Analysis of Management Theories: Practice, Impact, and Perspective

This essay provides a comprehensive analysis of various management theories, including resource dependency theory, institutional theory, population ecology theory, and strategic choice theory, evaluating their impact on organizational action. It contrasts deterministic theories with strategic choice, ultimately arguing that strategic choice is the more compelling perspective due to its adaptability and focus on proactive market positioning. The essay discusses the benefits and drawbacks of each theory, emphasizing the importance of aligning organizational structure and resource management with chosen strategies. It concludes with recommendations for organizations to integrate these theories, leveraging strategic choice to foster innovation and competitive advantage while mitigating external pressures. The document is available on Desklib, a platform offering study tools and solved assignments for students.

Running Head: MANAGEMENT PRACTICE AND THEORY 1
Essay: Management Practice and Theory
Student’s Name
University Affiliation

MANAGEMENT PRACTICE AND THEORY 2
Introduction
Organizational theory entails the set of mutual concepts and definitions which are used to
give a description about the behavior of individuals or parties who interacts and work together to
perform the intended activities towards achieving the set goals. Therefore, the organizational
theories study the social relationships between the individuals of an organization and their
collective actions and also the effects of both internal and the external environment of the
business, for example, political, cultural and legal effects on an organization (Hatch, 2018).
Both the deterministic theories and strategic choice theories contribute to the
organizational success. Each of the given theories has their positive impacts and negative
impacts, therefore, an organization should prefer the most compelling theory. The main aim of
an organization is basically to generate profits, hence an organization should implement a theory
which is more flexible to match both the organizational changes and the dynamic business
environment (Whittington, Nolan, Lewis, & Torres, 2015).
The organizational theories benefits an organization in various ways which include the
following: The theories enables an organization to plan before taking a particular action.
Basically, a plan is a pillar to each organization where prior planning determines how far an
organization will soar and achieve goals and objectives in a given time bound (Bryson, 2018).
The theories also helps in organizing which enables the organizations to come up with various
policies which regulates the behavior of employees. Organized policies greatly contributes to
how a given organization will conduct its activities effectively and efficiently (Schoeneborn,
Kuhn, Kärreman, 2018).
The theories also helps in human resource management which is a broader aspect in an
organization. Human resource enables an organization in diverse activities which include

MANAGEMENT PRACTICE AND THEORY 3
recruiting and selecting the appropriate personnel in an organization. Also helps in the
management of employee welfare in an organization, for example, ensuring they work in
conducive environments and incorporating them in various decision making (Bratton & Gold,
2017). Human resource therefore is a core component in an organization which contributes to the
set targets of an organization. An organization, therefore, should make critical analysis about the
theories they intend to embrace before implementation.
Executive Summary
From the given theories, I have structured an essay which will commence with the
description of each theory to an organization and the effects of the given theories to an
organization. The impacts of the theories towards the managerial aspect of an organization and
the most compelling theory perspective among the discussed theories. After the critical analysis
of the theories, a conclusion with recommendations about the most compelling theory among the
four theories will be discussed. This is to lay emphasis on the best theory an organization should
take before taking actions which will determine its productivity. The body of the essay will also
demonstrate to an understanding why organizations take various actions.
Resource Dependency Theory
The resource based theory describes the transactions an organization engages in
with other organizations in a given environment in order to acquire resources. The resource
dependence theory also describes how a particular given organizational behavior is affected by
the external resources which the organization utilizes, for example, the raw materials. The
resources are scarce in nature and therefore an organization should strengthen their relationship

MANAGEMENT PRACTICE AND THEORY 4
with each other so as to build a chain of acquiring the scarce resources (Berger, Eyre, & Zelditch,
2018)
The Description and Impact of the Theory to an Organization
The resource dependency theory portrays that a particular organization’s resource
allocation has the ability and potential to influence, for example, create conflict between the
organization and the various stakeholders who control the resources it needs. Due to the
competition with competitors to acquire resources, the organization strengthens their relationship
with their resource providers to acquire resources when they need, for example, capital. The
organizations therefore, relates well with financial institutions for example timely payments.
Another example is through good employee relations which creates a reputable image and
anyone would be willing to work with the organizations when there is need for labor.
Organizations incorporates some strategies which include diversifying the product lines which
lessens an organization’s dependence on other businesses which in turn helps to improve power
and leverage (Kozlenkova, Samaha, & Palmatier, 2014).
Organizations, therefore, need to consider the resources they need and their sources
before embracing the resource dependence theory since the resources act as a building block to
an organization which ensures continuation of a business as well as its success.
Institutional Theory
The institutional theory entails the broader and deep aspects of the social structure
through considering the processes by which the structures, for example, the rules, routines and
norms are established as authoritative guidelines involved in social behavior. The theory deeps

