Exploring the Paradigm Wars in Organization Theory
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This paper explores the debate between strategic choice and determinist theory in organization theory, focusing on Resource Dependency Theory, Institutional Theory, and Population Ecology. It examines how strategic options and determinist theories make individuals recognize organizational accomplishment.
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Running Head:EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY1 Exploring the Paradigm Wars in Organization Theory Name Institution Affiliation:
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EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY2 Introduction Strategic option in organizational setting refers to manner in which process of making choices with respects to the dynamics of politics are influenced by leaders or a cluster of leaders in organization. Fundamental categories within this theory of strategic option comprise of Boundaries, Domains, objective of individuals that are responsible for making decision together with coalition that is dominant (Akellas, 2013). Furthermore, strategic option theory is utilized in different face to face workshops of the group that deals with process of making decisions. The theory is viewed as the ongoing process where the management plan of uncertainty performs an essential function. However, approach for organizational theory incorporates several aspects of strategic management, dynamic capabilities opinions, management, as well as innovation examination. Domain in strategic choice refers to the marketplace that a corporation focuses on competing in during their operations. Boundaries on the other side are the limits of organization in markets (Martin, Bell, Farmer, & Henry, 2010). Moreover, dominant coalition in strategic choice refers to the uppermost group of individuals responsible for making decisions. Prior to the establishment of strategic option hypothesis, most people thought that organizations were always designed concerning the external setting. The establishment of strategic choice hypothesis enabled different individuals of the corporations together with the groups connected with them to create choices with appropriate decisions. For complex issues with uncertainties, and sub-issues in organization, strategic option hypothesis remain to be the best approach of addressing such issues(Sumer & Bayraktar, 2012).Strategic choice theorists portray managers as relative agents that are autonomous that act in proactive as well as potentially creative techniques with the aim of altering their authoritative predeterminations.
EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY3 In this paper, ideas presented tend to revisit the debate that has been in existence between strategic choice as well as determinist theory.The idea that focuses on radical change in operations of organizations has been discussed mainly from different theoretical positions that includeResource Dependency Theory, Institutional Theory, and Population Ecology. Strategy choice and determinist theory argue that change in operations is possible because the environment is not something immutable and most managers can be active agents of such issues (Pisano, 2016). The theories further suggest that change in operations of organization is impossible because of structural inertia that faces all organizations around global business society (Yang, 2014). The discussion concerning what the possibilities are available to people and organizations cope with change is the point of confrontation that exists between theories of determinist and strategic choices. Therefore, primary of this research paper is to examinepart that strategic option and determinist theories such as Resource reliance hypothesis, Institutional concept, and Population Ecology that make to individuals recognize organizational accomplishment. Determinist theory Determinism refers to the idea that nature of human genes fixes every behaviour of human, their beliefs, and their desires. In this hypothesis, markets remain to have a key role in the process of shaping the actions of organizations. The corporations are then forced to focus on different changes in operations within markets (Daft, 2015). These organizations are required to have a constant view of what is happening in the global business society to be capable of surviving or have profit. Unexpected shifts in tee prices of commodities and operations might be some of the market changes. The determinists tend to have the conviction that various winning auxiliary and ecological viewpoints seriously compel administrators and in this manner cannot
EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY4 substantively change course of association (Yang, 2014). Furthermore, determinist hypothesis is examined by three different hypotheses that consist of Resource Dependency Hypothesis, Institution theory, together with Population Ecology. Resource Dependency Theory This theory focuses on the examination of how exterior possessions of every corporation impact traits of the association. Procurement of outer possessions remains as the essential principle of both tactical together with deliberate administration of any organization. However, this speculation implies best divisional structure of groups, process of recruiting of associates of boards as well as workers, strategies of production, structure of contract, external connection of organization, and several other aspects of strategy of organization (Suddaby, 2010). The theory illustrates how the organization relies on vital resources and how it affects different operations. Therefore, in wider view, it shows that the organization must perform business with other corporation with the aim of attaining its resources. The corporation relies on different resources such as funding of capital, raw materials, and labour among other essential aspects of operations. Resources dependency theory is based on different principle that the organization likes business of company need to engage in transactions with different actors and corporations with its surrounding in order to attain resources (Junqueira, Dutra, Filho, & Gonzaga, 2016). Although such transactions in business operations might be useful, they also develop dependencies that are not. Besides, most vital advantage of this theory is that it illustrates the actions of organization in detailed manner. In the research done byGnjidic (2014), he focused on giving a clear evaluation as to what extent the advantage of the theory is true. The researcher demonstrates that the content of data, in theory, offer useful propositions and hence it was vital for corporations to be specific
