development of management thought

Presented by-

Dhananjay Mull

PRINCIPLES OF MANAGEMENT A Principles may be defined as a fundamental

statement that provides a guide to thought and action.

It establishes a cause and effect relationship between two or more variables.

Principles of management originate and grow as a result of past experience and accomplishments.

NEED FOR THE PRINCIPLES OF MANAGEMENT •To Increase efficiency •To crystallize the nature of

management •To improve research •To attain social goals

HENRY FAYOL

Engineer and French industrialist In France worked as a managing director in coal-

mining organization

Authored book on” General and Industrial administraion”

CLASSIFICATION OF BUSINESS FUNCTION   Technical ( production)   Commercial (buying and selling)   Financial  ( obtaining capital)   Security ( protection of resources)   Accounting ( statistic and financial position)  Managerial ( planning, organising, coordination

and control etc)

1.Division of Work —improves efficiency through a reduction of waste, increased output, and simplification of job training

2.Authority and Responsibility—authority: the right to give orders and the power to extract obedience – responsibility: the obligation to carry out assigned duties

3.Discipline—respect for the rules that govern the organization

4. Unity of Command—an employee should receive orders from one superior only

5. Unity of Direction—grouping of similar activities that are directed to a single goal under one manager

6. Subordination of Individual Interests to the General Interest—interests of individuals and groups should not take precedence over the interests of the organization as a whole.

 7. Remuneration of Personnel—payment should be fair and satisfactory for employees and the organization

  8. Centralization—managers retain final responsibility – subordinates maintain enough responsibility to accomplish their tasks9. Scalar Chain (Line of Authority)—the chain of command from the ultimate authority to the lowest 

10. Order—people and supplies should be in the right place at the right time

11. Equity—managers should treat employees fairly and equally

12. Stability of Tenure of Personnel—managerial practices that encourage long-term commitment from employees create a stable workforce and therefore a successful organization

13. Initiative—employees should be encouraged to develop and carry out improvement plans

14. Esprit de Corps—managers should foster and maintain teamwork, team spirit, and a sense of unity among employees

FREDERICK WINSLOW TAYLOR• F.W.Taylor born in 1856, introduced

systematic working.• He found out the techniques of management.• The outcome of his system bought logic, order,

etc.• F.W.Taylor conducted many experiments on

management.• He found out that systematization and

standardization gave a better output

Major publications of F.W.Taylor

1. A Piece Rate System - 1895

2. Shop Management – 1903

3. The Art of Cutting Metals – 1906

4. The Principles of Scientific Management

PRINCIPLES OF SCIENTIFIC MANAGEMENT• Science not rule of thumb• Harmony in group action• Co-operation • Maximum output• Improvement of workers

ELEMENTS OF SCIENTIFIC MANAGEMENT1. Separation of planning from executive

function

2. Scientific task setting

3. Functional foremanship

4. Work study

5. Methods of study

6. Motion duty

7. Time study

8. Fatigue study 9. Rate setting 10. Standardization 11. Scientific selection and training 12. Financial incentives 13. Mental revolution 14. Economy

Peter F. Drucker According to Drucker, management has two

important functions, innovation and marketing. He has treated management as a discipline as well as a profession. For him, management is more of a practice and is always goal oriented. His study on the purpose of business as the creation of the customer, if understood in the right manner, helps any organization to achieve success.

Drucker’s view on innovation is equally important in order to pay emphasis during the development of a new product. He argues that new products should drive out the existing products, rather than the other way round. As such, he is against bureaucratic management, as he thinks that it stifles the innovative spirit and the initiative among the people in the organization. He considers that modern organizations are knowledge-based organizations and describes the modern workers as knowledge workers considering their skills and innovative abilities.

Drucker points out three basic functions of management. The actions of management should contribute to:

1.  The achievement of purpose and mission of the institution

2.  Make the work productive and the worker achieving

3.  Effective management of social responsibilities

Contributions of F. W. Taylor He was known as the father of Scientific

Management. He applied Scientific management to solve

problems of the management. He believed that the Management should tell

employee’s about the expectations they have. He conducted time and motion study first. He supported the mental revolution on the part

of the employer and employee

Criticism of Scientific Management• 1. Exploitation of Workers

Taylor's Scientific Management put unnecessary pressures on the employees to perform the work faster.

