Development of Management Thoughts

2.  Know the contributions of Robert Owen, Charles Babbage , F.W.Taylor .Henry
Gnatt and the Gilbreths to scientific management .
 Understand the principles of scientific management and also criticisms
leveled against them .
 Analyze the contribution contributions made by Henry Fayol and Max weber to
administrative management .
Henry
Gnatt
Robert
Owen
Charles Babbage
F.W.Taylo
r

3.  Appraise the Fayol’s Principles of management and criticism leveled
against them particularly due to globalization and information technology.
 Comment on the contributions of Mark Parker follet ,Chester I Bernard and elton
Mayo to Human Relations School .
 Evaluate the contributions of human relation approach to management thought.
 Understand the contributions of systems approach to management ,
Contingency approach to management , HRM approach and
Management Science Approach to management.
Chester I
Bernard
Mark Parker follet Elton
Mayo
Henri
Fayol

4. 1. Early Classical Approach represented by
Scientific management , administrative
management and bureaucracy .
2. Neo- Classical Approaches represented by human
relations movement and behavioral approach .
3. Modern Approaches represented by Quantitative
approach
,system approach and contingency approach .

5. 1. Scientific management
2. Administrative
management
3. Bureaucracy .

6. The forerunners of scientific management
theory are :-
Robert
Owen
Charles
Babbage
F.W.Taylo
r
Henry
Gnatt

7.  Robert Owen was the manager of different cotton textile mills
between 1800 and 1828 .
 He was the first person to pay attention to labour welfare .
 He suggested the change in the attitude of industrialist
towards
workers .
 He worked to his maximum possible extent for the
improvement in working conditions of workers.
 He stated that men should not be treated as secondary and
inferior to machines

8.  Besides Robert Owen there were some scientists who
thought of making improvements in the management by
observing the scientific techniques ,prominent
amongst them was Charles Babbage .
 Charles Babbage a leading British mathematician at
Cambridge university from 1828-1839 .
 He studied and observed the problems that :-
 Most of the factories in England and France used
to work on the basis of estimates and
imagination.

9. Charles Babbage
Two Pioneering works of Babbage are
 The differential Engine .
 The Economy of Machinery and
Manufacturers.
He stated that the methods of science and
mathematics
could be applied to the solution of the factory’s
problem

10.  Babbage stressed that good machines and efficient workers do not ensure
success in business .Good management that directs and controlsmachines
and workers is the most crucial element in successful business.
 He suggested that the use of time study techniques should be donealong
with division of labour .
 He considered all aspects of contemporary management thinking –
mutuality of interest between employees and employer ,productioncontrol
,incentive pay ,quality control ,wage and salary administration ,profit
sharing ,operations research ,preventive maintenance and research and
development .
“ He wrote a premiere of management before the world is able to read it
and he invented the computer before its time.”

11.  F.W.Taylor known popularly as the father of
scientific management and classicist in
management theory.
 He was the first person who insisted on the
introduction of scientific methods In
management
 He made for the first time the systematic
study of management and evolved an orderly
set of principles to replace the trial and error
methods then in vogue.

12.  F.W.Taylor made a humble beginning by joining as an
apprentice in a small machine –making shop in Philadelphia in
the 1870s.Later he became a mechanist in 1878 at the Midvale
Steel in Philadelphia (USA
). Afterwards he rose to the position of a machinist foreman .
 He observed that workers were not enthusiastic and were doing
as little as possible ,just adequate to maintain their job.

13.  Taylor formed opinions on the basis of his observations.
 He had uncompromising nature and he never tried to
satisfy his opponents because he was a man of firm
convictions .
 After leaving MidvaleFactory ,he joined Bethlehem steel
company : where he introduced scientific management but
due to lot of strong opposition and his

14.  After resigning from Bethlehem in 1901 ,he
wrote his pioneering work “ Shop Management
“.
 Beside this he wrote several other books and
among them the pioneering work was Principles
and Methods of Scientific Management ( 1911 ).

15. 1. Time & MotionStudy .
2. Science ,but not rule of thumb
3. Differential Payment .
4. Group Harmony .
5. Cooperationbetween workers and
management .
6. Method study
7. Scientific Selection and Training .
8. Standardization .
9. Separation Of Planning from executive

16.  This study involves the following aspects :-
 Observing the various motions ( movement )of workers at
workplace .
 Identifying the necessary and unnecessary movements in carrying
outthe
work .
 Elimination of unnecessary movements.
 Observing the time required for each of the necessary movements
with the help of a stop watch
 Developing shorter and fewer motions and
 Standardizingthe motions and time .
Thus ,this study developed the best way of doing the job
,replacing the old rule of thumb.

