116: Resource Dependence Perspective – Pfeffer & Salancik (Part 1)

Resource Dependence Theory (RDT) represented a significant departure from extant literature on management and organization studies in the 1970s. Prior to the publication of Jeffrey Pfeffer and Gerald’s The External Control of Organizations: A Resource Dependence Perspective in 1978, the social context and environment surrounding organizations were little studied. In the book, Pfeffer & Salancik argued that the behaviors or organizations and their managers were driven by the context, because of the need for resources in order to survive. Thus, managerial decisions were based far more on how to manage interdependencies with external social actors than what would presumably lead to objectively better outcomes. They believe RDT explains more accurately the kinds of managerial behaviors observed and how organizations chose (and fired) their executives than other theories of the time.