that he knew the other members of the 178 organization's task environment very well. In his Opinion, there is agreement to a very great extent among those organizations on the present goals and policies pursued by ITAL's top management. Organizational Assessment ITAL was viewed by the respondent as an extremely successful organization, notwithstanding the substantial difficulties it faces. In the past, there were too many changes of government officials, executive directors, and FAQ project managers. This severely hampered the organi- zational effort to achieve efficiency and productivity. ITAL has been successful primarily because of the following factors: (1) positive impact upon the food industry; (2) positive impact upon food technology education in Brazil; (3) successful production of balanced meals formulas for soldiers, school children, and workers, upon government solicitation; and (4) successful execution of experiments and their publication in international journals of food science. In analyzing the list of indicators of success contained in the interview guide, the respondent provided the following rankings: (1) improvements in the quality of output; (2) improvements in the rate of innovation and creation of new products; (3) quality of technical person- ;nel; (4) quality of management; (5) development of activi- ties which prepare the organization for future action; 179 (6) prestige of the organization with the external public; and (7) overall improvement through time. The respondent also added that ITAL's contribution to the food industry's develOpment was another important indicator of the organization's performance. Food Industry To elicit the perceptions of the food industry concerning ITAL's activities, three companies were inter- viewed, a middle-size and a large Brazilian firm and a large multinational food producer. Size was determined on the basis Of number of employees: up to 100 was small, from 101 to 500 was middle sized, and over 500 employees was considered large. The answers their representatives provided to the questions contained in the interview guide will be presented in a tabulated form, following the scale previously estab- lished. The Brazilian middle-size company's president was the respondent. He reported having interaction with ITAL from time to time as necessary for the development of jprojects. He had been informed by people in the trade about ITAL's existence. At the first contact the respon- dent was surprised by the fact that a state organization vuyuld welcome and Offer to be of service to its clients. this previous experiences with government organizations were rupt quite similar to this. Since that time, ITAL has 180 improved four company products and completely developed one. As this last product is a basic component in manufacturing other products, it usually is produced in large lots. ITAL offered its facilities for this processing so that the company did not need to install the necessary productive capacity for one or two years in the future. The manager of the Research and Quality Control Department was the interviewee from the Brazilian large- §igg_company. He reported that his job requires direct interaction with ITAL's top management and technicians, and this has been continuous since ITAL's inception. At that time ITAL was utilizing some of the company's research equipment, and the company later used some of ITAL's equipment. Concerning the development of company pro- ducts through ITAL, the respondent stated his company worries about industrial secrets. This is not because the firm distrusts ITAL, but because ITAL may develop some capabilities which would make it easier for competi— tors to develop a new product through project contracting. For this reason, the company prefers to utilize ITAL's services mostly in terms of isolated pieces of analysis which his department then puts together. "Besides, there are instances when we prefer to buy foreign know-how, a rmore rapid solution to our problems in acquiring technology." The respondent from the multinational_company was the head of the Department of New Products. He reported itheractions with ITAL's management primarily for reasons 181 of public relations and in meetings of technical associa- tions. His company has its own research and development capacity, locally and at headquarters, and it has never used ITAL's services. Nevertheless, he noted approval of ITAL's activities and has provided moral support to it. Power and Dependence Relationships_ The respondent from the Brazilian middle-size enterprise stated that the relationship with ITAL is very important for his company. The firm has no research facilities and uses ITAL's services to solve its technolo- gical problems. This relationship was said to present no difficulties. The cost of projects was said to be very reasonable. In fact, costs were much lower than if the company developed its own projects, in view of the high investment required and the possible low percentage of utilization in a middle-size enterprise. The respondent recognized that for these reasons his company is techni- cally dependent on ITAL, for no other organization provides the services ITAL can. NO concern whatsoever was Shown that the firm's competitors could take advantage of ITAL's capabilities acquired through project contracting. The Brazilian large-Size firm's respondent stated that interaction with ITAL occurs about twice a month, depending on the number of projects being processed. He did not know whether this frequency would increase in the future. This doubt was expressed because his company 182 thinks that there must be a clearer understanding about protecting firms' know-how before industry-ITAL interaction can proceed. Laboratory analysis, various types of research, and policies for the industry are frequent reasons for interaction with ITAL. The relationship with industry was considered very important for ITAL from the viewpoint of this respondent. ITAL does have a weak point: "It does not do sufficient practical work for industrial application." This same respondent characterized the interaction with ITAL as smooth. He reported that there is an insigni— ficant flow Of resources from his company to ITAL. Although the technical quality of ITAL's work is very high, industry is still reluctant to deal with governmental organizations. He added that if government could develop a very efficient management at ITAL and other Similar organizations, there would probably be an increase in the resource flow from industry. The university system offers no competition to ITAL because it has done little in applied research. However, the company often has used the services of foreign consultants, and they have provided quick and sometimes complete solutions. Because of the availability of these services, the respondent thought a more feasible area for IITAL would be in research on tropical food products for which there is little foreign know-how. The relationship vmith ITAL was characterized by the respondent as not iJrvolving any degree of dependence. 183 The multinational compagy respondent saw no situa- tion of dependence because, as was stated, the firm does not utilize ITAL's services. He reported no concern about the aid ITAL can provide other food producers by develOping similar or substitute products. ITAL's services were con- sidered of very high quality, superior to those Of other similar organizations in the country. Task Environment Changeg The Brazilian middle-Size company respondent rated his firm's interaction with ITAL as quite stable, and he said it was desirable that it should continue so in the future. He would like to see better interaction between ITAL and smaller enterprises. Also, he thought that ITAL should develop a better system for helping industry to register and certify product formulas. This would mean ITAL's greater involvement with the government agencies presently in charge of this task. "To be of real service to smaller enterprises, ITAL would have to take upon its shoulders the responsibility for legal advice on registra- tion procedures and on the market for food products." As for the Brazilian large:size_company, the ITAL relationship was considered somewhat stable. The respon- (dent indicated that it could be intensified in the future through the development of a larger number of projects at 11mm” He considered it important for ITAL to establish new ILinks with research institutes operating in other areas, 184 such as soil science, weather, and agriculture. Because these links do not now exist, ITAL is required to develop research in these auxiliary areas. "This is a waste of time and resources." Furthermore, "ITAL should be geared to increase its support to industry by solving more simple and practical problems of food technology." However, he thought the institute is doing a good job, mainly in assisting in the training of middle-level industry techni- cians. The multingtional company respondent suggested ITAL's resource flow should be based on three elements: the federal and state government and multinational com- panies. Considering that the third group accounts for 80 percent Of the total food industry in Brazil, ITAL should develop better means of interacting with it. How- ever, the respondent believed that, in the future, the federal government will become the dominant external element in ITAL's environment. Domain and Goal Formulatign The respondent from the Brazilian middle-size company said his firm lacks power to attempt to influence goals for ITAL by itself. However, through project con- ‘tracting, his company has made ITAL enter new research fields. At the Brazilian large-Sige_firm, the respondent :Lndicated industry's concern with its larger environment 185 and the role ITAL can play. In his view, ITAL Should provide more perfect information to the food industry, for example, pure research on Specific Brazilian conditions for foodstuffs production. Another area would be standards and norms for the food industry. "Here, there are no technical elements Operating in crucial governmental positions. ITAL should try to exert influence on the determination of technical norms and standards." Furthermore, "up to now, ITAL has obtained suggestions and information from the industry." He would like to see a reversal of this situa- tion, with the flow moving from ITAL to industry. The multinational company's respondent expressed his satisfaction with the publication of research results by ITAL and with the servicds of its library. His company has used these along with courses taught by ITAL personnel for training middle—level technicians. The respondent criticized three ITAL projects. The banana sauce project was devised to boost the economic development of a region producing high quantities of this fruit. ITAL produced the sauce, but it was too dark. The respondent asked: "Will any consumer ever be motivated to buy such a product?" "Which company will want to produce and market it?" The second project was a large-scale research effort to improve wine, but the respondent knew of no adOptions of the new processes and technologies suggested. The third project used manioc flour as a bread ingredient. The result was a loaf Of bread so heavy that the respondent wondered how 186 it could ever be marketed. The respondent thus registered his concern that many of ITAL's efforts were not geared to industrial applications and consumer tastes. He recognized he has little power to influence internal policy in this direction. Organizational Assessment The Brazilian middle-Sigg company's executive rated ITAL as quite successful. The quality of its output was the reason given. He also ranked the indicators of success applicable to ITAL: (1) quality of technical personnel; (2) amount of technical and legal information made available to industry; (3) quality of management; and (4) financial status. He was quite satisfied with ITAL's scores on these indicators, with the exception of the second where he thought there was still room for improvement. The respondent also reported that ITAL's management is very interested in clients: "We have had business con— tacts also by private telephone, and sometimes in the evening . . . . ITAL's directors are very amiable . . . they even visited our plant once." As for the Brazilian lagge-Size company, the respondent said ITAL is very successful. He said the more important indicators of success were financial status and (Inality of technical personnel. He said that although many gindicators can be used to measure ITAL's achievements, it 187 is important to look for those which are more quantifiable. "Without sound financial management, nothing good can be done," he stated. In addition, he said that the quality of ITAL's products has been satisfactory. In his View, ITAL's per- sonnel is too theoretical. The staff is too young and needs more experience and familiarity with industrial applications. The respondent from the multinational compgny also considered ITAL quite successful. He ranked the success indicators as follows: 1. Improvements in the rate of innovation and creation of new products and services. Evaluation: Good. ITAL has created some new products with industrial applications, such as tomato sauce. 2. Improvements in the quality of output. Evalua- tion: Good. An example was the improvement of the quality Of pineapple juice for industrial application. 3. Level of contribution toward the achievement of government goals. Evaluation: Good. An illustration is the national integrated plan for food technology (PLANITA). 4. Quality of technical personnel. Evaluation: Excellent. 