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P&A Company and Organizational Theory

With the course of time customers’ demands started to change extremely quickly, and P&A need to implement changes to meet them. Otherwise, the company will not be able to remain competitive, and its place in the market will be immediately occupied by some other firm. Unfortunately, the personnel does not realize how crucial the issue is and rejects the changes such as the entrance of the web market and expanding abroad that are likely to be beneficial for the organization. Their behavior exposes P&A to a risk, which proves that the manager should reconsider organizational structure, processes, and functions and influence the staff so that it shares vital views.

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Resistance to Changes

Today the world develops extremely quickly, and businesses need to keep up with the times to remain attractive to the customers or even become interesting to the majority of them. Realizing this, many of them imply innovative strategies, globalize and use technologies to promote their business. P&A is an entertainment company that deals with the organization of various parties and sells different related products such as postcards, paper lanterns, etc.

The employees of the organization are focused on managing their everyday activities and turned them into routine work. As a new manager was hired, he had lots of ideas that could improve the business, but with the course of time it turned out that the employees meet all new ideas with reluctance and have no will to share them. The diversity that occurred pointed at the problems that the organization has and proved that the manager is to find a common language with the workers, become a true leader, transfer new goals to them and conduct all actions that will allow P&A to enter we market and expand successfully.

Application of the Organizational Theory

Among the best ways to improve the occurred situation is to apply organizational theory as a practical function relative to organizational structure, processes, and functions. This theory is not just the information that might be advantageous. It includes the explanation of various practices that were previously used as well as their purposes and expected outcomes. In this way, organizational theory is a guideline that can be used by P&A to define how they should act to solve the organizational issue that occurred.

Of course, the theories that are gathered under the title organizational theory have some advantages and disadvantages so they should be used in the most profitable manner. The manager needs to determine the main issues that are faced by the company and then select a theory, the usage of which is likely to fill the majority of the gaps. The practical application of organizational theory seems to be one of the easiest ways to enhance the knowledge of organizational phenomena and become more successful in business practices.

Organizational Structure

The structure of the organization plays an important role in the whole performance, as it determines the way the employees interact with one another and how they are influenced by the leaders. The implementation of the neoclassical organization theory focuses on the workers and the improvement of the working environment (Organizational theories n.d.). Its application will be beneficial for the company as the absence of accepting managerial authority occurs to be the main problem of P&A, which is entailed by other issues.

Of course, more modern theories seem to fit better, as they are more close to the current time. Still, according to the latest approach (situational), the organization is to take into consideration the environment, in which it exists and consider different variables to get to know what exactly is to be improved and which theory is to be followed by this purpose (Organizational theories n.d.).

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When investigating the issues faced by P&A, it turned out that they are mainly faced because of the problems in communication. It means that the manager is to find out how to enhance human relations within the organization. Referring to the organizational theory, one can select an approach that discusses the needed aspect and utilize it while reaching the solution. As a result, the manager can see that the significance of human relations was mainly discussed by neoclassicists. The theory can be referred to as it consists not only of the assumptions but also on the results of the experimental studies. It was found that the performance improved in terms of productivity when the relations among the personnel on different levels became better. The scientists also pointed out that the attention paid to the workers influences their morale in a positive way, which increases productivity.

Applying organizational theory, the manager can consider the main aspects of human nature and use them advantageously to improve the situation. One should treat the personnel not only as a workgroup but also as individuals, who are extremely different. Following the neoclassical approach, the manager should improve the relations among the workers and superiors. One should become closer to the personnel and find out what makes them inspired in terms of their work. Both social and economic factors are vital but if there is no possibility to change the last ones, social can be altered. The manager has an opportunity to gather the employees in their free time (on the excursion, picnic or online forum for the employees) to find who they are as individuals and what are they interested in.

As a result, they will get to know each other better, and their relations in the workplace will improve, which is sure to make the workers treat the leader with much respect and support one’s ideas. Considering the employees like the members of the workgroups and treating the teams as an entity, the manager will have more opportunity to control the situation. The workers should become more willing to share one’s ideas and values. The organizational theory also encourages the personnel’s involvement in the process of decision making. It will make the employees feel like the important parts of the organization. When the manager listens to them, they will listen to him (Daft, Murphy, & Willmott, 2010).

Thus, the reference to the organizational theory and its application is likely to improve the relations between the workers and superiors. Such things will make them closer and allow the same ideas to be shared among the employees. The determination to achieve the common goal entails the increased value of the leader and one’s ideas. As a consequence, the employees of P&A will become more positive regarding the changes and will be willing to do their best for the organization to prosper in the new market.

Organizational Processes

The main task of any organization is to achieve its goals efficiently. That is why it is important to implement organizational processes decently so that all employees know what they are to do and what they are responsible for. Considering the current situation in P&A, it can be seen that the organization of processes is not well conducted. The leader has several innovative ideas that are likely to be of advantage for the organization but does not know how to implement them so that the workers support these ideas. One occurs to be confused as is not sure how to arrange the workers in the decision-making process (Luhman & Cunliffe, 2012). The personnel, in their turn, become frustrated due to the insufficient leadership, and their productivity decreases.

Using organizational theory as a guideline, the manager should start one’s work with the identification of the main result areas and measures of employee performance. New working ideas also presuppose that the objectives will alter in away. Having sufficient organizational structure, the manager will easily come to the agreement in terms of goals and objectives and make the personnel follow them. The leader is to set not only team objectives but also individual ones so that every employee realizes that he/she has particular functions that are to be maintained for the organizational processes to be effective. The process (of setting goals, decision-making, etc.) should also be tightly connected with appraisal according to the organizational theory. Receiving the feedback, the personnel starts to work harder and become inclined for their leader (Hatch & Cunliffe, 2012).

It is important to realize that theoretical knowledge is a great foundation that the manager should have to organize organizational processes efficiently. One is to consider the linking process, as it is not well-organized in P&A, in regard to communication, harmony between different parts of the system and decisions.

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Organizational Functions

Organizational functions are greatly discussed in the administrative theory. Generally, they are divided into two main types that are interrelated. The front-office functions are the ones that are tightly connected with the results of achieving the goals. They deal with the direct delivery of products and services and gaining revenue. The back-office functions are those that are not seen to the general public as they deal with HR management, IT, etc. (Kokemuller, 2014).

With reference to the organizational theory, the manager can get to know what functions one is to maintain and how to do it efficiently. When focusing on the web market and expansion, one should plan and organize these activities, train the workers or hire a team that can do this. The administrative theory relates to “the accomplishment of tasks and includes principles of management, the concept of line and staff, committees and functions of management” (Organizational theories n.d.). Everything that the manager is to consider is described in detail and explained so that the leader can define what is needed and improve this (the encouragement of initiative, responsibility, the division of work, etc.).


Thus, applying organizational theory is the best way to improve the situation in P&A. The theory has lots of practical benefits, as it provides the managers with the knowledge that was already used by others and allowed them to achieve success. Following the organizational theory, the company will improve its performance, as the manager and the workers will share ideas and values. Organizational theory teaches the manager how to organize the working environment so that the employees will support and respect him, become willing to changes and perform better.


Daft, R., Murphy, J., & Willmott, H. (2010). Organization theory and design. Andover, UK: Cengage Learning.

Hatch, M., & Cunliffe, A. (2012). Organization theory: Modern, symbolic and postmodern perspectives. Gosport, UK: Oxford University Press.

Kokemuller, N. (2014). What are organizational functions? 

Luhman, J., & Cunliffe, A. (2012). Key concepts in organization theory. Thousand Oaks, CA.

Organizational theories. (n.d.). 

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