A overview on development of management thought from Principles of Management.

1. Presented byDhananjay Mull

2. PRINCIPLES OF
MANAGEMENT
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A Principles may be defined as a fundamental
statement that provides a guide to thought and
action.
It establishes a cause and effect relationship
between two or more variables.
Principles of management originate and grow as a
result of past experience and accomplishments.

3. NEED FOR THE PRINCIPLES OF
MANAGEMENT
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•To Increase efficiency
•To crystallize the nature of
management
•To improve research
•To attain social goals

4. HENRY FAYOL

5. 
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Engineer and French industrialist
In France worked as a managing director in coalmining organization
Authored book on” General and Industrial
administraion”

6. CLASSIFICATION OF
BUSINESS FUNCTION
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Technical ( production)
Commercial (buying and selling)
Financial ( obtaining capital)
Security ( protection of resources)
Accounting ( statistic and financial position)
Managerial ( planning, organising, coordination
and control etc)

9. 
1.Division of Work —improves efficiency through a
reduction of waste, increased output, and
simplification of job training
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2.Authority and Responsibility—authority: the right
to give orders and the power to extract obedience
– responsibility: the obligation to carry out
assigned duties
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3.Discipline—respect for the rules that govern the
organization

10. 
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4. Unity of Command—an employee should
receive orders from one superior only
5. Unity of Direction—grouping of similar activities
that are directed to a single goal under one
manager
6. Subordination of Individual Interests to the
General Interest—interests of individuals and
groups should not take precedence over the
interests of the organization as a whole.
7. Remuneration of Personnel—payment should
be fair and satisfactory for employees and the
organization

11. 8. Centralization—managers retain final
responsibility – subordinates maintain enough
responsibility to accomplish their tasks
9. Scalar Chain (Line of Authority)—the chain of
command from the ultimate authority to the lowest
 10. Order—people and supplies should be in the
right place at the right time
 11. Equity—managers should treat employees
fairly and equally
 12. Stability of Tenure of Personnel—managerial
practices that encourage long-term commitment
from employees create a stable workforce and
therefore a successful organization

12. 
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13. Initiative—employees should be encouraged to
develop and carry out improvement plans
14. Esprit de Corps—managers should foster and
maintain teamwork, team spirit, and a sense of
unity among employees

13. FREDERICK WINSLOW
TAYLOR
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F.W.Taylor born in 1856, introduced
systematic working.
He found out the techniques of management.
The outcome of his system bought logic, order,
etc.
F.W.Taylor conducted many experiments on
management.
He found out that systematization and
standardization gave a better output

14. Major publications of
F.W.Taylor
1.
2.
3.
4.
A Piece Rate System - 1895
Shop Management – 1903
The Art of Cutting Metals – 1906
The Principles of Scientific Management

15. PRINCIPLES OF SCIENTIFIC
MANAGEMENT
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Science not rule of thumb
Harmony in group action
Co-operation
Maximum output
Improvement of workers

16. ELEMENTS OF SCIENTIFIC
MANAGEMENT
1.
2.
3.
4.
5.
6.
7.
Separation of planning from executive
function
Scientific task setting
Functional foremanship
Work study
Methods of study
Motion duty
Time study

17. 
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8. Fatigue study
9. Rate setting
10. Standardization
11. Scientific selection and training
12. Financial incentives
13. Mental revolution
14. Economy

18. Peter F. Drucker
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According to Drucker, management has two
important functions, innovation and marketing. He
has treated management as a discipline as well as
a profession. For him, management is more of a
practice and is always goal oriented. His study on
the purpose of business as the creation of the
customer, if understood in the right manner, helps
any organization to achieve success.

19. 
Drucker’s view on innovation is equally important
in order to pay emphasis during the development
of a new product. He argues that new products
should drive out the existing products, rather than
the other way round. As such, he is
against bureaucratic management, as he thinks
that it stifles the innovative spirit and the initiative
among the people in the organization. He
considers that modern organizations are
knowledge-based organizations and describes the
modern workers as knowledge workers
considering their skills and innovative abilities.

20. 
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Drucker points out three basic functions of
management. The actions of management
should contribute to:
1. The achievement of purpose and
mission of the institution
2. Make the work productive and the
worker achieving
3. Effective management of social
responsibilities

21. Contributions of F. W. Taylor
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He was known as the father of Scientific
Management.
He applied Scientific management to solve
problems of the management.
He believed that the Management should tell
employee’s about the expectations they have.
He conducted time and motion study first.
He supported the mental revolution on the part
of the employer and employee

22. Criticism of Scientific
Management
•
1. Exploitation of Workers
Taylor's Scientific Management put unnecessary
pressures on the employees to perform the work
faster.
2. Problem of Unity of Command
Taylor used functional foremanship. So, the
workers have to report to eight bosses. This
breaks the principle of unity of command, where
the workers have to report to only one boss
•

23. •
3. Mechanical Approach
Taylor's approach was a mechanical approach. He gave too
much importance to efficiency. He did not consider the
human element.
4. Problem of Separation of Planning from Doing
Taylor said to separate planning from doing. In reality, we
cannot separate planning from doing.
5. Individualistic Approach
Taylor's scientific management gives too much importance
to individual performance and not to group performance.

