Recent theories of formal organization have argued that the external
environment has a determinant effect on organizational behavior
and structure. Executives of 104 nonprofit human service organiza
tions in a medium-sized city were surveyed to study the effect of
perceived competition for scarce resources on labor management prac
tices. Many executives perceived their environment to be both coop
erative and competitive; most had adopted rational management
procedures. No significant effect of competition on management was
found.
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