Welingkar’s Distance Learning Division
CHAPTER-02
DEVELOPMENT OF
MANAGEMENT THOUGHT
We Learn – A Continuous Learning Forum
Welingkar’s Distance Learning Division
Introduction
 Management has developed since the time
when the world came into exi...
Welingkar’s Distance Learning Division
Introduction
 An individual can not achieve single handed.
Cooperation, group effo...
Welingkar’s Distance Learning Division
Does water flowing in a
distant mountain think
about its distance from
the ocean?
T...
Welingkar’s Distance Learning Division
Henry Fayol
 Henry Fayol was a French industrialist. The principles
of management ...
Welingkar’s Distance Learning Division
Henry Fayol
The management functions and organizational
functions are different.
 ...
Welingkar’s Distance Learning Division
Classification of business activities
 Technical activities relating to production...
Welingkar’s Distance Learning Division
Classification of business activities
 Accounting activities relating to the recor...
Welingkar’s Distance Learning Division
Elements of management
 Planning
 Organizing
 Commanding
 Co-ordination
 Contr...
Welingkar’s Distance Learning Division
Qualities of a Manager
 Physical (health, vigor and address)
 Mental (Ability to ...
Welingkar’s Distance Learning Division
Principles of Management
We Learn – A Continuous Learning Forum
Division of work
Au...
Welingkar’s Distance Learning Division
Frederick Winslow Taylor
 F.W. Taylor had observed the work
performance of manager...
Welingkar’s Distance Learning Division
Scientific management
 Scientific management consists of a certain
philosophy of s...
Welingkar’s Distance Learning Division
Principles of scientific management
 Science rot rule thumb
 Harmony in group act...
Welingkar’s Distance Learning Division
Elements or Features of scientific management
Seperation of planning
from executive...
Welingkar’s Distance Learning Division
Contributions of F. W. Taylor
 He has applied the principles of scientific managem...
Welingkar’s Distance Learning Division
Peter F. Drucker
 Peter F. Drucker was born in 1909 in Vienna.
He had written many...
Welingkar’s Distance Learning Division
Contributions of Peter F. Drucker
 Nature of management
 Functions of management
...
Welingkar’s Distance Learning Division
Frunk Bunkar Gilberth
 Frank Bunker Gillbreth’s wrote several wrote
several books ...
Welingkar’s Distance Learning Division
Frunk Bunkar Gilberth
 He found out 18 basic elements. Search, fine,
select, grasp...
Welingkar’s Distance Learning Division
Mrs. Lillian Moller Gillerth
 Lillian Moller was Gilbreth’s wife. She and her
husb...
Welingkar’s Distance Learning Division
Max Weber
 Max Weber was a germen social scientist. He
emphasized the strict adher...
Welingkar’s Distance Learning Division
Bureaucracy
 Max Weber analyzed the various points
before finalizing an ideal form...
Welingkar’s Distance Learning Division
Characteristics or features
 Functional specialization
 Hierarchy of authority
 ...
Welingkar’s Distance Learning Division
Advantages of bureaucracy
 Specialization
 Employee behavior
 Structure
 No con...
Welingkar’s Distance Learning Division
Disadvantages of bureaucracy
 Rigidity
 Red tapism
 Displacement of goal
 Imper...
Welingkar’s Distance Learning Division
Mary Parker Follett
 Mary parker Follett wrote books to ventilate her
views on man...
Welingkar’s Distance Learning Division
Mary Parker Follett
 Conflict
 Authority
 Group
 Participation
 Integration
 ...
Welingkar’s Distance Learning Division
Hawthorne Experiments
 Illumination experiments
 Relay assembly test room experim...
Welingkar’s Distance Learning Division
Findings of Hawthorne Experiments
 Social factors
 Group influence
 Production l...
Welingkar’s Distance Learning Division
Findings of Hawthorne Experiments
 Leaderships
 Cordial relationship
 Behavior o...
Welingkar’s Distance Learning Division
Criticism of hawthorone experiments
 Derecognization
 Pro-management bias
 No sc...
Welingkar’s Distance Learning Division
Criticism of hawthorone experiments
 Overlooking social factors
 Limited scope of...
Welingkar’s Distance Learning Division
Criticism of hawthorone experiments
 Undue importance to worker satisfaction
 Hig...
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Development of Management Tought

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Management was developed since the time the world came into existence. Whenever group efforts are necessary to achieve anything there is a need for management. Kautilya’s Artha Shastra and Thiruvalluvar’s teachings enunciate management principles that can be applied to the modern world.


