ABSTRACT
This chapter discusses the structure of theory, the rules of theory-building, the dimensions and levels of management theory, the criteria for evaluating a theory, and the importance of management theory. In beginning a discussion of the structure of theory, it should be made clear that theory is not something apart from the practical, but rather, it is a foundation for the practical. Developmental efforts in any field of knowledge are greatly aided by the formation of practical rules of theory-building. The field of management is beginning to move away from a reliance upon rules and procedures and towards a fuller utilization of theory. It has been noted that efforts designed to reduce the confusion and controversy in management theory have made only limited progress. Much of this limited progress can be attributed to the failure on management's part to develop clear terminological and conceptual understanding.
