Management Theory

The significance of the external environment in managing organizations in Kenya

What is management theory?

Management theory means a theory about management. It is a body of knowledge created through scientific (systematic) method. It consists of principles and concepts. These concepts and principles have been determined through observation of events and facts and has established causal relationships and associations of the events and facts. Where these associations and relationships have been established to be true after long periods of observation and association the principles are given and are used to predict what can happen in similar circumstances. Principles could be descriptive prescriptive or normative. Descriptive principles describe relationships between variables. Prescriptive (or normative) principles recommend or propose what should be done to achieve certain results. Management principles are prescriptive because they propose what should be done to achieve organization’s objectives. Therefore management theory is a body of knowledge created or developed through a method of science and consists of principles and concepts that advise management on the things that should be done about organizations so as to achieve desired results.

1.3 Is management a science, an art or a profession?

Management as an art

Art is the know how to accomplish desired results. This implies that there exists a body of knowledge which management uses to accomplish the desired results in organization

Management as a profession

A profession implies that:

1. It is based on a proven systematic body of knowledge and this requires intellectual training to acquire

2. In a profession emphasis is made on service to others and usually there is a code of ethics to be followed

3. Entrance to the profession is usually restricted by standards established by an association of members , membership of which is restricted to people with common training and...