Monday, November 14, 2011

Organization Theory - 36 (Relation between theories)

Over the last few blogs ending with this one, we have discussed the various organization theories. In today's blog, we look at the inter-relation between the 3 theories we studied:

The Resource Dependency Theory is formulated at the organizational level of analysis and provides a top-management perspective looking outwards from the organization to its surrounding environment.

The later 2 theories are formulated at the level of environment. The Population ecology model attempts to explain why there are so many different kinds of organizations. institutional theory tries to explain why many organizations look alike in essence, both these theories answer their fundamental questions with the reference to the influence to the environment no the organizations.

When environment has many rules and expectations to which organizations must confirm to derive necessary social legitimacy - institutional theory best explains organization's structure and outcome.
When the environment is not highly institutionalize and is influenced more by economic and technical competitions - population ecology perspective explains better to begin with.

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