2. EVOLUTION OF MANAGEMENT THOUGHT
Sr. Management Thought Period
1. Early contributions Upto 19th century
2. Scientific management 1900-1930
3. Administrative management 1916-1940
4. Human relations approach 1930-1950
5. Social systems approach 1940-1950
6. Decision theory approach 1945-1965
7. Management science approach 1950-1960
8. Human behavior approach 1950-1970
9. Systems approach 1960s onwards
10. Contingency approach 1970s onwards
3. Introduction
• Introduced by Fredrick Winslow Taylor in USA in the
beginning of 20th century.
• Further carried on by Frank and Lillian Gilbreth,
George Berth, Edward Felen, etc.
• Concerned essentially with improving the
operational efficiency at the shop floor level
4. F. W. Taylor
• Joined Midvale Steel Company in USA as a worker and
later on became supervisor.
• During this period, he continued his studies and
eventually completed his Masters of Engineering.
• Subsequently, he joined the Bethlehem Steel Company.
• During his employment in both the companies, he
carried out experiments on how to increase the
efficiency of people.
• On the basis of his experiments and findings, he
published many papers and books and all his
contributions were compiled in his book ‘Scientific
Management’.
5. Definition
• “Scientific management is concerned with
knowing exactly what you want men to do and
then see in that they do it in the best and
cheapest way.”
6. Elements of Scientific Management
• Separation of Planning and Doing
• Functional Foremanship
• Standardization:
• Scientific Selection and Training
• Financial Incentives
• Economy
• Mental Revolution
7. Techniques
• Time Study
• Motion Study
• Functional Foremanship
• Standardization
• Differential Piece wage system
8. Time Study
• Enables manager to ascertain standard time taken
for performing a specified job.
• Every job or part of it is studied in detail.
• Technique based on study of an average worker
having reasonable skill and ability.
• Average worker selected & assigned job
• With the help of a stop watch, time ascertained for
performing that job.
• Taylor - Fair day’s work to be determined through
observations, experiment and analysis by keeping in
view an average worker.
• Standard Time × Working Hours = Fair Day’s Work
9. Motion Study
• Movement of body and limbs required to perform a job
are closely observed.
• Study of movement of an operator on machine involved
in a particular task.
• The purpose - to eliminate useless motions & determine
the best way of doing the job.
• Attempt made to know whether some elements of a job
can be eliminated combined or their sequence can be
changed to achieve necessary rhythm.
• Increases efficiency & productivity of workers by cutting
down all wasteful motions.
11. Functional Foremanship
• Developed to improve quality of work as single
supervisor may not be an expert in all the aspects
of the work.
• Workers are to be supervised by specialist
foreman.
• Extension of principle of specialization at the
supervisory level.
• 8 foremen, 4 at the planning level & other 4 at
implementation level.
12. Functional Foremanship
• Instruction card clerk concerned with tagging down of instructions
according to which workers are required to perform their job
• Time & cost clerk is concerned with setting a time table for doing a
job & specifying the material and labor cost involved in it.
• Route clerk determines the route through which raw materials has
to be passed.
• Shop Disciplinarians are concerned with making rules and
regulations to ensure discipline in the organization.
• Gang boss makes the arrangement of workers, machines, tools,
workers etc.
• Speed boss concerned with maintaining the speed and to remove
delays in the production process.
• Repair boss concerned with maintenance of machine, tools and
equipment.
• Inspector is concerned with maintaining the quality of product.
13. Standardization
• Physical attributes of products should be such that it
meets the requirements & needs of customers.
• Tools & equipment as well as working conditions should
be standardized to achieve standard output from
workers.
• Means of achieving economics of production.
• It ensures -
- Product line is restricted to predetermined type, form, design, size,
weight, quality, etc.
- Manufacture of identical parts and components.
- Quality & standards have been maintained.
- Standard of performance are established for workers at all levels.
14. Differential Piece Wage Plan
• Wage payment is based on efficiency of worker.
• Efficient workers are paid more wages than inefficient
one.
• Workers who produce less than standard no. of pieces
are paid wages at lower rate than prevailing rate i.e.
worker is penalized for his inefficiency.
• Source of incentive to workers who improving their
efficiency in order to get more wages.
• Encourages inefficient workers to improve their
performance and achieve their standards.
• Mass production which minimizes cost and maximizes
profits.
15. Fayol’s Principles of Management
• DADUU-SRCS-OESIE
• D – Division of Work
• A – Authority & Responsibility parity (equality)
• D – Discipline
• U – Unity of Command
• U – Unity of Direction
16. • SRCS
• S – Subordination of Individual Interest to
Organisational Interest
• R – Remuneration
• C – Centralisation
• S – Scalar Chain
17.
18. • OESIE
• O – Order
• E – Equity
• S – Stability of Tenure
• I – Initiative
• E – Espirit De Corps
