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Text 1

ART OR SCIENCE?

Like most things in our modern, changing world, the function of management is becoming more complex. The role of a manager today is much different from what it was one hundred years, fifty years or even twenty-five years ago. At the turn of the century, for example, the business manager’s objective was to keep his company running and to make a profit. Most firms were production oriented. Few constraints affected management’s decisions. Governmental agencies imposed little regulations on business. The modern manager must now consider the environment in which the organization operates and be prepared to adopt a wider prospective. That is, the manager must have a good understanding of management principles, an appreciation of the current issues and broader objectives of the total economic political, social, and ecological system in which we live, and he must possess the ability to analyze complex problems.

The modern manager must be sensitive, and responsive to the environment - that is he should recognize and be able to evaluate the needs of the total context in which his business functions, and he should act in accord with his understanding.

Modern management must possess the ability to interact in an evermore-complex environment and to make decisions. A major part of the manager’s job will be to predict what the environment needs and what changes will occur in the future.

Organizations exist to combine human efforts in order to achieve certain goals. Management is the process by which these human efforts are combined with each other and with material resources. Management encompasses both science and art. In designing and constructing plans and products, management must draw on technology and physical science, of course, and, the behavioral sciences also can contribute to management. In handling people and managing organizations it is necessary to draw on intuition and subjective judgment. But although the artistic side of management may be declining in its proportion of the whole process it will remain central and critical portion of your future jobs. In short:

- Knowledge (science) without skill (art), or dangerous;

- Skill (art) without knowledge (science) means stagnancy and inability to pass on learning;

Text 2

HISTORY OF ECONOMICS

In the 1500s there were few universities. Those that existed taught religion, Latin, Greek, Philosophy, history and mathematics. No economics. Then came the enlightenment (about 1700) in which reasoning replaced God as the explanation of why things were the way they were. Pre-Enlightenment thinkers would answer the question, “Why am I poor? ” with, “Because God wills it”. Enlightenment scholars looked for a different explanation. “Because of the nature of land ownership” is one answer the found.

The amount of information expanded so rapidly that it had to be divided or categorized for an individual to have hope of knowing a subject. Soon philosophy

Was subdivided into science and philosophy. In the 1700s, the sciences were split into natural sciences and social sciences. The late 1800s and early 1900s social science itself split into subdivisions: economics, political science, history, geography, sociology, anthropology, and psychology. Many of the insights about how the economic system worked were codified in Adam Smith’s The wealth of Nations, written in 1776.

Throughout the 18^th and 19^th centuries economists such as Adam Smith, Thomas Malthus, John Stuart Mill, David Ricardo, and Karl Marx were more than economists; they were social philosophers who covered all aspects of social science. These writers were subsequently called Classical economists. Alfred Marshall continued in that classical tradition, and his book, Principles of Economics, published in the late 1800s, was written with the other social sciences in evidence. But Marshall focused on the questions that could be asked in a graphical supply-demand framework.In doing so he began what is called neo-classical economics.

Afterwards Marshal’s analysis was downplayed, and the work of more formal economists of the 1800s (such as Leon Warlas, Francis Edgeworth, and Antoine Cournot) was seen as the basis of the science of economics. Economic analysis that focuses only on formal interrelationships is called Walrasian economics….

Text 3

“INTERNATIONAL” MANAGERS

Managers who can operate effectively across cultures and national borders are invaluable in global business. As more and more companies expand abroad, competition for top talent to run new international operations will steadily grow.

The 2010s will test the capacities of multinational corporations to react rapidly to global changes in human resources as in all other areas of the company.

Global selection systems enable a company to find the best person anywhere in the world for a given position. The system measures applicants according to a group of 12 character attributes. These twelve categories are: motivations, expectations, open-mindedness, and respect for other beliefs, trust in people, tolerance, personal control, flexibility, patience, social adaptability, initiative, and risk-taking, sense of humor, interpersonal interest, and spouse communication. An effective international executive displays a combination of desirable personal qualities. These include adaptability, independence, leadership, - even charisma.

What part can management education play in developing the international manager? A good deal. Management education can provide training in international marketing, finance and such international relations. Knowledge areas the international manager will need include understanding of the global economy and foreign business systems, international marketing, international financial management, political risk analysis and the ability to analyze and develop sophisticated global strategies.

We can also point to skills such as communication, leadership, and motivation, decision-making, team-building and negotiation. Research indicates that national cultural differences can have important effects. The international manager is said to spend over half of his or her time in negotiation. International managers should know how foreign cultures affect organizational behaviour and management style. They should understand how their own culture affects their own style.

Text 4

SCIENTIFIC MANAGEMENT

No one has had more influence on managers in the 20^th century than Frederick W. Taylor, an American engineer. He set a pattern for industrial work which many others have followed, and although his approach to management has been criticized, his ideas are still of practical importance.

Taylor founded the school of Scientific Management just before the 1914-18 war. He argued that work should be studied and analyzed systematically. The operations required to perform a particular job could be identified, then arranged in a logical sequence. After this was done, a worker’s productivity would increase. The new method was scientific. The way of doing a job would be no longer be determined by guesswork and rule-of-thumb practices. If the worker followed the prescribed approach, his-her output would increase.

Taylor’s solutions to the problems were based on his own experience. He conducted many experiments to find out how to improve productivity. He felt that managers used not the right methods and the workers didn’t put much effort into their job. He wanted a new approach to be adapted to their work. The new way as follows:

1. Each operation of a job was studied and analyzed;

2. Using the information, management worked out the time and method for each job, and the type of equipment.

3. The work was organized so that the worker’s only responsibility was to do the job in the prescribed manner.

4. Men with the right physical skills were selected and trained for the job.

The weakness of his approach was that it focused on the system of work rather than on the worker. With this system a worker becomes a tool in the hands of management. Another criticism is that it leads to deskilling – reducing the skills of workers. And with educational standards rising among factory workers, dissatisfaction is likely to increase.

Text 5

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