Can Organizational Theory Increase A Company's Profit-Abilities?Organizational Theory (OT) along with organizational studies and organizational behavior are related terms in relation to the study of organizations. It is the use of OT which helps to identify certain themes within a business in order to help solve problems, maximize both the businesses' efficiency and productivity, and also helps to meet the needs of those who have a stake within the company. In most cases it will take a look at three categories in relation to the company. 1. The processes carried out by an individual. 2. The processes carried out by a group. 3. The processes carried out by the organization as a whole. But it is the theories which are the mainstay of this particular field of study, and its objectives are to investigate how an organization actually works. This then provides a much clearer understanding of the company's structure, its functions, and the properties which will help to enhance the productivity of the company. Many theorists are now taking the approach that when analysis takes place, each organization is unique. Because of this, when seeking solutions they will need to take into account various different elements in relation to that particular business. The elements they will be looking at include:- 1. The size of the company. 2. What technological requirements it has, and that it needs? 3. The environment in which the business is based. 4. The nature of the industry that it is involved in. All organizational theories are interdisciplinary and will be based on knowledge provided through psychology, economics, political science, sociology and anthropology. It is through these fields that a group will be able to explain certain behaviors and dynamics that occur within a company. Such use of these theories is becoming very significant, because of the cultural diversity of the people you now find in many work places. What it seems to boil down to is that organizational theory is a modern set of theories relating to the organizational structure of a company and states it is this relationship which results in the activities and goals that the company achieves. It is normally assumed that to merely increase profits is the biggest goal of many companies today. But in recent analysis carried out, it has been found that the company's increase in sales or their share of the market combined with their profits being satisfactory are what many of these are hoping to achieve. So by having a much better organizational structure in place, a company is likely to be able to produce higher productivity levels from all of its employees, which will then result in increased profits also. But in order to facilitate these changes a company will need to spend time analyzing its various departments to ensure that their organizational structure is the best that they can possibly have. |