The Negotiated Order of Organizational Reliability

Abstract

A critical problem facing modern organizations in a variety of settings is the erosion of slack. Given narrowing performance margins allowed many organizations, managers are tempted to "lock in" organizational performance through elaborated rules and procedures, formal authority assignments, and clearly differentiated job responsibilities. A case study of one organization seeking very high reliability in its performance—a nuclear power plant—is offered to demonstrate a contrary point of view. Reliability, it is argued, can best be achieved not through attempts at organizational invariance but through the management of fluctuations in important organizational relationships and practices. This strategy enhances reliability while preserving the protective functions of organizational slack.