The items of the enquete in this study were framed on the following 3 broad premises, (a) Changes in organization follow growth of firms. (b) Measurements of organizational efficiency consist of "productivity," "adaptability" and "flexibility," where "productivity" represents degrees of efficient of response to stable stimuli maintaining stable form, "adaptability" that to gradually-changing stimuli gradually changing itself, and "flexibility" that to occasional stimuli occasionally changing itself and recovering after such stimuli end. (c) Functioning of organization - that is, the process of Cause Variables, Intervening Variables and End-Result Variables - and their relations are intricately interwoven as shown in Figure I. The Figure exhibits relations between top-management (Cause Varis. I), structure of organization (Cause Varis. II), disposition of organization I (intervening Varis.), disposition of organiaztion II (Result Varis. I), product strategy and Business Result (Result Varis. II). The questionnaire was sent in February 1973 to some 800 firms listed on the Tokyo Securities Exchange and answers came from about 280 firms. Effective answers were from 260 firms, whose break-down by industrial sections was electrical equipment (56 firms), machinery (15), chemicals (55), transport equipment (22), food (22), trade & real estate (45) and bank & insurance (45). For the classification by size we used the number of employees, not the amount of capital, because the object of study was firm organization.
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