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The article presents information on goal formation process in complex organizations, suggesting several foundations upon which a unified theory can be based. The author notes that no universally-accepted theories have evolved to explain the process of goal formation despite a recognized lack by economics and administration students. The author suggests that objectives are a function of a firm's external environment, its internal social system, the motives of individual participants who possess organizational power and their negotiation process. A complex organization rarely possess unlimited goal-setting discretion, as its choices are increasingly influenced by external forces.