2.1 INTRODUCTION
Evolution of management is concerned with the
various development stages that management has gone through over years.
Historically, Management was not recognised as a distinct subject such as
Geography, Economics, Mathematics, Physics, Law, Accounting, etc. worthy to be
studied in educational institution.
The tendency was therefore for people to
marginalise it since the Geographer, Economist, Mathematician, Physicist,
Lawyer, Accountant, etc. who establishes his business and was in charge of
affairs was regarded as a manager.
Interestingly, if one has not studied courses such
as Law and Accounting one cannot call himself a Lawyer or an Accountant
respectively.
The same cannot be said of Management since it is
loosely used to apply to anybody who has established his own business and is in
total control of it.
2.2 CHANGING TREND
The concepts of evolution and
development have created a paradigm shift in emphasis to the point that
management is now regarded as a distinct subject or course of study vigorously
studied in many educational institutions. The existence of many management and
administration educational institutions the world over are practical
demonstration of the fact that there has been a paradigm shift in emphasis. For
example, we have Business Schools all over the world and in Ghana we have,
KNUST School of Business, Ghana Institute of Management and Public
Administration [GIMPA], Institute of Professional Studies [IPS], etc.
Even though the renowned authorities in the field
of management achieved fame through personal intuition, practice and experience
[Art], the fact remains that many went through formal training in it [Science].
The various principles of management propounded by
Henri Fayol were the results of many years of practice and formal training.
2.3 INTER-DISCIPLINARY NATURE OF MANAGEMENT
Management has assumed inter-disciplinary
dimension since it borrows ideas from various fields such as Economics, Law,
Sociology, Psychology, Anthropology and Accounting.
The good general manager is the
one who can articulate and demonstrate rich knowledge in many related
disciplines in addition to the key functional areas of Management. For example,
the Finance manager should be able to understand marketing issues relating to
customers satisfaction, brand image and other related issues.
Thus, the inter-disciplinary
nature of management compels managers to broaden their knowledge in the
relevant and related disciplines.
It can therefore be concluded that experts in the
other relevant disciplines needed in management have also contributed to the
evolution and development of management.
2.4 THEORIES/APPROACHES TO MANAGEMENT
A lot of theories have been
developed to underpin the concept of management in organisation. Among some of
these schools of management thought are the classical or traditional approach,
the behavioural approach, the system approach and the contingency approach.
2.4.1. Classical /Traditional Approach
The key assumption under this
approach is that people are rational and economically oriented in their
approach towards work.
The approach focuses extensively on formal
organizations. It also deals with management and organizations by emphasizing
more on the organization‟s purpose and formal structure
Proponents of this approach also
placed greater emphasis on planning of work, the technical requirements of the
organization, principles of management, and rational and logical behaviour. The
classical school tried to lay down universal principles for the structure and
organisation of a business.
Branches/Dimensions of the Classical Approach
the classical approach is made up of:
·
Scientific
Management
·
Administrative Management
·
Bureaucratic Management
2.4.2
Scientific Management
It aims at
improving the general manufacturing process with a view to improving
productivity. It is also concerned with formulating proper work procedures so
that materials will flow uninterrupted. It lays emphasis on scientific methods
of doing things rather than the use of personal intuition, experience, practice
and guess work.
Pioneers in the Field of Scientific Management.
Scientific management was based on the work of
Frederick Winslow Taylor [1856-1915]. He was described as the Father of
Scientific Management. He was born in Boston, Massachusetts and started work as
an apprentice in engineering. He spent most of his time working and achieving
greater efficiency at the shop-floor. His solutions to problems of efficiency
were from his own practical experiences. He rose through the ranks to become a
Manager in the Midvale Steel Co. He also worked with Simonds Rolling Machine
Co. It was at Bethlehem that he conducted
experiment on how to improve labour productivity. He consolidated his ideas
into a book – The Principles of Scientific Management [1911].
Taylor contributed to the study of management in
the following areas:
The need to
develop scientific methods of doing things rather than opinion and
rule-of-thumb.
Scientific
selection of workers with properly defined roles and responsibilities.v
Scientific
education, training and development of the workerv
Scientific
development of intimate, friendly and co-operative spirit between management
and labour.
According to Taylor, the success of the above
principles required a complete mental revolution on the part of management and
labour. This required substituting facts or scientific method for intuition,
opinion and guesswork.
