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EVOLUTION OF

MANAGEMENT
THOUGHT
ABHIJIT TALUKDARBARCH SEM VIII
ROLL NO:01GCAP ,AZARA
CONTENTS

1. INTRODUCTINO TO MANAGEMENT
2. DEFINITION OF MANAGEMENT
3. PRINCIPLES OF MANAGEMENT
4. FUNCTIONS OF MANAGEMENT
5. IMPORTANCE OF EFFECTIVE MANAGEMENT
6. HISTORY OF MANAGEMENT
7. THREE TYPES OF MANAGEMENT THEORIES
8. TAYLOR’S THEORY OF MANAGEMENT/PRINCIPLES
9. TECHNIQUES/ EVALUATION OF TAYLOR’S THEORY
10. FAYOL’S ADMINISTRATIVE THEORY
11. EVALUATION OF FOYALS THEORY
12. TAYLOR AND FOYALS THEORY COMPARISION
13. CONCLUSION
INTRODUCTION
• Management thought refers to the theories that guide management
of people in the organisations
• Initially , these theories developed out of practical experience of
managers in the industrial enterprises. Later on they borrowed ideas
from other fields of study like science, anthropology, sociology etc.
• The driving force behind this is the search for better ways for
organizing resources
• Consists of planning, organising, staffing etc
• Adam smith established the management though in 1776
• Evolution of management began in the late 19th century after the
industrial resolution
• Classical example is the construction of pyramids in Egypt
DEFINITION OF MANAGEMENT
• MANAGEMENT CAN BE DEFINED AS THE PROCESS OF PLANNING,
ORGANIZING, DIRECTING, AND CONTROLLING RESOURCES TO
ACHIEVE ORGANIZATIONAL GOALS EFFECTIVELY AND EFFICIENTLY.

• IT INVOLVES COORDINATING AND SUPERVISING THE EFFORTS OF


INDIVIDUALS AND GROUPS TO ACCOMPLISH PREDETERMINED
OBJECTIVES.

• MANAGEMENT ENCOMPASSES VARIOUS FUNCTIONS, SUCH AS


DECISION-MAKING, LEADERSHIP, COMMUNICATION, AND
PROBLEM-SOLVING, AIMED AT ACHIEVING DESIRED OUTCOMES.
PRINCIPLES OF MANAGEMENT
The general principles of management provide a set of guidelines and concepts that guide
managers in effectively carrying out their roles and responsibilities. While there are various
principles proposed by different management experts, here are some commonly
recognized principles:
• Unity of Command: Each employee should have only one direct supervisor to avoid
conflicting instructions and confusion.
• Division of Work: Work should be divided into smaller tasks and assigned to individuals
based on their skills and expertise, promoting specialization and efficiency.
• Scalar Chain: There should be a clear and formal chain of authority and communication
from the top management to the lowest levels of the organization.
• Unity of Direction: All members of the organization should work towards a common
goal, aligned with the organization's mission and vision.
• Authority and Responsibility: Managers should have the necessary authority to carry out
their responsibilities, and with authority comes accountability.
• Discipline: Employees should adhere to established rules and procedures, promoting
order, productivity, and a positive work environment.
• Remuneration: Fair and equitable compensation systems should be in place to motivate
employees and recognize their contributions.
• Centralization and Decentralization: The degree of decision-making authority should be
appropriately balanced between centralization (at the top) and decentralization (at
lower levels).
• Equity: Employees should be treated fairly and impartially, fostering a sense of justice
and promoting positive relationships within the organization.
• Stability and Change: Managers should balance the need for stability and continuity
with the need for adaptation and change in response to internal and external factors.
These principles provide a foundation for effective management practices, but it is
important to note that theyshould be applied in a flexible and context-specific manner,
FUNCTIONS OF MANAGEMENT
The functions of management are essential for effective and
efficient organizational operations. There are five primary
functions: planning, organizing, directing, staffing and
controlling. Planning involves setting goals, defining
strategies, and developing action plans to achieve desired
outcomes. Organizing focuses on designing the structure of
the organization, allocating resources, and establishing
relationships and processes to facilitate goal attainment.
Leading entails motivating, guiding, and influencing
individuals and teams to work towards the common
objectives. Lastly, controlling involves monitoring
performance, comparing it to established standards, and
taking corrective actions when necessary. These functions
work in synergy to provide a framework for managers to
effectively manage resources, people, and processes,
enabling the organization to achieve its goals and objectives.
IMPORTANCE OF EFFECTIVE
MANAGEMENT:

• EFFECTIVE MANAGEMENT IS CRUCIAL FOR ORGANIZATIONS TO


ACHIEVE THEIR GOALS AND MAINTAIN A COMPETITIVE ADVANTAGE
IN THE DYNAMIC BUSINESS ENVIRONMENT.
• IT PLAYS A PIVOTAL ROLE IN COORDINATING AND UTILIZING
RESOURCES EFFICIENTLY, ENHANCING PRODUCTIVITY, MOTIVATING
EMPLOYEES, FOSTERING INNOVATION, AND ENSURING
ORGANIZATIONAL SUCCESS.
• EFFECTIVE MANAGEMENT HELPS IN ALIGNING INDIVIDUAL AND
ORGANIZATIONAL GOALS, FACILITATING COORDINATION AND
COLLABORATION, AND ADAPTING TO CHANGE
HISTORY OF MANAGEMENT
• The general principles of management provide a set of guidelines and concepts that guide managers in effectively carrying out their roles and responsibilities. While there are
various principles proposed by different management experts, here are some commonly recognized principles:
• Unity of Command: Each employee should have only one direct supervisor to avoid conflicting instructions and confusion.
• Division of Work: Work should be divided into smaller tasks and assigned to individuals based on their skills and expertise, promoting specialization and efficiency.
• Scalar Chain: There should be a clear and formal chain of authority and communication from the top management to the lowest levels of the organization.
• Unity of Direction: All members of the organization should work towards a common goal, aligned with the organization's mission and vision.
• Authority and Responsibility: Managers should have the necessary authority to carry out their responsibilities, and with authority comes accountability.
• Discipline: Employees should adhere to established rules and procedures, promoting order, productivity, and a positive work environment.
• Remuneration: Fair and equitable compensation systems should be in place to motivate employees and recognize their contributions.
• Centralization and Decentralization: The degree of decision-making authority should be appropriately balanced between centralization (at the top) and decentralization (at lower
levels).
• Equity: Employees should be treated fairly and impartially, fostering a sense of justice and promoting positive relationships within the organization.
• Stability and Change: Managers should balance the need for stability and continuity with the need for adaptation and change in response to internal and external factors.
• These principles provide a foundation for effective management practices, but it is important to note that they should be applied in a flexible and context-specific manner,
considering the unique characteristics and requirements of each organization.
THE THREE TYPES OF MANAGEMENT
THEORIES
• Classical Management Theory: This theory emerged in the early 20th century and focuses on the principles of efficiency and
productivity. It includes two major subtypes:
a. Scientific Management: Developed by Frederick Taylor, scientific management emphasizes the use of scientific methods to improve
workplace efficiency. It involves analyzing tasks, determining the most efficient ways to perform them, and training workers accordingly.
b. Administrative Management: Pioneered by Henri Fayol, administrative management focuses on the overall organization and
administration of businesses. It identifies key management functions such as planning, organizing, coordinating, commanding, and
controlling.
• Behavioral Management Theory: This theory emerged in the mid-20th century as a response to the limitations of classical management
theories. Behavioral management theory emphasizes the importance of understanding human behavior in the workplace and
motivators that drive employees. It highlights factors like employee needs, motivation, communication, and group dynamics as crucial
elements in achieving organizational goals.
• Modern Management Theory: Also known as contemporary or systems theory, this approach emerged in the latter half of the 20th
century. Modern management theory views organizations as complex systems that interact with their internal and external
environments. It emphasizes the interconnectedness of various organizational components and the need to adapt and respond to
changes. This theory incorporates concepts like systems thinking, contingency theory, total quality management (TQM), and strategic
management.
It's important to note that these three types of management theories represent broad categories, and many other theories and approaches
exist within each category. Management theory continues to evolve as researchers and practitioners explore new ideas and concepts to
address the challenges of the modern business environment.
TAYLOR’S SCIENTIFIC THEORY
• Taylor developed his theory on the basis of his work experience in three
companies: Midvale Steel workds, Simond Rolling Mills and Bethlehem Steel
company.He is regard as Father of Scientific Management.
• He focused on finding the best way to do the job by eliminating wastage of men
and material. He developed time and motion studies to find optimum time and
nature of operations for successful completion of tasks.
• He also introduced differential wage rate system to pay more to productive
workers.

