Sample Essay

The main reason why the organization theory is considered very important in this age of globalization and the modern age of running businesses, simply lies on the fact that organization theory is application-based and that this tool is very practical when it comes to achieving organizational goals. Although not directly affected by the impact of globalization, organization theory serves as a tool that companies make use of in order to improve their company’s value in a highly-globalized and competitive business environment by simply restructuring their business processes. Most probably, without the organization theory which serves as a constant guide and reminder to companies of the need to improve their organizational processes, organizations will most likely remain stagnant; that is, lacking pursuit to any kind of positive changes in the company’s structure and processes (Scott, 1992).

When the organization theory was constructed many decades ago, companies did not really struggle to apply this specific theory because it was very practical and most organizations reaped outstanding results out of it. It brought tremendous changes in the way companies handled their business processes but along the way, when the globalization factor entered the big picture, the need for the application of the organization theory suddenly became more challenging. Various financial institutions, to be very particular, however felt a stronger need to apply the organization theory principles as the business environment became more competitive despite the challenges in applying the theory (Scott, 1992).

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