Management Theory and Practice: Analysis of Organizational Theories and Reconciliation

This report analyses different organizational theories including contingency theory, agency theory, determinism theory, institutional theory, and population ecology theory. It discusses the reconciliation of these theories in a universal model for effective management practices.

Running head: MANAGEMENT THEORY AND PRACTICE
Management Theory and Practice
Name of the Student
Name of the University
Author note

1MANAGEMENT THEORY AND PRACTICE
Introduction
The report helps in analysing the different theories on organization, agency theory
along with the determinism theories as well. The report furthermore discusses on the
structural contingency theory that helps in analysis of the entire company with proper
implementation of different kinds of strategies effectively. The contingency theory helps in
discussing about the structure of the company. It has been seen that there is no such specific
structure of the organizations that can fit with the entire structure of the company and this is
equally effective in nature for the different other companies as well.
There are different factors on which the optimal structure is dependent and these are
known as the contingency factors that includes the environment wherein it operates along
with the accurate and proper usage of the technology along with the size as well. As to
become and be more effective in nature, the organization has to fit with the different
contingency factors along with the entire environment as well (Ashkanasy, Härtel & Zerbe,
2016).
Furthermore, on the other hand, agency theory helps in explaining that the structure
unevenness along with the organizational performance that gets influenced by the different
decisions taken by the various managers who are the agents and this assists the companies in
maximising the amount of profit through internal process. The different managers of the
organization utilise the information of the companies and this helps in developing different
strategies for the different companies. The different choices along with the decisions that are
made by the individuals are manipulated that can be based on different kind of environmental
factors as well (Heding, Knudtzen & Bjerre, 2015).
On the other hand, the agency theory is the one wherein determinist theory helps in
believing that the different individuals are not in a position to make different decisions as

2MANAGEMENT THEORY AND PRACTICE
they do not have the power to think in an innovative manner. Furthermore, it has been argued
that the organizations are being considered on the basis of the performance and this can be
measured in an accurate manner as well. It helps in discussing the different causes of the
variability in the organizational performance such as managerial environment choices. In the
determinist theory, the respective theory helps in explaining the performance of along with
the different choices that depends on the environmental kind of mechanism. As per the
different kind of generation of ideas from the each of the theories, these are reconciled in the
universal type of theory. Furthermore, based on the different kind of aspects, the report is
providing different type of arguments as to resolve the different theories.
Strategic Choice Theory: The contingency theory, institutional theory, population
ecology theory along with resource dependency theory. According to (), there are various
four theories has to be argued as this helps in reconciling that is based on few perspectives
that is due to the level of analysis along with pressures from environment and analysis level.
() has commented and stated that the level of choices along with determinism that is
being divided into different quadrants (Q) that has been resulted from four different type of
combinations. Q1 emphasis on the entire normal selection with the choice that is minimal in
nature along with proper analysis of the retention and adaption that provides the idea of
population ecology. Furthermore, Q2 helps in dealing with high kind of choice idea along
with huge determinism and the adoption with the different eco-friendly restrictions that
emphasises on huge power of institutionalised along with the different resources that helps in
focusing more on the Institutional theory.
Additionally, Q3 focuses much more on the strategic choice that is huge in nature that
maximises the maximum kind of choice along with adoption of structural design focusing on
the structural contingency theory. Lastly, Q4 focuses on the level of choice that is

3MANAGEMENT THEORY AND PRACTICE
incremental in nature and the adoption is done by the chance. According to the discussion,
resource dependence theory helps in analysing the moderate kind of behaviour along with
determinism that makes and lies between institutional theory and SCT that is quadrant 2 and
quadrant 3. The respective report helps in analysing the different kind of aspects that has been
discussed as to prove the fact that the different organizations helps in building the different
theories along with models due to the different constraints that has to be successful in
correspondence to the old kind of theories.
The paper focuses on different kind of theories and reconciliation of the theories in
the universal theory in the next sections. The discussion will proceed the summary of
different ideas that will provide different facts in the next sections.
Discussion on various aspects of theories
Structural Contingency Theory
The respective theory helps in analysing the design of the organization that has the
accurate fit in the organizational environment wherein this will operate. As per Cornelissen et
al., (2015), the kind of environment in which the organization will exist, this is decided with
the help of stable environment that will not respond to the daily or the external changes in the
market and the response is predictable in nature with the prior kind of beliefs that will enable
the managers to analyse the entire situation effectively by deciding on the accurate goals and
development of the strategies will be required to achieve it (Marti & Scherer, 2016).
Furthermore, horizontally along with vertically differentiated kind of structural
companies adopt stable kind of environment in an easy manner, on the other hand there are
organizations with unstable kind of environment that is flexible in nature in comparison to the
external environment to the changes in the market and the company have organic structure
and this is low level of horizontal along with vertical differentiation (Kipping & Üsdiken,