188 The respondent added that there is still a need for improvement, particularly in autonomous generation of new ideas for new product development and their application. Summary of the Data Interview data are summarized in Tables 1 to 8. In general, there was a great deal of agreement between ITAL's top management and task environment member responses. However, small differences were identified: Tables 1 and 5 contain simplified responses of interviewees on power and dependence relationships. If they are compared, it becomes evident that there is a discrepancy in the percentage of state funds in ITAL's total budget. ITAL's top management indicated 60 percent, while the coordinator Of Agricultural Research sets the figure at 70 percent. The same tables indicate that the coordinator of Project Science and Technology foresaw future competition by the Stanford Research Institute. ITAL's top management, in Table 1, did not acknowledge this possibility. In Table 5, all task environment respondents indicated a balance of power and dependence, with the exception of the federal government, which indicated "controlled autonomy through the management of the flow of resources." ITAL's top managers pointed out that no future changes in task environment configuration were predicted, 189 except for the exclusion of FAQ at the end of their agree- ment (see Table 2). The same view is shared by the office (of Coordinator of Agricultural Research and the federal government (Table 6). In Table 6, indications of task environment changes can be found. The State Council Of Technology mentions COPEME, the new public corporation in charge of the promo- tion of exports. FAO said that new international agreements were forthcoming, and the food industry said that the federal government would become the dominant task environ- ment element in the future. Tables 4 and 8 register agreement of the office of Coordination of Agricultural Research, the federal govern- ment, and ITAL's management as to the most important indicator of performance for evaluating the focal organiza- tion. SCT and Project Science and Technology heavily emphasized cost control. Perceptions and Observations Made by the Researcher Power and Dependence Relationships It seems that ITAL is definitely dependent on external organizations. Specifically, dependence is con- centrated on the federal government, represented by PLANITA, and one element of the state government, the office of Coordination of Agricultural Research of the Secretary of Agriculture. As for the former, dependence 190 results from the receipt of substantial funds through project contracting and a promise of maintaining and increasing this flow in the future. AS to the latter, dependence stems from traditional supervisory links, the provision of important resources, and the office's ability to overcome governmental red-tape when necessary. The manipulation of crucial resources and services by these two elements of ITAL's task environment places them at a perceptible advantage in relation to other environmental organizations. Without PLANITA's resources ITAL would not have been able to keep some of its important technicians and scientists, without the office of Coordi- nation's approval, PLANITA would not have been able to initiate the developments which have taken place since 1970. To state that there are two crucial environmental organizations does not mean that other external elements are of negligible importance for ITAL's survival. The Food and Agriculture Organization of the United Nations was the crucial task environment organization during an earlier period. It was formally absorbed into the decision process at ITAL, and this fact alone suggests FAO'S importance in the initial stages. Even before 1970, the food industry received special attention. Project contracting, which.was impossible within the limits Of state regulations, occurred through a special parallel device. The foundation 191 arrangement devised by ITAL enabled it to generate resources for salary increments for technicians and scientists. But this was only a temporary solution, and now, with the state government's approval of industrial project con— tracting, the food industry is in constant interaction with ITAL. This relationship probably will be intensified in the future. , The State Council of Technology has played a major role in ITAL's environment. Its support has emphasized the marketing and financing of technology for Brazilian industry. As a consequence Of Program Science and Techno! logy, ITAL is now engaged in the development of an Operative market research unit. Therefore, all elements of ITAL's task environment have had varying degrees of impact on the organization. However, it seems that PLANITA and the Office of Coordina- tion of Agricultural Research are the dominant forces in the present task environment, with a slight advantage for the former. In interviewing ITAL's top management it seemed that the managerial group is more concerned with and more prepared to provide rapid responses to the federal government requests made through PLANITA. Three important phases of dominant dependence seemed to have occurred in ITAL's organizational history. In the early stages, FAO was the main task environment element. It had the knowledge and ability no one else could provide. In a second phase, with the basis of 192 technical ability already formed, the dominant element was the state administration, primarily because it posed restraints on organizational development through bureau- cratic and budgetary control. The state administration gave ITAL routine treatment similar to that given more traditional and Older research organizations. ITAL's efforts to overcome these restraints, which finally resulted in a change in personnel in state administration positions, brought about a change in the composition of its task environment. The introduction of the federal govern« ment in the rather new role of project contractor seemed to provoke a change in dependence relationships.* Now it appears that the federal government gradually will become the important task environment organization. To the extent that PLANITA encourages ITAL to adapt the goal of industrial application of research results, the food industry will probably improve its position among other task environment organizations. Task Environment Changes As mentioned above, the period immediately before 1970 was one of total dependence of ITAL on the state administrative machinery. It was a time of constraints and limitations in view Of the emphasis on compliance with *The role is considered new because the traditional attitude was to allocate money wherever it was deemed necessary, but without establishing performance requirements. 193 bureaucratic norms. Because of these constraints, ITAL had to develop alternative solutions for its personnel problems. To retain technical and scientific staff, an attempt was made to enlarge the organization's task environ- ment by contracting projects with the food industry. How- ever, as state regulations were not sufficiently flexible to allow direct contracting, ITAL's administration sought to create a private foundation to handle industrial projects with funds provided by its technical and scientific per- sonnel. Not only the attempt failed, but also this ques- tionable policy made the position of the executive director extremely difficult. A change of individuals in the state government brought a technically capable and motivated group into the Office of Coordination of Agricultural Research. Also, a new executive director at ITAL ushered in new cooperative forms of interaction. It seems this new spirit Of COOpera- tion was due to a coalition of ITAL's top management and the new group in charge of the Office of Coordination of Agricultural Research. The analysis of this coalition will be presented in more detail at the end of this chapter. The important point seems to be that ITAL's task environment was Opened to change after 1970 by virtue of modifications in the state administration. Two new ele- ments then entered the task environment: the food industry and the federal government. It seems that these changes alone can explain the recent developments that have occurred within ITAL. 194 It also appears that no changes are planned for the near future. There is a reasonable degree of satisfaction with the composition of the present task environment. Domain and Goal Formulation Based on interviews and the researcher's personal observations, it seems possible to relate some of ITAL's actual goals to the influence of taSk environment elements. Also, present domains for organizational action seem to have been established through a process of exchange with the external environment. The trend seems to be that the federal government will eventually become the more important element within the task environment group influencing goal determination. Of secondary importance is the state government, primarily because the policy of the office of Coordination of Agricultural Research is to provide the structural means for implementing federal development plans. Added to this is the perfect agreement of these two task environment elements as to the objectives to be achieved in the area Of food research. Organizational Assessment It seems that the elements of the task environment technically able to understand ITAL's operations are the PLANITA administration at the federal level, the office of Coordination of Agricultural Research at the state level and the food industry. 195 Basically, instrumental measures were emphasized more frequently than efficiency measures in assessing ITAL's success. Although the State Council of Technology and Project Science and Technology advocate efficiency measures of cost control, this indicator seemed not to be given similar importance by the PLANITA administration or the Office of Coordination of Agricultural Research. The food industry revealed its special preoccupation with the quality Of research output. ITAL's tOp administration seemed to place a greater stress on instrumental measures. In fact, the researcher Observed that the poorer aspects of administration policy were related to problems of efficiency such as cost con“ trol, inventory control, and financial management. Never- theless, observations revealed a growing concern with these areas, and in two or three years they may receive more emphasis from the more powerful task environment elements. Financial self-sufficiency was mentioned by all parties as an ideal to be attained in the future. Only once, and without much emphasis, did a task environment member mention that a comparison of ITAL with other similar organizations could be a basis for assess- ment. In general, the present basis for evaluation is instrumental criteria, with some indication that more Specific measures will be used in the future. 196 Coalition Identification The utilization of interviews as the basis of data collection fostered closer personal contact with respon— dents. Informal questioning Often led to dialogues which revealed additional information. Through the informal interaction of the researcher with respondents, it was learned that a coalition seems in process of developing within ITAL, with links to task environment organizations. The members of this coalition are ITAL's top management, the manager of PLANITA, and the office of Coordinator of Agricultural Research. The investigation revealed a Similar outlook or philOSOphy Shared by members of this coalition. Those who did not Share these attitudes were thus identified as not being part of the coalition and were excluded from subse— quent investigation. The coalition was formed around 1970 when changes occurred in ITAL's top administration and in the Office of Coordination of Agricultural Research. It originated from the need for a rapid solution of ITAL's technical personnel problems. The solution was reached with the involvement of the federal government and the development of PLANITA. The following conditions seemed to favor the forma- tion and development of the coalition: l. The individuals involved had the same technical background. 2. They had studied in the same university. 197 3. In many cases they had worked together previously. 4. There was a crisis situation into which these people were plunged, representing different organizations, to face a problem of substantial importance. 5. The immediate problem was solved, and they saw the possibility of continuing a joint decision- making process to the advantage of all individuals and organizations involved. 6. There is a continuous process of formal and infor- mal interaction among the members of the coalition, although their organizational affiliations are different. 7. There continues to be a great deal of consulta- tion among them. 8. All members seem to hold a very similar set of values with respect to the role of food research in Brazil. 9. Members of the coalition recognize that this simia larity in outlook and philosophy has been an impor- tant factor in holding the coalition together. 10. All members are practical men and have worked directly in implementing their joint decisions. Individual Power in the Coalition From the viewpoint of a member of ITAL's top administration, to participate in the coalition is a means 198 of acquiring more recognition, thus enhancing his personal power. From the standpoint of other participants in the coalition, power is also gained when organizational_goals can be achieved more easily through this cooperation. This can improve their status in the government hierarchy and thus their career security. This is what seemed to occur in the researcher's observation. Coalition Philosophy Some traits basic to the common philosophy of the coalition were: 1. 