Organizational Theory

Organizational theory studies organisations as a whole, the way they adapt, the strategies and structures that guide them. Eisenhardt (1985) considers organisational theory to be rational, information based, efficiency oriented, concerned with determinants of control strategy and distinguish between two types of performance evaluation control: behaviour based and outcome based. The organizational theory:

• Compares ability to measure behaviors and outcomes.
• Uses control as a measurement and evaluation process. Reward is implicit.
• Can reduce divergent preferences through social control.
• Uses information as a purchasable commodity.

See Also

Organizational Performance
Goal Setting Theory
Contingency Theory
Systems Theory