Strategic Choice and Determinist Theories in Organizational Action

This essay examines the role of strategic choice and determinist theories in organizational action, emphasizing the importance of managers in strategic planning and implementation. It compares strategic choice theory, which focuses on decision-making processes considering both internal and external factors, with determinist theories like resource dependency, institutional theory, and population ecology, which address external influences and organizational structure. The essay argues that strategic choice theory is more compelling due to its independence and broader applicability in diverse market scenarios, enhancing both external advantages and internal organizational elements. It concludes that while both strategic choice and determinist theories are significant, strategic choice theory guides the selection of appropriate determinist strategies, highlighting the critical role of managers in leveraging these theories for competitive advantage.

Running Head: MANAGEMENT THEORY AND PRACTICE
[Management Theory and Practice]
2018
Australia

MANAGEMENT THEORY AND PRACTICE 1
This is the era of globalization and demands for competitive advantage from the
organizations in order to sustain in the competitive market scenario. In this manner to get an
advantage, organizations follow strategic planning made for the business growth of their
individual organization. This strategic planning process and implementation is called
organizational action. Managers of an organization also play their respective role in planning
and implementing these strategies. In the past few decades the role of these middle managers
has been the main concern of several studies. In this order many studies have claimed that
middle manager have the potential of contributing a significant role in the strategic
development planning of an organization. In organizational strategic action contribution of
strategic choice and determinist theories is also discussed. This essay includes a brief
discussion of the contribution made by the managers in strategic planning and also a
comparative discussion of strategic choice and determinist theories. Also a thorough analysis
of these two strategies, strategic choice and determinist theories is carried out in this essay to
understand organizational action of an organization made to get a competitive advantage.
These both strategies have significant importance in developing the strategies for an
organization and managers are the crucial components to implement the organizational
action.
The increasing globalization has made even the smaller companies to expand their business
overseas. This expansion of such companies requires an extra strategic planning and effective
implementation. This whole process of developing a strategic plan and its implementation is
called organization’s action plan. Developing an effective and efficient organizational action
requires significant contribution from the managers of organization as well as the strategic
planning (Kalkan & Bozkurt, 2013). The key element strategic planning includes two major
strategies to develop an organizational action plan. These are strategic choice and determinist

MANAGEMENT THEORY AND PRACTICE 2
theories which contribute in organizational action and managers plan a critical role in
implementation of these theories (Harvey & Neil, 2017).
The role of leading groups and leaders of an organization influencing the organizational
action by their decision making choices is described by the strategic choice theory. In the
begging the organizational requirements were based on external environment only but the
theory of strategic choice has provided an alternative to such requirements along with serving
the internal environment of the organization which also influences the organization action.
This theory involves the complete process of making decisions to choose one particular
strategy among the various alternatives. There can be several methods of making the final
decision for the choice of appropriate strategy (Ian & Trevor, 2005). This theory of strategic
choice encourages the leaders and managers of the organization to consider both the external
and internal environments for the selection of best strategy. Strategy making process involves
the identification of problem in the beginning of the process then different solutions are
shortlisted to make a preference list (Koeing, 2011). After this strategic choice theory is
applied to make a decision for the selection of best solution from the available ones. Several
parameter are considered in strategic choice theory, some of these parameters are as,
feasibility, consensus, prudence, and acceptability. Sometimes this strategic choice theory is
considered in bigger policies of an organization. This theory mainly focuses on the decision
making process in a particular strategic planning situation irrespective of the timescale and
substances of the situation. Also the approach is interactive as the theory is not designed to be
used by only experts but used as a framework of communication for the people with different
skills and from different backgrounds (Kealy, 2015).
In organizational action other determinist theories also play an important role in influencing
the strategy development of for the company business. There are several determinist theories

MANAGEMENT THEORY AND PRACTICE 3
such as, resource dependency theory, institutional theory, and population ecology. These
theories are the critical elements of an organizational action.
The resource dependency theory is a complete analysis of the influences made by the external
sources on the behaviour of organization. This impact of external resources on the
organizational behaviour is important for both the strategic and tactical management of the
organization. Implications regarding recruitment of employees and board members,
organization’s optimal division structure, contract structure, production strategies, and
external links of the organizations are considered in this theory. The whole argument of the
resource dependency theory can be summarised as resources are the critical elements an
organization depends upon and these resources are the power of an organization. Resources
are the most critical element of an organization and this increases the importance of
dependency of an organization on its own resources. Theory states that the resources
dependency and power of an organization are linked directly (Hillman et al., 2009). This
makes power situational, rational, and potentially mutual. Dependency on resources is of
more concern for an organization than other external factor like, finance, provide, and
competition. It has been argued by the scholars that the commercializing theory, theory of
resource dependency, is one of the main reasons for non-profit organizations.
As similar to the external resource concern of the resource dependency theory, institutional
theory has a concern for the making of better institutional environment. Organizations are the
social structures having high resilience (Yeager et al., 2014). Cultural-cognitive, regulative
elements, and normative, providing the meaning and stability to the social life, are the key
elements of these social structures. This theory considers several processes which form
structures that include the rules, routines, and schemes to provide the essential guidelines to
have a better social behaviour within the organization (Nienhusser, 2008). Some other
definitions given for institutional theory states that it is a theoretical posture widely accepted

