ORGANIZATIONAL EQUILIBRIUM UNDER UNCERTAINTY

Organizational equilibrium theory is a theory of an inducements‐contributions balance within organizations; i.e. it ultimately aims to find conditions for organizational survival. Based on the Simon‐Smithburg‐Thompson postulates for the organizational equilibrium theory, an organizational equilibrium model under uncertainty is constructed. Using a multiple objective satisficing problem formulation, the survival conditions (i.e. existence conditions of viable solutions) are studied. The existence of uniformly better solutions than a given viable solution is also shown. Then, a unique solution (i.e. viable Pareto solution) is defined, and a problem whose solutions are viable Pareto solutions is specified. Finally, several organizational factors involved with the organizational equilibrium concept are discussed.