Development of management thought


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A overview on development of management thought from Principles of Management.

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Development of management thought

  1. 1. Presented byDhananjay Mull
  2. 2. PRINCIPLES OF MANAGEMENT    A Principles may be defined as a fundamental statement that provides a guide to thought and action. It establishes a cause and effect relationship between two or more variables. Principles of management originate and grow as a result of past experience and accomplishments.
  3. 3. NEED FOR THE PRINCIPLES OF MANAGEMENT     •To Increase efficiency •To crystallize the nature of management •To improve research •To attain social goals
  5. 5.   Engineer and French industrialist In France worked as a managing director in coalmining organization Authored book on” General and Industrial administraion”
  6. 6. CLASSIFICATION OF BUSINESS FUNCTION       Technical ( production) Commercial (buying and selling) Financial ( obtaining capital) Security ( protection of resources) Accounting ( statistic and financial position) Managerial ( planning, organising, coordination and control etc)
  7. 7.  1.Division of Work —improves efficiency through a reduction of waste, increased output, and simplification of job training  2.Authority and Responsibility—authority: the right to give orders and the power to extract obedience – responsibility: the obligation to carry out assigned duties  3.Discipline—respect for the rules that govern the organization
  8. 8.     4. Unity of Command—an employee should receive orders from one superior only 5. Unity of Direction—grouping of similar activities that are directed to a single goal under one manager 6. Subordination of Individual Interests to the General Interest—interests of individuals and groups should not take precedence over the interests of the organization as a whole. 7. Remuneration of Personnel—payment should be fair and satisfactory for employees and the organization
  9. 9. 8. Centralization—managers retain final responsibility – subordinates maintain enough responsibility to accomplish their tasks 9. Scalar Chain (Line of Authority)—the chain of command from the ultimate authority to the lowest  10. Order—people and supplies should be in the right place at the right time  11. Equity—managers should treat employees fairly and equally  12. Stability of Tenure of Personnel—managerial practices that encourage long-term commitment from employees create a stable workforce and therefore a successful organization
  10. 10.   13. Initiative—employees should be encouraged to  develop and carry out improvement plans 14. Esprit de Corps—managers should foster and  maintain teamwork, team spirit, and a sense of  unity among employees
  11. 11. FREDERICK WINSLOW TAYLOR • • • • • F.W.Taylor born in 1856, introduced systematic working. He found out the techniques of management. The outcome of his system bought logic, order, etc. F.W.Taylor conducted many experiments on management. He found out that systematization and standardization gave a better output
  12. 12. Major publications of F.W.Taylor 1. 2. 3. 4. A Piece Rate System - 1895 Shop Management – 1903 The Art of Cutting Metals – 1906 The Principles of Scientific Management
  13. 13. PRINCIPLES OF SCIENTIFIC MANAGEMENT • • • • • Science not rule of thumb Harmony in group action Co-operation Maximum output Improvement of workers
  14. 14. ELEMENTS OF SCIENTIFIC MANAGEMENT 1. 2. 3. 4. 5. 6. 7. Separation of planning from executive function Scientific task setting Functional foremanship Work study Methods of study Motion duty Time study
  15. 15.        8. Fatigue study 9. Rate setting 10. Standardization 11. Scientific selection and training 12. Financial incentives 13. Mental revolution 14. Economy
  16. 16. Peter F. Drucker  According to Drucker, management has two important functions, innovation and marketing. He has treated management as a discipline as well as a profession. For him, management is more of a practice and is always goal oriented. His study on the purpose of business as the creation of the customer, if understood in the right manner, helps any organization to achieve success.
  17. 17.  Drucker’s view on innovation is equally important in order to pay emphasis during the development of a new product. He argues that new products should drive out the existing products, rather than the other way round. As such, he is against bureaucratic management, as he thinks that it stifles the innovative spirit and the initiative among the people in the organization. He considers that modern organizations are knowledge-based organizations and describes the modern workers as knowledge workers considering their skills and innovative abilities.
  18. 18.     Drucker points out three basic functions of management. The actions of management should contribute to: 1. The achievement of purpose and mission of the institution 2. Make the work productive and the worker achieving 3. Effective management of social responsibilities
  19. 19. Contributions of F. W. Taylor      He was known as the father of Scientific Management. He applied Scientific management to solve problems of the management. He believed that the Management should tell employee’s about the expectations they have. He conducted time and motion study first. He supported the mental revolution on the part of the employer and employee
