Their effort represented a departure from much of the prevailing organizational literature of that time that stressed sociologic or strategic frameworks. These schemas can then be used to provide a framework for complicated problems that involve both psychological and business issues. The paranoid corporation is pervaded by distrust. Energy is focused on external threats leading to a centralization of power and a conservative, reactive business strategy. The compulsive corporation is marked by a lack of flexibility.
Initiative is stifled and inappropriate and rigid responses become commonplace.
The dramatic corporation is quite different. Inactivity, lack of confidence, extreme conservatism and insularity are the chief features of the depressive organization. These companies are extremely bureaucratic and hierarchical. Meaningful change seldom occurs. The fifth type of organization is the schizoid.