7. Sort of Analogy: Parts of Human Being vs. Units of Theory Kind of HB Domain Brain Concepts Definitions mouth Proposition Hands Heart Variables Hypothesis Thigh Premises Legs Variables
8. What is Theory It would be nice if we could carry reality around in our heads and use it to make our decisions. Unfortunately, no head is that big. So we carry around theories, or models, instead: conceptual frameworks that simplify the reality to help us understand it. Hence, these theories better be good! “There are ideas systematically prepared for authentication is called theories” - Thomas Sowell “ No theory, no learning” - Dr. Edwards Demming “Concepts without perceptions are empty; perceptions without concepts are blind” - Immanuel Kant “ the theory must help in explaining to the world that economies is attempting to understand, and a partial explanation is better than none” - George Stigler “a central purpose of management education is to encourage the development of wisdom. This requires a thoughtful atmosphere in the classroom, where individuals can probe into their own experience, primed by interesting ideas, concepts, theories” - Mintzberg
9. Theory is dirty word in some managerial quarters. That is rather curious, because all of us, managers especially, can no more get along without theories than libraries can get along without catalogs- and for the same reason: theories help us make sense of incoming information. Statistics can certainly pronounce a fact, but they cannot explain it without an underlying context or theory Theory and measurement obviously depend on each other, but clearly theory is the senior partner. A correct theory combined with a measurement is impregnable; a measurement without a theory is a statistical orphan. Theories are not judged based on their complexity, but rather on their usefulness to predict, prescribe or explain; or as china’s former communist leader Deng Xiaoping used to say: “It doesn’t matter if a cat is black or white, so long as it catches mice.” What is Theory