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000:0600u Ou :0ausnauucoo 0:03 Iuowuom huouoaumauam anon auouusumausm 0:08 1000:05 «o >0ua00o nasom no u:0:0>0«:04 nomocua uo audddao 054» 0000000: nanom uo u:060>0«:0< cassava H0::00 0:05 0::0000m :o0ou:u u:0ao>ouman ad» :« luon mo >04H00o :0«00>o::« mo 0am: 1000:06 uo Suwa00a a 00:00 00am no >0wa00a oasoo Hducoa:uo>om mwmmlmmummumm u : s 0 00u000 :0«uo>o::« no 000: 000000 use :0 «a a0::0000m uo adds a ooauuoum o» :0au0nduusoo o» 00000a00 00:0auouumm «040:0:«0 00su00 «o >0ua00a H0::00000 uo auaaoso 000000 H000:0:«m 400040004:0muo “0::0000Q uo >uaan0u no uuousoa0ca «dwu0uo .n a0u0000000 00: "hoco A00:0:«u u 0 0 500000 0:0 00000 no 0:000 « «mum « “000000000 H0u0000000 :« H000000000 uosv H0u0000000 A<9H 0» 0000nuuuua 0000000 ouu0a >Hosouuxn H0u0000000 00:00 H0u0000000.0u«0a >00> "00ow>u0m H0u0000000 >a0§0uuxu H000quana:0muo no camuum .A >00~0::00a 0:0 500H0::009 :uudoaou ceauumauuo>cn coauauucdouo 00:0«00 mo Hou0ua0oaua< no 004009 aha-00cm 000: ou0ua0uauo¢ 0:0a:u0>00 ~00000m 000noum Hwo:0oo 00000 no :o«00:A0uoou . 05 coo: 8303:0qu u:0a:u0>oo ououm u:0::00«>:0 x009 2003030005 0:0 00 05.00000: 05.. :0 000:0:00: .0:0«uuu«:00uo 000600.325 0.00:. «0 anal-00:50 Hands CHAPTER IV-EFOOTNOTES 1See Secretaria da Agricultura do Estada de Sao Paulo, Instituto de Tecnologia de Alimentos (Sao Paulo: 1972), p. 3. 21bid. 31bid. 4Ibid., p. 4. 5Food and Agriculture Organization (FAQ), 0 Que é e Como Atua, Associacao Brasileira de Crédito e Assis- téncia Rural (Sao Paulo: 1970), p. 7. 6Instituto de Tecnologia de Alimentos, p. 6. 70 Que é e Como Atua, p. 6. 8Ibid., p. 6. 9Instituto de Tecnologia de Alimentos, p. 6. 10Lawrence W. Bass, Direcao de Programas Técnicos 0 Com especial referéncia as necessidades dos pafses em desenvolvimento — translated unpublished manuscript in the portuguese language. 11Data were collected between April and August 1973. Any references to present dates from now on will assume this period when the investigating took place. 120 Que é e Como Atua, p. 6. 207 208 l3Secretaria de Economia e Plannejamento, Conselho Estadual de Tecnologia and Governo do Estado de 850 Paulo, Projeto Ciéncia e Tecnologia (Sao Paulo: 1972). 14Secretaria de Economia e Plannejamento, Conselho Estadual de Tecnologia and Governo do Estado de Sao Paulo, Balcao de Tecnologia (Sao Paulo: 1972). 15Projeto Ciéncia e Tecnologia. ( “‘01: CHAPTER V CONCLUSIONS This chapter offers conclusions based on the data contained in Chapter IV. The conclusions are presented in two parts. In the first a comparison is made between the data collected and the normative model derived from the Thompsonian propositions. It analyzes the propositions within the context of the focal organization. The second part attempts to evaluate the focal organization's performance, using the normative prescriptions suggested by the model. Main Findings Regarding the Thompsonian Propositions This dissertation focuses, in a broad sense, on the contingency theory of organizations. A basic assump— tion is that empirical data should be gathered to help evaluate that theory. This investigation uses the concep- tual framework and propositions of one contingency theore- tician, James D. Thompson. 209 210 It is also assumed that Thompson's approach can contribute reasonably well to an understanding of organi- zations operating within the context of a developing society. The propositions presented in Chapter III were explored through a case study of a Brazilian public research institute. Data were collected through inter- views with six top executives of that organization and nine others working for organizations which interact directly with the institute. A survey of documents and personal observations by the author were also used. Chapter IV presented the data, and this chapter will analyze its relevance in supporting or reformulating Thompson's propositions. Proposition 1 The first proposition stated: "Under norms of rationality organizations seek to minimize the power of task environment elements over them by maintaining alter- natives." The data support this proposition. During the earlier periods of its history, ITAL was extremely dependent on one element of its present task environment, the state government. This dependence, as revealed through interviews, was basically in financial matters, with deep repercussions in the personnel and technical areas. Attempts were made to develop alterna- tive arrangements: (1) transform ITAL into a public M‘ 211 corporation; (2) set up a foundation which would handle industrial contracts in order to circumvent state govern~ ment prohibition; and (3) enter into contracts with indus- try and the federal government through the PLANITA agree- ment, the successful course eventually followed. Thus, ITAL tried to decrease its total dependence on the state government and pursued several alternatives until a successful one was found. This modification of the dependence situation is manifested by the fact that budgetary contributions (see Table l) presently are derived from three task environment elements—-state government, the food industry, and the federal government--a definite change from the original situation. The data also show that the successful alternative which altered the original dependence structure was developed with the active participation of state and federal governments. The coalition currently in the making in ITAL's task environment was instrumental in accomplishing the change. The original Thompsonian proposition thus can be slightly altered to include an hypothesis about organiza- tions developing such alternatives: Modification to proposition 1: Under norms of rationality, organizations seek to minimize the power of task environment organiza- tions over them by actively develOping alternatives. The general conclusion is that in the past ITAL used norms of rationality when it sought to minimize the 212 power of the state government over it by maintaining alternative solutions for the flow of resources to the organization. Presently, ITAL has developed and implemented one Specific alternative and, therefore, the balance of dependence has changed. In view of the con- tinuation of the coalition developed during the process of task environment change, it seems that the proposition hardly applies to ITAL's present situation. Proposition 2 The second prOposition states: "Organizations subject to rationality norms and competing for support seek prestige." The interviews revealed an intensive effort on the part of ITAL's top administration to enhance the prestige of the organization with its external public-- the task environment organizations. The most salient observations were made when interviewees were asked to assess the organization. The mentioned indicators were the quality of ITAL's research output and other instru- mental measures, such as its official policy of training technical personnel abroad and management's encouragement of publication in internal journals (see Tables 4 and 8). These seemed to be activities geared to the management of prestige. Other examples are ITAL's policy of seeking support from industrial and governmental clients and its stated intention to acquire a national and international reputation. It seems, however, that merely seeking 213 prestige is not enough. ITAL would not have gained prestige without developing sound, environmental based, internal policies. Successful efforts in personnel management, scientific training, and scientific output production enabled ITAL to present itself as an organi— zation of high quality to its task environment and thus as deserving of prestige. It seems that the search for prestige actually enhanced ITAL's already successful management of its basic areas of operation. There would be no solid basis upon which to seek prestige without having a certain degree of organizational success. The data showed efforts to acquire prestige occurring during times in which there was a consensus about ITAL's organizational success. The rather obvious second Thompsonian proposition thus is supported. However, it may be suggested that there must be a certain degree of recognized success before a policy of seeking prestige can be pursued. In view of the above, the recognition of success constitutes a basis for the management of prestige. The data do not indicate whether or not success must be real before prestige can be acquired, but it seems that, at the very least, external elements in the task environment must perceive the organi- zation as successful. Although ITAL does not have direct competitors in its area of operation in Brazil, competition does exist. It competes with other organizations, including 214 international research institutes, for state and federal projects. Thus, the effort to acquire prestige is justi— fied; by publicly promoting its successful performance ITAL acquires power by receiving greater budgetary allow- ances from the governmental elements of its task environment. Proposition 3 Proposition 3 states: "When support capacity is concentrated in one or a few elements of the task environs ment, organizations under norms of rationality seek power relative to those on whom they are dependent." The data support this proposition. Support for ITAL is concentrated in the state and federal governments. They are the elements on which ITAL is dependent, and the case study shows that ITAL seeks to acquire power relative to those elements. Support for basic and applied research has come primarily from the government. The organizational effort to develop rela- tions with the food industry is a means of creating favorable reactions among.governmental elements. By developing relevant research outputs for industry, ITAL helps the government achieve development targets and thus gains power in relation to its main supporters. As the federal government is perceived as a strong source of organizational support, it can be predicted from proposition 3 that ITAL will concentrate on 215 developing means to offset a greater dependence on that member of its task environment. The reverse of proposition 3 also was supported by the data. Since the universities and the general educa— tional system provided no financial support and thus there was no dependence link, ITAL made no efforts to gain power in relation to that element. However, the schools and universities did seem to play some part in ITAL's effort to acquire a good technical reputation and prestige. That is, ITAL would like to be well thought of in those circles. Proposition 4 Proposition 4 reads: "When support capacity is concentrated and balanced against concentrated demands, the organizations involved will attempt to handle their dependence through contracting." The data support this proposition. At the time the data were collected, support for ITAL was primarily concentrated in the state and federal governments. The demand for support was also concen— trated in ITAL and a few other less important food research organizations in the country, that is, in a sense ITAL was in a monopoly position. The dependence situation was therefore handled through contracts, such as the ones related to PLANITA projects. 216 Proposition 5 Proposition 5 states: "When support capacity is concentrated but demand dispersed, the weaker organization will attempt to handle its dependence through coopting." The situation pictured by this proposition was present in the very beginning of ITAL's organizational life. At that time, the Food and Agriculture Organization was the greatest source of support--in view of the absence of know-how on food technology in the country. Since that organization faces demand for support from numerous countries, the situation was one of dispersed demand. This exact situation is pictured by prOposition number 5. The data show that a formal cooptation process occurred in relation to FAO. In fact, an FAO technician was formally absorbed into ITAL's organizational structure as the international director and for eight years he was directly involved with decision making at the top manage- ment level. In view of the coalition which existed at the time the data were collected, proposition 5 does not apply, for the conditions to which it refers were not present. Therefore, proposition 5 is supported, but only for the earlier period of ITAL's history. Cooptation was a mechanism which was used as the Thompsonian proposia tions predicted. 