CONTRIBUTION OF

MANAGEMENT
THINKERS
 Henri Fayol, the father of Principles of Management was born
in 1841 in France and graduated as a mining engineer in 1860
from the National School of Mining at St. Etienne.
 In 1860, he joined the famous French Combine in the mining
and metallurgical field-the Commentary- Fourchambault
Company-as an engineer. After a couple of years he was
promoted as the Manager of the collieries and continued as
such for twenty-two years.
 The condition of the combine became precarious. Due to heavy losses the
firm was nearly bankrupt. At this time Fayol was appointed as General
Manager. When he retired thirty years later, the company had expanded
into a large Coal-Steel combine with a strong financial position and a long
record of profits and dividends.
 During his long and successful career as an Industrial Manager, Fayol tried
to probe into the bottom of the principles of administration and
management. In contrast to Taylor’s emphasis on first-line supervision in
production areas, Fayol’s work was concerned with the higher levels of the
organisation. Fayol analysed the process of management as he had
observed it first-hand.
 Technical activities (production, manufacture, adaptation).
 Commercial activities (buying, selling, exchange).
 Financial activities (search for optimum use of capital).
 Security activities (protection of property and persons).
 Accounting activities (stock taking, balance sheet, costs,
statistics).
 Managerial (administrative) activities (planning, organization,
command, coordination and control).
 Fayol believed that if any kind of business was to
operate successfully, these six functions had to be
performed. If anyone was neglected, the enterprise
would suffer accordingly. Fayol devoted most of his
attention to the managerial activities. In doing so he
enunciated certain principles which hold ground
(with suitable modifications) to this day.
 Division of work.
 Authority and responsibility.
 Discipline.
 Unity of command.
 Units of direction.
 Subordination of individual to general interest.
 Remuneration.
 Centralization of authority.
 Scalar chain.
 Order.
 Equity of treatment.
 Stability.
 Initiative.
 Esprit de corps.
 Fayol saw management as one of six basic
activities; that is, technical, commercial, financial,
security, accounting and managerial activities.
However, our concept of management should be
modified to say, in Fayol’s terms that management
is the planning, organizing, command, coordination
and control of technical, financial, security and
accounting activities.
 A second modification is also necessary. In terms of our
understanding of what makes people work at maximum
productivity, we should substitute motivation for
command It is true that a manager must direct,
command and order to get things done. But he also
encourages, communicates, develops, and stimulates.
He knows enough of the mainsprings of the motives of
men to be able to motivate them to highest endeavor.
 Fredrick Winslow Taylor is known as the founder of
Scientific Management. Taylor laid the foundation for
modern scientific management between 1880 and 1890. He
began his carrier in 1871 as an apprentice machinist and
turner at the Cramp Shipyard at Philadelphia, U.S.A.
 After three years he joined the Midvale Steel Works as a
machine shop- worker. By dint of his hard labour, he
progressed rapidly to become machinist, gang boss,
foreman and finally Chief Engineer in 1884.
 Taylor developed Functional Organization in which one
foreman was made in charge for each function.
 Taylor devoted his maximum attention towards Time
studies and he established work standards.
 Taylor introduced and operated various costing systems
 Taylor suggested a Wage Incentive Scheme known as
Taylor’s Differential Piece Rate Plan.