Perhaps the most vigorous movement in administration in recent years has been directed toward the development of a comprehensive theory capable of generating both hypotheses for guiding research and principles for guiding practice. Despite many specific advances in special areas, such as hospital administration, public administration, business administraton, and educational administration, there still is no general conceptual framework for systematizing and interrelating our knowledge within and among these areas. It is still impossible to speak of administration in terms that would be acceptable to, or for that matter even readily understandable by, students and practitioners in the several special fields. This failure to conceptualize administration on a general theoretical level has been a major obstacle to the development of administration as a rigorous discipline, and the elaboration of theory is accordingly receiving increased attention both in "research" and "applied" administrative settings. The purpose of the present paper is twofold: (a) to describe a socio-psychological theory of social behavior having broad application to the area of administration and (b) to illustrate the application of the theory to major issues in administration. The four major issues considered here are: the problem of institutional and individual conflict; the problem of staff effectiveness, efficiency, and satis-