Final answer:
Institutional theory describes police organizations as social institutions influenced by their social and political environment, contributing to social order and affected by social disorganization.
Step-by-step explanation:
The theory that holds that police organizations are social institutions that operate in relation to their external social and political environment is known as D. Institutional theory.
This theory understands that institutions, including police departments, are shaped by the complex social and political landscapes in which they exist. It takes into account various external factors that affect how these institutions operate, such as social norms, community expectations, and political pressures. The theory also relates to how these organizations contribute to and maintain social order, and how they may be impacted by social disorganization within the communities they serve.