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1 Theory
Neurath has likened science to a boat which, if we are to rebuild it, we must rebuild plank by plank while staying afloat in it. The philosopher and the scientist are in the same boat....Analyze theory-building how we will, we all must start in the middle. Our conceptual firsts are middle-sized, middle-distanced objects, and our introduction to them and to everything comes midway in the cultural evolution of the race. In assimilating this cultural fare we are little more aware of a distinction between report and invention, substance and style, cues and conceptualization, than we are of a distinction between the proteins and the carbohydrates of our material intake. Retrospectively we may distinguish the components of theory-building, as we distinguish the proteins and carbohydrates while subsisting on them. (Quine, 1960, pp. 4-6)Theories are usually introduced when previous study of a class of phenomena has revealed a system of uniformities.... Theories then seek to explain those regularities and, generally, to afford a deeper and more accurate understanding of the phenomena in question. To this end, a theory construes those phenomena as manifestations of entities and processes that lie behind or beneath them, as it were. (Hempel, 1966, p. 70)A strong approach [to construct validation] looks on construct validation as tough-minded testing of specific hypotheses:heoretical concepts are defined conceptually or implicitly by their role in a network of nomological or statistical "laws." The meaning is partially given by the theoretical network, however tentative and as yet impoverished that network may be. Crudely put, you know what you mean by an entity to the extent that statements about it in the theoretical language are linked to statements in the observational language. These statements are about where it's found, what it does, what it's made of. Only a few of those properties are directly tied to observables [p. 136]. In [an early] theory sketch, based upon some experience and data, everything said is conjectural. We have tentative notions about some indicators of the construct with unknown validities [p. 144]. [When we check up empirically on predictions from the model] we are testing the crude theory sketch, we are tightening the network psychometrically, and we are validating the indicators. All of these are done simultaneously [p. 149]. [Extracted with elisions and some paraphrase from Meehl & Golden, 1982.] (Cronbach, 1990, p. 183)Historical dictionary of quotations in cognitive science > Theory
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2 Theory W
Gen Mgtan extreme extension of Douglas McGregor’s Theory X, which proposes that not only should employees be coerced into action but that force is often required. Theory W is a humorous contribution to the alphabet theories of management. Theory W stands for Theory Whiplash. -
3 Theory Y
Gen Mgta management theory based on the assumption that employees want to work, achieve, and take responsibility for meeting their work requirements. Theory Y was coined by Douglas McGregor in The Human Side of Enterprise (1960). Although he recognized that Theory Y could not solve all human resource management problems, McGregor favored it over his Theory X, which required an autocratic management style. -
4 Theory Z
Gen Mgta management theory based on the assumption that greater employee involvement leads to greater productivity. Theory Z was proposed by Douglas McGregor shortly before his death in an attempt to address the criticisms of his Theory X and Theory Y. McGregor’s ideas were expanded by William Ouchi in his book Theory Z (1981), reflecting the Japanese approach to human resource management (see HRM). Theory Z advocates greater employee participation in management, greater recognition of employees’ contributions, better career prospects and security of employment, and greater mutual respect between employees and managers. -
5 Theory X
Gen Mgta management theory based on the assumption that most people are naturally reluctant to work and need discipline, direction, and close control if they are to meet work requirements. Theory X was coined by Douglas McGregor in The Human Side of Enterprise (1960), and it was considered by him to be an implicit basis for traditional hierarchical management. McGregor rejected Theory X as an appropriate management style and favored instead his proposed alternative, Theory Y. -
6 Theory O
Gen Mgta mechanism for organizational change based on developing corporate culture and human capability through personal and organizational learning. Theory O involves fostering a culture that encourages employees to find their own solutions to problems through empowerment and participative leadership. Theory O contrasts with Theory E, which involves a top-down approach style of leadership rather than employee participation. -
7 economic theory of the firm
