MGT 201 Chapter Notes - Chapter 3: Job Performance, Risk Aversion, Inductive Reasoning
Document Summary
A theory consists of a coherent set of general propositions that offer an explanation of some phenomena by describing the way other things correspond to this phenomenon. Theory is a formal testable explanation of some events that includes explanations of how things relate to one another. Theories allow us to understand the logic behind observation. Theories are generalization that help us understand reality. Theory building is the means researchers hope to expand knowledge and search for truth. A theory can be built through a process of reviewing previous findings of similar studies, simple logical deductions, and/or knowledge of applicable theoretical areas. While it may seem that theory is only relevant to academic or basic business research, theory plays a role in understanding practical research as well. The purpose of theory is to gain a better understanding of the environment and be able to predict behaviour. These two issues understanding and predicting- are the two purpose of theory.
