Technical and Institutional Factors in Production Organization: A Preliminary Model

A rough model describing interrelations among certain technical, institutional, and administrative variables in organization is proposed theoretically and tested, largely by rank correlations, using data from thirty non-industrial production organizations. The seven variables included in the model are: technical complexity, specification, specialization, authority, rationality, social involvement,and scope of reward system. The findings lend support to the realistic character of the model and suggest a more systematic way of dealing with technical and institutional elements in organization.