17.  Scientific Management suggests doing the work
systematically .
 Determining the work clearly and sequentially.
 Standardization of motions and time for each motion .
 Allotment of fair work to each worker .
 Scientific Management eliminated the rule of thumb at the
workplace

18.  F.W.Taylor suggested differential piece of rate system .
 He fixed the standard level of production .
 The Employees who produced less than the standard production received
low piece rate.
 Employees who produced above the standard production received
higher piece rate .
 Differential piece rates were introduced in order to motivate the
employees to produce more than the standard level and enhance
productivity.

19.  F.W.Taylor emphasized upon group
harmony which can be achieved
through satisfying the needs of the
group members
,
 Eliminating the dissatisfaction
and frustration of the group
members .
 Maintaining the sound interpersonal
relations among the group members
and involving them in various group
activities

20.  F.W.Taylor advocated sound employer –Employee Relationship which
resulted into cooperation between workers and management .
 Sound Employer –Employee relations can be achieved in the
following ways:-
 Management should understand the workers ‘ needs and take steps to
satisfy
them .
 Workers should understand the organizational requirements like
increasing productivity ,sales , profitability etc and maximizing their
contributions

21.  F.W.Taylor believed that a methodological and
systematic movement of materials ensure fast
movement of material in the factory .
 Avoidance of unnecessary transportation of
material from one stage to another stage of
production
,reduction of distance from one machine to
another
machine ,reduction of transportation time etc.

22.  He suggested the scientific selection of
employees based on job analysis and
using various selection tests
 He also suggested providing training and
development facilities to all employees based
on training needs.
 This process helps the organization to exploit the
employers’ potentialities and faculties for
organizational success .

23.  Taylor advocated the standardization of
tools , instruments ,working hours
,working conditions
,quality of work , cost of production etc .

24.  Taylor advocated that planning function
should be bifurcated from the execution
functions
 Taylor advocated that supervisors perform
planning function whereas workers perform
execution functions

25.  Replacement of rule of thumb by science .
 Achieving harmony in group action rather than
discord .
 Attaining maximum output in place of restricted
output .
 Scientific selection ,training and placement of
workers

26.  The contribution of the “Scientific “ before “ Management “
was criticized since what actually is meant by scientific
management is nothing but an approach to management.
 His principles were mostly confined to production
management .He ignored other functional areas of
management like finance
,marketing ,personnel and accounting .
 His functional foremanship violates the principle of
unity of command .
 Trade unionist criticized Taylor’s principles as the means to
exploit workers due to the reason that wages of the

27.  Despite of all the criticism against the
Taylor’s Scientific managementthe
techniques advocated by him were further
refined by his followers like Henry Gantt , M
. Gilbert .
Henry
Gnatt

28.  He had modified the Taylor’s incentive system.
 He abandoned the differential rate system as it had too little
motivational impact and introduced 50% bonus to those workers
who could complete a day’s work .
 He also introduced bonus to supervisors for each worker who could
complete a day’s work and additional bonus, if the worker reached it
,with a view to enable the supervisors to train their workers to do
a better job .
 He also built upon Owen’s idea of rating an employee’s work
publically

30.  Henri Fayol (Istanbul, 29 July 1841–Paris , 19
November 1925) was a French mining engineer and
director of mines who developed a general theory of
business administration.
 He and his colleagues developed this
theory independently of Scientific
management .
 He was one of the most influential contributors to
modern concepts of management .

31.  He proposed that there were six primary
functions of management and 14 principles
of management.
 Functions of management proposed by
Fayol were
 Forecasting
 Planning
 Organizing
 Commanding
 Coordinating

32.  Division of work.
This principle is the same as Adam Smith's
'division of labour'. Specialization increases output
by making employees more efficient.
 Authority.
Managers must be able to give orders.Authority
gives them this right..

33.  Discipline.
 Employees must obey and respect the rules that
govern the organization.
 Good discipline is the result of effective leadership,
 Clear understanding between management and
workers regarding the organization's rules
 The judicious use of penalties for infractions of the
rules.

34.  Unity of command.
Every employee should receive orders from only one
superior.
 Unity of direction.
Each group of organizational activities that have the same
objective should be directed by one manager using one plan.

35. Subordination of individual interests to the general interest.
The interests of any one employee or group of employees should
not take precedence over the interests of the organization as a
whole.

36.  Remuneration.
Workers must be paid a fair wage for their
services.
 Centralization.
Centralization refers to the degree to which
subordinates are involved in decision making.
Whether decision making is centralized (to
management) or decentralized (to subordinates) is
a question of proper proportion. The task is to
find the optimum degree of centralization for
each situation.

