The evolution of the world and the change in the tastes and preferences of the consumers have led to the rise of multinationals. The growth of the multinationals depends on the availability of the resources and the preference pattern off the consumers. The management undertaken by the organizations helps largely in their growth and nurturing. Therefore, it can be concluded that the management plays a very important role in shaping the organizational structure and influences the decisions that are taken by the organizations for achieving the common goals.
The discussion that is being undertaken clearly portrays the requirements of the decision-making and indulgence of the proper management in order to understand the importance of management in the progress of the organization. The basic criteria of this discussion is to understand and correlate the importance of management according to the requirements of the organization (Callan and Thomas 2013). The theories of the management help in setting the goals of the organization and thereby adhere to the organizational goals in order to understand and take decisions accordingly. The needs and requirements of the organization vary according to the objectives and the aims. Therefore, the choice of the management principles suiting the purpose of the organization is an important consideration that is to be undertaken by the companies. The progress that is being enumerated by the company depends on the principles of management that is being adhered by the organization. The influence of the strategic management is an important source of taking the decisions that is being taken by the organization for the benefits. Strategy and proper planning helps the organizations to set the goals of the organization and thereby make the progress accordingly. It helps the organization in taking the significant decisions that are required to be taken in order to achieve the common goal of the organization.
The discussion that follows will focus mainly on the theories of management based on the deterministic theory and the strategic choice that a company must undertake in order to make the significant progress in its processes. The outcome of undertaking the theories and applying them on the management of the organization is also being discussed in the same context.
The point of discussion for this section is based on the theories of strategic choice of the management. The job role of the individuals and the leaders in influencing and motivating the work force in order to make the most out of their efforts comes under the strategic choice that is being undertaken by the entrepreneurs. According to the common thought process, the organization acts on the requirements that are based on the external environments (Christiansen and Fenchel 2012). The influence of the external environment affects the decision making process of the organization. External environments like the change in the consumer behavior or the political factors, the environmental changes and the quality being delivered or the market considerations are the major external factors that affects the decision making process of the organization. In order to undertake the specific functions and the decisions, the organization must consider the requirements of the organization.
The strategic choice theory provided an alternative to the general thought process, which dynamically supported the agency of individuals to undertake choices in order to make significant advancements in the organizational structure (Zhang 2013). The strategic choice of the organization not only helps in taking care of the external environmental considerations but also helps in meeting the internal political discrepancies that might affect the work force. It therefore supports both the internal and external factors and helps in undertaking the efficient management of the organization.
The process that is being undertaken by the organizations in order to make sure that the strategic choice is being undertaken is based on the steps that the organization must consider (Hill, Jones and Schilling 2014). The steps helps in the efficient management of the internal and the external factors and thereby helps in solving the discrepancies that might affect the smooth functioning in the every day schedule (refer to Appendices 1, Figure: 1). The alternative that is being provided to the organization is being focused on, as the first step of undertaking the strategic choice. The alternative is being addressed and is identified as per the relevancy of the alternative (Wheelen and Hunger 2017). It is being justified in order to make sure that the alternative goes well with the decision that is required to be taken. The organization then analyzes the alternative in order to make sure that the flaws of the problem are being covered by the alternative or not. In order to make sure that the alternative goes well with the decision, it is applied as a demonstration on the problem. It is like testing the alternative on the problem and determining the efficiency of the alternative (Floudas 2013). Evaluation of the alternative is another important step that is being undertaken by the organization in order to make sure that the alternative fits in to the organizational requirements. It thereby helps in maintaining the decision making functions of the organization and thereby helps in the proper management. Choosing from the range of alternatives is an important consideration that is being undertaken by the organization in order to take hold of the right alternative (Hatch and Zilber 2012). The right alternative that is being chosen from among the range of alternatives is an important step that helps in undertaking the proper management of the firms.
The strategic choice therefore helps in maintaining the management functions of the organization through a careful selection of an alternative, which is best suited, from among the range of alternatives. It helps in the decision making process of the organization and ensures that the discrepancies are solved accordingly. It helps in taking care of the internal and the external factors that leads to the growth of the organization and improves the adaptability of the organization (Kagel and Roth 2016). The importance of the management functions helps in the undertaking of the probable cause of achieving the common goal of the organization. The changing face of the organizations have led to the disputes in the management systems therefore the involvement of the strategic choice helps in understanding the discrepancies and take decisions in favor of the organization. The choices helps in undertaking strategic decisions in order to support the factors that affect the organizations.
