A theory can be explained as a given set of principles or statements used to give an explanation to an occurring phenomenon. Theories explain existing situations and can be used to develop solutions to identified problems within an organization especially when it has been tested for a number of times hence acceptable or producing evidence based results. A theory differs from a model in such a way that a model act as a representation of a given phenomena or the actual concept.
A model can in this case be used to explain a given theory. Like a theory a model can be used to make predictions and to control a given situation. scientific inquiry involves the use of systematic methods of collecting, analyzing and concluding data and in turn developing new inventions using scientifically gathered information or facts. The process involves the formulation of theories or hypothesis and effective experiments to test the formulated hypothesis.
Naive inquiry on the other hand involves an informal collection, analysis and interpretation of data and does not necessarily include the application of critically thought ideas and skills. In this case a theory is explained using natural language. Scientific inquiry is likely to produce reliable and results or findings that can be used to find evidence based solutions to an existing problem. It makes use of collected evidence to test given ideas.
Economic theories simplify reality to allow us to understand basic economic forces and how individuals cope with the problems of scarcity. We can observe actions and their consequences. Observation and description are not sufficient for understanding and ultimately predicting actions. Theory establishes relationships between cause and effect. We use it to interpret actions 'and outcomes so we can ...
Evidence based management requires the application of scientific inquiry as it involves the use of meta skills and critically thought approaches in the development of workable solutions (Judd, Kidder& Smith, 1991).
Tested theories act as evidence and produce explanations for existing phenomena that can be used to develop new inventions which may act as control measures or solutions Reference Judd, C. , Smith, E. , Kidder, L. (1991).
Research Methods in Social Relations, 6th ed. , New York: Harcourt Brace Jovanovich College Publishers. .