Global Political Economy: Contemporary Theories Essay

An open system is a technology that enables integration where it enables interaction of various environments of business through critical sharing of energy and information that is related to the progress of business within a firm.

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Variation between the Contemporary Theories

The theory of socio-technical system is unique compared to all other theories. The reason is that it focuses on the human aspects of the world of business. The capacity building and interpersonal relationships along with human elements of workers are the primary deliveries' in this theory. Workers are trained, and employees are used as the proper training tools (Palan, 2013). The theory enables workers to correct their problems and mistakes during the initial stage.

The quantitative management also differs from other approaches. The reason is that it strictly deals with the problem-based management. The system is established to assist managers to have an insight on how to solve an issue (Palan, 2013). The approach also teaches the managers the proper methods of solving problems through the use of calculations. Lastly, the technology also assists managers to come up with informed decisions that are right base value.

Organizational behavior varies from other approaches because it identifies and studies the actions of employees in a given manner. The technology highlights that workers will respond in a way their employers treat them. Besides, the employees will be lazy if they are treated as such.

System theory differs from other approaches because it relies on inputs from the other part of the world. This approach focuses on a firm as a system that has various subsystems. There is no appropriate way a firm can organize and manage under this theory due to the changes taking place in the world (Palan, 2013).

Definition of Terms

Internal environment handles events that take place directly within a firm. It is essential to analyze the internal activities that guide the firm. These activities include the governing principles and internal policies applied in an organization.

The competitive environment does evaluate the business environment about various advantages of the capital market. It focuses on how the marketing policies influence the market niche and organization development.

Microenvironment includes events aimed at evaluating the economic trends of the business environment. It consists of a critical evaluation of the economic trends such as monetary, employment, and inflation policies that are applied. The primary role of this environment is acknowledging of the economy in more vast and clear options.

Way the Contemporary Theories Influence the Business Environment

Quantitative management and organizational behavior influence the internal environment of business in most cases. Besides, the organization may end up suffering from the consequences if the management makes uninformed decisions. It is the role of all executives and managers to come up with uninformed decisions that encourage workers. If they fail to acknowledge the importance, then the whole system may fail.

System theory does critically evaluate a business from its environmental position that can be traced back to the macroeconomics' value in a firm. Besides, an organization can determine and look for various market positions that relate to the analysis of the market situation and macro-environment at a particular time.

The socio-technical system focuses on the internal formation of a firm. The theory offers the mechanism essential to the management of human assets within a firm. It offers the needed framework aimed at addressing the needs of employees.

Reference

Palan, R. (Ed.). (2013). Global political economy: contemporary theories. Routledge.