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EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY5 on the propositions that they create. Additionally, survey using this theory has sought to observe adaptations of organizational to dependencies. One single adaptation comprises of process of aligning internal elements of organizational with pressures of environment. Organization also adapt through the process of attempting to alter their surroundings. Those strategies in play contrast sharply with the classic concepts of corporations that treat different companies as closed systems.Tingley (2013)explained that Resources Dependency Hypothesis largely contributes to the discussion of behaviour, stability, organizational structure, and change of organization. However, there exist different drawbacks to this theory as the general opinion is that the hypothesis fails in the process of illustrating the organizational performance. Some researchers such asDrees & Heugens (2013),have examined various drawbacks concerning this theory and found that there is less effort in the hypothesis to differentiate between imbalances of power with mutual dependence. Population Ecology Theory The theory is an empirical approach within the social sciences that is termed to be the sub-field of studies of organizations. The theory use approaches from biology, economic, together with sociology as well as utilizes different statistical examination to try to know situations that make organizations to grow, appear, or pack up in market (Bouhelal & Kerbouche, 2016). Population ecosystem hypothesis talks about same corporations that compete with similar resources for similar clients. It focuses on diversity of organization as well as how they could adapt within the entire population. The theory of population ecology exists in three different levels that include population, community, and organization. Here, community level refers to the functional system that is integrated towards interacting populations. The level of population remains to be the set of engaged organizations in same operations (Salimath & Jones
EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY6 2011. Furthermore, level of organization in this theory concentrates on individual organizations. Organizational ecology in survey is more accurately population ecology that focuses on the other level of this theory. Population Ecology Theory, for instance, focuses on recognizing the fundamental milestone in the work of Hanna together with Freeman who wrote their ideas under the title “Population Ecology of Organizations.”The major components of this theory highlight the key functions of environment towards determination of organization survival(Editors, 2014). The process of selecting new and various organizational forms in the level of populations of organizations happens due to the structural inertia that is proposed as the major explanation for the lack of change. The major merit of this theory is that it helps in paving way to getting sustainability. Different researchers that have surveyed different journals that talk about population ecology such asSalimath & Jones (2011)have formulated different tables that are organized in accordance with the focus of examination, author, and chronology. These researchers have reported that population ecology remains as an essential factor to sustainability in organization. Various shared traits could be attained amid two, and it paved the approach for future examination to be attained on sustainability. For instance,Davis, & Cobb(2010) have agreed with idea that population ecology has the significant future. However, there are several demerits of population ecology illustrated by different authors over the decades. According to Tokman, Richey, & Deitz (2016),after performing, empirical investigations criticize that ecology of population is not the correct theory for surveying corporation.Suddaby (2010)on his work criticizes the theory for not being able to explain every issue concerning the organizational structure. The author concluded is work by stating that this theory was unable to offer outcomes conducted by empirical examination from different surveyors.
EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY7 Institution Theory This theory concentrates on the deeper as wellas more elastic elements of social arrangement. The hypothesis deliberates processes that different arrangements such as rules, plans, customs, and standards are becoming recognized as guidelines that are reliable for social trait. Various components of institutional hypothesis examine how these elements are developed, put into use, and adapted over time together with space, and how they fall into disuse and decline (Daft, 2015). The theory asserts that the environment for institution can firmly impact growth of formal arrangements in organization, probable more intensely than demands of market. Inventive elements that develop technological effectiveness in early implementing organizations are legal in surrounding. Moreover, this theory comprises three different isomorphisms that include Mimetic, Coercive, together with Normative Isomorphism (Sumer & Bayraktar, 2012). Coercive isomorphism tends to deal with a single organization putting pressure on another while Mimetic isomorphism is known to be the imitation of a single corporation from other. Besides, normative isomorphism concentrates with professional connection with one another. Population ecology together with resource dependency hypothesis proposes techniques in which corporations can respond distinctively to cues of environment. Institutional theorists content that the legitimacy of organization illustrates survival. This theory emphasizes the normative effect of the surrounding on activity of organization (Drees & Heugens, 2013). Institutional theory argues that the surrounding determines options of organization and its limit discretion in the selected companies. Moreover, major advantage of this theory is that organization manager that employs it can take different risks if the corporations are capable of affording some of the vital resources. The idea leads to strong institutions that ignore pressure by moving out of the expectations. The restriction brought by this theory enables management to