MANAGEMENT PRACTICE AND THEORY 5
down on how the above elements are created, adopted and adapted in a given time period and
various ways why they fail and decline (Boxenbaum & Jonsson, 2017).
The Description and Impact of the Theory to an Organization
The theory expounds on the organizational roles, structures and procedures on its
operation. Organizations therefore, have innovation structures which improves for example, the
technical efficiency which are legitimized to the environment. The institutional theorists claim
that the institutional environment may have a strong influence on the development of formal
structures in a given organization which are deeper than the market pressures (Bolman & Deal,
2017). Organizations, therefore, comes up with certain appropriate structures which will make
decision making processes quick and efficient so as to solve the arising problems that needs
critical attention. An example is through incorporating the decision making tools by the
managers for example the decision support system which helps manager to make sound and
informed decisions (Arnott & Pervan, 2016)
The organizations should therefore consider its organizational structure before adhering
to the theory which will help in guiding how an organization should be structured. Structure of
an organization is an important aspect which provides a roadmap which an organization should
follow.
Population Ecology Theory
The population ecology theory holds ground that organizations exist within a given field
or population of other similar organizations and the organizations that maintain survival are the
ones that appropriately responds to the environment of their operation. The environment can be

MANAGEMENT PRACTICE AND THEORY 6
either external outside the field of their operation or in the internal environment for example of
other organizations which are within the field (Thompson, 2017).
The Description and Impact of the Theory to an Organization
The theory holds that the upcoming organizations in the environment initially holds on
copying the other organizations which are dominating the field and having successful operations.
The upcoming organizations will not only copy the organizations only because they are
successful in their strategies but also because they will mutually benefit from those
organizations, for example, gaining the resources they need. (Felin, Foss, & Ployhart, 2015).
The organizations should therefore, choose on embracing for example, appropriate
technology, policy and procedures from other organizations without considering mutual benefit
only but also on what they want to achieve on its overall operations.
The Strategic Choice Theory
The strategic choice holds that an organization has an effect and control over its place in
a given market and towards the consumer behavior. There are various ways how an organization
can have control on the market, for example, through aggressive market and advertisement of its
products, embracing some strategies for example cost leadership and willingly relating with
other companies. Through focusing on the laid goals and objectives, an organization can hence
manipulate the market in order to achieve its objectives (Whittington, 2014).
Impact of Strategic Choice to an Organization
Strategic choice holds on the strategic management of an organization which entails
setting of goals and objectives and embracing some activities, for example, planning, controlling

MANAGEMENT PRACTICE AND THEORY 7
and organizing in order to achieve the set goals and objectives. Some of the strategies that the
strategic choice embraces are for example the generic strategies which position an organization
in a competitive way in its market of operation without being influenced by the external
pressures unlike the case of the other theories which include the following:
Cost leadership: this is an important strategy which entails charging fare prices on the
products of an organization without compromising the quality of the products. Most
organizations embrace this strategy and strive to be cost leaders while producing quality products
in order to achieve the customers’ needs and locking them from switching to other competitors
or substitutes (Littler, 2015). Differentiation is another strategy that organizations adopts, for
example, producing similar products with other competitors but adding more value in order to
appear more appealing to the customers. An example is the Dell Company where it has a unique
strategy of customizing its laptops according to the needs and specifications of the customers.
They have a platform where customers can give specifications, for example, the features to be
incorporated for the laptops and the company goes ahead and manufactures the products towards
the specifications (Cattani, Dunbar, & Shapira, 2017). Focus is the other strategy which entails
targeting a particular segment of people in a broader market segment and thereby meeting their
needs. An example of the above is the coca cola Company with its sugar-free coke drink which is
produced especially for diabetic people. The strategy ensures that everyone is incorporated and
best suit.
The Most Compelling Perspective
After an analysis of the contribution that strategic choice and determinists theories make
towards an understanding of organizational action, I hereby find the strategic choice to be most
compelling due to the following reasons: Adapting to change- the deterministic organizational

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theories holds that businesses are forced to be flexible on the changing environmental conditions
while the strategic choice holds that businesses should embrace the changes without being
influenced and willingly changes to meet the consumer demands which is believed to position a
business in a certain market position.
The deterministic organizational theories also hold that organizations fix and plan their
strategies according to how the external markets operate. This is, for example, to achieve the
mutual benefits after complying on how the external market dictates. On the other hand, the
strategic choice does not lay more emphasis on structuring strategies in accordance with the
external pressure but rather according to the factors that will position organizations uniquely in
the market.
Conclusion
After the critical analysis of both the determinist theories and strategic choice,
organizations should therefore carefully make a choice on the most appropriate action to take.
An organization should therefore table down the resources it requires for its effective operation.
This will lead in embracing the resource dependency theory effectively and identifying on how
to obtain the resources as discussed above on the theory.
An organization should also lay out its organizational structure and adopt the institutional
theory effectively to match its developed structure to run the organization. The population
ecology theory should help an organization in identifying the relevant technology and other
principles to borrow from other organizations which will match the expected operations of an
organization.

MANAGEMENT PRACTICE AND THEORY 9
The strategic choice on the other hand, should therefore, provide a solution on how to
counter the mutual interdependence of the organizations on each other and also the
environmental pressures. An example is through embracing backward integration which helps to
lock in the suppliers hence providing a reliant source of raw materials. This would greatly help in
minimizing the level of manipulation in order to comply with some unnecessary strategies which
do not yield to competition in the market.
The strategic choice will, therefore, lead organizations to compete where innovation will
be a routine. This will, therefore, change the turn in which organizations are taking and due to
aggressive competition from various unique strategies, more advanced technology will be upheld
in production which in turn lead to quality products which will suit customers effectively.

MANAGEMENT PRACTICE AND THEORY 10
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