Management Practice and Theory

This report discusses the importance of organizational behaviour theory in business and evaluates the two types of organizational theories - strategic choice and deterministic theory. It analyzes which theory is more compelling and discusses the strengths of both theories.

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Management Practice and Theory
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Management Practice and Theory 1
Contents
Introduction......................................................................................................................................1
Discussion about the Theories.........................................................................................................1
Both are Equally Compelling Theories...........................................................................................2
Argument.....................................................................................................................................2
Strengths of Strategic Choice Theory..........................................................................................3
Strengths of Deterministic Theory...............................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Management Practice and Theory 2
Introduction
The purpose of this report is to enlighten the reader about the importance of organizational
behaviour theory in the business. Theories are organizational actions that are used in such a way
to create a social relationship between different individuals and organization. The theories
present in the market align the business functions along with the resources as well. Theories help
in building the reputation of the company by working according to the defined strategies and
plans. Further, there are two types of organizational theories that are, strategic choice and
deterministic theory. The strategic choice is based on the aspect that the associations get to
choose the actions that they want to implement in the environment, whereas the deterministic
theory is further segregated in three more theories that are, resource dependency theory,
institutional theory and population ecology theoryi. Both the theories have differential yet
significant contribution in creating good organizational behaviour in an organization, Further, the
below-mentioned report evaluates the explanation of both the theories along with analysing
which theory is more compelling in the environment. After analysing that both the theories are
compelling, it further evaluates the strengths of both the theories present in the market. Further,
more detail about the report are discussed below:
Discussion about the Theories
Organizational Structure is a framework that evaluates the process in which actions takes place
to fulfil the organizational goal. The organizational structure defines the rules, regulations, roles
and responsibilities that every person should comply. It also explains the approach of business
process and its response to the external market. Thus, there were two management theories
defined by the scholars in the environment that are deterministic theory and strategic choice
theory. These theories are based on the differential market environment along with the ways in
which the companies adopt these situations in the external environmentii.
In the case strategic choice theory, it explains the role of the manager and the leaders to develop
different alternatives for the company based on the environment so that it can attain success in
the external environment. The theory of strategic choice helps in making various decisions and
choices that the management needs to take in order to lead the company in the right direction.

Management Practice and Theory 3
This type of theory is created, as a part of the learning process at the workplace that intelligently
adapts the aspects from the environment that they believe will help them in leading the business.
This type of theory can also be looked at the responses of people towards certain routine
conflictsiii.
Further, the deterministic theory explains that the marketplace or the external environment in
which an organization operates has an effective control over the activities of the business. This
theory explain that companies are faced off with the external environment, in this environment
there are some factors present that the company need to adopt irrespective of their will. This
theory is further segregated into three types that are, resource dependency, population ecology
and institutional theory. All the three evaluates asserts that the organizational behaviour is
controlled by the fluctuations present in the external environment. According to this theory these
fluctuations are to rules and regulations (institutional), other company’s resources (resource
dependency) and external environment (population ecology)iv.
Both are Equally Compelling Theories
Argument
After analysing the meaning and importance of both the theories, the fact should be noted that
both the theories have to hold equal importance and significance in the external environment.
There are diverse situations present in the environment, so it cannot be said that only one theory
is best for all types of organizations and their business cultures as well. Instead, it differs from
organization to organization and industry to industry as it explains that what type of theory they
want to apply and which theory will best suit the business functions as wellv. On one side, the
deterministic theory has comparatively less control on the external environment, whereas on the
order side the strategic choice theory explains that the organization has a greater control on the
functions of an external environment. Both the theories are equally compelling in the external
environment based on the external environment that they receive. Basically, the deterministic
theory explains that the management of an organization has to adopt the changes present in the
external environmentvi. Whereas in the case of strategic choice theory, the organization have
various options and choices in the environment to make based on which they can change the
functioning of the companyvii.

Management Practice and Theory 4
So, it should be noted that the theories compel in an organization only when they adequately
match the attributes present in the external environment. For instance, in a logistics organisation,
the activities of the management are based on the fluctuation and activities present in the external
environment. Therefore, it can be said that they are very few strategic choices present with the
company to make, a change in the environment and nullify their plan. Thus, the company need to
apply the deterministic theory otherwise; it will not gain appreciation in the target market.
Whereas, in case an organization where the management needs to work according to strict rules
and guidelines, so the company need to apply the strategic choice theory considering the level of
control present with them. Thus, in this way it should be noted that both the theories are equally
compelling based on the circumstances that they face in the external environmentviii.
Strengths of Strategic Choice Theory
The strategic choice theory is more realistic, constructive and liberal theory that helps the
business to decide on the basis of external and internal influences. This type of theory is the
method of analysing and evaluating the strategic decision-making process for the organization.
This theory explains that an organization attains a variety option to choose in the external
market. With the help of this approach, an organization can eventually attain satisfaction in the
target market by initiating differential activities. These differential activities lead to a sustainable
competitive advantage for the organization. As in this case, the company has more control over
the internal and external environment so it does not face a problem in making changes in the
environment. In the current diverse environment, the organizations get to enjoy various choices
present with them. Resulting in which, they chose for the best option that can help them to
growix.
With the help of this type of theory, an organization can attain sustainable competitive advantage
by making the right choice in the market. Even the companies can attain monopoly as they have
the alternative to choose the best possible way for the growth of the company. Also, it can be
said that the companies using this type of theory do get the choice to make with the help of
which, they increase the control in the environment. This type of theory successfully helps
organizations in resolving internal disputes as well. Increase in control in the internal
environment of the company helps the management to mould the employees according to their
will, due to which conflicts get automatically resolved in the environment. Further, this theory

