This document discusses the evolution of management thought over time from scientific management to modern systems approaches. It covers key theories and theorists such as: 1. Scientific Management by Taylor, focusing on controlling work through standardization. 2. Administrative Management by Weber and Fayol, emphasizing organizing the organization through principles of bureaucracy and management. 3. Behavioral Management influenced by Follett, focusing on leading and motivating employees by treating workers with respect and allowing their input. 4. Management Science applying quantitative techniques to planning and maximizing resources through tools like operations research. 5. Systems approaches viewing organizations as open systems that interact with their environment in planning. The document also outlines common management functions

1. INDUSTRIAL ENGINEERING MANAGEMENT-14BT50303
UNIT-I
PRINCIPLES OF MANAGEMENT
By
KULADEEP.GADAPARTHI
Assistant.Professor
Dept.of Mechanical Engineering

2. Outline:
 Concepts of Management and Organization
 Evolution of Management Thought
 Taylor’s Scientific Management
 Fayol’s Principles
 Systems approach to management
 Functions of Management
 Planning
 Organizing
 Staffing
 Controlling and Directing
 Corporate Planning Process
 Ethics and Social Responsibilities of Engineer

3. Evolution of Management Thought
 Grew from the focus of practitioners and scholars on the
explanation of different aspects of managing.
 The work
 The organization
 The person
 Technique
 The interaction of the organization and its environment

4. Evolution of Management Theory-
Contd..
 Focus of managers Theory Principle
 The work “Scientific Management” Controlling
 The organization “Administrative Management” Organizing
 The person “Behavioral Management” Leading
 Technique “Management Science” Planning
 Interaction of “Business Systems” Planning
Org & Environment

5. Evolution of Theories over Time
1940 2000
The organization – “Administrative Management”
The person – “Behavioral Management”
The work – “Scientific Management”
Technique – “Management Science”
Org. Environment
1880
Control
Organizing
Leading
Planning
Planning

6. Evolution of Management Theory
Scientific Management
Focus : The work
Principle : Control

7. Taylor’s – Principles of Scientific
Management
1. Study the way the job is performed now & determine new and
betters ways to do it.
 Gather detailed, time and motion information.
 Try different methods to see which is best.
2. Codify the new method into rules and procedures.
 Use rules to teach all workers.
 Further standardize job.
3. Select and Train workers whose skills match the rules.
4. Reward performance
 Establish performance standards and measures.
 Pay for meeting higher standards.

8. Challenges with Scientific Management
 Management
 Redesign of jobs/cooptation of management
(Redesigned by who? Managers? Consultants?
Workers?)
 Management may prefer obsolete methods
 Labor
 Managers often stressed only the increase in
output
 Monetary reward may be inadequate.
(ex., Ford doubled pay yet encountered worker
opposition)
 Is it inherently unfair to workers? What is
labor’s fair share of increase?

9. Challenges with Scientific Management –
Contd..
 Was Scientific Management inherently unfair to labor
from the beginning?
 Example from text, p. 31:
Tons Pay Pay
(per day) (per day) (per ton) % Increase
 Traditional 12.5 $1.15 $ 0.09 -
 Scientific 47.5 $1.85 $ 0.04 280% (output)
Management 61% (pay)

10. Evolution of Management Theory
Administrative Management
Principle : Organizing
Focus : The organization

11. Administrative Management
 Max Weber - Identified the phenomenon of
bureaucracy
 Henri Fayol - proposed principles of
organizational functioning
 Seeks to improve the organization

12. Max Weber – Characteristics of Bureaucracy
1. Authority (the power to hold people
accountable) derives from the position.
2. People occupy their positions based on
performance.
3. Lines of authority relationships are clearly
identified.
4. Positions are arranged hierarchically.
5. Rules and standard operating procedures
(SOPs) are used for control.

13. Fayol’s Principles
 Henri Fayol, developed a set of 14 principles:
1. Division of Labor: allows for job specialization.
2. Authority and Responsibility: formal and
informal authority resulting from special expertise.
3. Unity of Command: Employees should have only
one boss.
4. Line of Authority: a clear chain from top to
bottom of the firm.
5. Centralization: the degree to which authority
rests at the very top.

14. Fayol’s Principles -contd.,
6. Unity of Direction: One plan of action to
guide the organization.
7. Equity: Treat all employees fairly in justice
and respect.
8. Order: Each employee is put where they
have the most value.
9. Initiative: Encourage innovation.
10. Discipline: obedient, applied, respectful
employees needed.

15. Fayol’s Principles.
11. Remuneration of Personnel: The payment
system contributes to success.
12. Stability of Tenure: Long-term employment
is important.
13. General interest over individual interest:
The organization takes precedence over the
individual.
14. Esprit de corps: Share enthusiasm or
devotion to the organization.

16. Evolution of Management Theory
Behavioural Management
Focus : The Person
Principle : Leading

17. Behavioral Management
 Focuses on the way a manager should
personally manage to motivate employees.
 Mary Parker Follett: an influential leader in
early managerial theory.
 Suggested workers help in analyzing their jobs
for improvements.
 The worker knows the best way to improve the
job.
 If workers have the knowledge of the task,
then they should control the task.

18. Follett – Authority is a function of
knowledge
 If workers have the relevant knowledge,
then workers, rather than managers,
should be in control of the work
process.
 Managers should behave as coaches and
facilitators – not as monitors and
supervisors.

19. Theory X and Y
 Douglas McGregor proposed two different
sets of worker assumptions.
Theory X: Assumes the average worker is lazy,
dislikes work and will do as little as possible.
Theory Y: Assumes the average worker is not
lazy, wants to do a good job, and the job itself
will determine if the worker likes the work.

