Professional Documents
Culture Documents
LESSON
1
MANAGEMENT SCIENCE: THEORY AND
PRACTICE
CONTENTS
1.0 Aims and Objectives
1.1 Introduction
1.2 Definition of Management
1.3 Characteristics of Management
1.4 Scope of Management
1.4.1 Subject-matter of Management
1.4.2 Functional Areas of Management
1.4.3 Management is an Inter-disciplinary Approach
1.4.4 Principles of Management
1.4.5 Management is an Agent of Change
1.4.6 The Essentials of Management
1.5 Is Management a Science or an Art?
1.5.1 What is "Science"?
1.5.2 What is "Art"?
1.5.3 Management is both a Science as well as an Art
1.6 Professionalisation of Management
1.7 Evolution of Management Thought
1.7.1 Pre-scientific Management Period
1.7.2 Classical Theory
1.7.3 Neoclassical Theory
1.7.4 Modern Theory (System Approach)
1.8 Let us Sum up
1.9 Lesson-end Activity
1.10 Keywords
1.11 Questions for Discussion
1.12 Suggested Readings
1.1 INTRODUCTION
Management is a vital aspect of the economic life of man, which is an organised group
activity. A central directing and controlling agency is indispensable for a business concern.
The productive resources – material, labour, capital etc. are entrusted to the organising
skill, administrative ability and enterprising initiative of the management. Thus, management
provides leadership to a business enterprise. Without able managers and effective
managerial leadership the resources of production remain merely resources and never
become production. Under competitive economy and ever-changing environment the
quality and performance of managers determine both the survival as well as success of
any business enterprise. Management occupies such an important place in the modern
world that the welfare of the people and the destiny of the country are very much
influenced by it.
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10. Management involves decision-making: Management implies making decisions Management Science: Theory
and Practice
regarding the organisation and operation of business in its different dimensions. The
success or failure of an organisation can be judged by the quality of decisions taken
by the managers. Therefore, decisions are the key to the performance of a manager.
11. Management implies good leadership: A manager must have the ability to lead
and get the desired course of action from the subordinates. According to R. C.
Davis - "management is the function of executive leadership everywhere".
Management of the high order implies the capacity of managers to influence the
behaviour of their subordinates.
12. Management is dynamic and not static: The principles of management are
dynamic and not static. It has to adopt itself according to social changes.
13. Management draws ideas and concepts from various disciplines: Management
is an interdisciplinary study. It draws ideas and concepts from various disciplines
like economics, statistics, mathematics, psychology, sociology, anthropology etc.
14. Management is Goal Oriented: Management is a purposeful activity. It is
concerned with the achievement of pre-determined objectives of an organisation.
15. Different Levels of Management: Management is needed at different levels of
an organisation namely top level, middle level and lower level.
16. Need of organisation: There is the need of an organisation for the success of
management. Management uses the organisation for achieving pre-determined
objectives.
17. Management need not be owners: It is not necessary that managers are owners
of the enterprise. In joint stock companies, management and owners (capital) are
different entities.
18. Management is intangible: It cannot be seen with the eyes. It is evidenced only by
the quality of the organisation and the results i.e., profits, increased productivity etc.
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2. The kind of experimentation (as in natural sciences) cannot be accompanied in the Management Science: Theory
and Practice
area of management since management deals with the human element.
3. In management, it is not possible to define, analyse and measure phenomena by
repeating the same conditions over and over again to obtain a proof.
The above observation puts a limitation on management as a science. Management like
other social sciences can be called as "inexact science".
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Principles of Management and Is management a profession? To answer this question, first of all we should understand
Organisational Behaviour
what a profession is. Many authorities on the subject have attempted to define a profession.
According to Abraham Flexner, A profession is -
The World Council of Management has recommended the following criteria for
professionalisation. They are -
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A close scrutiny of management shows that management unlike law or medicine is not a Management Science: Theory
and Practice
full-fledged profession. The reasons are -
1. It is not obligatory to possess specific qualifications for being appointed as a manager.
2. There is no single association to regulate the educational and training standards of
managers.