217 Proposition 6 PrOposition 6 states: "When support capacity is concentrated and balanced against concentrated demands, but the power achieved through contracting is inadequate, the organizations involved will attempt to coalesce." The study provides evidence in support of this proposition. The observations of the researcher and the inter- viewees' responses indicated a spirit of joint involvement among ITAL, the office of the Coordination of Agricultural Research, the State Council of Technology, and the Federal Government. At the time data were collected, a great national effort was being developed to improve the capability of Brazilian organizations in the area of scientific and technological research.1 A cooperative spirit of channel- ing the country's scientific and technological system toward this end was present throughout the research community. A new government plan was developed,2 aimed at integrating these various organizations. The pressure to develop new exportable products created many tasks in the area of food technology. During this time ITAL was building its dairy and meat plants and planning a seafood research plant. A new Department for Market Analysis was also being established. These internal develOpments, created in response to environmental pressures and opportunities, could not 218 be dealt with through contracting alone; assistance from many other sectors of the economy and the governmental administration was required. The actions taken during this period seemed definitely inspired by a common outlook or spirit of joint venture, and thus a coalition, in Thompson's sense of the word, was formed. A significant number of interviewees seemed imbued with a Spirit of doing something important for Brazil's development through food technology. This was certainly true of ITAL's t0p management, state government officials, and the federal government. The identification of the coalition and the con- ditions present at ITAL conducive to its formation were mentioned in Chapter IV. Recall that it was indicated that ITAL and its task environment members "saw the possibility of continuing a joint decision-making process, to the advantage of all." A situation in which gains are perceived as possible for all participants defines a "non-zero-sum" concept of power, and for Thompson this is the concept on which coalitions rest. Therefore, it seems the study has shown evidence in support of proposition 6. Proposition 7 Proposition 7 reads: "The more sectors in which the organization subject to rationality norms is con— strained, the more power the organization will seek over 219 remaining sectors of its task environment." The data do not support this proposition. ITAL's situation during the time the study took place was not characterized by constraints. In fact, a coalition was in the making, as was already pointed out. In the past ITAL faced only one specific constraint: In its early history it was systematically barred by the office of the Coordination of Agricultural Research in all attempts to conduct technological research for a client. This constraint led the organization to seek to enlarge its task environment to include the food industry and the federal government. Thus, the conditions required by proposition 7 were not present at ITAL; therefore, data are lacking for its evaluation in this study. Proposition 8 Proposition 8 states: "The organization facing many constraints and unable to achieve power in other sectors of its task environment will seek to enlarge the task environment." The study shows evidence in support of this proposition. Although a reasonable degree of balance between power and dependence seems to have been achieved by ITAL, there was a period when it was highly dependent on the office of the Coordination of Agricultural Research. W.— 30-1. 220 This example was cited in support of prOposition 1. However, it now needs to be analyzed in terms of the constraints arising from dependence on one single element of the task environment. Since there were no other sectors of the task environment in relation to which ITAL could attempt to achieve power, it had no choice but to attempt to enlarge its task environment. The addition of the food industry and the federal government to ITAL's task environment shows the organization made use of the rationality contained in proposition 8. Proposition 9 Proposition 9 reads: "Under norms of rationality assessors prefer efficiency tests over instrumental tests, and instrumental tests over social tests." The data revealed that ITAL evolved from an initial situation of closure in relation to the environment to a situation of openness; it then sought cues from its newly developed task environment to establish new goals and objectives. As the new interactions developed, a tendency toward a certain degree of closure again took place, and it was at this point that the interviews occurred. Most of the external interviewees saw a certain predictability in ITAL's current operations. The ability to predict implies that definite measures of assessment are being used. 221 Respondents used efficiency measures such as financial status and cost control in their evaluation of ITAL. However, most of them indicated instrumental measures and social measures, showing a preference for these rather than for efficiency measures (see Table 8). The reasons for this preference could not be determined. There was thus no concrete evidence fully support- ing proposition 9. However, in view of the indicators of performance selected by the assessors, there is evidence to support the assertion that assessors prefer instrumental tests over social tests. Consequently, it can be said that the data only partially support proposition 9. Proposition 10 Proposition 10 says: "At the institutional level, organizations subject to norms of rationality measure their fitness for future action in satisfying terms." The data do support this prediction. ITAL's top management revealed a definite preference for instrumental measures of organizational success. The summary of the interviews contained in Table 4 shows the evidence in support of proposition 10. Propositions 11 and 12 Proposition 11 states: "Under norms of rationality, organizations facing relatively stable environments seek to demonstrate fitness for future action by demonstrating 222 historical improvement." Related to the other end of the environmental continuum, proposition 12 states: "Under norms of rationality, organizations facing dynamic task environments seek to score favorably in relation to comparable organizations." ITAL faces a relatively Stable task environment. The perceptions of the respondents were that no substantial changes would occur (see Tables 2 and 6). Thus, evaluation of proposition 12 is irrelevant in the context of the case study developed here. However, proposition 11 was not clearly supported. Although there was reference made to prestige linked to the historical improvement of the organization, there was no definite and clear emphasis on this measure of success. Quality of output, quality of personnel, improvements in the rate of innovation, contribution to governmental goals, and preparation for future action were the indicators chosen by ITAL's top administrative group to assess their organization. In a sense, these indicators are connected to historical improvement and growth. However, as no definite emphasis was placed on improvement through time, which was a choice presented in the interview, the con— clusion is that the data do not definitely support proposition ll. 223 Proposition 13 Proposition 13 reads: "When the organization cannot hope to show improvement on all relevant dimensions, it seeks to hold constant on some and Show improvement on those of interest to task environment elements on which the organization is most dependent." This proposition is supported by the data. ITAL has not Shown improvement along all relevant dimensions. It still lacks demonstrable financial effi- ciency, and it has not yet produced the desired impact upon the food industry in Brazil. Furthermore, when one considers that ITAL is most dependent upon the state and federal governments, the situation pictured in proposition 13 is relevant to the case study. An examination of Tables 4 and 8 reveals the similarity of indicators chosen by the office of Coordina- tion of Agricultural Research, the federal government, and ITAL's top management. All three selected the quality of technical personnel, a Social or extrinsic criterion, as first in hierarchy of importance. Thus, the evidence indicates that ITAL scores well on the dimensions most relevant to the elements on which it is most dependent. Consequently, proposition 13 is supported by the data. 224 Proposition 14 Proposition 14 asserts: "Under norms of ration- ality, complex organizations are most alert and emphasize scoring well on those criteria which are most visible to important task environment elements." This prOposition is supported by the case study. Although ITAL has a limited task environment com- pared to a private industrial enterprise, it has tried to score well on criteria which are important to the state and federal governments and the food industry (see Table 8). The introduction of the criterion of financial stand- ing by those elements of the task environment, for example, has led ITAL to develop a concern for project management and cost control. Also, instrumental measures, which at the time of the study were still major criteria for assessing ITAL, were being emphasized. Propositions 15, 16,and 17 Proposition 15: "When organizations find it difficult to score on intrinsic criteria, they seek extrinsic measures of fitness for the future." This was supported by the data. Proposition 16: "When task environment elements lack technical ability to assess performance, organiza- tions seek extrinsic measures of fitness for future action." This proposition was not supported, and it is not rele— vant for ITAL's Situation. 225 Proposition 17: "When cause/effect knowledge is believed incomplete, organizations seek extrinsic measures of fitness for future action.” This was supported by the data. ITAL clearly emphasizes extrinsic measures of its fitness for future action. But the claims about quality of output came from statements made by ITAL's management or others in the task environment; no comparative statistics were presented to support these claims. The same can be said concerning statements about the quality of technical personnel, improvements in the rate of innovation, or other measures ITAL's top management and other respondents selected as criteria for assessing the organization. It is somewhat difficult for ITAL to score well on intrinsic measures of success to demonstrate its fitness for future action. This is partly because its work is in the area of research, where knowledge of cause and effect is incomplete. The use of extrinsic measures seems justi- fied in terms of rationality. Thus, propositions 15 and 17 reflect the situation of the focal organization at the time of the interviews, and the data support these propositions. On the other hand, prOposition 16 received no support. Respondents indicated that task environment elements were capable of assessing ITAL's performance, but intrinsic rather than extrinsic measures were used for assessment. 226 The explanation for this apparent inconsistency of findings may lie in the fact that ITAL is in an almost monopolistic position in Brazil. Task environment organi— zations lack comparative data for assessing ITAL on intrinsic measures. Furthermore, although technically able, task environment elements lack available means of emphasizing intrinsic measures of fitness for the future. Proposition 18 Proposition 18 reads: "The more dynamic the technology and task environment, the more rapid the political process in the organization and the more frequent the changes in organizational goals." This proposition was only partially supported by the data. ITAL's task environment was stable at the time the interviews took place. Thus, one condition for proposition 18 was not present. However, technology at ITAL is dynamic and the organization's main objective is constantly to change its technology through research. Organizational goals were changing rapidly. The dairy, meat, and seafood research plants represented a shift in goals. In addition, the political process was changing with a coalition in the making. It seems, therefore, that proposition 18 is supported only with respect to technology. I'll. r11! .1. J 11'. 227 Restatement of Propositions As a result of the findings detailed in Chapter IV, the propositions which were supported by the study are restated below with any modifications suggested by insights gained during the research. Proposition 1: Under norms of rationality, organizations seek to minimize the power of task environment elements over them by maintaining alternatives. Proposition 1 modified: Under norms of rationality, organizations seek to minimize the power of task environment elements over them by actively developing alternatives. Proposition 2: Organizations subject to rationality norms and competing for support seek prestige. Proposition 3: When support capacity is concentrated in one or a few elements of the task environment, organi- zations under norms of rationality seek power relative to those on which they are dependent. Inverse of Proposition 3: When support capacity is concentrated in one or a few elements of the task environment 228 organizations under norms of rationality do not seek power relative to those on which they are not dependent. Prgposition 4: When support capacity is concentrated and balanced against concentrated demands the organizations involved will attempt to handle their dependence through contracting. Proposition 5: When support capacity is concentrated but demand dispersed, the weaker organization will attempt to handle its dependence through coopting. Proposition 6: When support capacity is concentrated and balanced against concentrated demands, but the power achieved through contracting is inadequate, the organizations involved will attempt to coalesce. Proposition 8: The organization facing many constraints and unable to achieve power in other sectors of its task environment will seek to enlarge the task environment. 229 Proposition 9,_modified: Under norms of rationality assessors prefer instrumental tests over social tests. Proposition 10: At the institutional level, organizations subject to norms of rationality measure their fitness for future action in satisficing terms. Proposition 13: When the organization cannot hOpe to Show improvement on all relevant dimensions, it seeks to hold constant on some and show improvement on those of interest to task environment elements on which the organization is most dependent. Proposition 14: Under norms of rationality complex organizations are most alert to and emphasize scoring well on criteria which are most visible to important task environment elements. Proppsition 15: When organizations find it difficult to score on intrinsic criteria, they seek extrinsic measures of fitness for future. 