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Theories are perspectives with which people make sagacity of their world experiences. Theory is a methodical grouping of interdependent concepts mental images of anything formed by simplification from particular and principles are generalizations or hypotheses that are tested for accuracy and appear to be true to reflect or explain real it that give a structure to, or tie together, a significant area of knowledge. Increase data are not in sequence unless the observer has knowledge of the theory that will explain relationships.

However, the variety of approaches to management study, the welter of research, and the number of opposing views have resulted in much confusion as to what management is, what management theory and science is, and how managerial events should be analyzed.

Principles in management are fundamental truths, explaining affairs between two or more sets of variables, usually an independent variable and a dependent variable. Principles may be descriptive or predictive, and not narrow. That is, they describe how one variable relates to another what will happen when these variables oblige.

Managers who apply theory to managing must usually blend values with realities. Once managers know about theory, they will have the capacity to forestall future problems that may occur in the enterprise. At this point it is worth distinctive management theory from management techniques. Contrary to the theory we have discussed above, techniques are essentially ways of doing things; methods of accomplishing a given result. In all fields of practice, including management, they are important.


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