Importance of Strategic Choice and Deterministic Theories in Contemporary Organizations

This essay discusses the importance of strategic choice and deterministic theories in contemporary organizations. It compares the two theories and shows that strategic choice theory is a better option for the various contemporary organizations.

Running head: MANAGEMENT THEORY AND PRACTICE
Management Theory and Practice
Name of the Student:
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Author’s Note:

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The complex nature of the modern business world becomes apparent in the plethora
of organizational theories used by the various organizations for the effective management of
the different aspects of their organization (Burrell & Morgan, 2017). Michael and Popov
(2016) are of the viewpoint that the effective utilization of these organizational theories has
not only improved the business processes used by these organizations but at the same time
has enhanced the effectiveness of these organizations as well. However, Hill, Jones and
Schilling (2014) have argued that these organizational theories followed by the organizations
need to be in synchronicity with the requirements as well as the goals that these organizations
are trying to achieve. Recent researches have shown that two of the most important theories
used by the diverse organizations for the effective management of the different aspects of
their business operations are strategic choice and deterministic theory (Hatch, 2018).
As opined by Wheelen et al. (2017), the effective utilization of these theories has not
only opened new windows of opportunities for the various organizations but at the same time
has enabled them to utilize the different business opportunities which are presented to them
by the business market. Furthermore, it is seen that the prospects of an organization depends
to a great extent on the kind of organizational theory that it is using for the management of
the different aspects of their business (Seidl, 2016). However, at the same time, it is seen that
the organizations are in a dilemma as regards the kind of theories that they need to follow for
the process of their business. The diversity of organizational theories that are available to the
different organizations has given rise to the Paradigm Wars related to the use of these
organizational theories in the present times (Grant, 2016). Strategic choices by virtue of being
aligned with the requirements of the external business environment are the more suitable
option which is available to the different organizations.
This essay will discuss about the importance of the strategic choice and deterministic
theories and at the same time will show that the strategic choice theory is a suitable option for

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the contemporary organizations. The essay will begin by introducing the strategic choice
organizational theory and its various aspects. Next, the essay discusses about the various
deterministic theories like Resource Dependency Theory, Institutional Theory and Population
Ecology and their role in the contemporary organisations. Lastly, the essay concludes with a
comparison of the strategic choice and deterministic theories and shows that strategic choice
organisational theory is a better option for the various contemporary organisations.
Clegg, Kornberger and Pitsis (2015) have stated that the strategic choice is perhaps
the single most important organizational theory which has drastically metamorphosed the
nature of not only the business world but also the various organizations as well. As opined by
Yolles and Fink (2015), the major focus of this theory is the way in which the various
organizations can adapt themselves to the requirements of the external business environment
in which they are operational. The theory suggests that this particular aim can be achieved
through the creation of meaningful interactions among the different entities of the
organization so as to make them more adapted to the needs or the requirements of the
organization and also the external business environment (Hill, Jones & Schilling, 2014). This
theory gains special prominence particularly in the light of the increasing prominence as well
as the influence that the external business environment wields on the business operations of
an organization (Michael & Popov, 2016). Recent researches have shown that the
organizations of the modern-era are not only required to take into effective consideration the
entities of the business environment which are likely to affect their business but at the same
time to formulate strategies that are likely to help them meet these requirements (Mouzelis,
2016). In addition to these, the effective utilization of this theory at the same time enables the
organizations to business opportunities presented by the external business environment and
also to mitigate the adverse effects of the threats presented by the same (Burrell & Morgan,

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2017). The net result of this is the fact that the theory under discussion here has emerged as
one of the most extensively used ones within the cannon of the modern business world.
Deterministic theory is another organizational theory which is being extensively
utilized by the various organizations within the framework of their organizations. The central
lacuna of this theory is moral choices as well as the events which are being used by an
organization for the management of the diverse affairs of their organizations (Ridley-Duff &
Bull, 2015). Wheelen et al. (2017) are of the viewpoint that these moral choices as well as the
events that these organizations resort to are dictated by the past events or the experiences of
the concerned organization. However, Hill, Jones & Schilling (2014) have argued that the
major limitation of this theory is the fact that the choices or the events used by the
organizations are solely based on the past experiences of the concerned organization and not
on the current requirements of the organization or the business environment. This fact not
only inhibits the effective growth of the concerned organization in the longer runs but at the
same time deters the organization to meet the current needs or the requirements of their
business (Grant, 2016). This limitation gains even more prominence when the dynamicity of
the current business world is taken into consideration wherein the organizations are required
to accommodate the changing needs of the customers and also the business world almost on a
regular basis (Hatch, 2018).
Michael and Popov (2016) have shown that within the spectrum of the contemporary
business world three deterministic theories have gained special prominence, namely,
Resource Dependency Theory, Institutional Theory and Population Ecology and are being
extensively used by the various organizations. The Resource Dependence Theory or
commonly used called by the name of RDT shows the manner in which the external
resources of an organization can be used to influence or affect the overall organizational
behavior in an effective manner (Burrell & Morgan, 2017). Clegg, Kornberger and Pitsis

