Some of the most important causes for organizational deterioration and entropy are related to the fact that organizations have been designed and managed on a restricted view of man. Lack of interpersonal competence (and its consequences in group and intergroup behavior) has helped to create such an internal environment that the rational and technical competencies of individuals are continuously being blunted and inhibited. If the validity of the concept of the organization (public or private) is to survive, the new designs will have to raise the level of the quality of life within the system and genuinely value high-quality living as much as efficiency. Organizations redesigned to take a more complex view of man into account will have to make changes in their structure, technology, leadership, and managerial controls that reverse the three basic properties in modern pyramidal systems: (1) specialization of work, (2) centralization of power, and (3) centralization of information. Their concomitants of these properties are dependence; low fate control; impoverished work; psychological failure; psychological withdrawal; "market orientation"; low openness, trust, and individuality; and low risk-taking, learning, and innovation. (Author/MLF)