What are the differences between rationalization and scientific management ?Ripunjay Tiwari
Ans. Although rationalization and scientific management both have similar aims, there are many differences between them. Some differences between them are as follows —
(i) Objectives – The objective of the scientific management is to increase efficiency of a business unit. But, rationalization also aims at eliminating weaker industrial units, proper allocation of resources, determination of prices, pooling the results of technical, commercial and economic research etc.
(ii) Mechanism– Scientific management it as suggested by F.W. Taylor has a well defined mechanism to bring about efficiency in the production system. But, rationalization does not have a fixed and predetermined mechanism. It includes scientific management and other measures such as combination. standardization, simplification, specialization, mechanization etc.
(iii) Nature and Scope – Scientific management involves the application of scientific principles to a business unit. But, rationalization covers the whole industry. Logic and scientific methods are applied to the whole industry under rationalization. Scientific management is restricted to the internal organization of a business unit. On the other hand, rationalization tries to reorganize all the business units in an industry. This can be said in another way that scientific management seeks to eliminate waste and inefficiency within an individual unit, while rationalization seeks to eliminate waste and inefficient units in an industry.
(iv) Combination- Rationalization necessarily involves combination of business units in order to eliminate unnecessary competition for resources and sick units. But, scientific management is not at all concerned with the combination of units. Its philosophy is the adoption of scientific techniques.
(v) Application- Scientific management is concerned primarily with increased efficiency of existing production facilities whereas rationalization also covers a number of other activities such as standardization, simplification, mechanization etc. Scientific management is concerned with the technical
aspect of business only. But rationalization not only covers production but also financing, distribution, purchasing etc.