MANAGEMENT THEORY AND PRACTICE 4
to emphasize the isomorphism, myths, and legitimacy (Radomska, 2014). Studies carried out
on this particular perspective emphasize that imitation is the key insight of this theory. This
theory is the basis of developing all the policies, rules, and schemes of an organization
(Zayyan & Akintola, 2009). Managers implement this theory for this particular purpose but
they consider other external and internal factor influencing the developing of such policies
for the organization. There are substantial evidences that different economies react differently
for same kind of problems or challenges. Institutional structure for a particular economic
environment consists of different economic, social, and political factors (Fran & Colin,
2011).
Another determinist theory for an organizational action is population ecology. This particular
theory deals with the behaviour or interaction of species population of an organization (Jones
III & Salimath, 2011). Population ecology of the company completes the organization. This
population of an organization includes the employees, managers, and leaders of the
organization. Making and maintaining a favourable environment for the implementation of
organization action involves the participation of this theory significantly. This environment of
an organization defines the working culture and behaviour of employees working in it (Fran
& Colin, 2011). Therefore, the environmental behaviour of the organization also influences
the strategic planning of the organization and makes it possible to implement the
organizational action in an effective way.
Organizational action plan is developed by making all the strategic choices and using
different determinist theories but implementation of such organizational action plan is not
possible without the involvement of managers. Managers help leaders providing the
essentials of these strategies and choice making processes. Managers come after the leaders
in an organization or sometimes managers are the leaders to make decisions (Mutch et al.,
2006). They play an important role in making decisions for the right choice of the strategy

MANAGEMENT THEORY AND PRACTICE 5
and its implementation method. Managers are underestimated for a long time but the
globalization making the market scenario competitive has made it to realize the importance of
these managers in getting an advantage of the competence in the competitive market (Buss &
Kuyvenhofen, 2011). The following example can explain the role of a manager better than
the theoretical framework. Let’s assume a construction company named Triangle Engineers.
Company has an image in the market and wants to maintain this image for as longer as
possible. For this, company has to take a competitive advantage and as more the
capitalization of resources more would be the competitive advantage. To get this competitive
advantage managers have to make decisions to take a full control over the resource
dependency environment. This decision making role is the most critical one to define the
company’s performance in the market. In the similar way for making schemers, riles and
policies to create and control the organizational environment for a better social life managers
has to take decisions. These policies are made to be acceptable by each employee of the
organization therefore managers are the only source having a direct contact with the personal
behaviour and expectations of the employees so they take decisions while making such
policies (Chew et al., 2006). This whole agreement defines the critical role of managers
which was underestimates for a long time in the absence of strategic choice theory.
Therefore, implementation of strategic choice theory, defining manager’s role in an
organization, increases its importance much more for the managers.
This discussion has made a brief understanding of the organizational action. Hoe strategic
choice theory and determinist theories contribute for the organizational action. Both the
strategic choice theory and determinist theories contribute significantly and are linked with
each other. The strategic choice theory is used to make decisions regarding selection of the
strategies while determinist theories are the strategic theories used to develop different
organizational elements to take a competitive advantage in the competitive market scenario.

MANAGEMENT THEORY AND PRACTICE 6
If a decision has to made for choosing the most compelling contribution between the
contributions of strategic choice theory and determinist theories then definitely the strategic
choice theory is most compelling one. This is because firstly the strategic choice theory is
independent of the determinist theories and considers both the external and internal factor for
making decision. This makes it more significant to use the theory in the wide range of
decision making processes. Another reason is that it is a process of making decisions to get
competitive advantage in the competitive market. This advantage of an organization in the
competitive market influences the business growth and improves the market stand of the
company. On the other hand determinist theories are the strategies followed to create a
structure frame for the organization. The strategic choice theory influences the decision
making process differently in different market scenarios. Market scenario influences the
situation for which the decision is to be made and this situation will determine the strategic
choice of decision. While making decisions generally external factor are considered but
strategic choice considers the internal factors as well for making decision. This helps the
organization to take external advantage as well as enhance the internal elements of the
organizational environment. These wide benefits of the strategic choice theory make it more
compelling than the determinist theories.
The above discussion concludes that the organizational action is a process or planning and
implementation of the strategies made for the organization using strategic choice theory and
other determinist theories. The discussion concludes that both the strategic choice theory and
determinist theories have their individual significance for the implementation of
organizational action. This discussion makes an understanding of the role of managers in
organizational action and decision making process. And it is better to use strategic choice
theory while making decisions for the selection of desired determinist theory for the
respective strategy. The strategic choice theory is independent of determinist theories while

MANAGEMENT THEORY AND PRACTICE 7
the selection of determinist theories is made by using the strategic choice theory. Although
managers make decisions, strategic choice influences these decisions. Therefore it can be
concluded that the strategic choice theory is more compelling than the determinist theories
and managers are the critical element of an organizational action. Role of mangers is realized
due to the implementation of strategic choice making in an organizational action. This whole
discussion made is easy to understand the role or contribution of strategic choice theory and
determinist theories for the organizational action strategy to take a competitive advantage in
the competitive market.

MANAGEMENT THEORY AND PRACTICE 8
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