CHAPTER 2 DEVELOPMENT OF MANAGEMENT THOUGHTS

DEVELOPMENT OF MANAGEMENT THOUGHT

Management has developed since the time when the world came into
existence. Whenever group efforts are necessary to achieve anything, there
is a need for management. Kautilya’s artha Sastra and saint Thiruvalluvar’s
state the principles and concepts of management. These principles and
concepts may be applied in our modern world and in the future also. An
individual can not achieve anything single handed. Cooperation, group
efforts, direction and control are necessary to achieve the objective or goals
of an individual. In our modern world an individual cannot survive separately.
He has to rely upon others. So, managerial efficiency is an essential requisite
to human being.

Henry fayol
Henry Fayol was a French industrialist. The principles of management of
Henry Fayol were known to the world only after 1949 later the publication of
his management thoughts in English.

Henry Fayol concentrated on top management. Management plays a very

important part in the government under kings, of all undertakings, large or
small, industrial, commercial, political religious or any other.

The management functions and organizational functions are different.

The management functions include planning, organizing, staffing,
directing and controlling.
But organizational functional include purchase, sales, productions and
accounting.

Classification of business activities

1. Technical activities relating to production.
2. Commercial activities relating to purchase of basic raw materials and
other resources, selling of products and exchange.
3. Security activities relating to the steps taken to protect the property of
enterprise and persons.
4. Accounting activities relating to the recording and maintaining of
accounts, stock taking and preparation of cost sheets, balance sheets
and statistical data.
5. Managerial activities relating to planning, organizing, commanding,
coordinating and controlling.
6. Financial activities relating to identification and utilization of available
funds.
The successful functioning of any business depends upon the performance of
the above six functions.

Elements of management
Planning
Organizing
Commanding
 CHAPTER 2 DEVELOPMENT OF MANAGEMENT THOUGHTS

Co-ordination
Control

Commanding is nothing but direction. So, commanding means guiding and

supervision of sub-ordinates in order to achieve specified objectives or goals.
He also termed the elements of management as functions of management.

Qualities of a Manager
1. Physical (health, vigor and address)
2. Mental (Ability to understand and learn)
3. Moral (Energy, firmness, willingness to accept responsibility)
4. General education (general acquaintance with matters not belonging)
5. Special knowledge (particular to the function)
6. Experience (knowledge arising from work proper)

Principles of management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual to group interest
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10.Order
11.Equity
12.stability
13.initiative
14.Esprit de corps

Frederick Winslow Taylor

F.W. Taylor had observed the work performance of managers and workers.
According to Taylor they follow the traditional method of work and do not
have the concept of systematic performances of task. Taylor found that
greater output was possible through systematization and stanrdization of
method of doing work.

Scientific management
In the century, the production was affected by industrial revolution, when the
management people wanted to increase their production. Their ambitions
were fulfilled by the invention of the concept of scientific management by F
W Taylor in the 19th century. Scientific management consists of a certain
philosophy of selection and training of right workers for the right job,
providing adequate working conditions, providing a system of monetary
incentives to efficient workers and assumption of responsibilities by
managers and supervisors.
 CHAPTER 2 DEVELOPMENT OF MANAGEMENT THOUGHTS

Principles of scientific management

1. Science rot rule thumb
2. Harmony in group action
3. Co-operation
4. Maximum output
5. Improvement workers

Elements or Features of scientific management

1. Separation of planning from executive function
2. Scientific task setting
3. Functional foremanship
4. Work study
5. Methods 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

Contributions of F.w. Taylor

1. He has applied the principles of scientific management to solve the
problems of management.
2. According to him, it was the duty of the management to tell the
employees about the expectation of management from employees.
Besides, the management should the way through which the job is
to be completed.
3. He was the first person who supported mental revolution both on
the part of the employee.

Peter F.Drucker
Peter f. Drucker was born in 1909 in Vienna. He had written many books
on management. The practice of management, the economic man, the
future of industrial man, Concept of corporation America’s next twenty
years, landmarks of tomorrow. Managing for results.

Contributions of Peter F. Drucker

1. Nature of management
2. Functions of management
3. Organization structure
4. Centralist control with a structure of decentralization
5. Management by objectives
6. organizational changes
 CHAPTER 2 DEVELOPMENT OF MANAGEMENT THOUGHTS

Frunk Bunkar Gilberth

Frank Bunker Gillbreth’s wrote several books which incorporate his research
findings. Concrete system, Bricklaying system, and motion study for the
handicapped. He gave importance to time study and motion study. He
stressed minimum motions and avoidance of unnecessary motions to
discover the best way of doing a job. He found out 18 basic elements.
Search, fine, select, grasp, position, assemble, disassemble, inspect,
Transport loaded, Preposition, Release load, Rest Wait unavoidable, delay
Use, Plan.

Mrs. Lillian Moller Gillerth

Lillian Moller was Gilbreth’s wife. She and her husband recognized the human
factor which is very essential in management.

Max Weber
Max Weber was a germen social scientist. He emphasized the strict
adherence of rules and regulation in an organisation. These would make an
efficient form of organisation. This type of organisation can be termed as
“Bureaucracy”. This is the oldest form of organisation. Bureaucracy is based
on the principles of logic, order and legitimate authority.

Bureaucracy
Max Weber analyzed the various points before finalizing an ideal form of
organization. Maximum benefits can be derived from a form of organisation.
In this direction, Bureaucratic organization offers a lot of benefits to the
public.

Characteristics or features
1. Functional specialization
2. Hierarchy of authority
3. Rules and regulations
4. Rights and duties
5. Technical competence
6. Fixation of procedure
7. Record-keeping
8. Impersonal relations

Advantages of bureaucracy
1. Specialization
2. Employee behavior
3. Structure
4. No conflict
5. Advance decision
6. Optimum utilization of human resources
7. Democracy
8. Perpetual succession
 CHAPTER 2 DEVELOPMENT OF MANAGEMENT THOUGHTS

Disadvantages of bureaucracy
1. Rigidity
2. Red tapism
3. Displacement of goal
4. Impersonal nature of work
5. Failure of co-operation and co-ordination
6. No mutual understanding
7. Mechanical treatment
8. Empire building

Mary Parker Follett

Mary parker Follett wrote books to ventilate her views on management
principles. Her major books are; The speaker of the use of representatives,
The new state, Creative experience, business management as a profession,
dynamic administration and freedom and co-ordination, She published many
papers on management. She has expressed her view on different aspects of
management.
1. Conflict
2. Authority
3. Group
4. Participation
5. Integration
6. Leadership
7. Co-ordination

Hawthorne Experiments
1. Illumination experiments
2. Relay assembly test room experiments
3. Mass interviewing programme
4. Bank wiring observation experiments
Unemployment problem
Unduly high standard
Protection of slow workers
Satisfaction of management
Findings of Hawthorne Experiments
The following are the major finding and conclusions of the Hawthorne
experiments:
1. Social factors
2. Group influence
3. Production level
4. motivation
5. conflicts
6. Leaderships
7. Cordial relationship
8. Behavior of workers
9. Supervision
10.Communication
11.Reaction of workers
 CHAPTER 2 DEVELOPMENT OF MANAGEMENT THOUGHTS

Criticism of hawthorone experiments

1. Derecognization
2. Pro-management bias
3. No scientific enquiry
4. Clinical bias
5. Lack of universal application
6. Overlooking social factors
7. Limited scope of research
8. Treatment of workers
9. Undue importance to observation
10.Doubtful validity
11.Undue importance to worker satisfaction
12.Highlighting only known facts
13.Evaluation