M K Islam/ Industrial Management/Management thoughts

Management thoughts
Development of Major Management Theories

Scientific Approach
Key players: >> W. Taylor ,
>> Frank and Lillian Gilberth
Frederick W. Taylor’s (1856-1912)(The father of scientific management) major concern
throughout most of his life was to increase efficiency in production, not only to lower costs and
raise profits but also to make possible increased pay for workers through their higher
productivity. He believed that both managers and workers were concerned too much with how
they should divide the surplus that arose from productivity-the split in thinking between pay &
profits-and not enough with increasing the surplus so that both owners and laborers could get
more compensation.
His famous works entitled “Principles of scientific management” was published in 1911. The
main points if his theory is given below.
1. Apply science in doing work replacing the thumb rule.
2. Select and train people scientifically
3. There should be co-operation and co-ordination between supervisors and workers.’
4. Pay according to output.
5. Find out the best method and standard time in doing jobs.
Condition in industrial sector before Taylor’s announcement:
1. There was indiscipline in industries.
 M K Islam/ Industrial Management/Management thoughts

2. No formal training and necessary supervision.

3. Co-ordination between workers and supervisors was less.
4. Efficiency was less, Output was not satisfactory.
5. Workers were responsible for jobs
Effects after applying Taylor’s theory:
1. Disciplined restored in industry.
2. Output increased as well as efficiency.
3. Quality of job decreased in some cases as workers wanted to shortened time for more
output.
4. Management started dismissing the excess workforce, so dissatisfaction increased among
the workers
Followers of Taylor:
Henry L. Gantt: Gantt emphasized the need for developing a mutuality of interests between
management and labor, a “harmonious cooperation”. He introduced graphical methods of
describing plans and making possible better managerial control. He emphasized the importance
of time, as well as cost, in planning and controlling work.
Frank and Lillian Gilberth: Introduce motion and time study. While Taylor was conducting his
time studies, Frank and Lillian Gilbreth were completing their own work in motion studies to
further scientific management. The Gilbreths made use of scientific insights to develop a study
method based on the analysis of work motions, consisting in part of filming the details of a
worker’s activities while recording the time it took to complete activities. The films helped to
create a visual record of how work was completed, and emphasized areas for improvement.
Secondly, the films also served the purpose of training workers about the best way to perform
their work. This method allowed the Gilbreths to build on the best elements of the work flows
and create a standardized best practice. Time and motion study are used together to achieve
rational and reasonable results and find the best practice for implementing new work methods.
While Taylor's work is often associated with that of the Gilbreths, there is often a clear
philosophical divide between the two scientific management theories. Taylor was focused on
reducing process time, while the Gilbreths tried to make the overall process more efficient by
reducing the motions involved. They saw their approach as more concerned with workers'
welfare than Taylorism, in which workers were perceived as primarily concerned with profit.
This difference led to a personal rift between Taylor and the Gilbreths, which, after Taylor's
death, turned into a feud between the Gilbreths and Taylor's followers.
Administrative Management Theory:
Key players: >> Henri Fayol
>> Max Weber
Fayol was a classical management theorist, widely regarded as the father of modern operational
management theory. His ideas are a fundamental part of modern management concepts. Fayol is
often compared to Frederick Winslow Taylor who developed Scientific Management. Fayol
refers to Taylor in his writings. However, he differed from Taylor in his focus and developed his
 M K Islam/ Industrial Management/Management thoughts

ideas independently. Taylor was concerned with task time and improving worker efficiency but
Fayol was concerned with management and is generally agreed to consider more human and
behavioral factors in his management theories than Taylor. In addition, Fayol argued for equity
in the treatment of workers. Another major difference between Taylor and Fayol's theories is that
Taylor viewed management improvements as happening from the bottom up, or starting with the
most elemental units of activity and making individual workers more efficient. In contrast, Fayol
emphasized a more top-down perspective focused on educating management on improving
processes first and then moving to workers. Fayol believed that by focusing on managerial
practices organizations could minimize misunderstandings and increase efficiency.
Fayol's 14 Principles of Management
Fayol developed 14 principles of management in order to help managers manage their affairs
more effectively. Today, these principles are still use but are often interpreted differently. These
fourteen principles include:
1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure
that effort and attention are focused on special portions of the task. Fayol presented work
specialization as the best way to use the human resources of the organization.
2. AUTHORITY: The concepts of Authority and responsibility are closely related.
Authority was defined by Fayol as the right to give orders and the power to exact
obedience. Responsibility involves being accountable, and is therefore naturally
associated with authority. Whoever assumes authority also assumes responsibility.
3. DISCIPLINE: A successful organization requires the common effort of workers.
Penalties should be applied judiciously to encourage this common effort.
4. UNITY OF COMMAND: Workers should receive orders from only one manager.
5. UNITY OF DIRECTION: The entire organization should be moving towards a common
objective in a common direction.
6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS:
The interests of one person should not take priority over the interests of the organization
as a whole.
7. REMUNERATION: Many variables, such as cost of living, supply of qualified
personnel, general business conditions, and success of the business, should be considered
in determining a worker’s rate of pay.
8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the
subordinate role. Decentralization is increasing the importance. The degree to which
centralization or decentralization should be adopted depends on the specific organization
in which the manager is working.
9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each
manager, from the first line supervisor to the president, possesses certain amounts of
authority. The President possesses the most authority; the first line supervisor the least.
Lower level managers should always keep upper level managers informed of their work
 M K Islam/ Industrial Management/Management thoughts

activities. The existence of a scalar chain and adherence to it are necessary if the
organization is to be successful.
10. ORDER: For the sake of efficiency and coordination, all materials and people related to a
specific kind of work should be treated as equally as possible.
11. EQUITY: All employees should be treated as equally as possible.
12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should
always be a high priority of management. Recruitment and Selection Costs, as well as
increased product-reject rates are usually associated with hiring new workers.
13. INITIATIVE: Management should take steps to encourage worker initiative, which is
defined as new or additional work activity undertaken through self-direction.
14. ESPIRIT DE CORPS: Management should encourage harmony and general good
feelings among employees.
Organizational behavior Approach
The Hawthorne Studies: To study the effect of the behavior of employees on productivity,
Elton Mayo and his group undertook the famous experiments at Hawthorne plant of the Western
Electric Company between 1927 and 1932 by changing
1. Light
2. Temperature
3. Work period
4. Rest period
5. Incentive
The outcomes are:
1. Productivity does not depend upon the light, temperature, etc.
2. Productivity depends upon “group behavior”, relationship between employees and
manager, moral and motivation of employees, etc.
This phenomenon is known as the Hawthorne effect.
Classical Management
Classical management perspective had two primary trusts, scientific management focused on
employees within the organization and on ways to improve their productivity. Noted pioneers of
scientific management were Fredrick Taylor, Frank and Lillian Gilbreth, Henry Gantt and
Harrington Emerson. Administrative management focused on the total organization and on ways
to make it more efficient and effective. Prominent administrative management theories were
Henry Feyols, Max Weber and Chester Barnard.
Classical Management laid the foundation for later developments in management theory and
identified important management process, functions, and skills that are still recognized today. It
focused attention on management as a valid subject of scientific inquiry.
Classical management is more appropriate for stable and simple organization than today’s
dynamic and complex organization.