A study of three organizational paradigms which make important contributions to contemporary management

Organizational economics makes important contributions to management theory. The focus of structural contingency theory is on the phenomena of the economy that is significant on organizational management theory and other new paradigms of organizational theories. However, the theory of organizational economics has hardly taken the multiple disciplines of organizational behavior, strategy and theory, but is aligned with the management theories of psychology, sociology and policy dealing with human motivation, induction and enforcement as distinct from the theories of structures, strategies and planning to deal with designs that are appropriate for a computer on which the will of member compliance is not problematic (Donaldson, 1990). This paper aims to review the organizational economics in detail to include its definitions, implications, characteristics and elements of organizational economics, as well as prescriptive and descriptive organizational economics.