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EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY8 stay under specific boundaries. The innovation in this theory is restrained to a given level. However, this hypothesis is tough to adhere to in present days compared to past decades. According to research byMartin, Bell, Farmer, & Henry(2010), the authors stated that though this theory commenced well in past years, it has stretched far beyond its fundamental purpose. Strategic Choice Theory against Determinist Theory Strategic choice together with determinism theories has been investigated at theheight of organization and stage of industry. These theories are prominent as they rule different actions and options of organizations.Pisano (2016)offered the best framework of what implications the options determined by management will be in the surrounding. The major purpose aimed at investigating how strategic options and determinist might be investigated as one element. Different surveyors examining the phenomena at the level of association contend that the predominant alliance inside organizations make choices on time with methods of rebuilding exertion and the execution of after restructuring relies on the team of management instead of business environment. The theorists founded on resources contend that chiefs sooner or later create restrictive understanding bases and incomparable aptitudes that deliver unmistakable abilities and prevalent levels of execution (Tingley, 2013). At the level of industry, the scholars that arrangement with system contend that cooperatives of associations or semi-self-governing partisans’ sets tend to interact with motive of modifying and constructing joint setting, policy and options readily present within business environment through utilization of different resources and actions. Similarto strategic choice, theory of determinists utilize 2 different stages of examination that include organization together with industry. Resource dependency theory examines the
EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY9 phenomena at the level of organization and argues that the structure of environment fits is vital to effectiveness of organization (Pisano, 2016). Steady with that basis they remain of view that business environment determines kind of arrangements that corporations need to create to be great performers in marketplace. Positional set in area of strategy also obtain deterministic vision and urges that firm performers are constrained by legal, technological, operational, together with competitive aspects that prevail in the industry. Furthermore, determinists ate the industry level argue that resources of environment are inadequate, and corporations require to repeatedly adapt to take benefit of base that is changing (Davis & Cobb, 2010). Due to the fact that organization has inertia structure, they cannot easily adapt making the environment to select different corporations that will survive in their operations. Here again, the economist for industry was able to posit that the structure of industry such as number together with size of the firm ascertains inherent abundance of industries (Tingley, 2013). Therefore, at centre of this contest is power or discretion of managers to impact results of organization. Conclusion This examination offers a well-illustrated summary of several organizational hypotheses together with their essential examination supported by different researchers around the global business community. From the above examinations, it is evident that structure of organization plays a key role in describing the approach and responses that business takes to the market. In conclusion, it can be stated that various members in the various corporations adopt various strategies to attain their objectives during operations. It is tough to select a single theory as better over the other when comparing strategic option along with determinist as both hypotheses have enough merits and some demerits. No matter the weakness of a particular hypothesis, if they seem to be vital for the process of making decisions, they will select it all the same. Research on
EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY10 organization should then no longer focus on attempts to reject or confirm determinism together with strategic choice. The research should target at describing and understanding while explaining why and how the interactions amid various parties evolve and impact the functioning, structure, and performance of the resulting corporation.
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EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY11 References Akellas, D. (2013). Theory to Practice: Practice to Theory.Organization Management Journal, 10(1), 75-75. doi: 10.1080/15416518.2013.781402 Bouhelal, F., & Kerbouche, M. (2016, March). Why do we consider Miles and Snow's model's one of the most important strategic ones? Maghreb Review of Economic and Management, 03(01), 1083-2176. Retrieved October 15, 2018 Daft, R. L. (2015). Organization Theory and Design (12 ed.). Cengage Learning US. Retrieved October 19, 2018 Davis, G. F., & Cobb, J. A. (2010). Resource dependence theory: Past and future." Stanford's organization theory renaissance. New York: NY: Emerald Group. Drees, J. M., & Heugens, P. P. (2013). Synthesizing and Extending Resource Dependence Theory - A Meta Analysis. Journal of Managemen, 39(6), 1666-1698. doi:10.1177/0149206312471391 Editors, T. (2014). Has Institutional Theory Lost its Way? Journal of Management Studies, 51(7), 1204. Retrieved October 19, 2018 Gnjidic, V. (2014). Researching the dynamics of Miles and Snow's strategic typology. Management : Journal of Contemporary Management Issues, 19(1), 93-117. Retrieved October 15, 2018, from https://search-proquest-com.ez.library.latrobe.edu.au/docview/1545865547?rfr_id=info %3Axri%2Fsid%3Aprimo
EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY12 Junqueira, E., Dutra, E. V., Filho, H. Z., & Gonzaga, R. P. (2016, May 05). The Effect of Strategic Choices and Management Control Systems. 27(7), 13. doi:10.1590/1808- 057x201601890 Martin, J., Bell, R., Farmer, E., & Henry, J. (2010). STRATEGIC CHOICE APPROACH. Retrieved October 15, 2018 Pisano, G. (2016). Towards a Prescriptive Theory of Dynamic Capabilities: Connecting Strategic Choice, Learning, and Competition.SSRN Electronic Journal. doi: 10.2139/ssrn.2802183 Salimath, M. S., & Jones, R. (2011). Population ecology theory: implications for sustainability. Management Decision, 49(6), 874-990. doi:10.1108/00251741111143595 Suddaby, R. (2010). Challenges for Institutional Theory. Journal of Management Inquiry, 19(1), 14-20. doi:10.1177/1056492609347564 Sumer, K., & Bayraktar, C. (2012). Business Strategies and Gaps in Porter's Typology: A Literature Review. Journal of Management Research, 4(3), 100-119. Retrieved October 15, 2018 Tingley, D. (2013). Face-Off: Facial Features and Strategic Choice.Political Psychology,35(1), 35-55. doi: 10.1111/pops.12041 Tokman, M., Richey, R., & Deitz, G. (2016). A Strategic Choice Theory Taxonomy of Retailers’ Strategic Orientations.Journal Of Marketing Theory And Practice,24(2), 186-208. doi: 10.1080/10696679.2016.1130553
EXPLORING THE PARADIGM WARS IN ORGANIZATION THEORY13 Yang, Y. (2014). Bourdieu, Practice and Change: Beyond the criticism of determinism. Educational Philosophy & Theory,46(14), 1522–1540. https://doi.org/10.1080/00131857.2013.839375