Abstract
An experiment involving the introduction of two different budgeting methods into a simulated educational organization was carried out using internal and external change agents. It was hypothesized that external change agents would be associated with more conflict; a greater level of threat to the harmony, authority structure, and overall effectiveness of the organization; and a lower level of acceptance of the budgeting method introduced. The hypothesis concerning the external change agent's threat to the harmony, authority structure, and overall effectiveness of the organization was confirmed. The other hypotheses were not confirmed. Explanations of the findings of superior performance in groups with external change agents and possible implications for actual situations are suggested.
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