4MANAGEMENT THEORY AND PRACTICE
2014). There are two strategies such as internal and external strategy that includes the
different decisions of the managers with influence of the technology, resources and
operations etc. This eventually helps in developing efficiency of the organization considering
entire environment that will respond best to the different kind of products and services as
well. Secondly, the environmental strategy provides different choices to the managers as this
decides the kind of environment that is suitable and this will be adoptable in nature for the
sale of the different goods and services that creates market efficiency (Bratton & Gold, 2017).
The efficiency in the market is expected as there are different environmental conditions that
will lead to complexity along with variability that has allowed the different managers in the
organizations to make various choices with the different structures along with the strategies
to improve the performance that leads to unstable kind of external organization.
Therefore, it has been concluded that SCT helps in becoming more kind of strategic
decisions along with allowing the different managers in utilising the agency for deciding the
design of the organization and Northouse, (2018) has discussed that there are different
decisions that are made in an internal manner and this becomes result of the environmental
operations along with the different conditions in the market. Therefore, the sustaining the
idea with maximum choices as this determines the structure to adopt the micro environmental
kind of factors.
Resource Dependency Theory
The different resources are the basic requirements of the organizations and this is
measured as one of the elements in which the managers desire to make the different
decisions. The respective theory is based on the involvement of the acquiring essential
resources from the entire external environment that might be found with different actors or
the organizations. The relationship of the dependency theory generates from differences in
the authority and this access to resources (Neubert & Dyck, 2016). Furthermore, there can be

5MANAGEMENT THEORY AND PRACTICE
scarcity of the different resources that has to be dependable on the organizations. The
relationship of the different kind of dependency helps in generating from the different kind of
differences in the authority along with the access to the different resources.
As to avoid the different kind of dependencies, the different companies helped in
developing different strategies internally and with the decisions which best suits the structure
along with external resource-based trades among the environment of the organization
(Geisler & Wickramasinghe, 2015). The different kind of strategies help in enhancing the
relationships that includes inter-organizational relationship along with increase the scale of
the different operations whereas the entire broadening of the strategy of the product lines
helps in reducing the dependence of the organization on others. Otley, (2016) has commented
that the dependency of the different resources helps in leading shift to the power of the
external kind of agents along with adjusting the different strategies.
It seeks that the adoptions of the organizations to dependencies on the external
resources that includes aligning the different internal elements along with the constraints of
the external environment such as decision on the different suppliers and this helps in
enhancing the performance of the organization (Ross, 2017). The resource dependency theory
helps in discussing that there can be alteration of the environmental kind of conditions that
will show adequate amount of determinism while making different choices in respect to the
suppliers as the managers have few restrictions and therefore, it lies between quadrant 2 and 3
(Baker & Saren, 2017).
Institutional Theory
Mahadevan, (2015) has stated that institutional theory helps in studying the behaviour
of the different companies in the environment that is competitive in nature in respect to the
entire growth along with survival by becoming lawful to the different stakeholders. The

6MANAGEMENT THEORY AND PRACTICE
respective theory aims in establishing along with standardising the behaviours along with
rules as to legitimate along with avoid the different kind of deviations in respect to the same
kind of organizations and there is lack of the strategic choice as well.
The individual kind of companies adopt the diversification strategy as this sustains the
peers along with divisionalize the entire structure in comparison to the competitors. There are
different circumstances wherein it is forced to be closed system in place of open system and
this argues on the less usage of the different resources and this helps in increasing the
motivation and the capabilities of the organization to choose the best kind of strategies that
helps in determination of the choices as well (Piazza & Castellucci,2014).
Population Ecology
The population of the companies is a group of the companies that has been competing
for the actual resources depend on the resources along with the competition for the same. The
population ecology helps in studying the different changes that dynamically occur within the
certain amount of population (Waring, 2016). It helps in analysing that the different
organizations have structural inertia such as limited kind of information about the company
along with the different internal and legitimacy constraints that becomes obstruction in the
adoption of the entire process when the entire external environment change takes place (Gond
et al., 2016).
Furthermore, population ecology includes the variation along with selection of the
environment wherein the company can survive along with retention of the survivors is
included. Therefore, this respective theory concentrates on existence of the company due to
such kind of inertia that is structural in nature as to reduce the different complexities and
overcome such barriers in the organization (Rothaermel, 2015).
Discussion on Reconciliation of theories

