Institutional Theory</li></ul>Modernist theories relating organizations to their environment<br />
Environmental Contingency Theory<br />Organizational structure should be based on the conditions it faces. <br />Uncertainty is a property of the environment resulting from complexity and rate of change.<br />“Complexity” refers to the number and diversity of elements in the environment.<br />“Rate of change” is how rapidly these elements change. <br />Environmental uncertainty is defined by the amount of complexity and the rate of change in the organization’s environment.<br />
Resource Dependency<br /><ul><li>Managers can learn to navigate environmental determination.
Must identify power and dependence relationship.
Environment derives its power over the organization from this dependency.
Environment uses this power to make demand on organization.</li></li></ul><li>Population Ecology<br />Organizations depend on the environment for the resources they need to operate.<br />Interested in the patterns of success or failure among all the organizations that compete within a given resource pool.<br />Studies specific areas of the environment called “ecological niche.”<br />Operates on the idea that organizations compete for their survival and this competition is the phenomenon of interest. <br />Tries to predict the length of life of the organization, and to itentify forms and strategies that successful organization adopt.<br />Wants to explain competitive ecological process results in all the various types of organizations we see around us.<br />
Institutional Theory<br />Organization compete not just for resources and customers but for political power and institutional legitimacy.<br />“Institutionalization” is “the process by which actions are repeated and given similar meaning by self and others.<br />There are forms of institutional pressure: <br /> coercive (from government); and<br /> normative (from education of members of organizations).<br />
Online Organization Analysis<br />You may use these theories and more to consider and explain what you see related to environmental relations in your assigned organization.<br />