Management Practice and Theory 5
also gives rise to innovation in the business environment as well. Innovation further leads to
effective change management process as well. Change management process also helps the
organization in effectively increase their market position as wellx.
Strengths of Deterministic Theory
The deterministic theory of organizational structure plays a lead role in developing the
organizational environment internally as well as externally. Under this type of environment, the
market or the external environment plays the lead role in making changes in the environment.
The companies have considerably less power in hand due to which they need to adopt all the
changes that the environment provides them. One of the biggest strength of the deterministic
theory is that helps the companies to analyses the changing external environment, patterns, and
work accordinglyxi. With the help of this type of theory, the business gets the knowledge about
the external environment and prepares them accordingly. It helps the organization to identify
feasible and approachable goals to fulfil and grow in the external environmentxii.
This theory helps in analysing the future changes that the industry might take and work on them
on a proactive basis. The resource dependency theory of deterministic theory helps the
organization in gaining resources from other organizations. This theory increases the availability
of resources present with the company and uses them effectivelyxiii. ACME is able to achieve the
heights in the target market with the use of this type of theory only. Thus, it can be said that with
the use of this type of theory, helps the organization to share other firms resources and attain a
competitive advantage in the target market. Companies adopting the deterministic theory in the
environment make use of strategies like joint venture, merger etc. for business purposes. Further,
it should also be noted that this type of theory helps in analysing the competitive market pressure
as well. When an organization is approached the external environmental factor, then this type of
theory helps in analysing the opportunities and risks present in their respective markets and
working on them accordinglyxiv.
The market initiates both positive and negative changes in the environment; it depends upon the
organization to adopt the best one. The population ecology theory helps the companies in
analysing the same and effectively working on them as well. With the help of this process, the
companies also come face to face with various rules and regulations in the environment that
might affect the business functioning. The institutional theory helps the business effectively

Management Practice and Theory 6
understanding the rules and regulations present in the environment and effectively complying on
them as wellxv. Thus, the fact should be noted that this approach helps the business process in
proactively analysing the marketing conditions and effectively working on them so as to
maintain a position in the target market. This theory explains that the environments guard the
businesses. Thus, it can be said that this theory gives the opportunity to the organizations to
looks at various attributes and effectively adopt them to grow as well. This approach provides
various opportunities to the organizations to make effective use of qualified resources as well.
This type of approach is best for the organizations that are completely based on the external
environment for growthxvi.
Conclusion
Thus, in the limelight of above-mentioned events, the fact should be noted that both the
organizational theories discussed above hold differential significance in the target market. Both
the theories have their different aspects that the companies should after looking at their
respective marketplace. The above-mentioned report evaluated the critical review of both the
strategies based on the applicability. Further, it also includes discussion above the strengths and
both the theories in the external environment. From this analysis, it was evaluated that the
companies should opt for the best strategy based on the external and internal market conditions.

Management Practice and Theory 7
References
Alvesson, M., 2018. Organization theory and technocratic consciousness: Rationality, ideology
and quality of work (Vol. 8). Walter de Gruyter GmbH & Co KG.
Avery, P., 2014. Variability in a deterministic model of language acquisition: A theory of
segmental elaboration. Phonological acquisition and phonological theory, p.23.
Biermann, R. & Harsch, M., 2017. Resource dependence theory. In Palgrave Handbook of Inter-
Organizational Relations in World Politics (pp. 135-155). Palgrave Macmillan, London.
Bonnabel, S. & Slotine, J.J., 2015. A contraction theory-based analysis of the stability of the
deterministic extended Kalman filter. IEEE Transactions on Automatic Control, 60(2), pp.565-
569.
Camerer, C.F. & Hare, T.A., 2014. The neural basis of strategic choice. In Neuroeconomics
(Second Edition) (pp. 479-492).
Chen, Z., Du, F. & Tang, X., 2018. Position and orientation best-fitting based on deterministic
theory during large scale assembly. Journal of Intelligent Manufacturing, 29(4), pp.827-837.
Dai, W. & Si, S., 2018. Government policies and firms' entrepreneurial orientation: Strategic
choice and institutional perspectives. Journal of Business Research, 93, pp.23-36.
Denhardt, R.B. & Catlaw, T.J., 2014. Theories of public organization. US: Cengage learning.
Elsaid, N.M., Okasha, A.E. & Abdelghaly, A.A. 2013. Defining and Solving the Organizational
Structure Problems to Improve the Performanceof Ministry of State for Environmental Affairs –
Egypt. International Journal of Scientific and Research Publications, 3 (10), pp. 7-8.
Ezzamel, M. & Willmott, H., 2014. Registering ‘the ethical’in organization theory formation:
Towards the disclosure of an ‘invisible force’. Organization Studies, 35(7), pp.1013-1039.
Fuenfschilling, L. & Truffer, B., 2014. The structuration of socio-technical regimes—Conceptual
foundations from institutional theory. Research Policy, 43(4), pp.772-791.

