THE ORIGINAL QUESTION WAS- Greenwood and Miller suggested that contingency theory, resource-based theory, and institutional theory exemplify that combining theories can be a powerful step in the evolution of organizational theory contributing to an understanding of the complexities of current organizational design. Do you agree? Support your position.
Replies to Victor
I do agree that putting together different theories like contingency theory, resource-based, and institutional theory would help create a better organizational design. Contingency theory would anticipate that each relevant axis of an organization should be represented in its organizational design. Thus, it would suggest that transnational PSFs should recognize, structurally, lines of service, geographical locations, and markets. The structural contingency perspective is helpful but insufficient. But see what happens when the researchers add another perspective namely, the resource-based view. It helps list organizational axes by determining which axis defines the organization’s critical advantage and thus should be afforded primacy, and which axes should be subordinated to that axis in order to secure realization of that advantage/capability. The connection with organization design is that managers must first identify the critical axis or axes most responsible for creating, sustaining, or exploiting the resources that provide competitive advantage, and then second, empower these unique sources of advantage via organizational arrangements that provide the required budgets, authority, and human resources that exploit that advantage even if doing so deprives the other organizational axes. By applying a third perspective, institutional theory, the researchers gain further insight. The theory can do two things. First, it emphasizes that behavior is shaped by institutional logics i.e., cognitive and normative schemas that enable actors to comprehend their organizational worlds that are legitimated outside the organization, In short, by pointing to the meanings attached to structures and processes, institutional theory helps us understand members’ perceptions and portrayals of organizational design and the meanings that they have for organizational members. Organizational designs are both responses to these perceptions and their determinants. (Greenwood & Miller, 2010, pp. 83-85). Pointed out by Safari & Saleh, (2020, pp. 246-247), in Li (2015), contingency theory is a theory of organizational management, which focuses on elaborate employees training and use of technology for the development and improvement of the organization.
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