NORMATIVE THEORY 1
Normative theory refers to statements or hypotheses that define whatis wrong or right, just or unjust, desirable or undesirable in acertain society. Based on the theory, opinions and values are termedas non-judgmental and objective. The claim that a certain action isjust or unjust is said to be a statement about somebody’s state ofmind. Individuals may have contradicting moral sediments, and it maybe difficult to identify which one is right. Genuine propositions canbe used to evaluate the sense of each claim. The moral valuesaccepted in an organization control the behavior of the stakeholders.Normative theory facilitates decision-making since it takes care ofthe interest of all the involved individuals (Woodward, 2015). Thecommitment of subordinate ensures that decisions are supported byothers and suit all individuals in a positive manner. The papercovers the implications of normative theory for managers.
Managersare influenced by normative theory when making managerial decisions.The theory guides managers ensuring that the interests of all thestakeholders are put into consideration. A relationship between anorganization and other parties can be promoted by balancing andconsidering the interests of all sides. Normative theory is known tobe managerial because it enables managers to develop policies andorganizational structures that pay attention to all stakeholders’interests (Follesdal, 2013). The managers are involved in makingorganizations decisions. Normative theory controls the establishmentof decisions by defining what is morally acceptable in the relevantorganization. Therefore, the normative theory affects the waymanagers make decisions by ensuring that they pay attention to thewants and needs of the stakeholder groups. Resource allocation aresome of the responsibilities of managers that are based on normativetheory. Managers are required to meet the stakeholders’ claims towin their support. The theory facilitates the development of aneffective resource allocation strategy that considers the interest ofall the individuals. Managers are guided by normative theory toestablish survival tactics that facilitate their managerial duties.An organization must be managed for the benefit of the relevantgroups. The normative theory holds that managers should promote andmaximize organizational financial success (Woodward, 2015). Managersensure high performance by implementing survival strategies such asbalancing stakeholders’ interests.
Anormative theory also guides managers on how to manage theorganizational capital without interfering with the stockholderprinciples. Managers are viewed as stockholder agents under normativetheory. The statements of the theory require managers to adhere tothe stockholders’ legal directions. For instance, an organizationis required to inform employees of its closure early enough usually a90 days’ notice. Normative theory obligates managers to use alllegal and non-deceptive methods to pursue performance and profit.Managers’ responsibilities are constrained by ethical values andlaws that are accepted in the society (Rescher, 2014). Thepromotion of social responsibility in an organization requiresmanagers to make decisions, utilize resources, and accomplish tasksthat do not violate the set rules. Normative theory hinders practicesthat are ill-founded and that are not for the common good. Managersare required to adhere to the legal requirements when accomplishingtheir tasks to ensure that they do not conflict with the law.
In conclusion, normative theory controls the actions of the managerssince it outlines what is acceptable and unacceptable in a certainenvironment. It is the mandate of the managers to ensure that theyconsider the interests of all stakeholders when making decisions. Thenormative theory requires the managers to use legal methods toenhance performance in an organization. Since the theory focus on thecommon good, managers need to embrace its statements.
Follesdal, A. (2013). The legitimacy deficits of the human rightsjudiciary: Elements and implications of a normative theory.Theoretical Inquiries in Law, 14(2), 339-360.
Rescher, N. (2014). A System of Pragmatic Idealism, Volume II: TheValidity of Values, A of Evaluative Rationality(Vol. 2). Princeton University Press.
Woodward, J. (2015). and Descriptive Psychology inUnderstanding Causal Reasoning: The Role of Interventions andInvariance.