To predict shifts in the national economy = to evaluate the influence of a change in a highly predictable economic indicator, while holding other sectors constant.
Making short-run predictions, the analyst would study the influence of flows and stocks of money on the existing structure. It also predicts an increase in public relation activities to persuade the firm’s public that its efforts are genuine.
Then moving to redesign of common arrangements, internal systems and structure are changed on related systems; such as communications and authority centers.
The accuracy of the forecast is enhanced by knowledge of critical variables that shape organization behavior as well as perception of the intervening forces (leadership and tradition) that filter inputs and reactions.
“Chester I. Barnard” way of thinking = executive organization develops out of the need for the organization to coordinate its parts. These specialized functions grow out of the organization’s need for communication and coordination.
To facilitate certain processes to direct the efforts of people toward enterprise goals in an orderly manner, its leaders play a prescribed role which must include varied dimensions of system regulator, change agent, mediator, trustee, and catalyst for action.
All systems require a catalyst causing orderly motion in organizations, which is the delegation of authority by leaders so others can make decisions and take action toward enterprise goals.
The mark of sound leadership is its ability to fulfill the role and responsibilities required by the immediate needs of organization.
Contingency theory = the leadership is sound only when it responds to demands in the context of leadership setting.