20. Theory X and Y Contd.,
Frederick Herzberg, “One More Time: How Do You Motivate Employees?” Harvard Business
Review, Jan/Feb 1968.
If Theory X is true:
 Then management method = KITA
 Managers must closely supervise and control
through reward and punishment.
If Theory Y is true:
 Then management method = job enrichment
 Managers should allow the worker great latitude,
and create an organization to stimulate the worker.

21. Evolution of Management Theory
Management Science
The Technique
Focus : The Technique
Principle : Planning

22. MANAGEMENT SCIENCE
 Uses rigorous quantitative techniques to
maximize resources.
Quantitative management: utilizes linear
programming, modeling, simulation systems.
Operations management: techniques to analyze
all aspects of the production system.
Total Quality Management (TQM): focuses on
improved quality.
Management Information Systems (MIS):
provides information about the organization.

23. Evolution of Management Theory
Organization Environment
Context
Focus : Context
Principle : Planning

24. Organization-Environment Theory
 Organizations are systems.
 A system interacts with its environment:
Input: tangible and intangible elements
Conversion: elements are processed
Output: changed elements are released into the
environment.

25. Systems Approach of Management
 A system is a set of inter-connected and inter-
related elements directed to achieve certain goals.
 This theory views organisation as an organic and
open system composed of many sub-systems.
 As a system organisation is composed of a number
of sub-systems viz. production, supportive,
maintenance, adaptive managerial, individuals and
informal groups.

26. Systems approach of Management
Input Stage
Raw
Materials
Conversion
Stage
Machines
Human skills
Output
Stage
Goods
Services
Sales of outputs
Firm can then buy inputs

27. The major features of the approach to the study of
management may be summed up as under:
1. A system consists of inter-related and interdependent
parts.
(2) The approach emphasises the study of the various parts
in their inter-relationships rather than in isolation from each
other.
(3) The approach brings out the complexity of a real life
management problem much more sharply than any of other
approaches.
(4) The approach may be utilised by any of the other
approaches.
(5) The approach has been utilised in studying the function
of complex organisations and has been utilised as the base
for new kinds of organisation.

28. Business BusinessBusiness
A Business Value System
Intermediate Demand Final Demand
Businesses Businesses
.
. .
.
.
.
End Users
Personal
Business
Government
BusinessBusinessBusiness
Raw Materials Components Final Goods Consumers
Industry IndustryIndustry
IndustriesIndustries

29. Functions of Management
 To achieve the organizational objectives managers
at all levels of organization should perform
different functions.
 A function is a group of similar activities.
 The list of management functions varies from
author to author with the number of functions
varying from three to eight

30. Functions of Management – Contd.,
Writers Management Functions
 Henry Fayol Planning, Organizing, Commanding,
Coordinating, Controlling
 Luther Gullick POSDCORD- Planning, Organizing,
Staffing, Directing, Coordinating,
Reporting, Directing
 R. Davis Planning , Organizing, Controlling
 E.F.L. Breech Planning, Organizing, Motivating,
Coordinating, Controlling
 Koontz Planning, Organizing, Staffing, Leading,
Controlling.

31. Planning:
 Planning is the conscious determination of future
course of action.
 This involves why an action, what action, how to take
action, and when to take action.
 Thus, planning includes determination of specific
objectives, determining projects and programs, setting
policies and strategies, setting rules and procedures
and preparing budgets.

32. Organizing:
 Organizing is the process of dividing work into
convenient tasks or duties, grouping of such duties in
the form of positions, grouping of various positions
into departments and sections, assigning duties to
individual positions, and delegating authority to each
positions so that the work is carried out as planned.
 It is viewed as a bridge connecting the conceptual idea
developed in creating and planning to the specific
means for accomplishment these ideas.


33. Staffing:
 Staffing involves manning the various positions
created by the organizing process.
 It includes preparing inventory of personal available
and identifying the sources of people, selecting
people, training and developing them, fixing financial
compensation, appraising them periodically etc.

34. Directing:
 when people are available in the organization, they must
know what they are expected to do in the organization.
 Superior managers fulfill this requirement by
communicating to subordinates about their expected
behavior.
 Once subordinates are oriented, the superiors have
continuous responsibility of guiding and leading them for
better work performance and motivating them to work
with zeal and enthusiasm.
 Thus, directing includes communicating, motivating and
leading.

35. Controlling:
 Controlling involves identification of actual results,
comparison of actual results with expected results as
set by planning process, identification of deviations
between the two, if any, and taking of corrective action
so that actual results match with expected results.

36. Corporate Planning Process
Elements of Corporate Planning Process:
• Vision
• Mission Statement
• Critical Success Factors
• Strategies & Actions for Objectives
• Prioritized Implementation Schedule

37. Vision
 Organization Vision :
To be one of the Nation’s Premier Engineering
Colleges by achieving the highest order of
excellence in teaching and research.
 Department Vision:
To become and be recognized as a center of
excellence in Mechanical Engineering through
teaching, research and educational programs
grounded in the Mechanical Engineering sciences
within the context of meeting important societal
needs.

38. Mission Statement
 Through multidimensional excellence, we value
intellectual curiosity, pursuit of knowledge
building and dissemination, academic freedom
and integrity to enable the students to realize
their potential.
 We promote technical mastery of Progressive
Technologies, understanding their ramifications in
the future society and nurture the next generation
of skilled professionals to compete in an
increasingly complex world, which requires
practical and critical understanding of all aspects

39. Ethics & Social Responsibilities of
Engineers
 Ethics: the principles and standards of moral
behavior that are accepted by society as right
versus wrong.
 Social Responsibilities: The idea that a
business has certain obligations to society beyond
the pursuit of profits.