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Strategic choice is an important factor for the development of an organization. It highly contributes to determining the organizational actions and assists the manager's inadequate decision making. For developing the clear understanding of the organization and controlling its internal and external affairs the strategic choice theory has been developed. This particular theory has been developed in U.S. at the time when the changes in the industrial relations were taking place rapidly (Wheelen & Hunger, 2017). The strategic choice theory focuses on the external forces that are directly and indirectly related to the organizational affairs and assists in building up the relations between the employer-employee and creating the betterment in employer-employee relations as well. The changing external environment is analyzed and accordingly, the competitive strategies are designed to fight with the dynamic market. The manager undertakes the changes in the competitive strategies which result in the emergence of various values, beliefs, philosophies, and innovation in decision-making techniques (Pisano, 2017). The companies now adopt the decentralization method where the part of responsibility followed by authority is rendered to the employees so that they may also take the decision and even their decision-making skills get improved. The suggestions and ideas from the low-level employees result in the betterment of the relations and the employee engagement with the organization gets increased.

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