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UNIT-1
HISTORY
OF
MANAGEMENT
Management practice is as old as human civilization
when people started living together in groups.
For every human group requires management and the
history of human being is full of organizational and behavioral
activities because human being is the ‘social animal’.
However, the study of human managers achieves
result is predominantly a twentieth century phenomena.
Evolution of Management Thought
The evaluation of management
thought during this period can be studied in
three parts as under.
1. Classical approaches : This represented by
scientific management thought,
administrative management and bureaucracy.
2 Behavioral Approach: This represented
human relation movement and
behavioral approach.
3. Modern approaches : This represented
quantitative approach, system approach
and contingency approach.
Major classification of Management Approaches and their Contributors
1. Classical Approach i) Scientific management a) F.w.Taylor
b) Henry Gantt
c) Franklin & Lillian Gilbreth
ii) Administrative management a) Henry Fayol
iii) Bureaucratic management a) Max Weber
2. Behavioral Approach i) Human Relation Approach a) Elton Mayo
ii) Behavioral Science a) Maslow
b) Herzberg
iii) X and Y theory of management a)Mc George Doughlas
3. Modern Approach i) system Approach a) Churchman west
ii) contingency approach b) Paul Hersey and ken Blanchard
situational approach
Frederick Winslow
Taylor was an American
mechanical engineer who
sought to improve
industrial efficiency.
"The Father of Scientific
Management."
BORN: March20,1856, Ge
rmantown, United States
DIE: March21,1915,
United States
1.F.W.Taylor is pioneer of the Scientific management theory,
he was a scientist and made researches how man can be
used efficiently at work. F. W. Tylor is often called "The
Father of Scientific Management." His approach is also often
referred to, as Taylor's Principles, or Taylorism.
2.During his research he found the main cause of
inefficiency and wastage in factories was ignorance on the
part of workers and managers of scientific methods.
3.For this purpose he developed a theory known as
“Scientific management” and also called Taylorism, in which
he suggested that the efficiency can be improved by
investigation, analysis, and measurement.
4.This concept further carried on by Frank and Lillian
Gilbreth, Henry Gantt, George berth and Edward
Felen etc.,
5.Scientific management theory main objective is
improving economic efficiency, especially labor
productivity. It was one of the earliest attempts to
apply science to the engineering of processes and
to management.
6.According to Taylor,” scientific management is
concerned with knowing exactly what you want men
to do and the see in that they do it in the best and
cheapest way”
PRINCIPLES OF SCIENTIFIC MANAGEMENT
1.Reduction rule of thumbs with science
2.Harmony in group action
3.Cooperation between management and
workers
4.Development of workers through scientific
selection and training
1.Reduction rule of thumbs with science:
This principle says that we should not get
stuck in a set routine with the old techniques of doing
work; rather we should be constantly experimenting
to develop new techniques which make the work
much simpler, easier and quicker.
2.Harmony in group action:
As per this principle, such an atmosphere
should be created in the organization that labor and
management consider each other indispensable.
Group harmony suggests that there should be
mutual give and take situation and proper
understanding so that group as whole contributes to
the maximum.
3. Cooperation between management and workers:
According to this principle, scientific management
involves achieving cooperation rather than chaotic
individualism.
Scientific management based on mutual confidence,
cooperation and goodwill. Taylor has suggested that the
manager and the workers should jointly determine
standards.
4. Development of workers through scientific selection and
training:
In scientific management, all workers should be
developed to the fullest extent possible for their own and for
the company’s highest prosperity. Development of workers
requires their selection and providing them training at the
workplace.
5. Maximum output in place of restricted
output:
Scientific management involves
continuous increase in production and
productivity instead of restricted production
either by management or by worker.
Objectives of Scientific Management in Business
1.Quality control
2.Incentive wages
3.Higher productivity
4.Cost reduction
5.Right Men for Right
Job
6.Elimination of
wastage
Administrative
Management
Theory
Henry Fayol
(1841-1925) was
a major
contributor to
Administrative
Management
approach.
Henry Fayol , was a French mining
engineer who is sometimes referred to as the
real “Father of modern management”.
Fayol looked at the problem of managing
with the management point of view not with
the workers point of view.
Fayol believed by focusing on
managerial practices he could minimize
misunderstandings and increase
efficiency in organizations
Fayol was a pioneer in the study of
the principles and functions of
management.
He made clear distinction between
operating and managerial functions.
Fayol identified five major functions of
management.
