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The article focuses on the value of action research, which has been developed by the Tavistock institute of Human Relations in Great Britain. Action research, or the sociotherapeutic approach, is a collaboration between social scientists and managers who identify and try to resolve human problems in the work situation. A project conducted by the Research Department of Ashridge Management College focused on management at small firms. The development of management strategy is defined in three time periods and changes in organizational structure and communication patterns are evaluated. The risk in action research is sharing the decision-making process with outsiders whose expertise is not an exact science.