2. Problem of Unity of CommandTaylor used functional foremanship. So, the workers have to report to eight bosses. This breaks the principle of unity of command, where the workers have to report to only one boss

•

• 3. Mechanical ApproachTaylor's approach was a mechanical approach. He gave too much importance to efficiency. He did not consider the human element.

4. Problem of Separation of Planning from DoingTaylor said to separate planning from doing. In reality, we cannot separate planning from doing.

5. Individualistic ApproachTaylor's scientific management gives too much importance to individual performance and not to group performance.

Frank Bunker Gilbreth He worked at a Brick laying company and was

then promoted to Superintendent in the same firm. He has written various books on scientific

management and systems. He believed and gave importance to time and

motion study similar to Taylor. F.B.Gilbreth concentrated not on time but best way to do the job.

He recommended minimum motions and avoiding unneeded motions for completing the job.

The basic elements work through analysing various methods of working. They use flow process charts, he called them therbligs.

The elements are as follows:1. Search2. Find.3. Select4. Grasp.5. Position.6. Assemble.7. Disassemble.

8. Inspect.

9. Transport loaded.

10. Preposition.

11. Release load.

12. Rest.

13. Wait-unavoidable.

14. Avoidable delay.

15. Use.

16. Plan.

17. Motion study.

Mrs. Lillian Moller Gilbreth. Lillian Moller, wife of Frank Gilbreth has written

many articles and books on the psychology of management and management aspects.

She worked in the same firm as her husband, they worked as a team and always worked towards finding the best way

Max Weber• Born April 21, 1864.• In Erfurt in Thuringia, Germany (Suburbs of

Berlin).• German Political Economist and Sociologist.• One of the founders of modern Sociology• He is the first one to emphasised the strict

adhernce of rules and regulation in an organisation which was termed as “Bureaurcracy.”

Bureaucracy

• This is the oldest form of organisation. It is also based on principle of logic & legitimate authority.

• Max weber analysed the various points before finalising an ideal form of organisation.

• Maximum benefits can be derived.• Offers .lots of benefits to the people

Characteristics or Features

Functional specialisation. Hierarchy of authority. Rules and regulations. Rights and duties. Impersonal relations.

Advantages of bureaucracy

Specialisation Structure No conflicts Advance decision Democracy

Disadvantages of bureaucracy Rigidity Impersonal nature of work. Failure of co-operation and co-ordination. No mutual understanding Mechanical treatment

Mary Parker Follet She is a pioneer of management thought in

Human Relations. She gave prime importance to the nature of

management. She strongly believed that psychology

plays an integral part in human activity She always took into consideration the

human character at the workers level, supervisory level as well as at the management’s level

Views of Aspects of Management.1. Conflict: Conflicts can be removed by domination,

compromise and integration.

2. Authority: Authority is root of all evils.

3. Group: Should be more than aggregation of individuals, they should be a team and should act as a team.

4. Participation: It rests on understanding and co-ordination of each individual.

5. Integration: The integration of interest should not only be for the organisation but of all the interests of workers, investors and consumers

6. Leadership: Leaders are never born leaders but with proper training and the tools, any human can be a good leader.

7. Co-ordination:

- By direct contact by responsible people.

- Early stages of planning and policy making.

- Relation of all factors in the situation.

- A continual, non-stoppage process

Henry L. Gantt Henry Laurence Gantt was born in Calbert County

Merrilane in the U.S.A. On 20th May 1861. Henry L. Gantt introduced “ Gantt Task and

Bonus Plan” and the Gantt Chart. This is calcucated as under this system

Output below standard-Time rate wages

Output at standard - Bonus of 20% on time rate.

Output above standard - High piece rate on whole output.

This system is an improvement of Taylor’s Differential system of wage payment.

Gantt was a founder of new movements known as “ the new machine”

It avoids the exercise of power and advocated harmonious relationship between the employers and the employees.

Gantt believed that justice and human behaviour were important elements in industrial relations.

Gantt distinguished between man and machine.

George E. Mayo. Elton Mayo was born in 1880 in Adelaide in

Australia in 1992. Elton Mayo worked as a teacher initially. He had become a lecture at the University of

Queensland after studying psychology. Elton Mayo was regarded as the founder and

father of modern sociological and psychological industrial research.

He has published many books and papers.

The human civilization had entered the machine age after industrial revolution.

Maximum output is emphasized during the machine age.

Nobody is considered human relations between employers and employees.

The productivity is affected by the desires, attitudes and feelings of the workers.

George Elton Mayo was the first person to look into the matter of human relations.