They are as follows:
1.Planning
2.Co-ordinating
3. Organizing
4. Controlling
5. Commanding
In addition to his five management
functions, fayol also developed 14 principles
that are still used today. These can be called as
During the early 20th century,
Fayol developed 14 principles of
management in order to help managers
manage their affairs more effectively.
The fourteen principles are:
1.Division of Work : When employees are
specialized, output can
increase because they
become increasingly skilled
and efficient.
By separating a small
part of work, the workers
speed and accuracy in its
performance increases.
This principle is
applicable to both technical as
well as managerial work.
Authority means the right
of a superior to give order to his
subordinates and responsibility
means obligation for
performance.
This principle suggests that
there must be parity between
authority and responsibility.
They are co-existent and go
together, and are two sides of the
same coin.
2.Delegation of Authority and Responsibility :
Discipline refers to
obedience, proper conduct
in relation to others, respect
of authority etc.
It is essential for the smooth
functioning of all organizations.
Subordinates should
respect their superiors and
obey their orders.
3.Disciplane:-
This principle states that
every subordinate should
receive orders and be
accountable to one and only
superior.
If an employee receives
orders from more than one
superior, it is likely confusion
and conflict.
Unity of command also
makes it easier to fix
responsibility for mistakes.
4.Unity of Command
5. Unity of Direction :–
6.Subordination of Individual Interests
to the General Interest :–
7.REMUNARATION
7
8.Centralization:
9.Scalar Chain :–
Scalar chain refers to the
chain of superiors ranging from top
management to the lowest rank.
The principle suggests that there
should be clear line of authority top to
bottom linking all managers at all levels.
It is considered a chain of
command.
This principle concerned with proper and systematic arrangement of
things and people
Arrangement of things called material order. It ensures proper
and fixed place for various materials, tools, and equipments.
10.Order: –
Arrangement of people called social order.
It ensures proper selection and appointment
of most suitable person on the suitable job.
11.Equity :
11.Equity :
Equity means to be kind, fair and
justice treatment to employees. Employees
will put their maximum efforts.
When they are treated with kindness
and justice. This will ensure loyalty and
devotion.
There should be not discrimination against
anyone on gender, religion, language,
caste, belief or nationality.
The period of service should not be too short and employees should not
be moved from positions frequently
13.Initiative:
FUNDAMENTAL BUSINESS MANAGEMENT HISTORY.pptx
FUNDAMENTAL BUSINESS MANAGEMENT HISTORY.pptx
FUNDAMENTAL BUSINESS MANAGEMENT HISTORY.pptx
FUNDAMENTAL BUSINESS MANAGEMENT HISTORY.pptx

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FUNDAMENTAL BUSINESS MANAGEMENT HISTORY.pptx

  • 2. Management practice is as old as human civilization when people started living together in groups. For every human group requires management and the history of human being is full of organizational and behavioral activities because human being is the ‘social animal’. However, the study of human managers achieves result is predominantly a twentieth century phenomena. Evolution of Management Thought
  • 3. The evaluation of management thought during this period can be studied in three parts as under. 1. Classical approaches : This represented by scientific management thought, administrative management and bureaucracy. 2 Behavioral Approach: This represented human relation movement and behavioral approach. 3. Modern approaches : This represented quantitative approach, system approach and contingency approach.
  • 4. Major classification of Management Approaches and their Contributors 1. Classical Approach i) Scientific management a) F.w.Taylor b) Henry Gantt c) Franklin & Lillian Gilbreth ii) Administrative management a) Henry Fayol iii) Bureaucratic management a) Max Weber 2. Behavioral Approach i) Human Relation Approach a) Elton Mayo ii) Behavioral Science a) Maslow b) Herzberg iii) X and Y theory of management a)Mc George Doughlas 3. Modern Approach i) system Approach a) Churchman west ii) contingency approach b) Paul Hersey and ken Blanchard situational approach
  • 5.
  • 6. Frederick Winslow Taylor was an American mechanical engineer who sought to improve industrial efficiency. "The Father of Scientific Management." BORN: March20,1856, Ge rmantown, United States DIE: March21,1915, United States
  • 7. 1.F.W.Taylor is pioneer of the Scientific management theory, he was a scientist and made researches how man can be used efficiently at work. F. W. Tylor is often called "The Father of Scientific Management." His approach is also often referred to, as Taylor's Principles, or Taylorism. 2.During his research he found the main cause of inefficiency and wastage in factories was ignorance on the part of workers and managers of scientific methods. 3.For this purpose he developed a theory known as “Scientific management” and also called Taylorism, in which he suggested that the efficiency can be improved by investigation, analysis, and measurement.
