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CHAPTER-02

DEVELOPMENT OF MANAGEMENT THOUGHT

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Introduction 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.

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Introduction

An individual can not achieve 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.

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Does water flowing in adistant mountain thinkabout its distance from

the ocean?

The distance between mycurrent position and mydesired goals is very big.

But I shallreach my goals.

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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.

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Henry Fayol

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.

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Classification of business activities

Technical activities relating to production.

Commercial activities relating to purchase of basic raw materials and other resources, selling of products and exchange.

Security activities relating to the steps taken to protect the property of enterprise and persons.

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Classification of business activities Accounting activities relating to the recording and

maintaining of accounts, stock taking and preparation of cost sheets, balance sheets and statistical data.

Managerial activities relating to planning, organizing, commanding, coordinating and controlling.

Financial activities relating to identification and utilization of available funds.

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Elements of management

Planning

Organizing

Commanding

Co-ordination

Control

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Qualities of a Manager

Physical (health, vigor and address)

Mental (Ability to understand and learn)

Moral (Energy, firmness, willingness to accept responsibility)

General education (general acquaintance with matters not belonging)

Special knowledge (particular to the function)

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Principles of Management

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Division of work

Authority and responsibility

Unity of command

Discipline

Remuneration of personnel

Centralization Scalar Chain Order

Espirit de corps

Stability

Equity

Unity of direction

Subordination of individual to group

interest

Principles of management

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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.

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Scientific management

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.

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Principles of scientific management

Science rot rule thumb

Harmony in group action

Co-operation

Maximum output

Improvement workers

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Elements or Features of scientific managementSeperation of planningfrom executive Fatigue Studyfunction

Time Study

Scientific task Rate Settingsetting

Economy

Motion dutyFunctional foremanshipStandardization Mental revolution

Work study Scientific selection Methods study Financial incentivesand training

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Contributions of F. W. Taylor

He has applied the principles of scientific management to solve the problems of management.

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.

He was the first person who supported mental revolution both on the part of the employee.

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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.

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Contributions of Peter F. Drucker

Nature of management

Functions of management

Organization structure

Centralist control with a structure of decentralization

Management by objectives

Organizational changes

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Frunk Bunkar Gilberth

Frank Bunker Gillbreth’s wrote several 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.

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Frunk Bunkar Gilberth

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.

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Mrs. Lillian Moller Gillerth

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

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Max Weber

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

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Bureaucracy

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

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Characteristics or features Functional specialization

Hierarchy of authority

Rules and regulations

Rights and duties

Technical competence

Fixation of procedure

Record-keeping

Impersonal relations

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Advantages of bureaucracy Specialization

Employee behavior

Structure

No conflict

Advance decision

Optimum utilization of human resources

Democracy

Perpetual succession

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Disadvantages of bureaucracy Rigidity

Red tapism

Displacement of goal

Impersonal nature of work

Failure of co-operation and co—ordination

No mutual understanding

Mechanical treatment

Empire building

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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.

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Mary Parker Follett Conflict

Authority

Group

Participation

Integration

Leadership

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Hawthorne Experiments

Illumination experiments

Relay assembly test room experiments

Mass interviewing programme

Bank wiring observation experiments Unemployment problem Unduly high standard Protection of slow workers Satisfaction of management

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Findings of Hawthorne Experiments Social factors

Group influence

Production level

Motivation

conflicts

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Findings of Hawthorne Experiments

Leaderships

Cordial relationship

Behavior of workers

Supervision

Communication

Reaction of workers

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Criticism of hawthorone experiments Derecognization

Pro-management bias

No scientific enquiry

Clinical bias

Lack of universal application

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Criticism of hawthorone experiments Overlooking social factors

Limited scope of research

Treatment of workers

Undue importance to observation

Doubtful validity

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Criticism of hawthorone experiments

Undue importance to worker satisfaction

Highlighting only known facts

Evaluation

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