There are two assumptions as to nature of organization.
Social Systems:
Organizations are social systems and governed by social and psychological laws. They have social roles and status. Their behavior influenced by their group’s individual drives. Organization environment in a social system is dynamic. All parts of the system are
interdependent.
Mutual interest:
In order to develop the organization behavior mutually of interest organizations and people is necessary. Organizations need people and people in tern need organizations. People satisfy their needs through organization and organization accomplish their goal through
people.
Ethics:
In order to attract and retain valuable employees in an era in which good workers are constantly required away, ethical treatment is necessary. To succeed, organization must treat employees in an ethical fashion. Every Company is required to establish codes of
ethics, publicized statements of ethical values, provided ethics training, rewarded employees for notable ethical behavior, publicized positive role models, and set up internal procedures to handle misconduct.
