Organizational Theory

Organizational Theory

When trying to understand organizational theory, it is important to understand first what an organization is. An organization is a group of individuals who come together in order to reach a common objective but they will also be connected with the external environment.



The meaning of organizational theory is the study of an institution and the way it decides to go about its activities. It takes into consideration the structure used in the workplace and how it has an impact on the other people. Furthermore organizational theory looks at the ways in which a company can deal with problems and come to a solution to these. If an organization can manage these effectively then it will maximize its efficiency and effectiveness internally and this will have a positive outomce on the external environment which includes suppliers, government and customers.

In conclusion an organization must meet the expectations of its stakeholders and by studying an organizations approach, it will be clear to see any areas where improvement is required to optimize performance and actually meet the needs of these people.