Evolution of Management

Thought
 Taylor’s Theory of Scie tific Ma age e t

Principles of scientific management:

• Time & Motion Study: Replace old methods of work scientifically

• Differential Payment: More work more rewards

• Drastic Reorganization of Supervision: Separation of planning & doing

• Scientific Recruitment & Training: Suitable person to suitable job

• Intimate Friendly Cooperation Between the Management & Worker

Limitation:

• Time & motion study

• Drastic Reorganization of Supervision
 Fayol Principles of Management

Fayol 14 Principles of Management(Administrative Management):

1. Division of Work: Specialization of work

2. Authority & Responsibility: Right to issue command & responsibility of failure

3. Discipline: Employee must obey rules

4. Unity of Command: workers should have only one boss

5. Unity of Direction: Worker should have same objective in a single plan

6. Subordination of individual interest to general interest

7. Remuneration: Fix payment should be given

 Fayol Principles of Management

8. Centralization: Degree to which decision making is at upper level

9. Scalar Chain: The line of authority from

top management to the lowest ranks
represents the scalar chain.
Communications should follow this chain

10. Order: Right place for everything

11. Equity: Treating employees well

12. Stability if tenure of personnel: Tenure gives job security

13. Initiative: Think out of box

14. Esprit de corps: Unity is strength

 Bahavioral: HR Approach

• Significant contribution made by Elton Mayo. He conducted a serious of

experiments in Four Parts as follows:

i. Illumination Experiments: Experiments on parameters which affects productivity

ii. Relay Assembly Test Room: Friendly environment increase the quality and
productivity of workers

iii. Interviewing Programme: Open and close ended questions helps to gather views of
worker towards management

iv. Bank Wiring Test Room: Internal groups can affect development in organization.
 Behavioral Science and Approach

• The behavioral approach focuses on the psychological and sociological process that
influence employee performance.

The hierarchy of human needs,

1. Psychological Needs: Survival and maintenance of life
2. Safety Needs: Stable life and security
3. Social Needs: This includes need for affection, belonging or association with family
4. Esteem Needs: Recognition status, achievement, power
5. Self Actualization: Fulfill real mission of life
 Management Science Approach

• This is also known as Mathematical or Quantitative approach. This approach

identifies problematic issue within the business and develop possible solutions.

• This approach is originated during World War II as a means for making the best use
of available resources.

• Management Science Approach identifies a problematic issue or process within a

business operation. It then develops possible theories for how the problem
developed and design possible solutions.

• Management problems can be described in term of mathematical symbols, thus

every managerial activity can be qualifies.
 System Approach

• System approach to management views the organization as a unified, purposeful

system composed of interrelated parts

• Example The system approach recognizes that ,no matter how efficient the
production department might be ,the marketing department better anticipate
changes in customer tastes and work with the product development department in
creating products customers want ,or the organization's overall performance will
suffer.