Final answer:
Universal theories have limited application to organizations since they possess unique characteristics and contexts that influence their structure and operation, such as different types of business ownership and the impacts of unions.
Step-by-step explanation:
When considering whether universal theories can be applied to organizations, it's essential to acknowledge that while organizations share many commonalities, they also possess distinctive characteristics informed by their specific contexts. This includes different economic philosophies, societal values, cultural influences on economic development, as well as internal organizational structures such as type of business ownership, which cater to the needs of business owners, and the dynamics of bureaucracies. Consequently, applying broad theories to specific organizational contexts without adaptation can be problematic, as highlighted by the varying impact of unions on businesses; some leading to bankruptcy while others enhance competitiveness. There is no overall pattern, which challenges universal applicability. Furthermore, the divergence in applicability between society-level problems and individual decision-making suggests that the scope and relevance of a theory may be inherently limited.