The Process Of A Term Management Business Essay

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The term management is the process of getting people to achieve the desired goals of an organization. Management includes certain steps through which an organization is able to fulfill their goals. It means getting things done effectively and efficiently. Basically it is a creative as well as a systematic flow of knowledge which is applied for getting desired results by using human and other resources in the effective way. It does not just about managing human resource but it is also divided into financial management, strategic management, operations management, time management, crisis management, marketing management etc. Management makes it possible for the companies to achieve their desired goals and maximize profit. It is like an investment which transfers inputs into outputs. It is a group activity where work is done by the employees in time without comprising the quality of the results.

Management is dynamic in nature. It is the art of making people more effective. The science is the process to make it possible. There are many theories on management. The Behavioral Theory and the Scientific Theory are two of those. The Behavioral Theory is more concerned and concentrated on the human behavior at work whereas the Scientific Theory is more concerned about the need to increase productivity.

Behavioral School of Thought

The behavioral management theory is also called the human relations movement. The theorist who created this theory believed that the employees are individuals, resources, and assets that are to be developed and worked with and disagreed that the employees were considered as machines.

According to this theory, the manager should attain skills for identifying the reasons of human behavior at work and find out the things that keep the employees motivated. The main focus of this school of thought was satisfying worker needs. If employee needs were satisfied, the workers would tend to product more. Thus, the human relations school focuses on issues of communication, leadership, motivation, and group behavior. The behavioral school of thought is based on the belief that psychological techniques works better to motivate employees to increase productivity than rules and regulations. Behavioral thought believes that increased worker satisfaction leads to greater performance of the workers.

Elton Mayo is said to be the founder of the behavioral theory of management. He conducted an experiment to identify factors that would decline worker productivity. It was concluded that financial incentives did not influence productivity. Instead, they learned that an emotional chain reaction was causing the increase in productivity. Workers were not so much influenced by the pay and working conditions as much as they were influenced by the psychological wants and desires which could be satisfied by belonging to a work group. Also, giving responsibility for decision making, whether as individuals or in a group, were incentive to treat the task as more important. And finally, recognition by superiors made workers feel that they were making an important contribution to the organization. It was concluded that the worker are not only an extension of machinery

The conclusion from the Hawthorne studies was that the psychological and social needs of workers are important factors of an organization. This principle helped to bring about a change in theories and practices of management. Abraham Maslow, a practicing psychologist, developed an important need theory. It was a theory of motivation that was created based on the study of human needs. Maslow's theory suggested that the most basic level of needs must be met before the individual will strongly desire the higher level needs. Maslow broke down the needs hierarchy into five areas:

Physiological needs.

Safety needs.

Belonging and love needs.

Esteem needs.

Self-actualization needs.

Maslow's hierarchy of needs helped managers to realize what motivated the workers.


Maslow's hierarchy has difficulty in explaining cases where a person neglects the lower needs in order to attain the higher ones. There is little proof to propose that human beings are motivated to satisfy only one level of their needs at a time, except when there is a conflict between needs. The main drawback of his theory is that different people have different priorities on their needs, and that s why they will have different relationships between their needs and the factors that motivate them. For example, some people may see monetary incentive as the only fulfilling security need, and will be happy to work for certain amount of money and achievement. Whereas, some people may feel that gaining power will increase their self-esteem, and they might even work harder if they get an opportunity to increase their power. It is also hard for a manager to decide what need is influencing an employee to work at one point of time, as beings need is usually influenced by factors such as their family and the society/community they live in.

Another drawback was that there was no evidence to support Maslow s hierarchy that it applies to all people. For example, many actors are ready to struggle on minimum wages, with minimum food and security, in search of recognition, respect and achievement within their chosen career. There is also little evidence to support the argument that people focus on one need at once, and will often consider many needs when making a decision.

Scientific school of thought

Frederick Winslow Taylor described how scientific theory of management could improve productivity. Scientific management methods were called for improving the way the tasks were performed by the workers and to make jobs easier enough so that workers could be trained in such a way that they could perform the given task in the one best way.

Earlier, work was performed by skilled workers who had learned their jobs in lengthy trainings. They made their own choices as to how their job was to be performed. Scientific management took away the freedom and converted skilled workers job into a series of jobs that could be easily performed by unskilled workers and they could easily be trained for the tasks.

