Organizational Theory is the study of how organizations function, how they are structured, and how they interact with their environments. It encompasses various models and frameworks that help understand the dynamics within organizations, including aspects like communication, decision-making, and culture. By analyzing these elements, Organizational Theory aims to improve organizational effectiveness and efficiency. This field draws on insights from disciplines such as sociology, psychology, and economics to explore how organizations can adapt to changes and challenges. Key figures in this area include Max Weber and Henri Fayol, whose contributions have shaped modern management practices and organizational design.