Rapid and chaotic changes in market environments have caused business organizations to modify their organizational structures and social relationships. This paper examines the change in relationship between management and employees, which is shifting from an adversarial and controlling role to facilitation and employee empowerment. This paper's research question concerns how classical sociological theory would explain power redistribution within organizations and the formation of an associative and collaborative relationship which contradicts traditional paradigms. Traditional bureaucratic and contemporary organizational forms are compared and contrasted. Organizational climate, psycho-social components of underlying assumptions and group ethics are seen to be the mechanisms impelling transformation. Organizational change is driven by an emerging secular ethic. This ethic is embodied in an applied model of leadership and examined as an ideal type. The common ethic impelling organizational change is seen to be the same as that causing social transformation in both national and international spheres.