Organizations run on theories as it helps the organization develop the big picture. The theories in organization are broken into seven different categories this included the following? The Transaction Cost Theory, Rational System Theory, Contingency Theory, Institutional Theory, Network Theory, Critical Theory, and Humanistic Theory. These seven categories represent a different portion of a theory in an organization. These theories represent a function, or an influence that affect the organization process. "Theories are sets of consistent, mutually reinforcing statements about a phenomenon that include or imply a central principle or concern" (University of Phoenix, 2015, p. 3). Theories in an organization are extremely important because it sets the big picture, and helps develop adequate questions as an organization.

The question I have for the class is do you use theories in your current leadership? Do you see yourself using all seven major theories in leadership, or have you heard of these types of theories being used by your organization today? I like this section of theories in an organization it helps me view an organization as a whole. The theories behind those seven concepts helps set the tone for the organization.

References:
University of Phoenix. (2015). Understanding Organizations. Retrieved from University of Phoenix, ORG710 website.