Organizations are living systems, similar to other living systems, but
with an important difference. They are multiminded living systems. In
this paper, the changing concept of organizations is sketched and it
is shown how models actually influence the evolution of organizational
types. In the history of organization there have been basically three
main stages, viz., the machinistic, organismic, and multiminded stage
. All three types still exist, so far as the later stages in fact incl
ude the former ones. The living systems theory (LST) is firmly based i
n the organismic model and thus provides an excellent basis for organi
zational development. However, the concepts of process autonomy and fl
exibility as well as dispersed decision-making will have to be include
d if the theory is to have an impact in the evolution of modem organiz
ations. We believe that the extension of the LST using Biomatrix princ
iples might be sufficient to meet the present challenge.