Importance of Strategic Choice and Deterministic Theories in Contemporary Organizations

Running head: MANAGEMENT THEORY AND PRACTICE
Management Theory and Practice
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1MANAGEMENT THEORY AND PRACTICE
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

2MANAGEMENT THEORY AND PRACTICE
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,