Gen Mgtthe theory that states that the only duty that a company has to those external to it is financial. The economic theory of the firm holds that shareholders should be the prime beneficiaries of an organization’s activities. The theory is associated with top-down leadership, and cost-cutting through rationalization and downsizing. With immediate share price dominating management activities, economic theory has been criticized as being too short-term, as opposed to the longer-term thinking behind stakeholder theory.The ultimate business dictionary > economic theory of the firm
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8 complexity theory
Gen Mgtthe theory that random events, if left to happen without interference, will settle into a complicated pattern rather than a simple one. Complexity theory is a development of chaos theory (see chaos). In a business context, it suggests that events within organizations and in the wider economic and social spheres cannot be predicted by simple models but will develop in a seemingly random and complex manner. -
9 stakeholder theory
Gen Mgtthe theory that an organization can enhance the interests of its shareholders without damaging the interests of its wider stakeholders. Stakeholder theory grew in response to the economic theory of the firm, and contrasts with Theory E. One of the difficulties of stakeholder theory is allocating importance to the values of different groups of stakeholders, and a solution to this is proposed by stakeholder value analysis. -
10 breadth-of-market theory
Finthe theory that the health of a market is measured by the relative volume of items traded that are going up or down in price -
11 attribution theory of leadership
Gen Mgtthe theory that leaders observe their followers’ behavior, attribute it to particular causes, and as a result respond in a particular wayThe ultimate business dictionary > attribution theory of leadership
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12 Dow Theory
Finthe theory that stock market prices can be forecast on the basis of the movements of selected industrial and transportation stocks -
13 loanable funds theory
Finthe theory that interest rates are determined solely by supply and demand -
14 trickle-down theory
Econthe theory that if markets are open and programs exist to improve basic health and education, growth will extend from successful parts of a developing country’s economy to the rest -
15 trait theory
Gen Mgtthe belief that all leaders display the same key personality traits. Trait theory developed from the great man theory of leadership as researchers attempted to identify universally applicable characteristics that distinguish leaders from other people. During the 1920s and 1930s, theorists compiled lists of traits, but these were often contradictory and no single trait was consistently identified with good leadership. -
16 decision theory
Gen Mgta body of knowledge that attempts to describe, analyze, and model the process of decision making and the factors influencing it. Decision theory encompasses both formal mathematical and statistical approaches to solving decision problems, using quantitative techniques such as probability and game theory, and more informal behavioral approaches. It is used to inform and assist decision making in organizations. -
17 expectancy theory
HRa view that people will be motivated to behave in particular ways if they believe that doing so will bring them rewards they both seek and value. Expectancy theory was first applied in the context of the workplace by Victor Vroom in the 1960s. He defined the concepts of valence and expectancy to explain how people decide to act. Valence refers to somebody’s perception of the value of the reward or outcome that might be obtained if he or she performs a task successfully. -
18 flow theory
Gen Mgta theory of the way in which people become engaged with, or disengaged from, change. Flow theory suggests that people harmonize in change situations, and open, honest, trusting relationships emerge. The theory recognizes the unpredictability and rigidity of human nature when faced with change. -
19 transactional theory of leadership
Gen Mgtthe idea that effective leadership is based on a reciprocal exchange between leaders and followers. Transactional leadership involves giving employees something in return for their compliance and acceptance of authority, usually in the form of incentives such as pay raises or an increase in status. The theory was propounded by James MacGregor Burns, and is closely linked with his transformational theory of leadership, which involves moral, rather than tangible, rewards for compliance.The ultimate business dictionary > transactional theory of leadership
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20 transformational theory of leadership
Gen Mgtthe idea that effective leadership is based on inspiring and enthusing subordinates with a corporate vision in order to gain their commitment. Transformational leadership theory was developed by James MacGregor Burns, and is similar to his transactional theory of leadership. Both involve an exchange between leaders and followers, but while the transactional leader offers tangible rewards for compliance, the transformational leader offers moral rewards.The ultimate business dictionary > transformational theory of leadership
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