An Analytical Discussion of Organization Theory, Managerial Practices, and Resource Utilization in Business Productivity

Organization theory can indeed help stakeholders comprehend past events and forecast future trends to establish the critical success factors that enhance productivity (Daft & Armstrong, 2019). This is because that is precisely the scope of the definition of organization theory

For example, these theories are not products of random proclamations but rather the results of studies and observations conducted in the past. This means that they can help a person paint a picture of an event that took place in the past. Take the example of Adam Smith’s theory of specialization and division of labor.

A deep look into it reveals that he determined that efficiency could be increased by dividing work into portions that people could become accustomed to. Apart from understanding the past, organization theory can also facilitate the determination of future patterns and chances of success.

For example, most modern organization theories concur that entities can maximize their production by ensuring that their human resources reach their maximum potential. In its part, the scientific management theory proposes that planning work drives the organization toward a pattern of standardization, efficiency, simplification, and specialization, all of which are factors that lead to improved levels of production.

This shows that organization theory is useful in more than one way. It provides the reasoning for some logic that it proposes through the use of historical observations. After that, it goes further to give direction on the possibility of the organization achieving greater efficiency through the application of its principles.

Understanding how organization theory influences productivity is essential, especially when evaluating real-world examples of national or corporate performance. In this context, the case of the United Kingdom provides an insightful illustration of how management practices, guided or misguided by organizational principles, can significantly affect productivity outcomes.

Low productivity in the United Kingdom can indeed be the result of inefficient management practices (Mitchell, 2019). Firstly, the uncertainty of the future economic position of the country in the advent of Brexit has prompted managers to adopt a risk-averse attitude toward conducting business.

For that reason, they do not risk approving the investment of company resources in highly risky ventures, leading to a situation where entities incur high opportunity costs. Such negative practices have extended into cost-cutting measures whereby managers do everything in their power to avoid expenses.

For example, some companies do not invest in improving the skills of their labor force or in the purchase of new equipment if the one already in existence can serve the same purpose. Such practices have led to the low productivity under consideration in this section.

Another misgiving of which the United Kingdom is culpable is the level of importance it assigns to age when it comes to matters of leadership and management. Very few companies in Britain are managed by young talents, even though that cannot be solely pinned on an aging population.

Even so, elderly individuals are incapable of keeping up with the ever-changing times, especially in the advent of the Fourth Industrial Revolution. It is not surprising to walk into a company in Britain and realize that it is yet to switch from paper communication to the use of email in the name of tradition.

Thus, such inefficiencies in management practices have contributed to low productivity in the United Kingdom.
Ultimately, both organizational theory and management practices highlight the same fundamental truth — that productivity depends on how effectively organizations utilize their key resources.

​These include not only human capital but also technology and natural resources, which together form the foundation of any organization’s operational success. People, technology, and natural resources play a critical role in the success of any business. As regards people, it goes without saying that they are the face of the organization. The manner in which they conduct themselves determines the entity’s organizational culture as well as the outside world’s perception of it.

People are also engaged in the routine operations of every organization. Despite the huge advances that the world has achieved in the field of technology, it is yet to eliminate human resources from production. Consequently, the level of effort that the said human resources put toward achieving the firm’s objectives determines its potential to achieve success.

The same people are also responsible for purchasing the commodities that the organization has to offer. Simply put, without people, most organizations would cease to exist, if not all. Technology also plays a pivotal role in the running of contemporary organizations. For instance, almost every office in modern times has computers. Members of staff also make calls frequently in the course of discharging their duties on behalf of the company.

Most importantly, technology is responsible for increasing efficiency and keeping organizations competitive within their respective industries (Kleinman, 2009). For instance, if one company purchases a new automatic copier capable of copying twice as much paper as a competing company in the same period of time, the former is bound to enjoy higher levels of productivity than the latter.

For that reason, companies have to adopt technology that is best suited to their objectives. As for natural resources, they provide the inputs necessary to keep the production process going. For instance, land provides space on which large buildings are erected and turned into office space.

Conversely, mines produce valuable metals and even energy sources such as coal, which constitute or fuel the various production processes. Even the sun shines its light to allow people to conduct their business without having to strain their eyes. Regardless of how nonessential one may think natural resources are, they play an important role in business operations.

In conclusion, the interrelationship between organization theory, management practices, and resource utilization forms the backbone of business productivity. Organization theory offers the conceptual framework that helps leaders understand how structures, strategies, and behaviors influence outcomes.

​Management practices, on the other hand, determine whether these theoretical insights are effectively translated into action. Finally, the efficient use of people, technology, and natural resources ensures that organizations not only survive but thrive in an increasingly competitive and dynamic environment. Recognizing these connections allows businesses and policymakers alike to make informed decisions that promote sustainable growth and long-term productivity.

References

• Daft, R. L., & Armstrong, A. (2019). Organization theory and design. Brantford, ON: W. Ross MacDonald School Resource Services Library.
• Kleinman, S. (2009). The culture of efficiency: Technology in everyday life. New York, NY: Peter Lang.
• Mitchell, D. (2019). Bad management blamed for sluggish UK productivity growth. London, UK: People Management.​