Question

In your company’s management development program, there was a heated discussion between some people who claimed, "Theory is impractical and thus no good," and others who claimed, "Good theory is the most practical approach to problems." What position would you take and why?

Answer 1

"Good theory is the most practical approach to problems."

Step-by-step explanation:

When managers have a solid theoretical background in different areas: management, finance, marketing, etc, they can more easily spot problems in the daily operation of the firm, and use theoretical knowledge and tools to determine the best solution to the issues.

This is not to say that all that is needed is theory. To solve many managerial problems, a good degree of intuition is also important.