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An informational approach is developed to the general problem of organization. It is shown by its use that system engineering design in general can be brought under the same philosophy and body of techniques naw beginning to dominate the field of communication system design. The form this new theory assumes, however, being suited to quantitative treatment of any organization or system, enables it to be applied to problems encountered by management in running and improving its organization, plant, or product. A brief indication is made of the potentialities of this new approach.