PRINCIPLES OF TAYLOR’S THEORY


• Rule of thumb should be replaced with science
• There should be harmony, not discord in group actions
• Cooperation, not Individualism
• Maximum output, not restricted out
FEDRICK WINSLOW TAYLOR
• Development of workers to their fullest capacity.
TECHNIQUES OF SCIENTIFIC EVALUATION OF TAYLOR’S
MANAGEMENT GIVEN BY
TAYLOR
THEORY
• BETTER MANAGEMENT THROUGH SCIENTIFIC METHODS
• TIME STUDY • DISCOVERED TRUE CAPACITY OF WORKERS
• MOTION STUDY • SCIENTIFIC SELECTION OF WORKERS
• SCIENTIFIC TASK PLANNING • MENTAL REVOLUTION ON THE PART OF EMPLOYEES AND EMPLOERS. IN
ADDITION TO TAYLOR, SEVERAL OTHER PERSONS LIKE HENRY L GANTT,
• STANDARDIZATION AND SIMPLICATION HARINGTON EMERSON, FRANK GILBRETH AND LILLIAN GIBRETH ALSO
• DIFFERENTIAL PIECE RATE SSTEM SUPPORTED AND CONTRIBUTED IN SCIENTIFIC MANAGEMENT MOVEMENT.
LIMITATIONS
• FUNCTIONAL FOREMANSHIP
• UNREALISTIC ASSUMPTIONS
• HIGH SPEED STEEL
• MECHANISTIC APPROACH
• EXPLOITATION OF LABOUR
• IMPRACTICABLE
• NARROW VIEW
FAYOL’S ADMINISTRATIVE THEORY
• FAYOL FOCUSSED ON MANAGING THE ORGANISATION AS A WHOLE RATHER
THAN LOWER LEVELS OF ORGANISATION ONLY.
• HIS THEORY REVOLVES AROUND
• ACTIVITIES OF A BUISINESS: TECHNICAL. COMMERCIAL, FINANCIAL, SECURITY,
ACCOUNTING AND MANAGERIAL
• FUNITONS OF A MANAGEER: PLANNING
/ORGANIZING/COMMANDING/COORDINATING/CONTROLLING
• ABILITIES OF MANAGERS; PHYSICAL, MENTAL, MORAL, GENERAL EDUCATION,
SPECIAL KNOWLEDGE AND EXPERIENCE

HENRY FAYOL
EVALUATION OF FAYOL’S THEORY
• HIS PRINCIPLES ARE WIDELY ACCEPED IN BUSINESS AND NON-
BUSINESS WORLD
• HE PIONEERED IN HIGHLIGHTING THE PRINCIPLES OF MANAGEMENT
• CRITICISM
• TOO FORMAL
• VAGUE
• INCONSISTENCY
• PRO-MANAGEMENT BIASED
• HISTORICAL VALUE
TAYOR AND FAYOL COMPARISION
COMPARISION OF HUMAN RELATIONS
THEORY AND BEHAVIOURAL RHEORY
CONCLUSION
• In conclusion, the evolution of management thought has been a dynamic and ever-changing journey that has shaped the way organizations are managed and
operated today. From the early theories of scientific management to the more contemporary approaches such as systems theory and contingency theory, each era
has contributed valuable insights and perspectives.
• The classical management theories, including scientific management and administrative management, laid the foundation for understanding organizational
structure, efficiency, and the importance of managerial roles. These theories emphasized the need for standardization, specialization, and hierarchical structures.
• The human relations movement introduced a significant shift in management thinking, recognizing the importance of employee motivation, satisfaction, and group
dynamics. This perspective highlighted the social and psychological aspects of work and emphasized the significance of communication, participation, and
leadership styles in promoting productivity and job satisfaction.
• The contingency approach brought about a greater emphasis on flexibility and adaptation. It acknowledged that there is no one-size-fits-all approach to
management and that the most effective methods depend on various situational factors. This perspective encouraged managers to analyze and understand the
unique circumstances of their organizations and make decisions accordingly.
• The modern era of management thought continues to evolve, incorporating concepts such as total quality management, empowerment, knowledge management,
and strategic management. These approaches recognize the importance of continuous improvement, innovation, and the alignment of organizational goals with
environmental changes.
• As we look to the future, it is clear that management thought will continue to evolve in response to emerging trends, such as globalization, technological
advancements, and shifting demographics. The challenges and opportunities presented by these trends will require managers to embrace new ideas, adapt their
practices, and foster a culture of learning and innovation.
• In conclusion, the evolution of management thought is an ongoing process that reflects the dynamic nature of organizations and society. By understanding the
historical development of management theories and embracing the principles and concepts that resonate with the current context, managers can navigate the
complexities of the modern business landscape and drive organizational success.
THANK YOU

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