Dispensationalism is derived from a literal (normal) method of interpretation. It is a system of theology which attempts to develop a biblical philosophy of history. This system regards God as sovereign over time, nations and history. The whole of Scriptures is covered by various dispensations of God’s rule.
The term “dispensation” comes from the Greek word οίκονομία (oikonomia), which means “a way of management over something.” A dispensation is a particular way in which God administers His rule over the world as He progressively works out His purpose for world history.