  20. 20. Criticism of Scientific Management • 1. Exploitation of Workers Taylor's Scientific Management put unnecessary pressures on the employees to perform the work faster. 2. Problem of Unity of Command Taylor used functional foremanship. So, the workers have to report to eight bosses. This breaks the principle of unity of command, where the workers have to report to only one boss •
  21. 21. • 3. Mechanical Approach Taylor's approach was a mechanical approach. He gave too much importance to efficiency. He did not consider the human element. 4. Problem of Separation of Planning from Doing Taylor said to separate planning from doing. In reality, we cannot separate planning from doing. 5. Individualistic Approach Taylor's scientific management gives too much importance to individual performance and not to group performance.
  22. 22. Frank Bunker Gilbreth     He worked at a Brick laying company and was then promoted to Superintendent in the same firm. He has written various books on scientific management and systems. He believed and gave importance to time and motion study similar to Taylor. F.B.Gilbreth concentrated not on time but best way to do the job. He recommended minimum motions and avoiding unneeded motions for completing the job.
  23. 23.   1. 2. 3. 4. 5. 6. 7. The basic elements work through analysing various methods of working. They use flow process charts, he called them therbligs. The elements are as follows: Search Find. Select Grasp. Position. Assemble. Disassemble.
  24. 24. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Inspect. Transport loaded. Preposition. Release load. Rest. Wait-unavoidable. Avoidable delay. Use. Plan. Motion study.
  25. 25. Mrs. Lillian Moller Gilbreth.   Lillian Moller, wife of Frank Gilbreth has written many articles and books on the psychology of management and management aspects. She worked in the same firm as her husband, they worked as a team and always worked towards finding the best way
  26. 26. Max Weber • • • • • Born April 21, 1864. In Erfurt in Thuringia, Germany (Suburbs of Berlin). German Political Economist and Sociologist. One of the founders of modern Sociology He is the first one to emphasised the strict adhernce of rules and regulation in an organisation which was termed as “Bureaurcracy.”
  27. 27. Bureaucracy • • • • This is the oldest form of organisation. It is also based on principle of logic & legitimate authority. Max weber analysed the various points before finalising an ideal form of organisation. Maximum benefits can be derived. Offers .lots of benefits to the people
  28. 28. Characteristics or Features      Functional specialisation. Hierarchy of authority. Rules and regulations. Rights and duties. Impersonal relations.
  29. 29. Advantages of bureaucracy      Specialisation Structure No conflicts Advance decision Democracy
  30. 30. Disadvantages of bureaucracy      Rigidity Impersonal nature of work. Failure of co-operation and co-ordination. No mutual understanding Mechanical treatment
  31. 31. Mary Parker Follet     She is a pioneer of management thought in Human Relations. She gave prime importance to the nature of management. She strongly believed that psychology plays an integral part in human activity She always took into consideration the human character at the workers level, supervisory level as well as at the management’s level
  32. 32. Views of Aspects of Management. 1. 2. 3. 4. 5. Conflict: Conflicts can be removed by domination, compromise and integration. Authority: Authority is root of all evils. Group: Should be more than aggregation of individuals, they should be a team and should act as a team. Participation: It rests on understanding and coordination of each individual. Integration: The integration of interest should not only be for the organisation but of all the interests of workers, investors and consumers
  33. 33. 6. 7. Leadership: Leaders are never born leaders but with proper training and the tools, any human can be a good leader. Co-ordination: - By direct contact by responsible people. - Early stages of planning and policy making. - Relation of all factors in the situation. - A continual, non-stoppage process
  34. 34. Henry L. Gantt Henry Laurence Gantt was born in Calbert County Merrilane in the U.S.A. On 20th May 1861.  Henry L. Gantt introduced “ Gantt Task and Bonus Plan” and the Gantt Chart.  This is calcucated as under this system Output below standard-Time rate wages Output at standard - Bonus of 20% on time rate. Output above standard - High piece rate on whole output.  This system is an improvement of Taylor’s Differential system of wage payment. 
  35. 35.     Gantt was a founder of new movements known as “ the new machine” It avoids the exercise of power and advocated harmonious relationship between the employers and the employees. Gantt believed that justice and human behaviour were important elements in industrial relations. Gantt distinguished between man and machine.
  36. 36. George E. Mayo.      Elton Mayo was born in 1880 in Adelaide in Australia in 1992. Elton Mayo worked as a teacher initially. He had become a lecture at the University of Queensland after studying psychology. Elton Mayo was regarded as the founder and father of modern sociological and psychological industrial research. He has published many books and papers.
  37. 37.      The human civilization had entered the machine age after industrial revolution. Maximum output is emphasized during the machine age. Nobody is considered human relations between employers and employees. The productivity is affected by the desires, attitudes and feelings of the workers. George Elton Mayo was the first person to look into the matter of human relations.