Ramblings in the Epistemology of Management

A dictionary definition of management says that it is the “judicious use of means to accomplish an end” (Webster). An alternative definition which may be found in textbooks is that management means the handling of scarce resources so as to maximise utility. Can there be a science dealing with how to handle scarce resources? Economics is also sometimes defined as the science having to do with the handling of scarce resources. Is there then any difference between economics and management? I think there is. Economics derives its normative statements from value systems incorporating economic equilibria (market equilibria). Management, on the other hand, is somehow tied to purposeful decision‐making and actions and the concept is often though not exclusively used about business decision‐making. Management is then seen as the art or science of maximising profits and ensuring efficiency. Even if this is the main pre‐occupation of management researchers and practitioners as evidenced by textbooks and case studies, it does not by any means cover the whole complex area of management. For one thing there are always constraints on behaviour, some of which are so strict that they actually serve as goals in themselves and maximisation of profit is often replaced by criteria for satisficing. It should be noted that management is also used in the sense of “the collective body of those who manage or direct an enterprise” (Webster). This latter definition may explain why management in the first sense is often conceived as relating to the handling of scarce resources in the business firm.