Management Theory and Practice: Analysis of Organizational Theories and Reconciliation

Running head: MANAGEMENT THEORY AND PRACTICE
Management Theory and Practice
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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

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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

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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,