Taylor argued that even the most basic and mindless tasks could be planned in such a way that it would increase productivity, and that scientific theory was more effective than the "initiative and incentive" method of motivating workers. The initiative and incentive method offered an incentive to increase productivity but placed the entire responsibility on the worker as to figure out how to do the work.

After years of experiments to find out the best work methods, Taylor proposed the following principles of scientific management:

1. Replace the rule-of-thumb method with those methods which are created on a scientific study of the tasks.

2. Scientifically choose, train, and improve each worker instead of leaving them to be trained by themselves.

3. Cooperate with the workers to confirm that they follow the scientific methods.

4. Divide work quite equally between managers and employees, so that the managers apply the scientific theory of principles to plan the work and the employees actually accomplish the tasks.

These principles often increased productivity in places where they were implemented.


Although Taylor's method led to increase in productivity and higher pay in number of instance, the workers began to oppose his approach because they feared that working harder or faster would exhaust whatever work was available causing layoffs. Moreover, Taylor s system clearly meant that time was of great importance. The emphasis on productivity and extension of profitability led some managers to exploit both the workers and customers. It also led to conflicts with labor unions. It is not useful to deal with groups or teams. Taylorism leaves no room for individual preferences or initiative. It treats employees as machines and it also leads to loss of skill level and independence at worker level.


Taylor is also famous as the Father of Scientific Management. He is recognized for his Time and Motion Study and the Differential Piece Rate System that he had introduced. Elton Mayo is known as the founder of the Behavioral Management Theory. Mayo s experiment, the Hawthorne Studies, concluded and led to a different school of thought called the Human Relations Movement.

Taylor understood that the working practices acted as barriers to the production instead of contributing to increase in output. The Rule of Thumb method was seen, by Taylor, as the main problem to maximum productivity. Whereas, Mayo believed that if the organization has to fulfilled their goals, the management and managers need to understand and respect the emotions, esteem and contentment of non-monetary needs of the employees. Mayo believed that the satisfaction of psychological needs of the workers should be the main priority of the management.

Taylor believed that only financial incentives motivated the workers to work better.

He believed that if the money paid to the workers or the financial benefit given to workers increased it could result in increase in the productivity of the organization. This is because Taylor believed that workers are lazy and they would reduce the amount of work given to them. He also believed that the managers should divide the work in such a manner that the planning done by the management must be performed by the workers without further arguments or questioning. In addition to this Taylor introduced the Differential Piece Wage System . Taylor wanted to differentiate between efficient and inefficient workers. He wanted to reward the efficient workers which is why he introduced this system where the employees were not only rewarded to fulfill a desired a task but also punished for not accomplishing the task.

In contrast, Mayo believed that financial benefit was not the only factor that would influence or motivate the workers. The results of the experiment he conducted, the Hawthorne Experiments, concluded that social bonds within working groups were so strong that group interests were sometimes placed above individual financial rewards. According to Mayo, if a worker respected his co-workers and other workers/managers in the organization he would create a healthy working environment. If a worker knew that if he produced unusual output he would probably risk his existence in the group. Then he would but naturally tend to follow the pre-planned group standard of production and produce equal amount of output as compared to the other members of the group. This would stop him from producing more output and limit his innovation. Therefore, the management had to take into consideration workers psychological needs and attitude.

The scientific management focused more on the output produced. It considered the employees to be the basic element of organization. Whereas, behavioral management stressed concern for the workers and the informal group of the organization.

Taylorism avoided informal groups . It described the worker as mechanical element and a person who worked only for financial incentives and benefits and the only way to achieve the organizational goals was to continue the rationality. But the behavioral theory said that it was important to increase the communication and cooperation among the members of the organization as it would contribute to achieve organizational goals.

Both the schools of management had their own principles, limitations and views.

The information stated above tells why the two types of management are different.


Though practice of management existed thousands of years ago most of them needed to be refined to call them management principles. The management theory is referred to the period between 1995s. It highlighted the economic rationality of management and suggested to determine the best way to perform a job.

Behavioral school of thought started in the period of 1950s and basically focused on understanding of human behavior in the organization. The behavioral school focused on trying to understand the factors that affect human behavior at work.

Hence, it can be concluded that even though both management theories had one common goal, their ways of approach were completely different. The scientific management theory and the behavioral theory both aimed at increasing the organizational efficiency.

Both of these schools originated long ago however they continue to evolve and aim at increasing the overall efficiency of the organisation.