Taylor was concerned with finding the one best way
to perform a task. His basic philosophy of work was based on motivation. He
believed that prosperity of both the employer and the worker could only be
achieved through maximizing productivity. Taylor suggested that organisations
would be more efficient if their knowledge, experience and practices were analysed
and the best methods established by management.
Implications
of Taylor‘s work
Managers have now realised the
need to assign roles and responsibilities. Managers now apply the principles of
division of labour and specialization. Managers now design an organizational
structure, recruit workers and fit them into the organization with well–defined
roles and responsibilities.
Managers at the shop–floor of manufacturing
concerns now appreciate correct sequence of manufacturing operations through
appropriate plant layout- product, process, fixed position etc.
Examples of Taylor’s Scientific Studies
He analysed and timed steel worker movement on
series of jobs. Using time study as a base, he broke each job down into its
components and designed the quickest and best methods of doing each component
of the job[task] the conclusion was that, he was able to allot the optimum time
for performing a task given the equipment and material on hand.
He also
recommended appropriate compensation for more productive workers in relation to
others based on a scientifically correct rate that would benefit both the
worker and the organization.
Contributions/benefits from scientific management
·
Scientific
approach to doing things leads to general improvement in working conditions
·
Scientific
improvement in working methods leads to increased in productivity all other
things being equal.
·
It enables
workers to be paid by results and to take advantage of packages.
·
The
scientific approach to management enable managers to adopt a more positive role
in leadership styles at the shop floor level in particular
·
It was the
basis and the foundation for advanced studies [motion study]
·
It created
orderliness through a well-designed organizational structure
·
It reduced
putting square pegs in round holes since workers were carefully selected based
on their abilities to do a particular work
·
It
emphasized the importance of training and development of employees to enhance
their productive efficiency.
·
It provided
supervisors with the necessary support to make them more effective
Limitations/drawbacks of the scientific management
·
Workers
resented Taylor‟s position expressing anxiety that working faster or
harder will exhaust work and may lead to redundancy and consequently lay-offs.
·
The faster
work rate which implied speed up was criticized since it exerted pressure on
the work force to achieve a set standard to qualify for an incentive package.
·
Scientific
management had little regard for human feelings and sentiments. The emphasis
was too much on hard work and increased productivity.
·
Greater
emphasis on productivity and profitability made the manager to exploit the
worker and the buyer of his products.
·
The worker
was made a rigid adherent to methods and procedures to the detriment of
discretion and initiative.
·
It narrowed
motivation to bonus system of incentive to the neglect of other methods of
motivation such as respect for human rights.
·
The approach
gave managers at the workplace the exclusive right to plan and control
activities.
·
The system
of bargaining for conditions of work was absent since every job was
scientifically measured, timed and rated.
·
2.4.3 Administrative management principles/theory
The administrative principles/theory was also
regarded as classical organization theory. Its two major purposes are;
·
To develop basic principles that could guide the design
creation, and maintenance of large organizations;
·
To identify
the basic functions of managing organizations.
Henri Fayol [1841-1925]
He was French industrialist and had extensive
business experience. He founded the classical approach. He started work as a
mining engineer at the age of 19. He spent his entire working life with the
same company and rose to become the managing director at the age of 47 and
retired at the age of 77. He published his lifetime working experience in his
book “Administration
Industrielle et generate in 1916”. The book was
later translated by Storrs [1949] into English to read General and Industrial
Management.
Fayol‟s concern was on the totality of an
organization. To him, management was the most neglected aspect of business
operation. Before Fayol, the general believe was that managers are born and not
made. That is to say, no one could become a manager through formal training.
However, Fayol was of the view that management was
a skill like any other, and that, it could be taught once its underlying
principles were understood. He was thus given the following accolades:
Father
of classical approach
Practical man of
Management
Father of
modern management theory
Key areas of Contribution
Fayol contributed to modern management theory
through the development of his 14 Principles [blue-print of management].
1. Division of labour
Fayol‟s objective here was to maximize both the amount and
quality of production for a given degree of effort, hence he argued for the
advantages of specialization. An interesting idea he raises particularly in
relation to Taylor‟s ideas (which will be discussed in
later chapters) is that there are limits to the division of labour, which
experience teaches us should not be exceeded.
2. Authority and responsibility
Fayol suggests that management has the right to
give orders and to expect obedience. Managers derive authority either from
their official position or personal qualities. “Wherever authority is
exercised, responsibility arises.” Fayol (1949).
