When a manager knows the possible factors of a certain problem, he is in a better situation to deal with it, since he knows where to start from and when he knows that how the factors are inter-related, it helps the manager to deal the matter more cautiously. He would be aware of the fact that what steps are potential to worsen the situation and what steps can make the situation favorable. Thus a wiser step can be taken by a manager if he is aware of the relevant organizational theory.
Above all, an organizational theory provides a framework to respond to a certain situation. Having knowledge of the organizational behavior theories means that the manager has the toolkit with him. It is now up to him that which tools he prefers under what circumstances. The manager has to simply relate the situation with a theory (or theories, if appropriate) and use the learning outcome of that theory to apply it.
An organizational theory is formed on the basis of multiple methods like the experience of the person presenting the theory, his experience, observations, surveys etc. Thus when a manager is aware of the theory and he applies it, he actually applies the experiences, observations and the surveys done previously to formulate that theory, which is impossible as well as impractical for him to do in his personal capacity.
With the changing time and space along with new explorations, new theories come into being frequ ...