Organizational Theories and Their Contribution to Organizational Behavior

This essay discusses strategic choice theory and deterministic theory, their contribution to organizational behavior and tries to give a contrast of the two theories to determine one that is more compelling in organizations.

ORGANIZATIONAL THEORIES 1
Organizational Theories
By
[Student’s name]
Course
Institution
Date

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The success of an organization is dependent on various actions taken by its decision makers.
These actions have been be explained by different theories that try to share a wide knowledge on
how the success and behavior in an organization is influenced (Johnson, and Urpelainen, 2012,
p.656). This essay will discuss strategic choice theory and deterministic theory, their contribution
to organizational behavior and try to give a contrast of the two theories to determine one that is
more compelling in organizations.
Strategic Choice Theory focuses on the roles played by organization leaders in influencing
organizations on how choices are made in complex political processes. The theory helps in
understanding why managers make certain decisions. The strategy has implications on
environment, market and control in the organization (Jewer, and McKay, 2012, p.581). The
strategic decision makers who include employers, labour organizations and government, play a
great role in evaluating all the available and possible choices that will provide a guideline to be
followed in organization management. These decisions help organisations to consider the costs
and risks associated with the decision and the implication of those of their competitors.
The organization is able to make decisions focused on the government interests; this helps
organization remain within the states interests and within the laws regulating their operations.
Organisations are able to evaluate the social environment around to determine the acceptable
values, norms and ethics of the society; this enable the organisations fit in the environment
(García, et al.2012, p.1045). The environment plays a critical role in the success of an
organisation through provision of all the resources required ranging from raw material to human
resource. It is therefore crucial for organisation that value success to consider strategies when
making decisions on resources so that there is an open access to the resources is a constant
manner.

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Strategic Choice Theory encompasses three theories; Resource Dependency Theory,
Institutional Theory and Population Ecology (Bryant, and Davis, 2012, p.1). Resource
Dependency Theory considers how external resources such as raw material and customers, affect
the operations of an organisation (Molina-Azorin, 2012, p.46). The firm chooses directors who
have a lot of influence so that the organization can be able to secure the needed resources.
Resource dependency also forces firms to choose exchange relationships with other
organizations so as to survive. The theory forces companies to ensure environmental
sustainability so as to ensure resources are not depleted because resource scarcity and depletion
will lead to increased costs of operations and even elimination from the business. The market for
the products of the company will be affected as customers opt for products of the company that
practices sustainable business practices. A company that manufactures cars that emit less fumes
will be preferred than the ones that pollute environment.
Institutional Theory is focused on how structures of the organisation which include values,
norms, rules, routines and ideologies, dress code are established to give a guideline on how
people are to behave in the organisation (Scaraboto, and Fischer, 2012, p.1243). The strategy
affects control in the organization as the structure that will ensure the top management have
control over the operations of the company will be chosen. The strategy ensures that the
organization opts to make decisions that will enable the company to ensure environmental
sustainability. The firm will choose the strategy that will have values that conform to the values
and norms of the organization. The values will help to improve the corporate image and market
of the organization and ensure the firm competes favorably.
Population Ecology is a theory that considers survival of an organisation as it depends on the
environmental changes. Its argues that the organisations that are quick to change their structures,

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decisions and functions to fit the environmental changes survive for a long time while those that
are rigid and resistance to cope with environmental changes die within a short period. The
decisions made by the management should be flexible so as to adopt change quickly so as to
survive (Merow, et al.2014, p.105). To minimize the time wasted in consultations when making
decisions, the strategy enables firms to opt for centralization in decision making so as to ensure
full control over the decisions of the organization. Environmental changes will also affect the
market of the organization. The strategy will ensure that the organization is able to venture into
other markets either in the same industry or in a different industry. A company produces
umbrellas during rainy season and swimming costumes during summer season.
Deterministic theory is based on the argument that all the decisions made in an organization and
all the events occurring in the organization are determined by the previously existing causes. The
theory suggests that moral values of the people cannot be changed since people continue to act
and behave the same way they have been behaving from the start (Rycroft-Malone, et al.2012,
p.33). Decisions according to the theory are made based on past experiences of the company.
Past data will be used to predict future sales and operations of the company. The theory states
that the company will not make mistakes which are similar to previous ones when making
decisions and thus decisions will be almost perfect.
Deterministic theory states that the top management make decisions that will ensure that they
have full control over the operations of the organization. Since decisions are based on past
experiences of the company, minimal consultation is required when making decisions (Rycroft-
Malone, et al.2012, p.33). The theory helps the company to conserve environment because based
on previous environmental performance reports, the company will be able to make decisions that

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will improve environment conservation. This will improve the corporate of the organization and
improve the market share of the firm.
In conclusion, Strategic choice theory stands out to be better since it gives a variety of choices
for organisations to make viable decisions and appreciates the role of human behavior in
organisation operations. Therefore, organisations should embrace the theory in their
organizational actions. The theory is also more realistic as to focuses on issues that affect the
organization. The issues include the fact that the organization should be able to acquire the
needed resources from the environment according to resource dependency theory. The chosen
strategy should ensure that it maintains the norms and values of the organization so as to be able
create value for the stakeholders. Change cannot be avoided as the environment is dynamic and
keeps on changing. The organization therefore, needs to quickly adopt the needed change so as
to maintain the market share.

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References
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Johnson, T. and Urpelainen, J., 2012. A strategic theory of regime integration and separation.
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Scaraboto, D. and Fischer, E., 2012. Frustrated fatshionistas: An institutional theory perspective
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