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Development of Management Tought

  1. 1. Welingkar’s Distance Learning Division CHAPTER-02 DEVELOPMENT OF MANAGEMENT THOUGHT We Learn – A Continuous Learning Forum
  2. 2. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  3. 3. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  4. 4. Welingkar’s Distance Learning Division Does water flowing in a distant mountain think about its distance from the ocean? The distance between my current position and my desired goals is very big. But I shall reach my goals. We Learn – A Continuous Learning Forum
  5. 5. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  6. 6. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  7. 7. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  8. 8. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  9. 9. Welingkar’s Distance Learning Division Elements of management  Planning  Organizing  Commanding  Co-ordination  Control We Learn – A Continuous Learning Forum
  10. 10. Welingkar’s Distance Learning Division 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)  Experience We Learn – A Continuous Learning Forum
  11. 11. Welingkar’s Distance Learning Division Principles of Management We Learn – A Continuous Learning Forum 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
  12. 12. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  13. 13. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  14. 14. Welingkar’s Distance Learning Division Principles of scientific management  Science rot rule thumb  Harmony in group action  Co-operation  Maximum output  Improvement workers We Learn – A Continuous Learning Forum
  15. 15. Welingkar’s Distance Learning Division Elements or Features of scientific management Seperation of planning from executive Fatigue Study function Time Study Scientific task Rate Setting setting Economy Motion duty Functional foremanship Standardization Mental revolution Work study Scientific selection Methods study Financial incentives and training We Learn – A Continuous Learning Forum
  16. 16. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  17. 17. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  18. 18. Welingkar’s Distance Learning Division 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 We Learn – A Continuous Learning Forum
  19. 19. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  20. 20. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  21. 21. Welingkar’s Distance Learning Division Mrs. Lillian Moller Gillerth  Lillian Moller was Gilbreth’s wife. She and her husband recognized the human factor which is very essential in management. We Learn – A Continuous Learning Forum
  22. 22. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  23. 23. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  24. 24. Welingkar’s Distance Learning Division Characteristics or features  Functional specialization  Hierarchy of authority  Rules and regulations  Rights and duties  Technical competence  Fixation of procedure  Record-keeping  Impersonal relations We Learn – A Continuous Learning Forum
  25. 25. Welingkar’s Distance Learning Division Advantages of bureaucracy  Specialization  Employee behavior  Structure  No conflict  Advance decision  Optimum utilization of human resources  Democracy  Perpetual succession We Learn – A Continuous Learning Forum
  26. 26. Welingkar’s Distance Learning Division 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 We Learn – A Continuous Learning Forum
  27. 27. Welingkar’s Distance Learning Division 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. We Learn – A Continuous Learning Forum
  28. 28. Welingkar’s Distance Learning Division Mary Parker Follett  Conflict  Authority  Group  Participation  Integration  Leadership  Co-ordination We Learn – A Continuous Learning Forum
  29. 29. Welingkar’s Distance Learning Division 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 We Learn – A Continuous Learning Forum
  30. 30. Welingkar’s Distance Learning Division Findings of Hawthorne Experiments  Social factors  Group influence  Production level  Motivation  conflicts We Learn – A Continuous Learning Forum
  31. 31. Welingkar’s Distance Learning Division Findings of Hawthorne Experiments  Leaderships  Cordial relationship  Behavior of workers  Supervision  Communication  Reaction of workers We Learn – A Continuous Learning Forum
  32. 32. Welingkar’s Distance Learning Division Criticism of hawthorone experiments  Derecognization  Pro-management bias  No scientific enquiry  Clinical bias  Lack of universal application We Learn – A Continuous Learning Forum
  33. 33. Welingkar’s Distance Learning Division Criticism of hawthorone experiments  Overlooking social factors  Limited scope of research  Treatment of workers  Undue importance to observation  Doubtful validity We Learn – A Continuous Learning Forum
  34. 34. Welingkar’s Distance Learning Division Criticism of hawthorone experiments  Undue importance to worker satisfaction  Highlighting only known facts  Evaluation We Learn – A Continuous Learning Forum

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