230 Proposition 17: When cause/effect knowledge is believed incomplete, organizations seek extrinsic measures of fitness for future action. PrOposition 18, modified: The more dynamic the technology, the more rapid the political process in the organization and the more frequent the change in organiza- tional goals. These prOpositions were supported by data gathered in this study. ITAL's Performance and the Predictions of the Normative Model ITAL's performance is now analyzed in terms of the patterns derived from the Thompsonian prOpositions and included in the normative model. The analysis incorporates historical and more recent data, in order to provide a wider basis for organizational evaluation of ITAL. As previously indicated, there is evidence that in earlier periods ITAL was strongly dependent on the state government (more precisely, on the office of Coordination of Agricultural Research). Dependence was basically a consequence of the total financial support provided ITAL by that task environment interaction. State government power over ITAL at that time was manifested in the persona nel, purchasing, and budgeting constraints imposed on the 231 organization. The interviews indicated some effects of this dependence upon ITAL‘s management: (1) rigidity in relation to problem solving and decision making; (2) behavior guided by bureaucratic rules and regulations; (3) difficulties in sensitizing the office of Coordination of Agricultural Research to ITAL's new Opportunities; (4) lack of decision-making power in View of the con- siderable centralization of decisions in the office of the Coordinator of Agricultural Research; (5) substantial amount of red-tape in the purchasing process; and (6) total subordination to, among others, state wage and personnel policies. During this period there were intensive training activities at ITAL by force of the agreement with FAQ. Technical development of the organization was fostered by increasing numbers of experts and specialists being educated abroad. Also, direct technical assistance pro- vided by FAO experts was a critical factor in ITAL's acquisition of new technical capabilities. After obtaining degrees abroad, ITAL's returning specialists brought a new.outlook derived from their intensive technical training. These new specialists were not paid market salaries and faced severe limitations in their effort to put their knowledge into productive use within ITAL. Respondents also reveal the existence of conflict between ITAL and the office of Coordination of Agricultural 232 Research during the time of total dependence on state funding. ITAL's management made constant efforts to avoid becoming completely subservient to the state government. The conflict produced various outcomes: (1) many Specialists left ITAL; (2) the former executive director left ITAL and was hired by the University of Campinas (UNICAMP); (3) ITAL was barred from contracting projects with the food industry; (4) a private foundation was created by ITAL's technicians from personal funds in order to handle industrial contracts; and (5) ITAL's management pressed for more autonomy in many different ways such as attempts to transform ITAL into a public corporation). All this evidence indicates that ITAL was a captive in relation to state government. ITAL's manage- ment tried to develop alternative sources of support in an effort to diffuse dependence and prevent the concentration of state power over it. In addition, based on its newly developed technical capabilities, management pursued a policy of acquiring widespread organizational prestige. During this period, normative prescriptions derived from Thompson's propositions l, 2, 3, 4, and 5 were followed by ITAL. Propositions l, 2, 3, and 4 are part of a set defined by Thompson as "Competitive Strategy." Proposition 5--the use of a cooptation mechanism in relation to FAO--iS part of his "Cooperative Strategy." It becomes evident, then, that ITAL used a mixed strategy in its earlier periods: competition in relation to state 233 government, and co0peration in relation to FAO. ITAL adopted a strategy which was in complete accordance with Thompson's propositions, but he is not explicit about the possibility of a mixed strategy. The data Show that, at the same time, the office of Coordination of Agricultural Research was using conformity to rules and regulations as an assessment criterion for ITAL's performance. According to Thompson, this is an instrumental test, found in cell II of the assessment matrix shown in Chapter III. Prevailing conditions in cell II are crystallized standards of desirability and incomplete knowledge of cause and effect. However, the data Show that standards of desirability were not crystallized at that time; the conflicts pointed out by respondents indicate an ambiguity of standards of desirability. Different utility scales (bureaucrats versus trained Specialists) were held by the office of Coordination of Agricultural Research and ITAL's personnel. ITAL's specialists had been exposed to a different culture and had acquired different values and attitudes in their training abroad. They were unwilling to adhere to rigid bureaucratic rules. At the same time, the office of Coordination was assessing the organization in terms of its conformity to these rules and regulations, although its knowledge of cause and effect was incomplete. By using this incongruent pattern of assessment, the office 234 of Coordination imposed constraints upon ITAL, which suffered important personnel losses as a consequency. ITAL's management then used an open system strategy as it pressed for new support alternatives and sought prestige through the many devices reported on in Chapter IV. It also developed formal COOptation with FAO, and after some time reached its dependence problem. The general behavior of ITAL's management was, therefore, in agreement with the predictions one would make for this period of its history according to the Thompsonian model. The enlargement of ITAL's task environment which occurred after this earlier period could also be predicted by the normative model, based on Thompson (proposition 6). It seems worthwhile to analyze in some detail how the task environment was enlarged. The data Show that industry contracts were barred by the office of Coordination. Cooptation was a strategy which could not be used because it requires a Situation of dispersed demand-~according to Thompson-«not present in this case. Thus, the fact that a coalition would be form- ing at ITAL could be predicted, and this was borne out by the data. AS the coalition process progressed, organiza- tional objectives and goals changed. The construction of new research plants and the desire to make a real contri- bution to the economic development of the nation through food research are evidence of that change. Also, 235 respondents felt actual gains were being derived from the coalition (a nonzero-sum approach to power), a situation the normative model predicts. Furthermore, the dynamics of the new patterns of interaction in the coalition required different types of assessment on the part of the task environment. The indicators listed in Table 8 are characteristic primarily of cell II and less of cells III and IV of the assessment matrix shown in Chapter III. Quality of personnel, organizational prestige, contribution to the achievement of governmental goals, and so forth, are measures which reflect the use of instrumental tests and of a social reference group in the assessment of the organization. Also, the data show ITAL emphasized instrumental and social patterns of assessment (see Table 4). This prediction can be made from proposition 10, which forecasts "a search for satisfactory scores at the institutional level." In general, the case study finds a high frequency of situations in which behavior accords with the predic- tions of the normative model. The remaining question is: What does such evidence mean in the face of other findings showing that ITAL still has some managerial problems? First, it is important to bear in mind that the Thompsonian propositions selected refer to the institu- tional level of the organization. The use of rationality at the institutional level should not be confused with 236 efficiency at the managerial level. This study did not attempt to measure efficiency at the managerial level. Second, ITAL's use of an open system strategy means that its policy is to watch for environmental oppor— tunities and transform the selected ones into routinized activities within the organization. Good performance at the institutional level will not necessarily be translated immediately into good performance at the managerial level. It also may be possible that ITAL was in the midst of transformation at the time the data were collected and was still in the process of improving its internal acti- vities. The creation of new internal activities (planning, marketing, and so forth) was mentioned in the interviews. Finally, the coalition which has been discussed was formed only recently. Thompson indicates that a coalition has its own dynamics and is in a constant process of mutation. Due to study design limitations and the finite period of investigation, it was not possible to analyze in depth the coalition process. Certainly, more research on ITAL is necessary to understand the ongoing Situation and to acquire a better measure of its conformity to the normative model. Concluding Comments Some propositions were clearly supported by the data, whereas for others there was no evidence either for or against. Thus, in general, the normative model based 237 on Thompson's propositions, proved its predictive power. This overall conclusion is not unexpected because Thompson's creative insights in Organizations in Action drew from empirical research performed by others. From Thompson's propositions it is possible to derive normative directions and, based on them, to con- ceive a guide for analyzing the development of efficient organizational interactions with specific task environment elements, but problems of Operationalization still exist. Questions related to how much power and prestige should be sought or the optimum member of alternatives to be main- tained, and others, remain to be answered. Nevertheless, Thompson's theory was useful in analyzing the focal organization selected for the case study and it may be useful if applied more extensively to managerial situations. The management of environmental relations has been given little attention by practitioners. Despite an increased interest in information about organizational clients and suppliers, environmental politics have not been approached systematically. This author believes it is possible to improve this area of management through consistent efforts for operationalizing Thompson's theory. CHAPTER V--FOOTNOTES 1AS an example, see the proceedings of the National Symposium of Industrial Technology in Simposio Nacional de Tecnologia Industrial. Idort. Livraria Francisco AIVes, 1973. 'F’ 2PBDCT--Plano Basico de Desenvolvimento Cientifico e Tecnélogico. Basic Plan for Scientific and Technological Development. 238 APPENDICES APPENDIX A QUESTIONNAIRE FOR TOP ADMINISTRATIVE GROUP OF THE FOCAL ORGANIZATION QUESTIONNAIRE FOR TOP ADMINISTRATIVE GROUP OF THE FOCAL ORGANIZATION Section A--Identification of Task EnVironment Components Al--What formal position do you occupy in this organization? A2--Briefly describe the functions and activities involved in your job. A3--List the people you commonly deal with in the performance of your job. A4--Select from among them those who are external to your organization. A5--Indicate their respective organizational affiliations and the positions they occupy. A6--Are there any other external organizations which interact with your organization through other internal personnel? List them. A7--To whom should I talk in the external organization to get their views on their relationship with your organization? 239 240 Section B--Power and Dependence Relationships with Task Environment Components Bl--Some of these external relationships you just listed are probably more important to your organization and/or your job performance. How important do you consider each of them? (Not at all important; not too important; somewhat important; quite important; extremely important.) BZ--Why did you make the selection in B1 for each relationship? B3--How often do you or other people in your organization interact with each of them? (Almost constantly; several times a day; once or twice a day; several times a week; about once a week; a few times a month; less often than a few times a month.) B4--Brief1y describe the history of each relationu ship with external people and organizations. B5--Evaluate each relationship with an external organization in terms of the difficulty of interaction with your organization. (Not at all difficult; not too difficult; somewhat difficult; quite difficult; extremely difficult.) BG--What were the reasons for each of your answers in question B5? 