Thompson's Levels Model
Reconciling the Rational, Natural, and Open Systems Perspectives
James D. Thompson in his work Organizations in Action states that all three
perspectives apply in differing amounts to different organizations, and
suggests researchers should be more flexible in their approach. He borrows
Parson's levels (technical, managerial, and institutional) and claims that
the rational perspective is more suitable to the technical level, the natural
to the managerial, and the open to the institutional level (Scott p. 99).
Thompson states that organizations "strive to be rational although
they are natural and open systems" (Scott p. 99). Rational notions
of effectiveness and efficiency presume a closed system. Organizations attempt
to seal off their technical core from external uncertaintities as much as
possible. At the institutional level the organization is open to the environment
and must adapt to its changes. At the managerial level managers mediate
between the open institutional level and closed technical level and need
the flexibility of informal structures prevalent in the natural system perspective
to ensure organizational survival.