3. Discipline
Fayol argued that discipline marks a mutual
respect between the organization and its employees. He embodies the principle
that a manager can take sanctions in the case of a breakdown of discipline.
4. Unity of command
“For any action whatsoever, an employee should
receive orders from one superior only.” Fayol (1949).Thus he argues that
authority should be clearly allocated and suggests that if command is divided
or unclear it is a continual source of conflict.
5. Unity of direction
He argues that for any group of activities with
the same objective, there should be one clear leader and one clear plan so as
to provide for unity of action.
6. Subordination
of individual interest to general interest
In any organization there will at least be times
when individual interests differ from the interests of the organization. Fayol
argues, “The interests of one employee or group of employees should not prevail
over the interests of the concern or organisation.”
7. Remuneration of personnel
Salaries - the price of services rendered by
employees - should be fair and provide satisfaction both to the employee and
employer. It shall not go beyond reasonable limits.
8. Centralization
The degree of centralization, Fayol argues, is a
question of proportion and will vary according to different cases. It will
depend, he argues on the character of the manager, the condition of the
business and the reliability of the subordinates to whom the manager can
delegate.
9. Scalar chain
Fayol argues for a clear chain of authority
through which communication should flow. He did however appreciate that some
activities require speedy action and recognizes that it was appropriate for
people at the same level of the organisation to communicate directly. Notably
he
required superiors to approve any such
communication. He also expected “some measure of initiative at all levels of
authority.” Fayol (1949)
10. Order
Fayol approved of both social and physical order.
This could be summarized as – the right thing in the right place at the right
time. Appropriate selection should ensure competent people are in place, their
tasks, responsibilities and places of work should be clear. Echoes of this
approach are clearly apparent in what are seen as relatively new practices such
as Just in Time.
11. Equity
Managers are encouraged to be both fair and
friendly to employees. Fayol argues, “Equity requires much good sense,
experience and good nature.” Fayol (1949)
12. Stability of tenure of personnel
Fayol felt that high employee turnover was not the
best and that mangers in particular, if they were to develop themselves fully,
required as much security as was possible. He noted however that the stability
it was possible to generate in any industry depended on the commercial
environment in which the organization was operating.
13. Initiative
Fayol argues that initiative is a source of
strength for an organization, particularly in times of difficulty. Initiative
he felt should be encouraged at all levels and “The manager must be able to
sacrifice some personal vanity to grant this satisfaction to subordinates”
Fayol (1949). In a sentiment as appropriate today as it was at the turn of the
century he states “A manger able to do so is infinitely superior to one who
cannot.
14. Esprit de corps
In a sentiment possibly borrowed from the
military, Fayol outlines the importance of harmony within, and commitment to,
the organization. He describes in particular two methods to help build such a
spirit, the use of verbal rather than written communication wherever possible
and secondly the avoidance of encouraging dissension among subordinates.
Lyndall F.
Urwick
He was a prolific writer on administration and
management. He had rich working experience in industry business consultancy and
the armed forces. He was strongly influenced by the ideas of Henri Fayol in particular.
He advocated the use of principles as the only way social organization
could be controlled .He translated this into his
best known-book “The Elements of Administration” published in 1947.
His principles of management represented a code of
good practice which he claimed if strictly adhered to should lead to success in
administration or management. His work resulted in the development of the
following ten (10) principles:
1. Objective
2. Specialization
3. Co-ordination
4. Authority
5. Responsibility
6. Definition [job]
7. Correspondence [authority and responsibility]
8. Span of control
9. Balance [of all depths]
10. Continuity [going concern]
Urwick principles concentrated more on getting the
organizational mechanisms right rather than focussing on issues such as
remuneration and morale.
A major weakness of Urwick principles is its
concentration on the internal environment to the detriment of the external
environment. No organization can succeed without the external environment. This
is because; organizations are open-systems not self-contained. They have to
respond to pressures from the external environment-social, economic, cultural,
political, etc.
Urwick also identified the key functions/process
of management to be planning, organizing and controlling. He expanded the
controlling function to include staffing, selecting and placing. Hiscontrolling
function served as the foundation or the forerunner to personnel /human
resources management and the human relations approach to management.
E. F. L.
Brech
Even though Brech shared the opinion of using
principles, he was concerned with the development of people in organizations.
He was less advocate of the use of principles. Instead, he emphasized the use
of flexibility according to a particular situation. He also emphasized the need
for written definitions of responsibilities and the value of job descriptions
as an aid to effective organization and delegation.