241 B7--List the major kinds of problems with which you and the external set of people and/or organizations deal. B8--How do you usually solve these problems? B9--Which external relationships do you think you Should concentrate upon? Why? Evaluate each external organization in terms of the following statements: B10--My organization needs resources and services from this organization for its normal func~ tioning. (Not at all; not too often; sometimes; quite often; all the time.) Bll--If yes to B10 in any degree, what kinds of resources and services? B12--Other organizations need the same resources and services, which means support to my organization can be interrupted. (Not at all; not too often; sometimes; quite often; all the time.) Bl3--Other organizations can provide the same resources and services to my organization. (Not at all; not too often; sometimes; quite often; all the time.) 242 Bl4-—The level of quality of the resources and services provided by other organizations is not sufficient for my organization. (Not at all; not too often; sometimes; quite often; all the time.) BlS--Although other organizations can provide satisfactory support in terms of resources and services, it is impossible for my organi— zation to utilize them. (Not at all; not too often; sometimes; quite often; all the time.) BlG--Give me the reasons for your answers to questions B12, 313, 814, and B15. Bl7--This [particular external] organization needs resources and services from my organization for its normal functioning. (Not at all; not too often; sometimes; quite often; all the time.) BlB--If yes to B17, in any degree, what kinds of resources and services? Bl9--Other organizations need the same resources and services from my organization, which means the support we give this [particular external] organization can be interrupted. (Not at all; not too often; sometimes; quite often; all the time.) 243 B20—-Other organizations can provide the same resources and services to this [particular external] organization. (Not at all; not too often; sometimes; quite often; all the time.) BZl-—The level of quality of the resources and services provided by other organizations is not sufficient for this [particular external] organization. (Not at all; not too often; quite often; all the time.) B22--Although other organizations can provide satisfactory support in terms of resources and services for this [particular external] organization similar to what my organization provides it is impossible for this [particular external] organization to utilize them. (Not at all; not too often; sometimes; quite often; all the time.) B23--Elaborate on your answers to questions B19, BZO, B21,and 322. B24--My organization is dependent on this [particular external] organization. (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) 244 B25--Provide some examples to illustrate your answer to question B24. B26--Are there instances in which you interact with more than one external organization at the same time? B27--If yes to B26, name such organizations and the reasons why this type of interaction occurs? Section C—-Task Environment Changes C1--Concerning each external organization you named in Section B, how stable a relationship do you think you have with it? (Not stable at all; not too stable; somewhat stable; quite stable; extremely stable.) C2--What reasons would you give to support your answers to question Cl? C3—-How difficult would you say it is to maintain the stability of each relationship? (Not difficult at all; not too difficult; somewhat difficult; quite difficult; extremely difficult.) C4--Why? C5--For each external relationship, can it be interrupted in the future? Yes No w _ 245 C6—-Under which circumstances would it be inter- rupted or maintained in the future? C7--To what extent would you say the present set of external relationships is ideal for the efficient performance of your organization? (To a very large extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) C8--Why? C9-—How likely, in your opinion, are future changes in the present set of external relationships of your organization? (Not likely at all; not too likely; somewhat likely; quite likely; extremely likely.) ClO--Why? Cll--Do you consider some changes in these future relationships desirable? Yes No C12-—If yes to C11, which changes? C13--Wou1d you say that your organization has specific plans to implement some changes? Yes NO Cl4--If yes to C13, which changes, and why? ClS--What would you expect the reactions of the external organizations to be toward these changes you intend to make? _— arm - ‘0 9 an: 246 C16—-Have there been past attempts on the part of your organization to change the external set of relationships? Yes No Cl7--If yes to C16, describe the facts surrounding such attempts and their consequences. C18--Do you think the future will bring easier relationships with external organizations? C19--Why? Section D—-meain Identification and GoaI’InIOrmation Dl--What are the outputs (goods and services) flowing from your organization? What are the inputs? D2—-Elaborate on the specific uses of this output and identify the users. Do the same with inputs and their suppliers. D3--Indicate the geographic location of users of output and suppliers of inputs. D4--Have there been any changes through time in the composition of the user group? Of the supplier group? DS-eHave there been any changes through time in the production of outputs by this organization? In the consumption of inputs? 247 D6——Provide examples of the types of change mentioned above. D7--How satisfied are you with the present input/output transactions that your organi« zation carries on? (Not satisfied at all; not too satisfied; somewhat satisfied; quite satisfied; extremely satisfied.) D8--Why? D9--What are the present goals of your organization? D10--To what extent do you feel there is a need to change goals in your organization? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) Dll--Why? D12--To what extent would you say that past goals differ from present ones? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) D13—-What are the reasons for your answer to question D12? D14--To what extent are changes in goals in your organization related to the influence of organizations belonging to the external set? 248 (To a very large extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) D15--Give some examples to illustrate your answer to question D14. D16--This [particular external] organization influences the determination of goals and policies within my organization in relation to: a. Personnel policy b. Financial policy c. Production policy d. Purchasing policy e. Marketing policy f. Technological policy 9. Scientific policy h. Other (Specify) (For each item from a. to f. and for each organization, please indicate whether to a very large extent; to a considerable extent; to a small extent; to a very little extent; not at all. Give examples.) Dl7--Does this organization formally participate in the decision—making process in your organization? Yes No 249 Dl8--If yes to D17, what is the formal mechanism of participation? Describe it. Dl9--If no to D17, are there informal means of exerting influence over your organization? Provide some examples. D20--Is there agreement among components of the external environment as to which goals, policies and objectives your organization will have? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) D21--What are the reasons for the agreement or disagreement? Section E--The Assessment of the OrganizatIOn El--Is your organization successful? (Not successful at all; not too successful; somewhat successful; quite successful; extremely successful.) E2--What are the reasons behind your answer to question El? E3-—How important are the following performance ' indicators for your organization? a. Profits, return on investment, or financial status. “It. k. l. n. O. 250 Improvements in the amount of physical production. Improvements in the quality of output. Improvements in the rate of innovation and creation of new products and services. Compliance with budgetary prescriptions. Achievement of some operational goals. Level of contribution toward the achieve— ment of national, state, or local goals. Compliance with rules and norms. Overall performance satisfactory compared to similar organizations. Quality of technical personnel. Quality of management. Development of activities which prepare the organization for future action. Prestige of the organization with the external public. Overall improvement through time. Other factors (specify). (For each item on the list, define your judgment as not at all important, not too important, somewhat important, quite important, extremely important.) E4--Give reasons for your answers to E3. 251 E5——Who are the important judges of your organization? What do they look for in assessing your organization? E6a—Give reasons for your answers to question E5. E7-—To what extent have the most recent scores of your organization on those important indicators listed in E3 pleased the organizations in the external set of relationships? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) E8-—What are the reasons for your answer to question E7? E9--On which indicators is it more difficult for your organization to score well? Why? ElO--Using the more important indicators noted in Questions E3 and E5, has your organization shown improvements on all these dimensions? Ell--How do you handle the Situation when you have not shown improvement according to these indicators? Give examples. E12—-If your organization does not score well on all indicators, and given a choice, on which ones would you concentrate your effort? Why? 252 E13-—Evaluate each member of the external set in terms of the following statement: This [particular external] organization has the technical ability to understand the operations of my organization. (Not true at all; not very true; somewhat true; quite true; extremely true.) El4--Are there any comments or examples which illustrate your answer to question E13? E15--To what extent are the operations of your organization predictable enough to make planning to attain objective and measurable goals easy? (To a very large extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) E16--Elaborate on your answer to question E15. El7--To what extent is the decision process in your organization Simple, that is, it makes clear which course of action to take and which results to look for? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) E18--What are the reasons for your answer to question E17? APPENDIX B QUESTIONNAIRE FOR TASK ENVIRONMENT ORGANIZATION MEMBERS ABOUT THEIR INTERACTION WITH THE FOCAL ORGANIZATION (ORGANIZATION X) QUESTIONNAIRE FOR TASK ENVIRONMENT ORGANIZATION MEMBERS ABOUT THEIR INTERACTION WITH THE FOCAL ORGANIZATION (ORGANIZATION X) Section A--Genera1 Description Of the RelationShip with Organization x A1--What formal position do you occupy in your organization? A2--Does your job require interaction with organization X? A3--To whom do you usually talk in organization X? For what reasons? A4--DO other people in your organization also interact with people in organization X? Who? For what reasons? Section B--Power and Dependence Relationships with Organization X '" Bl--Are there instances in which you interact with organization X together with other people also external to it? 253 254 B2--If yes, what are their names, organizational affiliations, and the reasons why this type of interaction occurs? BB--Briefly describe the history Of the relation— ship of your organization with organization X. B4--How often do you or other peOple in your organization interact with organization X? (Almost constantly; several times a day; once or twice a day; several times a week; about once a week; a few times a month; less Often than a few times a month.) B5--Do you think this frequency is enough? Why? BG--What are the major problems with which you deal in your relations with organization X? B7--How are these problems usually solved? BB--IS your relationship with organization X a difficult one? (Not difficult at all; not too difficult; somewhat difficult; quite difficult; extremely difficult.) B9--What are the reasons for your answer to question BB? Evaluate each of the following statements: BlO--Organization X needs resources and services from my organization for its normal functioning. 255 (Not at all; not too Often; sometimes; quite often; all the time.) Bll--If yes to B10 in any degree, what kinds of resources and services? B12--Other organizations need the same resources and services, which means that the support my organization gives to organization x can be interrupted. (Not at all; not too Often; sometimes; quite often; all the time.) Bl3--Other organizations can provide the same resources and services to organization X. (Not at all; not too often; sometimes; quite often; all the time.) Bl4--The level of quality of the resources and services provided by other organizations is not sufficient for organization X. (Not at all; not too Often; sometimes; quite Often; all the time.) BlS--Although other organizations can provide satisfactory support in terms of resources and services, it is impossible for organization X to utilize them. (Not at all; not too Often; sometimes; quite Often; all the time.) Bl6--What are the reasons for your answers to questions B12, BIB, B14, and B15? 256 Bl7--My organization needs resources and services from organization X for its normal functioning. (Not at all; not too Often; sometimes; quite Often; all the time.) BlB--If yes to B19, in any degree, what kinds of resources and services? Bl9--Other organizations need the same resources and services from organization X, which means that the support to my organization can be interrupted. (Not at all; not too Often; sometimes; quite Often; all the time.) BZO--Other organizations can provide the same resources and services to my organization. (Not at all; not too often; sometimes; quite Often; all the time.) BZl-—The level of quality Of the resources and services provided by organizations other than X is not sufficient for my organization. (Not at all; not too Often; sometimes; quite Often; all the time.) BZZ--A1though other organizations can provide satisfactory support in terms of resources and services, it is impossible for my organization to utilize them. (Not at all; not too Often; sometimes; quite Often; all the time.) 257 323--Elaborate on your answers to questions 319, 320, B21, and B22. 324--Organization X is dependent on my organization. (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) 325--Give examples to illustrate your answer to question 324. 