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(2015) argues that the effectiveness of this theory lies in the fact that this theory shows the
way in which the external resources or the options that are available to an organization can be
utilized to enhance the performance of the organization and also the organizational structure
itself. This theory becomes even more important when the fact that the organizations of the
modern-era are required to work with limited amount of resources so as to meets the demands
of the customers is taken into consideration (Grant, 2016). Furthermore, the theory, at the
same time, has implications for the manner in which the structure of an organization needs to
be formulated so to maximize the utilization of the resources which are available to the
concerned organization.
The Institutional Theory, on the other hand, takes the help of the important
concepts of sociology and tries to integrate them within the framework of the contemporary
management practices (Seidl, 2016). Ridley-Duff and Bull (2015) have argued that the
Institutional Theory tries to analyze the manner in which the various norms, rules, regulations
and others followed within the mold of an organization become a part of the accepted rules of
the organization and thereby lead to autocratic behavior. The theory, at the same time, tries to
examine the role played not only by the individual employees of the organization but also the
organization itself for the effective integration of these entities within the workplace culture
of the concerned organization (Mouzelis, 2016). As opined by Yolles and Fink (2015), this
theory has important connotations within the contemporary field of management since it tries
to show the manner in which the workplace culture followed by the various organizations has
evolved over the years and also took their present shape.
The Population Ecology theory is a relatively nascent one within the fold of the
contemporary management framework and also among the genre of organisational theories
used by the various business enterprises (Grant, 2016). The fulcrum point of this theory is on
the analysis of the way in which the sub-sets of population deal with the dynamics of the

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overall population and also with the environment in which they exist (Ridley-Duff & Bull,
2015). This theory when applied to the field of management reveals insightful information
about the concept of organisational behaviour and also the structure followed by the various
organisations. This theory tries to analyse the manner in which the different employees of an
organisation deal with the dynamics of the overall organisation and at the same time react to
the organisational environment as well (Mouzelis, 2016). Furthermore, the theory at the same
time highlights the manner in which the work environment wields influence on the
employees and also the manner in which individuals make the necessary adaptations to cope
up with the workplace culture of the concerned organisation (Hatch, 2018).
Burrell and Morgan (2017) have argued that the major benefit of the use of strategic
choice lies in the fact that it helps an organisation to overcome the drawbacks or the
limitations of the various deterministic theories. This becomes especially important because
of the fact that the majority of the deterministic theories fail to take into effective
consideration the requirements of the present business world and also the opportunities as
well as the threats presented by the external business environment (Michael & Popov, 2016).
Recent researches have shown that the current business world is not a static one rather it a
dynamic one and thus the organisations are required to modify the business processes used by
them so as to meet the requirements of the industry (Hatch, 2018). Furthermore, the prospects
of an organisation are to a large extent influence by the effectiveness as well as the efficiency
with which it is being able to adapt to these changes and also to integrate them within their
framework (Mouzelis, 2016). In addition to these, the process of taking into effective
consideration the requirements of the external business environment at the same time helps
the organisations to attain sustainability as well as higher growth profitability. It is precisely
here that the theory of strategic choice becomes more beneficial for the contemporary
organisations since in contrast to the deterministic theories it enables the organisations to

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adapt to the requirements of the external business environment. However, at the same time, it
needs to be said that the effectiveness as well as the efficiency of these organisational
theories depend not only on the context but also the purpose for which they are being used
(Hill, Jones & Schilling, 2014). For example, it is seen that the various deterministic theories
help the organisations to create effective workplace cultures within their organisation
whereas strategic choice theory enables the organisations to attain higher growth rate and also
profitability. However, the focus of the contemporary business enterprises on the aspects of
higher growth, profitability and sustainability has made the organisational theory of strategic
choice much more important for them.
To conclude, the contemporary organisations have diverse organisational theories at
their disposal which they can utilise for the process of the management of the diverse affairs
of their business. This plethora of organisational theories which are available to the
contemporary organisations have given rise to the Paradigm Wars that the organisations face
regarding the kind of organisational theory that they need to follow for the process of their
business. Two of the most commonly used organisational theories in the contemporary
business world are strategic choice and deterministic theories. The strategic choice
organisational theory helps an organisation to integrate the requirements of the external
business environment within the framework of their organisation whereas the deterministic
theory has more to do with the moral choices that an organisation makes. Thus, it can b e said
that the strategic choice organisational theory is more in synchronicity with the demands of
the current business world and the effective utilisation of this theory offers better growth
prospects to the organisations.

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References
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Hatch, M. J. 2018. Organization theory: Modern, symbolic, and postmodern perspectives.
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Hill, C. W., Jones, G. R., & Schilling, M. A. 2014. Strategic management: theory: an
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Michael, B., & Popov, M. 2016. The failure of theory to predict the way public sector
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Seidl, D. 2016. Organisational identity and self-transformation: An autopoietic perspective.
Routledge.

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Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. 2017. Strategic
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