Breech sees management as a social process, for
planning and regulating the operations of an enterprise towards an agreed
objective. To him, the process is carried out within a framework known as
organizational structure.
He argued that the key elements in developing an
organizational structure are:
·
Defining
the responsibilities of management, supervisors and specialist personnel.
·
Determining
how the responsibilities should be shared.
·
Co-ordinating the execution of the
responsibilities
Maintaining a high level
of morale among personnelBrech‟s principles of management overlap
those of Fayol and Urwick.
However, they are less dogmatic
than the others. Some of his principles are division of responsibilities, clear lines of communication, unity
of command, and allocation of authority. His principles are contained in his
book The Principles and Practice of Management [1975].
Brech regrets that there are no generally accepted
principles of management since each writer has formulated his own principles.
In the absent of general agreement on the fundamental body of principles, Brech
finds it difficult to regard management as a science or a profession
Contributions/benefits
from the administrative theory
The numerous principles that have evolved have
provided blue- prints in management. The works of Fayol, Follett and others
have set the foundations for present emphasis on the key components of the
function/process of management-planning, organizing, directing/leading and
controlling. Follette‟s principle of making every worker
part owner in a business is still valid today as we often hear of workers in
troubled unionised organizations agitating to take up ownership and management
by using their end-of-service benefits to buy shares.
It has enhanced and promoted the skills of managers. The use of principles
makes room for little deviations since the principles provide blue-print and
direction. In this way, trial and error are minimized.
Criticisms
/Drawbacks to the Administrative Principles. Dogmatic adherence to
principles stifles initiative and discretionary use of authority Principles are
not applicable in all situations since we are in a dynamic environment. They
cannot be used as rule-of-thumb Since organizations cannot function without
people, the disregard for human factors that will apply the principles is a
serious drawback to the Administrative Principle.
2.4.4
Bureaucratic Management
This is the third arm of the classical approach.
The most important personality associated with bureaucracy is Max Weber
[1864-1920]. As a German sociologist, psychologist and a practising manager, he
was the key innovator of the concept of bureaucracy. His views on bureaucracy
were published in his book “The Theory of Social and Economic Organization” He
used bureaucracy to describe a form of organization that exists in almost every
organization.
The concept of
bureaucracy often referred to as “red tapeism” i.e. too many rules, regulations
and paperwork which often lead to inefficiency. It is referred to as
officialdom i.e. all the apparatus of central and local government.
The concern of Weber was on bureaucracy as a form
of organization with hierarchy of authority regulated by rules and regulations.
He saw the development of bureaucracy as a means of introducing order and
rationality into social life.
He identified the characteristics/features of
bureaucracy as follows: Every organization functions continuously through rules
and regulations. Need for competence, division of labour and specialization.
Allocation of authority regulated by rule. Appointment to positions/offices
made on the basis of technical competence A hierarchical arrangement of
offices/jobs i.e. work should be arranged in hierarchical order with control
systems.
The need to
separate working staff from the ownership of the organization. Rules, decisions
and actions are formulated and recorded in writing. Official positions exist in
their own right and the job holder has no right to a particular position except
through promotion or initial occupation based on merit.
According to Weber, the above
characteristics/features make bureaucratic organizations capable of attaining
the highest degree of efficiency since to him, it is the most rational means of
controlling workers or members in an organizations. He believed that
bureaucracy is indispensable for the needs of large-scale organizations.
The size [large] and complex nature of organizations make
bureaucracy inevitable in such organizations.
Weber’s legitimate authority
Max Weber identified three types of legitimate
authority:
Traditional authority- This is where acceptance of
authority is based on tradition and custom.
Charismatic authority- The acceptance of authority
is based on loyalty to, and confidence in the personal qualities of a person in
authority.
Rational-Legal authority –This is also based on
the office or the position a person legitimately occupies; regulated by rules
and procedures of the organization.
Contributions/benefits
from Weber’s bureaucracy
·
The need
for fairness and uniformity of treatment of workers demands bureaucracy.
·
Adherence
to rules and procedures does not make room for arbitrariness.
·
The element
of hierarchy of authority creates orderliness and respect for higher authority.
·
The
elements of division of labour and specialization put the worker on the right
job/task.
Limitations/drawbacks
of Weber’s bureaucracy
·
Too much
emphasis on rules, procedures, record-keeping and paperwork may lead to delay
and inefficiency.