326--DO you know of other organization(s) which also interact with organization X? 327--What are their names? 328--What do you know about the relationship between organization X and each of these other organi- zations? Provide some illustrative examples. 329--Which organizations do you consider as more crucial for organization X? B30-—Why? Give examples. Section C--Task Environment Changes Cl--How stable is your organization's relationship with organization X? (Not stable at all; not too stable; somewhat stable; quite stable; extremely stable.) C2--What are the reasons for your answer to question Cl? 258 C3--Under what circumstances would you say this relationship could be interrupted in the future? C4-—How difficult is it to maintain the stability of such a relationship? (Not difficult at all; not too difficult; somewhat difficult; quite difficult; extremely difficult.) C5--Why? C6--What actions are usually required from you to maintain this relationship? C7--How stable is the relationship between organi— zation X and each of the other external relationships mentioned in Section B? (For each relationship, please indicate whether not stable at all; not too stable; somewhat stable; quite stable; extremely stable.) C8--What are the reasons for each answer to question C7? C9--Considering the relationships you mentioned in question C7, to what extent are they sufficient for the ideally efficient performance of organization X? (To a very large extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) 259 ClO--Why? Cll--How likely are future changes in the members of the external set of relationship of organi- zation X? ‘ (Not likely at all; not too likely; somewhat likely; quite likely; extremely likely.) C12--Why? Cl3—-DO you consider future changes in these relationships desirable? Yes NO C14--If yes to C13, which ones? C15--Do you think organization X or other external members are planning to implement changes? Yes NO C16-—If yes to question C15, which ones and what would be your attitude toward them? C17--DO you know of past attempts by organization X to change external relationships? Yes NO Cl8--If yes to question C17, give examples. Section D--Domain and Goal Formulation Dl--Given the range of outputs and inputs of organization X, which do you consider important from the standpoint of your organization? Why? 260 D2-—Are you satisfied with the input/output trans— action that organization X carries on? (Not satisfied at all; not too satisfied; somewhat satisfied; quite satisfied; extremely satisfied.) D3--What are the reasons for your answer to question D2? D4--Looking at the history of your relationship with organization X, do you recall any general changes in input/output transactions? D5--If yes to D4, elaborate on those instances and, where possible, relate these to the interests and attitudes of your organization. D6--To what extent are you familiar with the goals and policies Of organization X? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) D7--How important is it for your organization to keep pace with developments in the policies and goals Of organization X? (Not important at all; not too important; somewhat important; quite important; extremely important.) D8-—Give reasons for your answer to question D7. w“- -'-- 261 D9--TO what extent does your organization influence the determination of goals and policies in organization X? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) Answers are to be given in relation to each of the following items: a. Personnel policy b. Financial policy c. Production policy d. Purchasing policy e. Marketing policy f. Technological policy 9. Scientific policy h. Other (Specify) DlO--My organization formally participates in the top decision—making process of organization X. Yes NO Dll--If yes to D10, what is the formal mechanism of participation? Describe it. D12-—If no to D10, is there an informal means of exerting influence over organization X? Give some examples. DlB--TO what extent do you presently desire changes in the goals and policies of organization X? 262 (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) Dl4--Elaborate on your answer to question D13 and give examples. DlS--TO what extent does your organization and the other members Of the external set Of relation~ ships agree as to the future goals and policies of organization X? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) D16--What are the reasons for such agreement or disagreement? Section E--The Assessment of the Organization El--Is organization X successful? (Not successful at all; not too successful; somewhat successful; quite successful; extremely successful.) E2--What are the reasons for your answer to question El? E3--How important would you say the following indicators Of performance are in your evaluation of organization X? n. 263 “P‘WF—A‘fifi Profit, return on investment, or financial status. Improvements in the amount of physical production. Improvements in the quality of output. Improvements in the rate of innovation and creation of new products and services. Compliance with budgetary prescriptions. Achievement of some Operational goals. The level Of contribution towards the achievement of national, state, or local goals. Compliance with rules and norms. Overall performance satisfactory compared to similar organizations. Quality of technical personnel. Quality of management. Development of activities which prepare the organization for future action. Prestige of the organization with the external public. Overall improvement through time. O. Other factors (specify). (Take each item of the list and define your judgment in terms of not at all important; not too important; somewhat important; quite important; extremely important.) 264 E4--C1assify the items in question EB according to their order of importance in your evaluation of organization X's performance. ES--Considering your choice of the more important indicators (E3), along which dimensions do you think organization X has Shown improvements? E6--To what extent have the most recent scores of organization X on those important indicators (E3) pleased you? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) E7--What are the reasons for your answer to question E6? E8--TO what extent is your organization generally able to understand the Operations in organi— zation X, so that a fair evaluation of performance can be made? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) E9--Elaborate on your answer. ElO--TO what extent are the Operations in organiza- tion X so predictable that it is easy for it to plan the attainment of Objective and measurable goals? 265 (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) Ell-~Elaborate on your answer. ElZ--To what extent is the decision process Simple in organization X, that is, it makes clear which course of action to take and which results to look for? (To a very great extent; to a considerable extent; to some extent; to a small extent; to a very little extent; not at all.) El3--Give the reasons for your answer to question E12. APPENDIX C QUESTIONNAIRE COMPLETED BY THE COORDINATOR OF AGRICULTURAL RESEARCH, SECRETARY OF AGRICULTURE, STATE OF SAO PAULO minus». ' I QUESTIONNAIRE COMPLETED BY THE COORDINATOR OF AGRICULTURAL RESEARCH, SECRETARY OF AGRICULTURE, STATE OF 3A0 PAULO Section A--General Description of the Relationship with ITAL Al--What position do you occupy in the Secretary of Agriculture? Answer--I am the Coordinator of Agricultural Research. I have a degree in agricultural engineering. A2--Does your job require interaction with ITAL? Answer-~Yes. In fact, my office is in charge Of direct supervision of that organization, according to the organizational structure of the Secretary Of Agriculture. A3--Who do you commonly talk with in ITAL, and for what reasons? Answer--I talk more frequently with the executive director, but I also talk with other directors, staff members, and technicians. Basically, the reasons for the interactions are: (1) functional, in terms Of supervision; (2) pgchnical, when 266 267 there are projects in which I have a personal interest; (3) budgetagy, when there is a decision on resource allocation; and (4) personnel andpurchasingpolicies. I would like to add that I delegate a great deal of aUthority in relation to ITAL, reserving some specific issues for decision. A4--Are there others in your organization who also interact with ITAL personnel? Who? For what reasons? Answer-~My planning staff collects data at ITAL and also discusses their planning, programming, and evaluation system. There are many technicians involved in this interaction. On the bureau— cratic side, personnel in my Division of Administration and Finance also interact with their counterparts at ITAL. Section B-—Power and Dependence Relationships with ITAL “ Bl--Are there instances in which you interact with ITAL together with other peOple also external to it? Answer--Yes. 32--What are their names, organizational affilia- tions, and the reasons for the interactions? 268 Answer—-Dr. José Pastore, because of Project Science and Technology of the State Secretary of Planning. CICA Industries, representatives when their projects are being discussed at ITAL. Dr. Mauricio Rangel Reis, from the Ministry of Planning, federal government, for discussion of PLANITA. Dr. JOS§_Pelficio, President of FINEPE, for discussion of PLANITA and other projects in which his organization is involved. The Minister of Planning and the Minister of Agriculture, federal government, because of PLANITA and other issues related to ITAL. Dr. Carneiro and Dr. Cajueiro, from EMBRAPA, a federal public corporation, because of PLANITA. B3--Briefly describe the history of the relation- ship of your office with ITAL. Answer-~The office of Coordination of Agricultural Research was created after a recent adminis- trative reform at the State Secretary Of Agriculture in 1968. This office was an Organin zational unit imposed upon the institutes of research. Before 1968, the Secretary of Agriculture was in charge Of direct supervision of all state institutes Of research in his 269 area. I have been in this Office (the Coordi— nation Of Agricultural Research) Since 1971, which coincides with a change in executive directors at ITAL. B4--How Often do you or other people in your Office interact with ITAL? IAnswer--AlmoSt constantly. Normally, we have daily contacts. 35--Is this frequency enough? Why? Answer--Yes. It is necessary if the office wants to do a good job. 36--What are the major problems with which you deal in your relations with ITAL? Answer-~Managerial and technical problems. ITAL is one of the more active units under my supervision; it requires constant attention from my Office, mostly in relation to research contracts and agreements. It is also the unit with which I have had more technical interaction because of the high turnover rate Of their projects and the growing demand for their research. B7--How are these managerial and technical problems usually solved? Answer--More than 95 percent of my decisions in relation to ITAL are reached in a peaceful manner because we are in agreement. In fact, I am very proud of ITAL. 270 38—-Is your relationship with ITAL important from the viewpoint Of that organization? Answer--Extreme1y important. B9--Why? Answer--If I want to I can make ITAL come to a stOp. I control their budget and make allowances for technicians' salary supplements. BlO--Is your relationship with ITAL a difficult one? Answer—-Not difficult at all. The relationship with ITAL is the best I have with institutes under my supervision. Bll--What are the reasons for your answer to the previous question? Give examples. Answer--The change in the t0p executive Office at ITAL was a decisive factor in the improvement of relationships. Actually, the work ethic has changed a great deal Since then . . . . The Secretary of Agriculture. myself, and ITAL's executive director took office at the Same time. At the Secretary Of Agriculture the philosophy was a technical outlook which considered the urgent need for integrated action with the private sector Of agriculture. This outlook has influenced the decision to Open ITAL's facilities for research contracts with the food industry. Therefore, a previous dysfunctional Situation was positively solved. 271 Bl2—-Does ITAL need resources and services from your Office for its normal functioning? Answer--All the time. 313--What kinds? Answer--Agreements and contracts with public and private organizations have to be approved by my Office. The coordinator also approves ITAL's budgets, allocating state funds for that organization. Bl4--DO other organizations need the same resources and services from the office of Coordination, which means that the support it gives ITAL can be interrupted? Answer--Not at all. About 70 percent of the total resources of this office are allocated to "compromised expenses," basically payroll, which I cannot question. My discretion is exerted over the remaining 30 percent, which is very little to distribute. Usually, this 30 percent is distributed aiming at minimization of risks for the work being developed. There are instances when I have tO reduce some allo- cations already made because of reductions that the Office suffers. BlS—-Can other organizations provide the same resources and services to ITAL? Answer—-All the time. The federal government and the food industry can. 272 Bl6--Is the level of quality of the resources and services provided by other organizations not sufficient for ITAL? Answer--Not at all. Bl7—-Although other organizations can provide satisfactory support in terms of resources and services, is it impossible for ITAL to utilize them? Answer--Not at all. This was true before I took Office. At that time ITAL was forbidden to undertake contracts with the food industry. ITAL's members created a foundation to engage in such contracts. This was certainly an attempt to become indepen- dent. However, they had tO cover the 70 percent of "compromised expenses." . . . Since I have taken Office, ITAL's budget has been doubled. Bl9--Does your office need resources and services from ITAL for its normal functioning? Answer--All the time. ITAL's job is part of the objec- tives of the present state administration. The important thing is to have ITAL working hard and well. Another point is that the volume of resources with which the Office is provided depends on ITAL's good performance. With good performance I can persuade my superiors Of the need for greater amounts of resources. I can give an example which happened this year: I 273 received additional funds in order to build a meat plant at ITAL. If I had asked for funds for some other activity, I am sure I would not have succeeded. 