Since the advent of academics and matters regarding knowledge, theories have become part and parcel of almost every important discovery that man has ever made. In order to understand why we should care about them, we should first begin by understanding the meaning of it. According to Schutt (2004), it can be simply explained as sentences that introduce an idea or a coherently interrelated arrangement of suggestions about a specific view in reality. These derivatives can be broken down into
1. Definitions: ideological terms that allude to the essential ideas of the hypothesis
2. Practical connections: Sentences that relate the essential ideas to one another.
Within these we have:
a. Suppositions or sayings
b. Derivations or speculations
3. Operational definitions: Sentences that relate some hypothetical articulation to a set of conceivable perceptions
Even with the above breakdown, it is still not a sufficient reason as to why we should give theories a priority. In order to justify their importance, we should ask ourselves what part they play and they include:
Offer us some assistance with classifying things: elements, forms, and causal connections
For instance, the theory of organization and behavior which in business focuses on matching different skill sets that employees have with the duties that they will excel at. It explains how the process of match making of duties to employees will result in better output as opposed to randomly placed personnel.
Offer us some assistance with understanding how and why officially watched regularities happen
The Administrative theory by Mooney and Reily (1931) was affected by the standard reference to management principles to define clearly the role of an institution or company worked and to which extent and capacity they would operate. It became universal in the 1930's to bring a uniformity to all practices that businesses would undertake.
3. Offer us some assistance with predicting undiscovered connections
For example, when we try to understand the motivation of work and financial reward, the Classical management theory came into play, as it tried to explore the connection between labor and payment as opposed to exchanging it for food or other basic commodities. Thus, it shed light on the important aspect of changing human wants and needs which propel individuals to work for pay. (Helfat, C. E. 2007).
4. Guide research in unexplored areasTraditional and neoclassical scholars saw conflict as something to be avoided on the grounds that it meddled with the functions of an organization. Radical scholars viewed conflict as an avoidable as well as an indication of growth. Chandler (1962) carried out a study of four United States companies and suggested that an institution would actually progress to address the issues of its system. According to Chandler's thoughts, the organization would act in a balanced, successive, and rational way to adjust to changes in their environment. Conflict was a component of an administration's capacity to adjust to natural changes.
5. Serve as a call to action.
The establishment of the systematic theory is that every one of the segments of an association are interrelated, and that changing one variable may affect numerous others. Associations are seen as open frameworks, persistently collaborating with their surroundings. They are in a condition of constant change as they adjust to assimilate to the changing surroundings in order to create a balance. (Ferraro, F., Pfeffer, J., & Sutton, R. I. 2005).
Theories have shaped most of what we know in business and extends to social life. They try to derive a purpose to the way things are and seek to improve on them as well as inspiring new ideas where there was none. Thus,the importance of theories is to seek to quench the curiosity of man as well as to propel him to greater heights.
Ferraro, F., Pfeffer, J., & Sutton, R. I. (2005). Economics Language And Assumptions: How Theories Can Become Self-Fulfilling. Academy Of Management Review, 30(1), 824.
Helfat, C. E. (2007). Stylized facts, empirical research and theory development in management. Strategic Organization, 5(2), 185192.
Index. Retrieved March 4, 2016, from http://www.statpac.org/walonick/organizational-theory.htm
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