3. Uniform professional standards have not been set up for the practicing managers.
Thus, from the above mentioned discussion we can understand that management fulfils
certain criteria to call it a profession. Whereas, it fails to meet certain other criteria.
Therefore, we can conclude that management is not a full-fledged profession but it is
advancing towards professionalisation.
1. Define Management?
2. Explain the characteristic features of management.
3. What is the scope of management?
4. Why is management considered a science as well as an art?
5. What do you mean by Professionalisation of management?
2. Classical Theory
(a) Scientific Management of Taylor
(b) Administrative Management of Fayol
15
Principles of Management and Fig 1.1 explains the evolution of management thought.
Organisational Behaviour
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Principles of Management and Features of Management in the Classical Period:
Organisational Behaviour
1. It was closely associated with the industrial revolution and the rise of large-scale
enterprise.
2. Classical organization and management theory is based on contributions from a
number of sources. They are scientific management, Administrative management
theory, bureaucratic model, and micro-economics and public administration.
3. Management thought focussed on job content division of labour, standardization,
simplification and specialization and scientific approach towards organization.
A. Taylor's Scientific Management: Started as an apprentice machinist in
Philadelphia, USA. He rose to be the chief engineer at the Midvale
Engineering Works and later on served with the Bethlehem Works where
he experimented with his ideas and made the contribution to the management
theory for which he is so well known. Frederick Winslow Taylor well-known
as the founder of scientific management was the first to recognize and
emphasis the need for adopting a scientific approach to the task of managing
an enterprise. He tried to diagnose the causes of low efficiency in industry
and came to the conclusion that much of waste and inefficiency is due to the
lack of order and system in the methods of management. He found that the
management was usually ignorant of the amount of work that could be done
by a worker in a day as also the best method of doing the job. As a result, it
remained largely at the mercy of the workers who deliberately shirked work.
He therefore, suggested that those responsible for management should adopt
a scientific approach in their work, and make use of "scientific method" for
achieving higher efficiency. The scientific method consists essentially of
(a) Observation
(b) Measurement
(c) Experimentation and
(d) Inference.
He advocated a thorough planning of the job by the management and emphasized the
necessity of perfect understanding and co-operation between the management and the
workers both for the enlargement of profits and the use of scientific investigation and
knowledge in industrial work. He summed up his approach in these words:
l Science, not rule of thumb
l Harmony, not discord
l Co-operation, not individualism
l Maximum output, in place of restricted output
l The development of each man to his greatest efficiency and prosperity.
Elements of Scientific Management: The techniques which Taylor regarded as its
essential elements or features may be classified as under:
1. Scientific Task and Rate-setting, work improvement, etc.
2. Planning the Task.
3. Vocational Selection and Training
4. Standardization (of working conditions, material equipment etc.)
5. Specialization
6. Mental Revolution.
1. Scientific Task and Rate-Setting (work study): Work study may be defined as
the systematic, objective and critical examination of all the factors governing the
operational efficiency of any specified activity in order to effect improvement.
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Work study includes.
(a) Methods Study: The management should try to ensure that the plant is laid Management Science: Theory
and Practice
out in the best manner and is equipped with the best tools and machinery. The
possibilities of eliminating or combining certain operations may be studied.
(b) Motion Study: It is a study of the movement, of an operator (or even of a
machine) in performing an operation with the purpose of eliminating useless
motions.
(c) Time Study (work measurement): The basic purpose of time study is to
determine the proper time for performing the operation. Such study may be
conducted after the motion study.
Both time study and motion study help in determining the best method of
doing a job and the standard time allowed for it.
(d) Fatigue Study: If, a standard task is set without providing for measures to
eliminate fatigue, it may either be beyond the workers or the workers may
over strain themselves to attain it. It is necessary, therefore, to regulate the
working hours and provide for rest pauses at scientifically determined intervals.
(e) Rate-setting: Taylor recommended the differential piece wage system, under
which workers performing the standard task within prescribed time are paid
a much higher rate per unit than inefficient workers who are not able to come
up to the standard set.
2. Planning the Task: Having set the task which an average worker must strive to
perform to get wages at the higher piece-rate, necessary steps have to be taken to
plan the production thoroughly so that there is no bottlenecks and the work goes on
systematically.
