Final answer:
It is true that understanding theoretical perspectives of management is key to recognizing why certain practices are favored. By exploring theories such as Theory X and Theory Y, as well as shareholder and stakeholder theories, one gains insight into the motivations, assumptions, and expectations that underpin management decisions and practices.
Step-by-step explanation:
Understanding theoretical perspectives of management is indeed crucial for comprehending why certain management practices are still popular. This understanding is true as it allows insight into the preferences for certain approaches over others, which can sometimes be rooted in historical, psychological, or operational precedents within the field of Industrial and Organizational (I-O) psychology.
For example, Theory X and Theory Y, as proposed by Douglas McGregor, represent two distinct styles of management that affect how workers are motivated and managed. Theory X posits that employees inherently dislike work and must be coerced, while Theory Y assumes that employees find fulfillment in their work and are self-motivated. Understanding these theories helps managers to recognize the value of participation, autonomy, and the pursuit of inner satisfaction in the workplace, rather than relying solely on strict supervision and control.
Further perspectives such as shareholder primacy and stakeholder theory highlight the obligations of managers towards shareholders and other stakeholders, respectively. These theories can influence organizational policies and practices related to governance, ethics, safety, and liability. Therefore, comprehension of these management theories is necessary for effectively navigating and implementing current management practices that may still favor traditional approaches due to their historical success, perceived effectiveness, or ingrained corporate culture.