Organizational theory forms the foundation for decision making and problem solving in the realm of business management. It may be argued that the effectiveness and success of business operations is fundamentally tied to leadership quality of the organization. The ease, efficiency and profitability with which a business functions relies on factors tied in with structural organization on several levels including top-management personnel, share-holders, executives, and employees. Several theories have been posited throughout history that attempted to conceptualize the nature of organization and how it relates to business. These theories demonstrate the important role that organizations, and thus businesses, play in society and provide a basis from which leadership, decision making and problem solving within the business context can take place.
             Hinings and Greenwood (2002) investigated the history behind the study of organization and focused in on two factors. The first factor was the way that organizations affect patterns of privilege and disadvantage that exist in society. The second factor was the way that privilege and disadvantage can be observed within organizations. A major historical figure in the study of organization is Max Weber who conducted work in the late nineteenth and early twentieth century. Weber took a sociological standpoint on the nature of organizations, outlining and analyzing the development of authority in relation to associated organizational forms, including bureaucracy (Hinings & Greenwood, 2002). In doing so, Weber indicated two important points of interest. One, bureaucracy was related to higher efficiency within organizations especially in production of goods and services, and resulted in a fundamental change in the nature of socioeconomic status and class. The second point concerned what Weber termed "imperative coordination", which meant that specific groups within organizations ...