The deterministic theory, on the other hand, helps in judging and taking the decisions relating to the efficient management of the organization. It helps in determining the organizational behavior relating to the factors of the population and the available resources of the organization. the theory helps in the understanding of the situation of the organization that is based on the requirements of the external factors (Shafritz, Ott and Jang 2015). The consumer preference and the availability of resources is an important phenomenon that justifies the productivity of the organizations. Deterministic theory of an organization helps in identifying and determining the constraints relating to the availability of the resources and the market availability that helps in determining the progress of the organization. the theory determines the ability of the organization in the fields of the progress and thereby exploring the capabilities of the organization.
The resource dependence theory is the study of the effect of the external resources on the functional ability of the organization. The resource dependency of the organization helps in understanding the dependence of the organization based on the flow of the resources that affects the productivity quotient of the organization (Kozlenkova, Samaha and Palmatier 2014). The strategic and the tactical management that the organization undertakes is based on the resources which is the major factor that supports productivity of a concerned organization. The basis of the discussion concerns the tactics undertaken by the company in order to undertake strategic decisions that will help the organization in making the probable advancement s in order to achieve the organizational objective.
The institutional theory, on the other hand, helps in determining the organizational aims an objectives in undertaking the processes of management. It includes the more flexible aspects concerning the social structure. It helps in framing the rules and norms in order to maintain the flexibility in the management of the social structure, adhering to the requirements of the society (Roughgarden, May and Levin 2014). It facilitates the framing of the structure of the schemes and norms in order to ensure the smooth indulgence of the society in the organizational systems. It helps in framing the authoritative guidelines to be followed by the society at large. Organizations have a common objective of earning a remuneration and maximizing the economic opportunities faced by the organization (Suddaby 2015). The existence of the organization depends on the society, as the organization is .a part of the society therefore the organization is required to follow the norms and the policies formulated by the society (Porter 2017). The norms and the schemes that the society imposes on the organization affect the structure and the managerial functions in the organization. Therefore, the institutional theory affects the growth of the organization and constraints the expansion in the different fields.
The population theory, which is widely known as the Malthusian theory is based on the demographic structure of the society in which the organization is situated. The population affects the consumption rate of the area and therefore it affects the management and the organizational structure. The population growth, worldwide, takes place in an exponentially, depending on the growth of the birth rate (refer to Appendices 2, Figure: 2) (Coale and Hoover 2015). Growth of the population affects the economic systems and therefore the company must decide strategically based on the growing requirements of the consumers. It affects the organizational structure and helps in understanding the objectives of the organization relating to the growth.
The theories that are discussed in the sections above are mainly based on the strategic management and the factors that helps in the management process of the organization. Critical examination of the theories must be undertaken in order to understand the compelling nature of the discussed theories. The discussed theories help in the undertaking efficient management that is beneficial for the organization. The strategic choice theory is a compilation of the activities that are being taken by an organization in order to consider the internal and the external factors. The factors constraints the smooth functioning of the organization and therefore the theory helps in understanding the discrepancies and undertake alternatives in order to solve the issues (Peppard and Ward 2016). On the other hand, the deterministic theory helps in understanding the external factors that affects the productivity of the organization and thereby take care of the requirements of the organization related to its growth and expansion. The theories, both being complete, helps in the proper management of the organization by helping the organization in taking decisions that will help in the process of its growth, but the most compelling theory can be determined as the strategic choice theory. The strategic choice theory takes care of the external and the internal factors of management, as discussed earlier, and therefore it provides the full scenario. It helps in the decision making process more diligently (Perez-Batres et al. 2012).
Therefore, from the above discussion it can be concluded that the effectiveness of the management is dependent on certain internal and external factors. The decision making process that is undertaken by the organization, in order to motivate the work force and thereby undertake the smooth functioning helps the organization in making its significant progress. The theories that are being discussed above depict the involvement of the external and internal factors that creates a major impact on the management and the expansion of the organization. The compelling nature of the theories is also being discussed in the near end of the discussion and the best theory to be adopted by the organizations in order to excel is being critically examined.
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