Abstract
The problem of organizational retrenchment is analyzed in terms of prominent developments in organizational theory and tendencies in administrative response to decline in education. The implications of the contrasting closed-rational and open-political administrative orientations are explored in terms of traditional and emerging conceptualizations of organizational efficiency and effectiveness. Using the pressure of scarcity to spur innovation is viewed as the key to capitalizing on and benefiting from necessary retrenchment in educational organizations.

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