3. Selection and Training: Scientific Management requires a radical change in the
methods and procedures of selecting workers. It is therefore necessary to entrust
the task of selection to a central personnel department. The procedure of selection
will also have to be systematised. Proper attention has also to be devoted to the
training of the workers in the correct methods of work.
4. Standardization: Standardization may be introduced in respect of the following.
(a) Tools and equipment: By standardization is meant the process of bringing
about uniformity. The management must select and store standard tools and
implements which will be nearly the best or the best of their kind.
(b) Speed: There is usually an optimum speed for every machine. If it is exceeded,
it is likely to result in damage to machinery.
(c) Conditions of Work: To attain standard performance, the maintenance of
standard conditions of ventilation, heating, cooling, humidity, floor space, safety
etc., is very essential.
(d) Materials: The efficiency of a worker depends on the quality of materials
and the method of handling materials.
5. Specialization: Scientific management will not be complete without the introduction
of specialization. Under this plan, the two functions of 'planning' and 'doing' are
separated in the organization of the plant. The `functional foremen' are specialists
who join their heads to give thought to the planning of the performance of operations
in the workshop. Taylor suggested eight functional foremen under his scheme of
functional foremanship.
(a) The Route Clerk: To lay down the sequence of operations and instruct the
workers concerned about it.
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Principles of Management and (b) The Instruction Card Clerk: To prepare detailed instructions regarding
Organisational Behaviour
different aspects of work.
(c) The Time and Cost Clerk: To send all information relating to their pay to the
workers and to secure proper returns of work from them.
(d) The Shop Disciplinarian: To deal with cases of breach of discipline and
absenteeism.
(e) The Gang Boss: To assemble and set up tools and machines and to teach the
workers to make all their personal motions in the quickest and best way.
(f) The Speed Boss: To ensure that machines are run at their best speeds and
proper tools are used by the workers.
(g) The Repair Boss: To ensure that each worker keeps his machine in good
order and maintains cleanliness around him and his machines.
(h) The Inspector: To show to the worker how to do the work.
6. Mental Revolution: At present, industry is divided into two groups – management
and labour. The major problem between these two groups is the division of surplus.
The management wants the maximum possible share of the surplus as profit; the
workers want, as large share in the form of wages. Taylor has in mind the enormous
gain that arises from higher productivity. Such gains can be shared both by the
management and workers in the form of increased profits and increased wages.
Benefits of Scientific Management: Taylor's ideas, research and recommendations
brought into focus technological, human and organizational issues in industrial management.
Benefits of Taylor's scientific management included wider scope for specialization,
accurate planning, timely delivery, standardized methods, better quality, lesser costs,
minimum wastage of materials, time and energy and cordial relations between
management and workers. According to Gilbreths, the main benefits of scientific
management are "conservation and savings, making an adequate use of every one's
energy of any type that is expended". The benefits of scientific management are:-
(a) Replacement of traditional rule of thumb method by scientific techniques.
(b) Proper selection and training of workers.
(c) Incentive wages to the workers for higher production.
(d) Elimination of wastes and rationalization of system of control.
(e) Standardization of tools, equipment, materials and work methods.
(f) Detailed instructions and constant guidance of the workers.
(g) Establishment of harmonious relationship between the workers.
(h) Better utilization of various resources.
(i) Satisfaction of the needs of the customers by providing higher quality products at
lower prices.
Criticism
1. Worker's Criticism:
(a) Speeding up of workers: Scientific Management is only a device to speed
up the workers without much regard for their health and well-being.
(b) Loss of individual worker's initiative: Scientific Management reduces workers
to automatic machine by taking away from them the function of thinking.
(c) Problem of monotony: By separating the function of planning and thinking
20 from that of doing, Scientific Management reduces work to mere routine.
(d) Reduction of Employment: Scientific Management creates unemployment Management Science: Theory
and Practice
and hits the workers hard.
(e) Weakening of Trade Unions: Under Scientific Management, the important
issues of wages and working conditions are decided by the management
through scientific investigation and the trade unions may have little say in the
matter.
(f) Exploitation of workers: Scientific Management improves productivity
through the agency of workers and yet they are given a very small share of
the benefit of such improvement.
