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Report on Resource Dependency Theory, Institutional Theory and Population Ecology Theory

   

Added on  2020-07-23

10 Pages2976 Words130 Views
Exploring the ParadigmWars in OrganisationTheory

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Resource Dependency Theory................................................................................................1Institutional theory .................................................................................................................3Population ecology theory......................................................................................................3CONCLUSION................................................................................................................................5

INTRODUCTIONThe field of organisation theory is defined as a fragmented body of information andknowledge, with many competitive concepts to explain their action. The report includes threetheories that are Resource Dependency Theory, Institutional theory and Population ecologytheory. Each theory has different concept where resource dependence state that one organisationdepend on other for resources. Whereas institutional theory states that institution is the structure,where organisation need to adopt changes in environment according to their structure andpopulation ecology states that, the venture which are not able to change themselves according tothe environment will be replaced by any other competitive organisation. The major reason forselection of this study is that organisation can adopt the changes according to the changingenvironment. With help of this study, understanding can gain on the various theories such asresource dependency theory, institutional theory and population ecology through. These theorieshelp to the organisation in improving their employees performance.Resource Dependency TheoryResource dependency theory is the study by which organisation determine how differentexternal factors affect behaviour of people in an organisation. It is very significant for theventure to determine and analyse all the external factors which have great impact over theoperational, tactical and strategical management of the firm. Importance to this theory was notgiven till 1970's but after that organisations have found that they are also being affected byexternal factors and then this theory had been implemented (Rogers, 2016). Resourcedependence theory has implications regarding the optimal divisional structure of organizations,recruitment of board members and employees, production strategies, contract structure, externalorganizational links, and many other aspects of organizational strategy (Mohr and Fastoso,2016). In simple words, it can be said that organisation is dependent on the different resourcesand that resources are procured from external environment (Resource Dependency Theory,2017). The external environment, consists of other organisations which need the same resources.These can be procured on the basis of power; thus, these organisations need to dependent oneach other. The resources which an organization need are land, labour, capital, raw material andmachinery (Seckinelgin and Wong, 2016). With assistance of this resource dependence theory,strategic choice of the organisation can also understand as with help of this company candetermine how external factor influence the behaviours of the people in the company. Firm1

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