Management Practice and Theory 8
Hill, C.W., Jones, G.R. & Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. US: Cengage Learning.
Pisano, G.P., 2017. Toward a prescriptive theory of dynamic capabilities: connecting strategic
choice, learning, and competition. Industrial and Corporate Change, 26(5), pp.747-762.
Schiele, H., Ellis, S.C., Eßig, M., Henke, J.W. & Kull, T.J., 2015. Managing supplier
satisfaction: Social capital and resource dependence frameworks. Australasian Marketing
Journal (AMJ), 23(2), pp.132-138.
Strong, D.M., Johnson, S.A., Tulu, B., Trudel, J., Volkoff, O., Pelletier, L.R., Bar-On, I. &
Garber, L., 2014. A theory of organization-EHR affordance actualization. Journal of the
Association for Information Systems, 15(2), p.53.
Whittington, R., 2014. Corporate Strategies in Recession and Recovery (Routledge Revivals):
Social Structure and Strategic Choice. UK: Routledge.

i Pisano, G.P., 2017. Toward a prescriptive theory of dynamic capabilities: connecting strategic choice, learning, and
competition. Industrial and Corporate Change, 26(5), pp.747-762.
ii Whittington, R., 2014. Corporate Strategies in Recession and Recovery (Routledge Revivals): Social Structure and
Strategic Choice. UK: Routledge.
iii Hill, C.W., Jones, G.R. & Schilling, M.A., 2014. Strategic management: theory: an integrated approach. US: Cengage
Learning.
iv Dai, W. & Si, S., 2018. Government policies and firms' entrepreneurial orientation: Strategic choice and institutional
perspectives. Journal of Business Research, 93, pp.23-36.
v Camerer, C.F. & Hare, T.A., 2014. The neural basis of strategic choice. In Neuroeconomics (Second Edition) (pp. 479-
492).
vi Schiele, H., Ellis, S.C., Eßig, M., Henke, J.W. & Kull, T.J., 2015. Managing supplier satisfaction: Social capital and
resource dependence frameworks. Australasian Marketing Journal (AMJ), 23(2), pp.132-138.
vii Elsaid, N.M., Okasha, A.E. & Abdelghaly, A.A. 2013. Defining and Solving the Organizational Structure Problems to
Improve the Performance of Ministry of State for Environmental Affairs – Egypt. International Journal of Scientific and
Research Publications, 3 (10), pp. 7-8.
viii Ezzamel, M. & Willmott, H., 2014. Registering ‘the ethical’in organization theory formation: Towards the disclosure of
an ‘invisible force’. Organization Studies, 35(7), pp.1013-1039.
ix Avery, P., 2014. Variability in a deterministic model of language acquisition: A theory of segmental
elaboration. Phonological acquisition and phonological theory, p.23.
x Fuenfschilling, L. & Truffer, B., 2014. The structuration of socio-technical regimes—Conceptual foundations from
institutional theory. Research Policy, 43(4), pp.772-791.
xi Denhardt, R.B. & Catlaw, T.J., 2014. Theories of public organization. US: Cengage Learning.
xii Bonnabel, S. & Slotine, J.J., 2015. A contraction theory-based analysis of the stability of the deterministic extended
Kalman filter. IEEE Transactions on Automatic Control, 60(2), pp.565-569.
xiii Chen, Z., Du, F. & Tang, X., 2018. Position and orientation best-fitting based on deterministic theory during large-scale
assembly. Journal of Intelligent Manufacturing, 29(4), pp.827-837.
xiv Alvesson, M., 2018. Organization theory and technocratic consciousness: Rationality, ideology and quality of work (Vol.
8). Walter de Gruyter GmbH & Co KG.
xv Strong, D.M., Johnson, S.A., Tulu, B., Trudel, J., Volkoff, O., Pelletier, L.R., Bar-On, I. & Garber, L., 2014. A theory of
organization-EHR affordance actualization. Journal of the Association for Information Systems, 15(2), p.53.
xvi Biermann, R. & Harsch, M., 2017. Resource dependence theory. In Palgrave Handbook of Inter-Organizational
Relations in World Politics (pp. 135-155). Palgrave Macmillan, London.