Thinking about organization in a new way: An inquiry into the ontological foundations of organization

Abstract

Globalization, it is generally thought, is transforming organization. This paper offers a theory of organization that lends itself to the study of change. It calls attention to two neglected phenomena: the origin of hierarchy in communication and the role of communication in constituting the identity of the organization as an actor. It argues that organization begins as a co-orientation toward some common object, characterized by relationships of principal to agent. A coorientation system called A-B-X is proposed. A-B-X systems are found to have two boundaries, and it is the existence of communicational boundary conditions that explain the emergence of modern industrial corporatism in the 19th and 20th centuries--boundary conditions that now seem to be eroding. The paper then proposes a reflexive and structurational model of the process by means of which organizations are constituted as actors. The paper concludes with some reflections on the sources of stability and instability of organizations in a global environment.