The Role of Finance within Organizational Theories

Abstract

The objective of this documentary review article is to identify the role of finance within different organizational theories, such as scientific management, classical management, bureaucracy, human relations theory, systems theory, politics, institutionalism, resources and capabilities, and agency, which have established the basis for explaining the management of organizations. Although these theories have been evolving as any collective process over the years, the need arises to carry out an analysis to identify the role of finance within different organizational theories and thus understand at what point financial theories begin to become independent, and also what type of role each one plays in finance. It is concluded that the Scientific, Functional, Human Relations and Behavioral, Systems, Political, and Institutional theories play a role in finance, but it is towards the individual of the organizations, since it is the personnel that executes the different functions that are part of the general gear of the organizations and it was appropriate to study them; and the theories that are identified with greater importance since they consider terms with a direct relation with finance, are the theories of Bureaucracy, Resources and Capabilities, and Agency.