Organizational effectiveness must rely above all else on the development and interaction of human beings within the organization's context. This basic premise set the stage for a joint research project on institutions of higher education which was completed in 1971. The researchers examined institutions from the perspective of members of administrative councils, faculty senates, and student governments. These subgroups' and institutions' organization dynamics (i.e. goal focus, communication adequacy, power equalization, cohesiveness, morale, resource utilization, innovativeness, adaptation, autonomy, and problem-solving adequacy) were found to be contingent on factors of human interaction and development as perceived by those interviewed. Qualities of human development (i.e. autonomy, self-knowledge, values, allocentricism, interpersonal skills, etc.) exhibited by organizational members were closely related to the degree of organizational effectiveness observed. This program will elaborate on these research activities and share more recent work on use of the concepts. Administrators concerned with the question of organizational development in the context of human development will be given some guidelines of self-study, consultation, and educational development models. (Author)