A Prelude to Introduction of Luhmann's Social System Theory to Organization Theory

Abstract

This Paper is a first step to introducing Luhmnan's social system theory into organization theory which has come to a deadlock. We focus especially on relationship between communication anddecision. Luhmann defines communication as a synthesis of three selections, namely information, utterance, and understanding. And he emphasizes self-referentiality of communication. By referring Luhmann's idea on communication, we find duality of selection in organizational decision making process, which may cause paradoxes of self-reference. But in the decision making situation, these paradoxes are often deparadoxized by understanding that selecting itself has previously selected. Selection of selecting is ascribed to a organization as subject and this understanding becomes ordinary in consequence. This ascription is possible when a organization seems transcendent from its members. Decision making is a selection style which deparadoxized duality of selection through separation of ascription. A organization can make complicated selections by using this style. By the analysis above, It is revealed that the selection style of decision making has essential functions for organizations. Consequently, we can recognize modern organizations as systems which try to describe itself decision making system.