37.  Scalar chain ( Hierarchy )
 The line of authority from top management to the
lowest ranks represents the scalar chain.
 Communications should follow this chain. However, if
following the chain creates delays, cross-
communications can be allowed if agreed by all parties
and superiors are kept informed.

38.  Order.
People and materials should be in the right
place at the right time.
 Equity.
Managers should be kind and fair to
their subordinates.
 Stability of tenure of personnel.
High employee turnover is inefficient.
Management should provide orderly
personnel planning and ensure that
replacements are available to fill vacancies.

39.  Initiative.
Employees should be allowed to originate
and carry out plans.
 Esprit de corps.
Promoting team spirit will build harmony and
unity within the organization

40.  The Weberian bureaucracy has its origin in the works
by Max Weber (1864-1920),
 He had contributed immensely to the study of
bureaucracy and administrative literatures, during the
mid 1800s and early 1900s.
 He discussed intensely on subject-matters, such as,
specialization of job-scope, merit system, uniform
principles, structure and hierarchy.
“ Bureaucratic administration means
fundamentally domination through
knowledge “.— Max Weber

41.  Leader Oriented
 Tradition
Oriented
 Bureaucratic

42.  Human relations
movement
 Behavioral
approach

43.  The theme of Human Relations approach says
that :-
i) The Organizational Situation should be viewed in social
terms as well as in economic and technical terms
ii ) The Social process of group behavior can be
understood in terms of clinical method analogous to the
doctor’s diagnosis of human organism.

45.  The Hawthorne experiments were groundbreaking
studies in human relations that were conducted
between 1924 and 1932 at Western Electric
Company's Hawthorne Works in Chicago.
 Originally designed as illumination studies to
determine the relationship between lighting and
productivity, the initial tests were sponsored by
the National Research Council (NRC) of the
National Academy of Sciences.
 In 1927 a research team from the Harvard
Business School was invited to join the studies
after the illumination tests drew unanticipated

46.  Two additional series of tests, the relay-assembly
tests and the bank-wiring tests, followed the
illumination tests.
 The studies assumed the label Hawthorne
experiments or studies from the location of the
Western Electric plant. Concluded by 1932, the
Hawthorne studies, with emphasis on a new
interpretation of group behavior, were the basis
for the school of human relations.

47.  Phase 1 :- Illumination Experiment
 Phase 2 :- Relay Assembly Test Group
 Phase 3 :- Interviewing Programme
 Phase 4 :- The Bank Wiring observation
room experiment

48.  In the early 1920s Chicago's Western
Electric Hawthorne Works employed 12,000
workers. The plant was a primary
manufacturer of telephones, and in 1924 the
company provided a site to cooperate with
the NRC on a series of test room studies to
determine the relationship between
illumination and worker efficiency.

49.  The basic idea was to vary and record
levels illumination in a test room with the
expectation that as lighting was increased,
productivity would too. In another test room,
illumination was decreased, with the
correlating expectation that efficiency would
decrease.

50.  The electric power industry provided an
additional force for these tests, hoping to
encourage industries to use artificial lighting
in place of natural light.
 The Illuminating Engineering Society's
Committee on Research also supported the
tests and cooperated with the NRC. From the
fall of 1924 to the spring of 1927, three series
of tests were conducted and carefully
monitored.

51.  Three departments at the Hawthorne plant were
involved—relay assembling, coil winding, and
inspection. Workers were notified of the tests in
order to attempt to control interference from
human factors.
 When production increased in each test period,
researchers looked to other factors such as
increased supervision and a sense of
competition that developed between the test and
control groups.

52.  NRC representatives and the engineers involved drew several
conclusions.
 First, illumination was one factor in output but not the most
important. More important to the tests was the realization there was
not a simple answer to the issue of illumination and worker
productivity and that other factors that were not controlled
presented a problem with the test results—the issue of human
factors. In retrospect, researchers from the NRC and the
Illuminating Engineering Society (which together formed the
Committee on Industrial Lighting) stated they were not surprised by
the test results. They even predicted that other factors would affect
the results, but their mandate was to isolate other variables, and
the Hawthorne studies continued.
Read more: Hawthorne Experiments
http://www.referenceforbusiness.com/encyclopedia/Gov-
Inc/Hawthorne- Experiments.html#ixzz1VAvIc6BU

53.  Under Mayo and Roethlisberger’s direction, the Hawthorne
experiments began to incorporate extensive interviewing.
 The researchers hoped to glean details (such as home life or
relationship with a spouse or parent) that might play a role in
employees’ attitudes towards work and interactions with
supervisors.
 From 1928 to 1930 Mayo and Roethlisberger oversaw the
process of conducting more than 21,000 interviews and
worked closely training researchers in interviewing
practices.
 “The interview is now defined as a conversation in which the
employee is encouraged to express himself freely upon any
topic of his own choice.”

