The Meaning Of Management In Business

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Management refers to the process of getting work done through people. It means taking charge of different activities in an enterprise. Management has also been defined as a process of getting things done with the aim of achieving goals effectively and efficiently. There is no exact definition of management. It varies among different authorities. Management is necessary when there is a group of people involved in an organization, institute, association etc. in this essay we are going to talk about the two major schools of management thought. These two major schools of management thought are:

Scientific school of thought.

Behaviorist school of thought

These are the two major principles of school management which are being used today by almost every organization. These principles help to successfully achieve the goals set by an organization.

Scientific school of thought:

The scientific school of thought was found by 'Fredrick Winslow Taylor' who was a mechanical engineer who sought to improve the methods of management by analyzing the task scientifically and in his exact words finding 'one best way' to complete the task effectively and efficiently. Taylor highly contributed towards the perfection of the factory system of production. Scientific school of thought included methods such as taking a job and breaking it down into its major components and comparing and analyzing each component as well as comparing each component to the other which results in the finding the most effective and efficient way to perform the job. The main element for such management to work was discipline. Taylor believed that there should be cooperation among the workers as well as the management to get the required output. This creates a partnership between an experienced management and a modern workforce. There are four major principles of scientific management:

Science, Not Rule Of Thumb:

This principle states that the 'Rule Of Thumb' used by organizations will not results in maximization of efficiency whereas the method of scientifically analyzing and measuring will.

Harmony Not Discord:

This principle states that to achieve the organizational goals effectively and efficiently there has to be cooperation between the different working groups in an organization.

Improvement Of Every Individual To Their Greatest Efficiency and Prosperity:

This principle states that each individual should be scientifically studied and work should be assigned to him/her regarding his/her capabilities.

Cooperation Not Individualism:

This principle states that cooperation should exist not only between the groups of an organization but also among the individuals that are in the group.

The principles of scientific management have greatly resulted in efficiency and are being used in the modern world to achieve a task related to management.

The principles of scientific management are important but not without knowing the techniques to carry them out. The techniques of scientific management are:

Functional Foremanship:

Forman is the individual who is in direct contact of the workers and is in charge of all their activities. The job of the foreman is production, planning, implementation and controlling. There are various qualities a Foreman should have and these are not found in person so foremanship has been divided into eight positions each relating to the special qualities. The individuals are closely studied and assigned to their position keeping in mind their special qualities.

Standardization And Simplification Of Work:

Standards have to be set for all the work that is being done to ensure efficiency of work whereas simplification of work helps to cut down on cost of labor, machinery, raw materials etc.

Motion Study:

Motion study refers to the motions of an individual during work. Motion study helps to analyze and eradicate unwanted motions so as to improve the efficiency of the work that is being done. For example giving appropriate tools for brick layering will improve efficiency in laying bricks.

Time Study:

Time study is very important so as to achieve effectiveness as well as efficiency. If time is not taken in accordance then the work will be done efficiently but not effectively.

Fatigue Study:

The aim of fatigue study is to keep in mind the stress levels of the workers. They should not be over worked as well as underworked.

Method study:

There are various methods of performing a task, method study analyzes the task and provides the best method to be used.

Differential Piece Wage System:

This technique is used to motivate workers who are performing well by giving rewards and incentives.

Behaviorist school of thought:

Behaviorist school of thought also known as the Human Relations movement refers to fulfill the effectiveness of the psychological, sociological and other related needs of every individual so as to achieve efficiency in the task that they are performing. Behaviorists trust that analyzing and improving human behavior at work such as motivation, conflicts etc will result in maximum efficiency. Understanding human relations and improving their psychological behavior, sociological behavior at work is known as 'Human Relations Movement'. 'Elton Mayo' contributed greatly towards Human Relations Movement by conducting the famous 'Hawthorne Experiments'. These experiments helped Mayo come to the conclusions that workers need to be satisfied by fulfilling their psychological and social needs. Mayo transformed Scientific Management to the early stages of Human Relations management. Another person who contributed towards the Human Relations management was 'Abraham Maslow'. Who is considered to be the founder of 'Humanistic Psychology'. Maslow stated that "We each have a hierarchy of needs that ranges from "lower" to "higher". As lower needs are fulfilled there is a tendency for other, higher needs to emerge." According to Maslow if the current level of needs of an individual are not fulfilled he/she will not sense a higher level of need. Maslow's hierarchy of needs is discussed below:

Physiological Needs: Food, sleep, shelter etc.

Safety Needs: Protection from physical and emotional harm.

Belongingness and love: Friendship, belonging, affection etc.

Esteem: Self respect confidence attention etc.

Self-actualization: Ones desire to reach his/her highest potential.

The third person to contribute towards Human Relations Management is 'Douglas McGregor'. McGregor is an American Psychologist who is the publisher of the article "The Human Side of an Enterprise". McGregor introduced 'New Humanization Theory X and Theory Y'. Theory X and Theory Y assume the human behavior and nature that are involved in the management process.

Theory X shows a very negative side of human behavior which irresponsible and requires supervision and control.

Theory Y is quite the opposite of Theory X. it shows a very positive human behavior which is skilled, capable and has control over itself.

The principles of Theory X are discussed below:

Management process includes organizing all elements required in an organization such as capital, employees etc.

Management must direct, motivate and fulfill the needs of the employees to achieve organizational goals efficiently and effectively.

The various principles of Theory Y are discussed below:

The employees are experienced in the field of management.

Management teaches employees to develop their qualities by themselves and achieve organizational goals effectively and efficiently.

The management process includes setting objectives so that the employees work effectively and efficiently towards achieving them.

Although both the scientific and behavior school of thoughts are important in their own field they are similar and different in their own way some of them have been discussed below:

Focus: Scientific school of thought aims at increasing productivity by scientific analyzing and applying appropriate methods whereas behavioral school of thought aims on improving the human behavior at work as well as at home so as to increase productivity.

Function of the Leader: In scientific school of thought the function of the leader is to improve productivity no matter what whereas in behavioral school of thought the leader aims at improving the human relations so that the employees can develop their own skills and abilities.

Incentives: In scientific school of thought the rewards and incentives are only given in the form of money to motivate the workers where as in behavioral school of thought not money but other rewards such as self-actualization for employees is also important.

Informal groups: Human relations encourage informal groups between employees so as to assure cooperation and coordination among them during work whereas scientific school of thought does not encourage informal groups because it believes that it would be unnecessary.

Method adopted: Scientific school of thought followed only one method which is scientifically analyzing the task and finding the best way to finish the task whereas behavioral school of thought encourages employees to be more innovative when doing their job which helps them to find new ways of doing and a task as well as developing on their skills.

Decision making: In scientific school of thought the decisions are made by the highest level of management while the middle and lower levels of management are ignored whereas in behavioral school of thought encourages the subordinates to give opinions regarding company issues which are taken into accordance.

Outcome: Scientific school of thought always tries to find ways to improve their analysis method whereas behavioral school of thought believes in finding new innovative ways to perform a particular task.