The Theory of the Business

This theory written by Peter F. Drucker stating that every business has a theory. This theory is
stating that there are four specifications of a valid theory of the business: The first one is “The
assumptions about environment, mission, and core competencies must fit reality”. In our world
today, every business or organization needed a brand-new start since the pandemic and this first
part of the theory is effective in a sense that everything that we choose to do or apply in our
organization must and should involve pandemic in every plan. The second specification is “The
assumptions in all three areas have to fit one another” in a school’s case this would apply to three
things; the students, the teachers, and the capabilities of both parties. The organization must
think of a plan that can easily connect these three without compromising one or the other.
Thirdly, “The theory of the business must be known and understood throughout the
organization”. This can be understood easily as it only means that everyone in the organization
must be in agreement in every plan. Lastly, “The theory of the business has to be tested
constantly”. This part of the theory is the hardest one as this needs time to be perfected and a lot
of time is to be consumed. Especially during this pandemic that is abrupt and we never had a
chance to even prepare for it in terms of schooling. (Drucker, P.; 1994)

The theory of decision making.

In this theory Edwards made a literature review on how people decide. What are the factors that
affects each person’s decision? How are these factors affect the decision? Who made the
decision? Etc. In an organization, how does one person affect the decision of another? Is a
question that is important in an organization. Just like in this theory we are going to find out how
did they manage to a specific ending with other people also deciding on each factor. Also, in this
theory, it talks about the mathematical explanation, scientific explanation, and the risks involved
in every decision each person will do or decide. (Edwards, W.; 1954)

The following theories are anchored to the process of our research study. We believe that every
organization have a different way to plan things and sort things out. But we may see a pattern of
which and how they apply the plans especially we all have one thing in common, the pandemic.
Decisions by every organization may vary that is dependent to place, and leaders but since we
only have one respondent/organization to look up to this will not be an issue.