321—-DO other organizations need the same resources and services from ITAL, which means that the support to the office of Coordination can be interrupted? Answer--Not at all. The federal government and the food industry need services from ITAL, but we have not had problems of competition for ITAL's out- puts. The only problem I can foresee would be if an industry became monopolistic in the use of ITAL. This has not happened during the time I have been in Office. 322--Can other organizations provide the same resources and services to the office Of Coordination? Answer--Not at all. In Brazil there is no other alters native with a level of quality as good and reliable as ITAL's. 326--Is ITAL dependent on the office of Coordination? Answer--What occurs is mutual dependence with common objectives. I have power to halt ITAL, and ITAL has power to put me out of my office. 328--DO you know of other organizations which also interact with ITAL? 274 Answer--Besides the other interactions I have already mentioned, I would include international organi— zations, such as FAO and USAID, and organiza- tions within the food industry, of which there are many. 330--What do you know about the relationship between ITAL and each of these organizations? Provide some examples. Answer--ITAL has had very good relationships with all these organizations. The reason has been the good quality of ITAL's work and a sort of common interest of all parties involved. It has been very easy for ITAL to receive resources from these organizations, and this fact alone demon- strates the quality Of their interaction with ITAL. For example, I can say that PLANITA and the federal government agencies have helped ITAL solve the problem of technicians' wages. The office of Coordination has also helped a lot. ITAL receives privileges which denote a degree of satisfaction on the part of external people with the work that has been developed at ITAL. I can say that the situation has been the same with all of ITAL's other interactions. 331--Which organizations do you consider as more crucial for ITAL? 275 Answer-—I would say that all of these organizations are crucial interactions for ITAL. Section C--Task Environment Changes Cl--How stable has your relationship with ITAL been? Answer--Extremely stable. C2--What are the reasons for your answer? Answer--First, I think the stability of the relationship is a consequence of the high technical quality of ITAL's output. Second, there is a basic reason related to the fact that ITAL belongs to the state administrative machinery, to which it is subordinated. C3--Under which circumstances could this relationship be interrupted in the future? Answer--There is always a risk of interruption inherent in public administration. However, I have very good personal relationships with people at ITAL, and mostly with the executive director; we have common objectives, and I am satisfied with the performance of the organization. A very remote possibility of interruption would be a change in occupants Of Offices at ITAL and at the office Of Coordination. C4--How difficult is it to maintain the stability Of the relationship with ITAL? 276 Answer--For me, it is not difficult at all. I think the reasons were already expressed in terms of unity of Objectives of the people involved in the interaction. Besides, there has been mutual loyalty between myself and the executive director and a great disposition to take on responsibility and solving problems. As you can see, in our work we have had behavioral patterns which are quite different from the traditional state bureaucratic Officials. For me, it is very important that the institute director take on responsibility. ITAL's executive director has been doing that. He brings me a lot of informa- tion for analysis when there is a decision to be made. He also brings alternative solutions. We study problems together and make decisions in a climate of mutual respect. I have been very pleased with the fact that the executive director has Shown extreme dedication and ability in solving problems. C7-—How stable is the relationship between ITAL and its other external relationships? Answer--The relationships have been quite stable. This is true for all of the interactions-~federal and state governments, international institu- tions, and the food industry. 277 C8—-Why have these relationships been quite stable? Answer--I think I already offered the reasons for this when I talked about the office of Coordination and its relationships with ITAL. The reasons are the same, as I see it. C9--To what extent are these relationships sufficient for an ideally efficient performance Of ITAL? Answer--They are sufficient to a considerable extent. ClO—-Why? Answer--Today things are at a good equilibrium at ITAL. Eighty percent of what ITAL does interests directly the federal and state governments, and 20 percent represents contracted research with the private economy. Cll--How likely are future changes in the external set of relationships? Answer--Not likely at all. C12--Do you consider some future changes in these relationships desirable? Answer--No, I do not think so, at least at the present moment. ClS--Would you say that ITAL, or other external members, is planning to implement some of these changes? . Answer—~NO. I am sure they are not doing that. Cl7--DO you know Of past attempts to change the relationships? 278 Answer--Yes. Cl8—-Could you offer examples? Answer--In the past, ITAL's management tried to Operate a private foundatiOn in order to handle contracts with industry. Of course, this attempt was frustrated because there was no agreement between ITAL and the Office of coordination about research contracts with private enterprises. SectiOn D--Domain and Goal Formulation Dl--Given the range of ITAL outputs and inputs, which do you consider important from ITAL's point of view? Why? Answer--Whatever ITAL does has an importance if viewed as a whole, and not as a specific part. On the output side, all research activities are linked with the quality of consultancy jobs, with the quality of performance in contracts with indus- try, with quality of its training courses, and so forth. And the quality of outputs is directly related to the quality of inputs, such as human resources, laboratory facilities, availability of financial resources, and so forth. The way I see it all of ITAL's present inputs and (outputs are important to make a homogeneous whole. 279 D2--Are you satisfied with the input/output trans- actions that ITAL carries on? Answer--Quite satisfied. But I still think there are improvements to be made. D3--What are the reasons for your satisfaction? Answer—-Basically, I could say that the overall results are coherent and geared to Obtain high perfor- mance standards. D4--Do you recall any general changes in input/ output transactions that have occurred in ITAL's history? Answer-—Yes. I was very much involved in the decision to build the dairy, meat, and fish pilot plants. I Offered the complete support of this office 0 for the development of those three projects (financial support included). Another case was a project for the aseptic processing of banana products. I can say that evolution at ITAL occurs not only in relation to new products. ITAL is now planning and programming its activities. There is a five-year plan which I consider to be an important improvement. D6--To what extent would you say you are familiar with ITAL's goals and policies? Answer--To a considerable extent. The examples provided above corroborate my answer. 280 D7--How important is it for the office of coordina- tion to keep pace with develOpments in ITAL's goals and policies? Answer-~Extremely important, for the reasons I have already indicated. D9--TO what extent does your organization influence the determination of goals and policies in ITAL? Answer-~TO a very great extent, in relation to the areas of personnel, finance, production, purchasing, marketing, technology, and scientific policies. However, there is greater influence in the areas of technological and scientific policy, personnel, and purchasing policies. DlO--Does your organization formally participate in ITAL's top decision-making process? Answer—-Yes. Basically, this is defined in the organi- zation charts of the Secretary of Agriculture. Dl3--To what extent do you presently desire some changes in ITAL's goals and policies? Answer--TO a very little extent. My efforts have been geared towards the improvement of ITAL's efficiency and quality of the work in general. There must also be a greater degree of integra- tion among the institutes under my coordination. Therefore, I do not desire too many changes, but I do not reject the possibility of a few necessary changes. 281 D15—-TO what extent does your organization and the other members of ITAL's external set of relation— ships agree as to its future goals and policies? Answer--To a considerable extent. And this represents a governmental policy in perfect agreement with the enterprises working in the food producing activity. Section E--The Assessment of the Organization El--Is ITAL a successful organization? Answer--If I consider the technical aspects, I would say that ITAL is an extremely successful organiza— tion. However, its administrative services are still poor and reflect the overall pattern of public administration in Brazil. The state administration has improved its technical outlook and, consequently, has developed new conceptual frameworks (the concept of systems, for example). However, we are still faced with problems of personnel (level of education) which affect directly the quality of execution Of policies and programs. Within my Office the best insti~ tute technically speaking is the worst in bureau- cratic and routine administration, and vice-versa. 282 E3--How important would you say the following indicators Of performance are for your evaluation of ITAL? a. Profit, return on investment, or financial status? Answer--Not tOO important. b. Improvements in the amount of physical production. Answer--Not too important. c. Improvements in the quality of output. Answer--Not too important. d. Improvements in the rate of innovation and creation of new products and services. Answer--Somewhat important. e. Compliance with budgetary prescriptions. Answer--Not too important. f. Achievement of some Operational goals. Answer--Not too important. g. The level of contribution toward the achievement of national, state, or local goals. Answer--Extremelypimpprtant. h. Compliance with rules and norms. Answer--Not too important. i. Overall performance satisfactory compared to similar organizations. Answer--Quite important. 283 j. Quality of technical personnel. Answer-~Extreme1y important. k. Quality of management. Answer-—Not too important. 1. DevelOpment of activities which prepare the organization for future action. lAnswer--Not too important. m. Prestige of the organization with the external public. Answer--Somewhat important. n. Overall improvement through time. Answer--Quite important. E4--Would you classify the items above according to your preference in evaluating ITAL's performance? Answer--l. Quality Of technical personnel (j); 2. Level of contribution toward the achieve— ment Of national, state, or local goals (g); 3. Overall improvement through time (m); 4. Overall performance satisfactory compared to Similar organizations (i); 5. Prestige of the organization with the external public (m); 6. Improvements in the rate of innovation and creation of new products and services (d). E5--Considering the above list of the six more important indicators, do you think ITAL has shown improvement in all or some of them? 284 b Answer-—ITAL has Shown improvement in all of them. E6--To what extent have ITAL's most recent scores along these dimensions pleased you? Answer--TO a considerable extent. I think I have already provided the reasons for this answer. E8--To what extent is your organization generally able to understand the operations in ITAL, so that a fair evaluation of performance can be made? Answer--TO a considerable extent. I have a planning staff in which there are three competent technicians who have been following ITAL's performance very closely. ElO--TO what extent are ITAL's Operations Signifi- cantly predictable to make the planning and attainment of objective and measurable goals easy? Answer--To some extent. The only difficulty is in planning details. E12--TO what extent is the decision process Simple in ITAL, that is, it is always clear which course of action to take and which results to look for? Answer--TO a considerable extent. ITAL's top manage- ment plans and programs the events which.will occur in the future. Their plans match the 285 targets defined by the national planners. 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