Organizational Theories and Their Contribution to Organizational Behavior

ORGANIZATIONAL THEORIES 1
Organizational Theories
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Institution
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ORGANIZATIONAL THEORIES 2
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.

ORGANIZATIONAL THEORIES 3
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,