CHAPTER 2 DEVELOPMENT OF MANAGEMENT THOUGHTS
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1 DEVELOPMENT OF MANAGEMENT THOUGHT Management has developed since the time when the world came into existence. Whenever group efforts are necessary to achieve anything, there is a need for management. Kautilya s artha Sastra and saint Thiruvalluvar s state the principles and concepts of management. These principles and concepts may be applied in our modern world and in the future also. An individual can not achieve anything single handed. Cooperation, group efforts, direction and control are necessary to achieve the objective or goals of an individual. In our modern world an individual cannot survive separately. He has to rely upon others. So, managerial efficiency is an essential requisite to human being. Henry fayol Henry Fayol was a French industrialist. The principles of management of Henry Fayol were known to the world only after 1949 later the publication of his management thoughts in English. Henry Fayol concentrated on top management. Management plays a very important part in the government under kings, of all undertakings, large or small, industrial, commercial, political religious or any other. The management functions and organizational functions are different. The management functions include planning, organizing, staffing, directing and controlling. But organizational functional include purchase, sales, productions and accounting. Classification of business activities 1. Technical activities relating to production. 2. Commercial activities relating to purchase of basic raw materials and other resources, selling of products and exchange. 3. Security activities relating to the steps taken to protect the property of enterprise and persons. 4. Accounting activities relating to the recording and maintaining of accounts, stock taking and preparation of cost sheets, balance sheets and statistical data. 5. Managerial activities relating to planning, organizing, commanding, coordinating and controlling. 6. Financial activities relating to identification and utilization of available funds. The successful functioning of any business depends upon the performance of the above six functions. Elements of management Planning Organizing Commanding
2 Co-ordination Control Commanding is nothing but direction. So, commanding means guiding and supervision of sub-ordinates in order to achieve specified objectives or goals. He also termed the elements of management as functions of management. Qualities of a Manager 1. Physical (health, vigor and address) 2. Mental (Ability to understand and learn) 3. Moral (Energy, firmness, willingness to accept responsibility) 4. General education (general acquaintance with matters not belonging) 5. Special knowledge (particular to the function) 6. Experience (knowledge arising from work proper) Principles of management 1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual to group interest 7. Remuneration of personnel 8. Centralization 9. Scalar chain 10.Order 11.Equity 12.stability 13.initiative 14.Esprit de corps Frederick Winslow Taylor F.W. Taylor had observed the work performance of managers and workers. According to Taylor they follow the traditional method of work and do not have the concept of systematic performances of task. Taylor found that greater output was possible through systematization and stanrdization of method of doing work. Scientific management In the century, the production was affected by industrial revolution, when the management people wanted to increase their production. Their ambitions were fulfilled by the invention of the concept of scientific management by F W Taylor in the 19 th century. Scientific management consists of a certain philosophy of selection and training of right workers for the right job, providing adequate working conditions, providing a system of monetary incentives to efficient workers and assumption of responsibilities by managers and supervisors.
3 Principles of scientific management 1. Science rot rule thumb 2. Harmony in group action 3. Co-operation 4. Maximum output 5. Improvement workers Elements or Features of scientific management 1. Separation of planning from executive function 2. Scientific task setting 3. Functional foremanship 4. Work study 5. Methods study 6. Motion duty 7. Time study 8. Fatigue study 9. Rate setting 10.Standardization 11.Scientific selection and training 12.Financial incentives 13.mental revolution 14.Economy Contributions of F.w. Taylor 1. He has applied the principles of scientific management to solve the problems of management. 2. According to him, it was the duty of the management to tell the employees about the expectation of management from employees. Besides, the management should the way through which the job is to be completed. 3. He was the first person who supported mental revolution both on the part of the employee. Peter F.Drucker Peter f. Drucker was born in 1909 in Vienna. He had written many books on management. The practice of management, the economic man, the future of industrial man, Concept of corporation America s next twenty years, landmarks of tomorrow. Managing for results. Contributions of Peter F. Drucker 1. Nature of management 2. Functions of management 3. Organization structure 4. Centralist control with a structure of decentralization 5. Management by objectives 6. organizational changes
4 Frunk Bunkar Gilberth Frank Bunker Gillbreth s wrote several books which incorporate his research findings. Concrete system, Bricklaying system, and motion study for the handicapped. He gave importance to time study and motion study. He stressed minimum motions and avoidance of unnecessary motions to discover the best way of doing a job. He found out 18 basic elements. Search, fine, select, grasp, position, assemble, disassemble, inspect, Transport loaded, Preposition, Release load, Rest Wait unavoidable, delay Use, Plan. Mrs. Lillian Moller Gillerth Lillian Moller was Gilbreth s wife. She and her husband recognized the human factor which is very essential in management. Max Weber Max Weber was a germen social scientist. He emphasized the strict adherence of rules and regulation in an organisation. These would make an efficient form of organisation. This type of organisation can be termed as Bureaucracy. This is the oldest form of organisation. Bureaucracy is based on the principles of logic, order and legitimate authority. Bureaucracy Max Weber analyzed the various points before finalizing an ideal form of organization. Maximum benefits can be derived from a form of organisation. In this direction, Bureaucratic organization offers a lot of benefits to the public. Characteristics or features 1. Functional specialization 2. Hierarchy of authority 3. Rules and regulations 4. Rights and duties 5. Technical competence 6. Fixation of procedure 7. Record-keeping 8. Impersonal relations Advantages of bureaucracy 1. Specialization 2. Employee behavior 3. Structure 4. No conflict 5. Advance decision 6. Optimum utilization of human resources 7. Democracy 8. Perpetual succession
5 Disadvantages of bureaucracy 1. Rigidity 2. Red tapism 3. Displacement of goal 4. Impersonal nature of work 5. Failure of co-operation and co-ordination 6. No mutual understanding 7. Mechanical treatment 8. Empire building Mary Parker Follett Mary parker Follett wrote books to ventilate her views on management principles. Her major books are; The speaker of the use of representatives, The new state, Creative experience, business management as a profession, dynamic administration and freedom and co-ordination, She published many papers on management. She has expressed her view on different aspects of management. 1. Conflict 2. Authority 3. Group 4. Participation 5. Integration 6. Leadership 7. Co-ordination Hawthorne Experiments 1. Illumination experiments 2. Relay assembly test room experiments 3. Mass interviewing programme 4. Bank wiring observation experiments Unemployment problem Unduly high standard Protection of slow workers Satisfaction of management Findings of Hawthorne Experiments The following are the major finding and conclusions of the Hawthorne experiments: 1. Social factors 2. Group influence 3. Production level 4. motivation 5. conflicts 6. Leaderships 7. Cordial relationship 8. Behavior of workers 9. Supervision 10.Communication 11.Reaction of workers
6 Criticism of hawthorone experiments 1. Derecognization 2. Pro-management bias 3. No scientific enquiry 4. Clinical bias 5. Lack of universal application 6. Overlooking social factors 7. Limited scope of research 8. Treatment of workers 9. Undue importance to observation 10.Doubtful validity 11.Undue importance to worker satisfaction 12.Highlighting only known facts 13.Evaluation
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