54.  A small group of workers were placed in a
separate room and a number of variables were
altered –like wages were increased ,rest periods
of varying lengths were introduced ,the workday
and the work week were shortened .
 The supervisors ,who acted as observers ,also
allowed the groups to choose their own rest
periods and members of their own groups and to
involve in decision making regarding suggested
changes .
 Performance tended to increase over the period
but it also increased and decreased erratically.

55.  In order to observe the impact of these other factors, a
second set of tests was begun before the completion of
the illumination studies on April 25, 1987.
 The relay-assembly tests were designed to evaluate the
effect rest periods and hours of work would have on
efficiency.
 Researchers hoped to answer a series of questions
concerning why output declined in the afternoon: Did the
operators tire out? Did they need brief rest periods?
What was the impact of changes in equipment? What
were the effects of a shorter work day? What role did
worker attitudes play?

56.  Hawthorne engineers led by George Pennock
were the primary researchers for the relay-
assembly tests, originally intended to take
place for only a few months.

57.  Six women operators volunteered for the
study and two more joined the test group in
January 1928.
They were administered physical
examinations before the studies began and
then every six weeks in order to evaluate the
effects of changes in working conditions on
their health.

58.  The women were isolated in a separate room
to assure accuracy in measuring output and
quality, as temperature, humidity, and other
factors were adjusted.
 The test subjects constituted a piece-work
payment group and efforts were made to
maintain steady work patterns.

59.  The Hawthorne researchers attempted to gain the
women's confidence and to build a sense of pride in
their participation.
 An observer was introduced into the test room to
keep accurate records, maintain cordial working
conditions, and provide some degree of
supervision.
 Researchers tentatively concluded that performance
and efficiency improved because of the rest periods,
relief from monotonous working conditions, the wage
incentive, and the type of supervision provided in the

60.  Final stage of the studies was the bank-wiring
tests, which began in November 1931.
 The foreman of the bank-wiring department
resisted the intrusion of observers into his
work space and a bank-wiring test room was
set up.
 The test room housed nine wirers, three
soldiers, and two inspectors. All were male
between the ages of 20 and 25. Their job was to
wire conductor banks, a repetitive and
monotonous task.

61.  The banks were one of the major components of automatic telephone
exchange. Between 3,000 and 6,000 terminals had to be wired for a
set of banks.
 The work was tiring and required the workers to stand for long periods
of time.
 Pay incentives and productivity measures were removed, but a
researcher was
placed into the test room as an observer and the workers were
interviewed.
 The purpose of the bank-wiring tests was to observe and study
social relationships and social structures within a group, issues
raised by two other significant members of the research team, W.
Lloyd Warner and William J. Dickson.
 http://www.referenceforbusiness.com/encyclopedia/Gov-

62.  Behavioral
approach

63.  Like the other approaches to management, the behavioral
approach
has evolved gradually over many years.
 Advocates of the behavioral approach to management point
out that people deserve to be the central focus of organized
activity.
 They believe that successful management depends largely on
a
manager’s ability to understand and work with people who
have a variety of backgrounds, needs, perceptions, and
aspirations.
 The progress of this humanistic approach from the human
relations movement to modern organizational behavior has
greatly influenced management theory and practice.

64.  Quantitative approach , System approach
Contingency approach



65.  Systems approach to management developed
after 1950. Many pioneers during as E.L Trist,
AK Ria, F.E. Kast, and R.A Johnsm have
made significant contributions to this
approach.
 The systems approach looks upon the
management as a ‘System’ of as an
organized whole make up of sub-systems
integrated into a unity.

66.  The attention should be given so overall
effectiveness of the system rather than
effectiveness of any sub-system in isolation.
 It emphasizes the inter-relatedness and inter-
dependence of all activities within an
organization.
 It is based on system analysis.
 It attempts to identify the nature of
relationships of various parts of the system.

67.  A system is a set of inter-connected elements
or component parts to achieve certain goals.
An organisation is viewed by the modern
authors as an op0en system. An organisation
as a system has five basic parts:
 Input,
 Process,
 Output,
 Feedback and
 Environment.

68.  Contingency approach advocates that managerial actions and
organizational design must be appropriate to the given situation and a
particular action is valid only under certain conditions.
 There is no one best approach to management and it all depends on the
situation.
 Managerial action is contingent upon external environment. There is no
one best
approach for all situations.
 Contingency theory attempts to analyze and understand these
interrelationships with a view towards taking the specific managerial
actions necessary to deal with the issue.
 This approach is both analytical and situational, with the purpose of
developing a practical answer to the question at hand.