Technical definition: stable, formal social structure that takes resources from environment and processes them to produce outputs, a formal legal entity with internal rules and procedures, as well as a social structure. Behavioural definition: a collection of rights, privileges, obligations and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution. Routines (standard operating procedures: precise rules, procedures and practices developed to cope with virtually all expected situations. New is may require change in routines. Divergent viewpoints lead to political struggle, competition and conflict. Encompasses set of assumptions that define goal and product: what products the organizations should produce, how and where it should be produced, for whom the products should be produced. May be powerful unifying force as well as restraint on change. Organizations and environments have a reciprocal relationship. Organizations are open to, and dependent on, the social and physical environment. Info systems can be instrument of environmental scanning, act as a lens.