Different theories of organisation have developed over time. To distinguish sound theories from others, two criteria should be considered: a clear definition of the subject of the theory, and the method according to which the subject is changing. The author presents the theory of organisation originally designed by a Slovenian, Professor Filip Lipovec. The discussed organisation theory regards an organisation as a set of dynamic relationships between members of a social unit which assure the existence and development of the thus formed social unit and reasonable achievement of the social unit’s goals. It is compared with other ‘grand’ theories of organisation developed in the past. Two main parts of the organisation are presented in more detail: the static or structural part and the dynamic or process part. Uniform and general organisation structures are briefly discussed along with three basic organisational processes determined by purpose, content and process: the governing-managerial process, coordination, and decision-making. A fourth one – the conflict process – is added.
After explaining the theory, the author tries to prove its validity in different ways, namely by (1) showing that the whole theory is explained only by organisational elements, all based on a rationality-assuring relationship; (2) emphasising that all organisational phenomena are logically explained by the theory; (3) demonstrating that an organisation determined as a set of dynamic relationships is specific and exists only in this theory and that coordination is the method for establishing and changing it; (4) comparing the theory with other theories of organisation and comparing organisation science with other (related) sciences; and (5) presenting the use of organisation so defined in different applications and offering sound solutions to problems discussed in organisation theory. The author believes the stated arguments support the presented organisation theory and its validity. Yet he leaves the question open of whether it is a developed or a new theory and, as such, the basis of a (new) basic organisation science.