7MANAGEMENT THEORY AND PRACTICE
Therefore, from the entire discussion it has been analysed that the different companies
are dependent on the different external factors such as human resources with capabilities
along with skills. These are the different factors that helps in corresponding to the
determinism theory along with analysis of the impact on the organizations (Hill, Jones &
Schilling, 2014). To overcome such situation, the companies has to form different strategies
to adopt such changes. According to SCT, it can be seen when the size of the entire company
increases, the adoption of the organic structure is essential and the managers make the
favourable to the changes and they should deal with the resources that will be acquired that
makes them more innovative in nature. In the SARAFIT model, the companies need to adopt
misfit by realigning entire structure to gain the fit between the environment and organization
(Murphy, Klotz & Kreiner, 2017).
Furthermore, the managers have the entire power to make different kind of choices
among the different kind of resources and there can be different constraints in dealing with
suppliers. () has argued that some organizations utilise the agency to choose the structures
that is formed as to fit with the contingency terms and factors. There are different companies
with internal capabilities and strengths that are designed for managing the dependency of the
resources and this is dynamic in nature as well. () has argued that the different companies has
different internal strengths and weaknesses that has to be ascertained effectively.
Lastly, it has been seen that there are some companies that are competitive in nature
with different product lines that can help in different niches and they are subjected to
selection, retention and variation processes. Therefore, these are the different theories that
can be reconciled in nature with universal theory or the unique kind of model as this assist
them in overcoming the impact of the external environment with new kind of innovations to
help and assist the companies to sustain the strong kind of competition (Stead & Stead,
2015).

8MANAGEMENT THEORY AND PRACTICE
Conclusion
Therefore, it can be concluded that there are different influences of the external
environment that organizations do not have such kind of control such as government, new
challenges or technologies and this helps them in signifying the deterministic kind of
behaviour. This respective determinism forces the entire company in adopting to the
environmental type of factors with support of the different strategies and the benefits that can
be gained by the organizations. These are the different strategies that helps in contributing
towards the leading different kind of innovations and these help in improving the
performance along with the entire environment wherein the companies have to survive in the
competitive environment effectively. Lastly, the different kind of organizations have different
universal theory and with combination of such theories to continue being more successful
with correspondence to the old theories and this is explained effectively as well.

9MANAGEMENT THEORY AND PRACTICE
References
Ashkanasy, N. M., Härtel, C. E., & Zerbe, W. J. (2016). Introduction. In Emotions and
Organizational Governance (pp. xvii-xviii). Emerald Group Publishing Limited.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Cornelissen, J. P., Durand, R., Fiss, P. C., Lammers, J. C., & Vaara, E. (2015). Putting
communication front and center in institutional theory and analysis.
Geisler, E., & Wickramasinghe, N. (2015). Principles of knowledge management: Theory,
practice, and cases. Routledge.
Gond, J. P., Cabantous, L., Harding, N., & Learmonth, M. (2016). What do we mean by
performativity in organizational and management theory? The uses and abuses of
performativity. International Journal of Management Reviews, 18(4), 440-463.
Heding, T., Knudtzen, C. F., & Bjerre, M. (2015). Brand management: Research, theory and
practice. Routledge.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Kipping, M., & Üsdiken, B. (2014). History in organization and management theory: More
than meets the eye. The Academy of Management Annals, 8(1), 535-588.
Mahadevan, B. (2015). Operations management: Theory and practice. Pearson Education
India.

10MANAGEMENT THEORY AND PRACTICE
Marti, E., & Scherer, A. G. (2016). Financial regulation and social welfare: The critical
contribution of management theory. Academy of Management Review, 41(2), 298-
323.
Murphy, C., Klotz, A. C., & Kreiner, G. E. (2017). Blue skies and black boxes: The promise
(and practice) of grounded theory in human resource management research. Human
Resource Management Review, 27(2), 291-305.
Neubert, M. J., & Dyck, B. (2016). Developing sustainable management theory: goal-setting
theory based in virtue. Management Decision, 54(2), 304-320.
Northouse, P. G. (2018). Leadership: Theory and practice. Sage publications.
Otley, D. (2016). The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, 45-62.
Piazza, A., & Castellucci, F. (2014). Status in organization and management theory. Journal
of Management, 40(1), 287-315.
Ross, J. E. (2017). Total quality management: Text, cases, and readings. Routledge.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Stead, J. G., & Stead, W. E. (2015). Management for a small planet. Routledge.
Waring, S. P. (2016). Taylorism transformed: Scientific management theory since 1945.
UNC Press Books.