Page 48 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes
Table 2.3: Scientific Management vs. Quantitative Approach
Scientific Management Approach Quantitative Approach
1. It advocates use of scientific methods in 1. It advocates use of mathematical and
managing. statistical techniques for solving
management problems.
2. If focussed on improving efficiency of 2. It focussed on finding right answers to
workers and machines by finding one best managerial problems.
way of doing things.
3. The main techniques of scientific 3. The main technique of quantitative
management are time and motion studies. approach is operations research.
4. It lays stress on experiment and research 4. It lays stress on developing econometric
for improving efficiency. models for taking managerial decisions.
5. The conceptual base of scientific 5. Quantitative approach was popularised
management was provided by F.W. Taylor by W.C. Churchman and his associates.
and his associates.

An organisation as a system has the following characteristics:

1. A system is goal-oriented.
2. A system consists of several sub-systems which are interdependent and
inter-related.

3. A system is engaged in processing or transformation of inputs into outputs.
4. An organisation is an open and dynamic system. It has continuous interface with the
external environment as it gets inputs from the environment and also supplies its output
to the environment. It is sensitive to its environment such as government policies,
competition in the market, technological advancement, tastes of people, etc.

5. A system has a boundary which separates it from other systems.

Open System Concept

A system may be closed or open. A closed system is self-dependent and does not have any
interaction with the external environment. Physical and mechanical systems are closed systems.
A closed system concentrates completely on internal relationships, i.e. interaction between sub-
systems only. Because of lack of interaction with environment, it is unable to monitor changes
occurring in the external environment. On the other hand, an open system has active interface
with the environment through the input-output process as shown in Figure 2.1. It can respond to
the changes in the environment through the feedback mechanism. That is why modern authors
consider organisation as an open system.
An open system obtains inputs, such as raw materials, layout, capital, technology and information,
from the environment. Operations are performed upon the inputs and combined with the
managerial process to produce desirable outputs which are supplied to the environment (i.e.,
customers). Through a feedback process, the environment’s evaluation of the output becomes
part of the inputs for further organisational activity. If the environment is satisfied with the
output, business operations continue. If it is not, changes are initiated within the business
systems so that requirements of the customers are fully met. This is how an open system responds
to the forces of change in the environment.

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