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 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, 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 (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 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 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.
References
Burrell, G., & Morgan, G. 2017. Sociological paradigms and organisational analysis: Elements of the sociology of corporate life. Routledge.
Clegg, S. R., Kornberger, M., & Pitsis, T. 2015. Managing and organizations: An introduction to theory and practice. Sage.
Grant, R. M. 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Hatch, M. J. 2018. Organization theory: Modern, symbolic, and postmodern perspectives. Oxford university press.
Hill, C. W., Jones, G. R., & Schilling, M. A. 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Michael, B., & Popov, M. 2016. The failure of theory to predict the way public sector organisation responds to its organisational environment and the need for a mosaic-view of organisational theory. Public Organization Review, 16(1), 55-75.
Mouzelis, N. P. 2016. Back to sociological theory: the construction of social orders. Springer.
Ridley-Duff, R., & Bull, M. 2015. Understanding social enterprise: Theory and practice. Sage.
Seidl, D. 2016. Organisational identity and self-transformation: An autopoietic perspective. Routledge.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. 2017. Strategic management and business policy. pearson.
Yolles, M., & Fink, G. 2015. The changing organisation: an agency modelling approach. International Journal of Markets and Business Systems, 1(3), 217-243.
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