Organizational Management: A Critical Evaluation of Deterministic and Strategic Theories

Organizational management 1
Organizational management

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Introduction:
Organizational structure describes the business approach adopted by owners and their response
to the market. Two general theories are proposed in context of the organizational structure that is
deterministic and strategic. It must be noted that these models are completely different from each
other in various aspects such as degree of adaptability assumed by the owners in manipulating
the marketplace. This paper mainly analyzes the actual place of the deterministic and strategic
theories while studying the organization action. These theories are compared on the basis of their
philosophical underpinnings, decision making, and the environment. Although, we argued in this
paper that usually strategic choice theory prevails, and also recognize various factors which
mainly restrict the choice and discretion of the managers.
In this, critical evaluation is done in context of the contribution made by the strategic choice and
determinist theories (Resource Dependency Theory; Institutional Theory; Population Ecology)
for understanding the organizational action. This paper also determines the more compelling
perspective. In other words, it can be said that this essay is the critical review of the role played
by the managers in shaping the outcomes of the organization.

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Discussion:
Brief discussion of theories & their adaptability approach:
Deterministic structure- the deterministic theory in context of the organizational structure states
that market place exercise control on itself either less or more, which means no person or factor
can exercise control on the market. Business organizations are compelled to respond the changes
reflected by the market and continuously analyze the unexpected challenges and changes
occurred in the consumer patterns. Structure of the organization determine by the overall
industry, marketplace and social environment. In this theory, main aim of the company is to
focus on their survival and also ensure profitability for growth in the market.
Strategic choice structure- theory related to the strategic choice is wide, as this theory stated that
business organizations exercise some control in context of its position in the market and also on
the behavior of the consumer. Business holds the power to control the market such as through
advertising, changing its pricing strategies and networking with other companies. In this theory
business mainly focus on the clear goals and in this business leaders can manipulate the market
for reaching its goals (Bradely, n.d.).
The most important difference between these two theories is degree of adaptability that is
assumed by each theory. In context of the determinist structure, business organizations are forced
to become flexible for responding the changes occurred in the market and in context of the
strategic choice theory changes and flexibility are embraced by the organization by believing that
changes are done to meet the demands of the consumer and for increasing the brand awareness
and market position.
It must be noted that, there are number of theorists and organizations which adopt the mixture of
these two theories n context of the organizational structure, and for this mixed method experts
identified different reasonable and time-specific business objectives and also measure these
objectives against industry-wide standards (Bourgeois, 1984).