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Organizational processes and the organization-environment interaction are discussed in this volume of the Handbook of Work and Organizational Psychology. Both organizational and environmental characteristics affect the behaviour of individuals and groups, but such characteristics are in turn also influenced by behavioural features. This volume on organizational psychology covers subject areas such as organization theory, organizational culture and change, leadership, decision making and participation, motivation and satisfaction, payment systems, effective communication, and social-organizational aspects of automation. The final chapter describes the impact upon behaviour and attitudes of the transition of a socialist-led society to a market economy.