  • 8. 4.This concept further carried on by Frank and Lillian Gilbreth, Henry Gantt, George berth and Edward Felen etc., 5.Scientific management theory main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management. 6.According to Taylor,” scientific management is concerned with knowing exactly what you want men to do and the see in that they do it in the best and cheapest way”
  • 9.
  • 10. PRINCIPLES OF SCIENTIFIC MANAGEMENT 1.Reduction rule of thumbs with science 2.Harmony in group action 3.Cooperation between management and workers 4.Development of workers through scientific selection and training
  • 11. 1.Reduction rule of thumbs with science: This principle says that we should not get stuck in a set routine with the old techniques of doing work; rather we should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker. 2.Harmony in group action: As per this principle, such an atmosphere should be created in the organization that labor and management consider each other indispensable. Group harmony suggests that there should be mutual give and take situation and proper understanding so that group as whole contributes to the maximum.
  • 12. 3. Cooperation between management and workers: According to this principle, scientific management involves achieving cooperation rather than chaotic individualism. Scientific management based on mutual confidence, cooperation and goodwill. Taylor has suggested that the manager and the workers should jointly determine standards. 4. Development of workers through scientific selection and training: In scientific management, all workers should be developed to the fullest extent possible for their own and for the company’s highest prosperity. Development of workers requires their selection and providing them training at the workplace.
  • 13. 5. Maximum output in place of restricted output: Scientific management involves continuous increase in production and productivity instead of restricted production either by management or by worker.
  • 14. Objectives of Scientific Management in Business 1.Quality control 2.Incentive wages 3.Higher productivity 4.Cost reduction 5.Right Men for Right Job 6.Elimination of wastage
  • 16. Henry Fayol (1841-1925) was a major contributor to Administrative Management approach.
  • 17. Henry Fayol , was a French mining engineer who is sometimes referred to as the real “Father of modern management”. Fayol looked at the problem of managing with the management point of view not with the workers point of view.
  • 18. Fayol believed by focusing on managerial practices he could minimize misunderstandings and increase efficiency in organizations Fayol was a pioneer in the study of the principles and functions of management. He made clear distinction between operating and managerial functions.
  • 19. Fayol identified five major functions of management. They are as follows: 1.Planning 2.Co-ordinating 3. Organizing 4. Controlling 5. Commanding
  • 20. In addition to his five management functions, fayol also developed 14 principles that are still used today. These can be called as
  • 21. During the early 20th century, Fayol developed 14 principles of management in order to help managers manage their affairs more effectively. The fourteen principles are:
  • 22.
  • 23. 1.Division of Work : When employees are specialized, output can increase because they become increasingly skilled and efficient. By separating a small part of work, the workers speed and accuracy in its performance increases. This principle is applicable to both technical as well as managerial work.
  • 24. Authority means the right of a superior to give order to his subordinates and responsibility means obligation for performance. This principle suggests that there must be parity between authority and responsibility. They are co-existent and go together, and are two sides of the same coin. 2.Delegation of Authority and Responsibility :
  • 25. Discipline refers to obedience, proper conduct in relation to others, respect of authority etc. It is essential for the smooth functioning of all organizations. Subordinates should respect their superiors and obey their orders. 3.Disciplane:-
  • 26. This principle states that every subordinate should receive orders and be accountable to one and only superior. If an employee receives orders from more than one superior, it is likely confusion and conflict. Unity of command also makes it easier to fix responsibility for mistakes. 4.Unity of Command
  • 27.
  • 28. 5. Unity of Direction :–
  • 29.
  • 30. 6.Subordination of Individual Interests to the General Interest :–
  • 31.
  • 33. 7
  • 35.
  • 36.
  • 37. 9.Scalar Chain :– Scalar chain refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be clear line of authority top to bottom linking all managers at all levels. It is considered a chain of command.
  • 38.
  • 39. This principle concerned with proper and systematic arrangement of things and people Arrangement of things called material order. It ensures proper and fixed place for various materials, tools, and equipments. 10.Order: –
  • 40. Arrangement of people called social order. It ensures proper selection and appointment of most suitable person on the suitable job.
  • 42. 11.Equity : Equity means to be kind, fair and justice treatment to employees. Employees will put their maximum efforts. When they are treated with kindness and justice. This will ensure loyalty and devotion. There should be not discrimination against anyone on gender, religion, language, caste, belief or nationality.
  • 43.
  • 44.
  • 45. The period of service should not be too short and employees should not be moved from positions frequently
  • 46.