Organizational Theory in the 1980s and 1990s

By the 1980s several new organizational system theories received significant attention. These included Theory Z, a blending of American and Japanese management practices. This theory was a highly visible one, in part because of Japan's well-documented productivity improvements—and the United States' manufacturing difficulties—during that decade. Other theories, or adaptations of existing theories, emerged as well, which most observers saw as indicative of the ever-changing environment within business and industry.

The study of organizations and their management and production structures and philosophies continued to thrive throughout the the 1990s. Indeed, an understanding of various organizational principles continues to be seen as vital to the success of all kinds of organizations—from government agencies to business—of all shapes and sizes, from conglomerates to small businesses. "As we observe how different professionals working in different kinds of organizations and occupational communities make their case, we see we are still far from having a single 'theory' of organization development," wrote Jay R. Galbraith in Competing with Flexible Lateral Organizations. "Yet, a set of common assumptions is surfacing. We are beginning to see patterns in what works and what does not work, and we are becoming more articulate about these patterns. We are also seeing the field increasingly connected to other organizational sciences and disciplines," such as information technology and coordination theory.