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Organisational Theories

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Explain how organizational theory underpins the practice of management Organizations are ‘social arrangements for the controlled performance of collective goals’. Organizational theory and management theory is used in many aspects of a working business. Many people strive to adhere to the theory to help them become better at their jobs or more successful in life, although this may lead to them having to sacrifice some of their personal principles in order to succeed. One example of following organizational theory in the financial sector would be an employee or manager who wants to know how to achieve goals by having a set structure to follow. In addition, someone in a human resources sector will have to make decisions through their working day that will undoubtedly change the structure and practice of a working day of all other employees in the company. If an individual gets so wrapped up in trying to fit the mold of what the interpret their role should be in terms of organizational theory, they may start to neglect others areas of business. In the some way, management theory may also underpin the personal values of some individuals. For instance, they may disagree with a particular rule or regulation that has been introduced by the company, however in order to carry out their job as a manager effectively and professionally, they need to move away from their principles and execute the job. It is difficult to try to execute both management and organizational theories as a psychological contract between the employer and employee still needs to be maintained. This will need to consider how fairly the company is treating the employee and how ‘fairly’ the employee is treating the company, i.e. are they actually putting 100 percent effort into their work? Any changes to the organization or management in a company, is undoubtedly going to have an effect on all of this.

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