Definition: is a study of various organizational structures and compositions, the relations between an organization and any extraneous environments, as well as the behavioral patterns of managers and employees that are a part of an organization. An individual that has a firm grasp on the organization theory possesses the knowledge needed to create a successful organization and constantly improve its profitability by adapting it to rapid changes that occur in the external environment.
In a Sentence:
When opening a new firm, before you do anything else, you have to study the organization theory.
To have a better understanding of how the external environment affected his business, Richard has read several books on organization theory.
The organization theory covers all the basic duties a manager carries out within a company.
Synonyms and related words: organizational culture, bureaucratic theory, managerial style, organizational design, administrative theory