2. Employer's Criticism:
(a) Heavy Investment: It requires too heavy an investment. The employer has
to meet the extra cost of the planning department though the foreman in this
department do not work in the workshop and directly contribute towards
higher production.
(b) Loss due to re-organization: The introduction of Scientific Management
requires a virtual reorganization of the whole set-up of the industrial unit.
Work may have to be suspended to complete such re-organization.
(c) Unsuitable for small scale firms: various measures like the establishment
of a separate personnel department and the conducting of time and motion
studies are too expensive for a small or modest size industrial unit.
Fred Taylor took a lot of flack during his heyday. Unions were suspicious of him, employers
were skeptical of his claims and the government thought he needed to be investigated.
Taylor's philosophy permeated his whole life. Sudhin Kakar, in his study, Frederick Taylor: A
Study in Personality and Innovation (Cambridge: MIT Press, 1970), notes that he did such
strange things as experiment with his legs on cross-country walks to discover the step that
would cover the greatest distance with the least expenditure of energy; as a young man,
before going to a dance, he would conscientiously and systematically list the attractive and
unattractive girls with the object of dividing his time equally between them; and he often
incurred the wrath of his playmates when he was more concerned that the playing field for
sports be scientifically measured than he was with actually playing the game.
Taylor's "one best way" philosophy has often been misunderstood; though he believed
that in terms of physical motions there should be "one best way", he also recognized that
the equipment needed to perform the "one best way" would vary from person to person.
His famous example of equipping a large man and a small man with shovels of different sizes
to match the equipment with the person.
While it is fashionable today to blast Taylor as being insensitive to human needs and
treating people like machines, it is painfully obvious that his influence is probably as great
now as it ever was. Though Taylor is criticized for treating people only as economic beings,
surveys show that dollar motivation is still strong, particularly in manufacturing organizations.
If one includes managerial personnel who are on some type of bonus or profit-sharing
scheme, then we probably have more people today on economic incentive systems than
ever before.
Source: Jerry L Gray and Frederick A Starke "ORGANIZATIONAL BEHAVIOUR - concepts and applications"- Charles E
Merrill Publishing Company Columbus (Third Edition) Page 9.
The Human Relations School of thought has been accused of advocating "cow sociology"
as a method of managing people, i.e., since happy cows can give more milk, it follows that
happy people will produce more. But do happy cows give more milk? Or, perhaps more
importantly, how can you tell if cows are happy? In our quest for an answer to these
important questions we asked farmers, dairies, and professors of agriculture; we read journals
(Journal of dairy Science), textbooks on dairy management, and popular farm publications.
We even assigned a graduate student to research the question. But alas, we could not
uncover any scientific evidence proving it to be true (although everyone we spoke to
believed it to be true). In one study, we found, an author noted the importance of
"psychological and stress" factors which affected milk production, but declined to study
them because "they were too difficult to measure". So at least for the present, we must
scientifically conclude that the question is yet unanswered. Nevertheless, we were impressed
by one textbook in dairy science in which the author prescribes several techniques to
maximize milk production:
1. Cows become accustomed to a regular routine; disturbing his routine disturbs them and
causes a decrease in milk production.
2. Attendants should come into close contact with the cows, and it is important that the
best of relations exist between the cows and keepers.
3. The cows should not be afraid of the attendants.
4. Cows should never be hurried.
5. Chasing cows with dogs or driving them on the run should never be allowed.
6. In the barn, attendants must work quietly; loud shouting or quick movements upset
cows and cause them to restrict production.
Now the question is, can these principles be applied to people?
Source: Clarence H Eckles, Dairy Cattle and Milk Production (New York: Macmillan 1956), Page 332 - 33
Note:
1. Generally there are three basic inputs that enter the processor of the system namely information
(Technology), energy (motive power) and materials to be transformed into goods.
2. If the output is service, materials are not included in the inputs.
3. If we have a manufacturing company, output are goods or materials.
4. If we have a power generating company, output is energy.
1.10 KEYWORDS
Management
Professionalisation of Management
Scientific Management
Behavioural Theory
Contingency Theory