Managerial Climate, Work Groups, and Organizational Performance.

A large-scale computer model was developed which integrated an empirically based model of work groups and foremen with a behavioral theory of the firm. This model was then used to investigate a set of hypotheses about the effects of managerial climate on organizational performance. The results indicate that under specific dimensions of managerial climate work groups can have marked effects on organizational performance, suggesting the need for further research on the incorporation of models of the lower levels of organizations in a behavioral theory of the firm. [ABSTRACT FROM AUTHOR]