·
There is
the tendency of workers to place too much reliance on rules and procedures to
the detriment of initiative and discretion.
·
Bureaucracy
does not make room for flexibility and adaptation
·
It
disregards informal organization and the development of groups with their own
goals.
2.5 THE BEHAVIOURAL APPROACH
It was made up of a group of management scholars
trained in behavioural disciplines such as Sociology, Psychology, Anthropology
and related fields who used their diverse knowledge to propose more effective
ways to manage people in an organisation. It was developed to take care of the
human element in organizations which was a major limitation of the classical
approach. The major assumption that underlines the behavioural approach is that
people are social and self-actualizing
2.5.1 Dimensions of the Behavioural Approach
Human Relations
This approach
deals with how managers interact with their workers. Proper “worker management”
leads to organizational harmony and increases productivity. Many antagonisms,
suspicions, acrimonies, wrangling, strikes, riots, demonstrations, etc. are
often the result of how people in an organization are treated.
In a wider perspective, the way the government
manages the various ethnic factions can also affect the relations between the
government and certain ethnic groups.
Human relations sub-approach was founded by Prof.
Elton Mayo (1880-1949).
The approach is
deeply rooted in the social environment and personality trait of the manager
unlike the classical approach which emphasized the physical environment. Expert
in this approach say that managers should be trained in both „technical skills‟ and
„people skill‟.
The main
underlying principle in this approach is that the achievement of organisational
effectiveness depends on how people’s needs and wants are satisfied. Under the
human relations approach, managers must know why their subordinates behave in a
certain way and the psychological and social factors that influence them. The
human relations approach led to the famous Hawthorne Experiment conducted by
Prof. Elton Mayo.
Hawthorne Experiments
The genesis of the experiments was the desire of
the National Research Council [NRC] of the National Academy of Sciences to
study how lighting in the workplace influenced individual efficiency. This led
to what has become popularly known as the Hawthorne Studies.
The experiments conducted by Mayo at Western
Electric were;
·
To
determine the effects/impacts of changes in illumination on worker
productivity.
·
The
determine the effects of work-related periods, coffee breaks, shortened work
days and other changes in working conditions on worker productivity. This was
the relay assembly room experiments.
·
To
interview workers to determine workers‟ attitude.
·
To analyse
the various social factors at work
·
Douglas
Murray McGregor [1906-1964)
McGregor developed Theory X and Theory Y which are
sets of assumptions about human behaviour. He wrote the book “The Human Side of
Enterprise”
Theory X regards employees as being inherently
lazy, requiring coercion and control, avoiding responsibility and only seeking
security.
Under this theory, work is
distasteful and therefore workers must be directed and motivated through force,
pecuniary consideration (financial incentives) and praise to achieve results.
Theory Y sees man in a more favourable position.
It regards employees as liking work which is regarded as natural. That the
worker should not be directed, controlled and coerced if he is committed to the
directives of the organization. Under this theory, the worker will accept
responsibility.
The above theories have become the basis for the
extreme forms of management style that managers are using. A blend of the two
theories may provide the best prescription for effective management. Abraham
H.Maslow
As a motivation theorist, his hierarchy of needs
influenced the work habits of people at the workplace. He identified the levels
of needs to be:
Physiological needs
Safety
needs
Love/Affection needs
Esteem/Ego
needs
Self-Actualization
According to Maslow, the manager should know the
level of the hierarchy on which his subordinates are so that he can apply the
appropriate motivational factors to move them up to the next level of
hierarchy. The behaviour of workers will to some extend be influenced by the
degree to which their needs are satisfied.
2.6 SYSTEMS THEORY
During the 1940s and World War II, systems
analysis emerged. This viewpoint uses systems concepts and quantitative
approaches from mathematics, statistics, engineering, and other related fields
to solve problems. Managers find optimal solutions to management problems by
using scientific analysis which is closely associated with the systems approach
to management.
A system is an interrelated and
interdependent set of elements functioning as a whole. It is an open system
that interacts with its environment. It is composed of inputs from the
environment (material or human resources), transformation processes of inputs
to finished goods (technological and managerial processes), outputs of those
finished goods into the environment (products or services), and feedback
(reactions from the environment). Subsystems are systems within a broader
system. Interdependent subsystems (such as production, finance, and human
resources) work toward synergy in an attempt to accomplish an organizational
goal that could not otherwise be accomplished by a single subsystem.
