1. Select two of the ff theories and discuss thier application to organizations
ID: 430591 • Letter: 1
Question
1. Select two of the ff theories and discuss thier application to organizations that operate in public sector (contingency theory,population ecology theory, instrumental theory, principal agent theory) 2. What are the important differences between private firms in competitve markets and organization that operate in the public sector 3. Do these differences limit the application of the theories youve selected? 4. Are there ways we can adapt the theory to make it more applicable? 1. Select two of the ff theories and discuss thier application to organizations that operate in public sector (contingency theory,population ecology theory, instrumental theory, principal agent theory) 2. What are the important differences between private firms in competitve markets and organization that operate in the public sector 3. Do these differences limit the application of the theories youve selected? 4. Are there ways we can adapt the theory to make it more applicable? 2. What are the important differences between private firms in competitve markets and organization that operate in the public sector 3. Do these differences limit the application of the theories youve selected? 4. Are there ways we can adapt the theory to make it more applicable?Explanation / Answer
Population Ecology Theory does not talk about a single organization but it concerns itself with a group of organizations, or more accurately termed as a population of organizations. As per this, a population of organization undergoing adaptation is a function of how the environment selects which organizations will adapt and which ones will perish.
Contingency theory can be used to understand which structures will fit with which environmentally produced contingencies and therefore produce a fit between the institution and the environment. For example, a diversified firm needs to have a divisional structure to be in fit. On the other hand, if a diversified firm keeps a functional structure it is not fit.
Of the two, contingency theory is more sound and empirically valid.
While contingency theory stresses on the impact of the environment on an individual organization, the population ecology theory says that the environment has an effect over an entire population of organizations.
Population Ecology Theory propounds that the growth of an organization has its genesis in the firm’s motivation to meet others’ expectations. The owners of the organization are heavily dependent on a management structure that has a very deep knowledge, which only comes after years of experience.
Differences between private firms in competitive markets and organization that operate in the public sector
Whilst a private firm’s main objective would be to earn profits, public sector companies would work towards serving the society in which it operates.
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