MGT5MPT Management Practice And Theory - Assignment
Added on 2020-05-04
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Running Head: MANAGEMENT THEORY AND PRACTICEManagement Theory and PracticeStudent NameCourse Code
1MANAGEMENT THEORY AND PRACTICEIntroduction Organizational theory is mainly based on the approaches and methods to do the analysisof the organization there are certain theories of organizations which have a rational perspectiveand division of labor theory of bureaucracy and contingent theories. In any system oforganization where a rational approach is followed it has two parts one of which is specificationof the goals and another one is the formalization.Since the field of organizational theory isconsidered to be a fragmented body of knowledge there are many competing theories whichassist in the explanation of organizational action. In the following essay critical analysis of somestrategic choice making and determinist theories will be discussed. The main emphasis will begiven to resource dependency theory, institutional theory and population ecology. The followingis a will analyze that which perspective of organizational action is more compelling whether it isthe strategic choice or the determinism.All these theories cumulatively or taken individuallydetermine the type of organizational action needed in specific scenarios and which one is morerelevant according to the situation. The following essay will give a Holistic idea about therelevance and importance of the respective theories which are discussed in details.Resource Dependency TheorySince the publication of articles on the resource dependence perspective the respectivetheory has come out as the most influential theories in context with the organizational theory andManagement based on the strategy. RDT considers the organization to be an open system whichis based on the contingencies of the environment which is externally affected (Biermann &Harsch, 2017). It has been written that to understand the organizational behavior one must knowthe approach and concept of that behavior which is directly related to the ecology of theorganization.RDT illustrates that the influence of the factors which are externally motivated have
2MANAGEMENT THEORY AND PRACTICEimpact on the behavior of the organization. Although these actions can be termed as constrainedand managers of the organization can take the initiative to minimize environmental uncertaintiesand dependence on these factors (Burke, 2017).In the light of these actions there is a concept ofpower in the organization which is related to the control over organizational resources. Anyorganization tries to reduce the power of those resources over them and relatively endeavors toenhance the organizational power over the resources.Some literary sources create an argument over the resource dependence perspective withrelation to the interorganizational relations and define their characteristics.They state that thereshould be a fundamental understanding of the intercorporate relations to be an organization in thesociety (Cicmil et al., 2017). They support that these organizations or not autonomous and arerestricted buy a web of interdependencies incontext with other similar organizations.The notionof interdependence when taken together with the sentiment of uncertainty of what theconsequences will be for the organizations which are interdependent creates a scenario forsurvival of both organizations leaving their cumulative success uncertain.To mitigate thesituation of external interdependencies organizations tend to take actions which never prove tobe fruitful for them in the Quest of success and they create new patterns of interdependencebetween the organizations and the external factors (Dell, 2017). The new patterns ofinterdependence have an effect of power who are the organization which directly affectsbehavior in the organization. With the development of resource dependence theory it has becomethe most relevant theoretical rationale which explains why the organizations tend to merge andacquire different organizations.The reason for mergers and acquisitions done by theorganizations a justified as they become successful in decreasing the competition by mergingwith the top competitor organization (Desai, 2017). An added advantage to this method is that an
3MANAGEMENT THEORY AND PRACTICEorganization reduces interdependence with the source and the market purchasers by absorbingthem. Another reason is that an organization provides diversity to its operations therefore theydecrease the dependency on the current organization with which it is in business.Resourcedependence theory also advocates the reasons of why the organizations come into joint ventureswith other companies.The main reasons can be illustrated as joint ventures facilitate strategicalliances, buyer-supplier associations, combined marketing agreements, research anddevelopment agreements and a consortium for high research (Fuenfschilling et al., 2017).Jointventures also help the organizations to reduce complexities which are advent in the internationalenvironment and they also help in gaining diverse resources. The main theme for RDT is toreduce the interdependencies within an organization. Institutional TheoryInstitutional theory is a framework for the analysis of organizational systems whichbelieves that the social world is comprehensively made of Institutions. It also illustrates thatthere are certain in during rules structures frameworks and practices which set the conditions forany action. With the help of institutional theory explanation of the fundamental concepts ofsocial world can be done as they are believed that Institutions create social order and pave theway for smooth flow of social life (Gabriel et al., 2017). The variables of Institution theory arebelieved to set the rules of variations in the institutions. In the modern era it is believed thatorganizations have been extremely institutionalized because of the development of manyprofessions, programs and policies which serve the powerful and the rich. A trend has beendeveloped in which many organizations happily incorporate the programs services productspolicies and techniques because they strive to understand the concept of rationality (Gould &Taylor, 2017). Even if the organizations follow institutional theory they do not tend to make their
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