24. Frank Bunker Gilbreth
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He worked at a Brick laying company and was
then promoted to Superintendent in the same firm.
He has written various books on scientific
management and systems.
He believed and gave importance to time and
motion study similar to Taylor. F.B.Gilbreth
concentrated not on time but best way to do the
job.
He recommended minimum motions and avoiding
unneeded motions for completing the job.

25. 
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1.
2.
3.
4.
5.
6.
7.
The basic elements work through analysing
various methods of working. They use flow
process charts, he called them therbligs.
The elements are as follows:
Search
Find.
Select
Grasp.
Position.
Assemble.
Disassemble.

26. 8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Inspect.
Transport loaded.
Preposition.
Release load.
Rest.
Wait-unavoidable.
Avoidable delay.
Use.
Plan.
Motion study.

27. Mrs. Lillian Moller Gilbreth.
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Lillian Moller, wife of Frank Gilbreth has written
many articles and books on the psychology of
management and management aspects.
She worked in the same firm as her husband, they
worked as a team and always worked towards
finding the best way

28. Max Weber
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Born April 21, 1864.
In Erfurt in Thuringia, Germany (Suburbs of
Berlin).
German Political Economist and Sociologist.
One of the founders of modern Sociology
He is the first one to emphasised the strict
adhernce of rules and regulation in an organisation
which was termed as “Bureaurcracy.”

29. Bureaucracy
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This is the oldest form of organisation. It is
also based on principle of logic & legitimate
authority.
Max weber analysed the various points before
finalising an ideal form of organisation.
Maximum benefits can be derived.
Offers .lots of benefits to the people

30. Characteristics or Features
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Functional specialisation.
Hierarchy of authority.
Rules and regulations.
Rights and duties.
Impersonal relations.

31. Advantages of bureaucracy
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Specialisation
Structure
No conflicts
Advance decision
Democracy

32. Disadvantages of
bureaucracy
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Rigidity
Impersonal nature of work.
Failure of co-operation and co-ordination.
No mutual understanding
Mechanical treatment

33. Mary Parker Follet
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She is a pioneer of management thought in
Human Relations.
She gave prime importance to the nature of
management.
She strongly believed that psychology
plays an integral part in human activity
She always took into consideration the
human character at the workers level,
supervisory level as well as at the
management’s level

34. Views of Aspects of
Management.
1.
2.
3.
4.
5.
Conflict: Conflicts can be removed by domination,
compromise and integration.
Authority: Authority is root of all evils.
Group: Should be more than aggregation of
individuals, they should be a team and should act
as a team.
Participation: It rests on understanding and coordination of each individual.
Integration: The integration of interest should not
only be for the organisation but of all the interests
of workers, investors and consumers

35. 6.
7.
Leadership: Leaders are never born leaders but
with proper training and the tools, any human can
be a good leader.
Co-ordination:
- By direct contact by responsible people.
- Early stages of planning and policy making.
- Relation of all factors in the situation.
- A continual, non-stoppage process

36. Henry L. Gantt
Henry Laurence Gantt was born in Calbert County
Merrilane in the U.S.A. On 20th May 1861.
 Henry L. Gantt introduced “ Gantt Task and
Bonus Plan” and the Gantt Chart.
 This is calcucated as under this system
Output below standard-Time rate wages
Output at standard - Bonus of 20% on time rate.
Output above standard - High piece rate on whole
output.
 This system is an improvement of Taylor’s
Differential system of wage payment.
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37. 
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Gantt was a founder of new movements known as
“ the new machine”
It avoids the exercise of power and advocated
harmonious relationship between the employers
and the employees.
Gantt believed that justice and human behaviour
were important elements in industrial relations.
Gantt distinguished between man and machine.

39. George E. Mayo.
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Elton Mayo was born in 1880 in Adelaide in
Australia in 1992.
Elton Mayo worked as a teacher initially.
He had become a lecture at the University of
Queensland after studying psychology.
Elton Mayo was regarded as the founder and
father of modern sociological and psychological
industrial research.
He has published many books and papers.

40. 
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The human civilization had entered the machine
age after industrial revolution.
Maximum output is emphasized during the
machine age.
Nobody is considered human relations between
employers and employees.
The productivity is affected by the desires,
attitudes and feelings of the workers.
George Elton Mayo was the first person to look
into the matter of human relations.