Systems develop synergy. This is a
condition in which the combined and coordinated actions of the parts of a
system achieve more than all the parts could have achieved acting
independently. Entropy is the process that leads to decline.
2.6.1
Contribution of the System Approach
·
It ended
the dominance of the classical and the behavioural approaches
·
It blended
the opposing views of both the classical approach and the behavioural approach.
·
It brought
to fore the important role the environments and its elements play on business
activities.
·
It cautions
managers to be circumspect in the decision-making process since a decision made
in one department can affect almost all the other departments
·
It creates
the awareness of sub-systems each with potentially conflicting roles and goals
which must be integrated.
·
It focuses
attention on inter-relationships between it and its environment i.e. the need
of the system as a whole
·
2.6.2
Limitations/Drawbacks/Criticisms of the Systems Approach
It is
perceived that some organizations operate successfully and achieve their
corporate objectives under the closed system i.e. without recourse to the
external environment. Examples are Catholic Monastery and the Trokosi in the
Volta Region of Ghana.
The
environment and its elements sometimes have negative impact on organization.
The external environment has negative socio-cultural practices that may
adversely affect other organizations that may relate to it.
Breakdown
of a sub-system of a system may affect all the other systems and a general
breakdown of the entire systems.
The impact
of a decision in one department on the entire organization may cause managers
to be over-circumspect. This may lead to delays in decisions or no decisions at
all
2.7 CONTINGENCY VIEW
In the mid-1960s, the contingency view of
management or situational approach emerged. This view emphasizes the fit
between organization processes and the characteristics of the situation. It
calls for fitting the structure of the organization to various possible or
chance events. It questions the use of universal management practices and
advocates using traditional, behavioural, and systems viewpoints independently
or in combination to deal with various circumstances.
The contingency
approach assumes that managerial behaviour is dependent on a wide variety of
elements. Thus, it provides a framework for integrating the knowledge of
management thought.
2.7.1
Contributions to the Contingency Approach
It gives
rise to the notion that different problems require different methods of
approaches of solution.
It calls
for the application of different management styles in dealing with different
situations.
It has
eliminated some of the loopholes associated with the classical approach. For
example, the classical approach wanted to find only one best way of doing
things. The contingency approach does not subscribe to this It creates a
synthesis and a collaborated relationship among other approaches
2.7.2 Limitations/Drawbacks/Criticisms of the
Contingency Approach
The ideal
of psychic unity of mankind implies that certain principles and perceptions are
capable of universal application.
Different
management styles based on situational analysis may not always yield the same
expected results.
2.8
Management Science/ Quantitative approach
The emphasis of this approach is on the use of
quantitative techniques in solving management related problems in the areas of
Statistics, Mathematics and Computers. This approach emerged out of Operation
Research approach. As a result the two [management science and operations
Research] are often used interchangeably/synonymously. The focus of the
approach is on technical problems rather than on Human/personal problems. The
computer has emerged as a very important facilitator to this approach. Why?
2.8.1
Practical application of management science approach includes:
1. Mathematical forecasting- for projections into
the future for planning purposes.
2. Inventory modelling- to exercise effective
control over inventories by mathematically establishing how much/many to order
and produce.
3. Linear programming- it deals with the
allocation and utilization of scarce resources among competing ends/uses.
4. Queuing theory- it deals with the facilitation
and allocation of service personal or work stations to minimize customer
waiting time and service cost.
5. Network model/analysis- breaking large tasks
into smaller and simple components so that they can be properly worked on. It
can also be used to map out programmes of activities in such a way as to create
the most effective planning and control.
6. Simulation- make models of problems to create
hypothetical situations to test different solutions under various assumptions
2.8.2 The above techniques aim at;
i. Rational decision
ii. Economic viability of such decisions based on
proper cost, revenues and returns on investment analysis.
iii. Using appropriate mathematical models based
on formulas and rules.
iv. Using computers for faster processing of large
mass of data.
2.8.3 Contributions of the Management
Science Approach
Introduction of the various techniques, Use of
mathematical models in dealing with productions issues often lead to concise
and unambiguous solutions in contrast with the behavioural approach. It has improved on the mathematics/quantitative reflexes
of managers.
2.8.4 Limitations of the Management Science
Approach
The fact
that management is a behavioural science implies that it is not in all cases
that a mathematical model can be used to explain why a person behaves in a
certain manner towards another.
The use of
computer in analysing certain events may sometimes be influenced by human
beings who operate it and this may lead to manipulation of figures.
