What makes leadership and management theories practical? Theories are practical to the extent that practitioners can enact proposed cause (X) − effect (Y) relationships. Accordingly, I distinguish three types of practical theories. Manipulate(X) theories give practitioners levers for action. These theories have causal constructs, whose operationalizations’ levels practitioners can set by themselves. For example, in a theory on charismatic leader signals, practitioners can use fewer or more signals. In select(X) theories, practitioners cannot themselves vary a construct’s levels but select the desired level. An example are trait theories of job performance. They inform practitioners at what trait level to select employees. Lastly, in observe(X) theories, practitioners can only measure levels of a causal construct. For example, managers can measure employee trust, but they cannot fix this trust at a certain level. I focus on manipulate(X) theories because they are actionable and rigorous. I discuss criteria for constructs in such theories (e.g., construct unity) and three flaws undermining the development of manipulate(X) theories: (1) the simplification fallacy involves the abstraction of complex phenomena like culture into single constructs, (2) the endogenous-cause problem, when endogenous constructs are treated as exogenous, and (3) construct conflation, the lumping of several constructs under one label.
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