History of Management

GPERI
GPERIGPERI
Gujarat Power Engineering 
& Research Institute 
By- 
-Ishani Bhatt(03) 
-Karan Thawani(58) 
-Jay Tindwani(59) 
-Sarthak Purohit(48) 
-Ravi Patel(51)
Management Historic 
Times 
Contents:- 
-Taylor’s Scientific Management 
-Fayol’s Administrative Management 
-Weber’s Bureaucracy Management 
-Abraham’s Hierarchy of Needs
FFooccuusseess oonn tthhee 
iinnddiivviidduuaall wwoorrkkeerr’’ss 
pprroodduuccttiivviittyy 
FFooccuusseess oonn tthhee 
ffuunnccttiioonnss ooff 
mmaannaaggeemmeenntt 
FFooccuusseess oonn 
tthhee oovveerraallll 
oorrggaanniizzaattiioonnaall 
ssyysstteemm
MAJOR CONTRIBUTORS 
•FREDERICK WINSLOW 
TAYLOR 
(1856-1915) 
•HENRI FAYOL 
(1841-1925)
• MAX WEBER 
(1864-1920) 
ABRAHAM 
MASLOW(1908 – 
1970)
FEDRICK WINSLOW TAYLOR(1856-1915) 
Father of Scientific Management 
“one best way for 
doing the job” 
• Frederick Winslow Taylor (20 March 
1856-21 March 1915), widely known 
as F. W. Taylor, was an American 
mechanical engineer who sought to 
improve industrial efficiency. 
• He is regarded as the father of 
scientific management, and was 
one of the first management 
consultants. 
• He is sometimes called as “Father of 
Scientific Management”.
• He started the Scientific Management movement, and he 
and his associates were the first people to study the work 
process scientifically 
•They studied how work was performed, and they looked at 
how this affected worker productivity. 
•Taylor's philosophy focused on the belief that making people 
work as hard as they could was not as efficient as optimizing 
the way the work was done. 
•In 1909, Taylor published "The Principles of Scientific 
Management." In this, he proposed that by optimizing and 
simplifying jobs, productivity would increase.
•Taylor believed that all workers were motivated by money, 
so he promoted the idea of "a fair day's pay for a fair day's 
work.“ 
• In other words, if a worker didn't achieve enough in a day, 
he didn't deserve to be paid as much as another worker who 
was highly productive. 
•With a background in mechanical engineering, Taylor was 
very interested in efficiency. 
•As such, he found that by calculating the time needed for 
the various elements of a task, he could develop the "best" 
way to complete that task.
•He also advanced the idea that workers and 
managers needed to cooperate with 
one another. 
•This was very different from the way work was typically done 
in businesses beforehand. 
•A factory manager at that time had very little contact with the 
workers, and he left them on their own to produce the 
necessary product. 
•There was no standardization, and a worker's main motivation 
was often continued employment, so there was no incentive to 
work as quickly or as efficiently as possible.
•Time study measures how long it takes an 
average worker to complete a task at a 
normal pace. 
•Motion study is based upon the analysis of 
work motion, consisting in part of filming 
the details of worker’s activities and their 
body posture while recording the time. 
•These "time and motion" studies also led Taylor to 
conclude that certain people could work more 
efficiently than others. These were the people whom 
managers should seek to hire where possible.
Therefore, selecting the right people for the job was another 
important part of workplace efficiency. Taking what he 
learned from these workplace experiments, Taylor developed 
four principles of scientific management
(3)Monitor worker performance, and provide 
instructions and supervision to ensure that they're 
using the most efficient ways of working. 
(4)Allocate the work between managers 
and workers so that the managers spend their 
time planning and training, allowing the 
workers to perform their tasks efficiently.tific 
management. These principles are also 
known simply as "Taylorism"..
Words from Taylor
The main things Taylor noticed for 
inefficiency
HENRI FAYOL(1841-1925) 
Father • of Administrative Management 
-French mining engineer and a 
management theorist. 
-Started as an engineer at a mining 
company and became Director in 1888. 
- Viewed management as a profession 
that can be trained and developed. 
-First one to analyze the functions of 
management.He is sometimes called as 
“Father of Administrative Management”. 
Efficiency alone is not 
enough to produce 
organizational 
success. 
Success also depends 
on 
treating workers well.
Major Contributions of Henri Fayol 
First recognized that successful managers had to 
understand the basic managerial functions and believed 
specific management skills could be learned and taught. 
He mentioned Six activities of an enterprise: 
•Technical (production, manufacture, adaptation) 
•Commercial (buying, selling, exchange) 
•Financial (search for an optimum use of capital)
• Security (protection of property and persons) 
• Accounting (Stock taking, balance sheets, cost 
statistics) 
• Managerial: Fayol’s universal management functions: 
• 1.Planning 2.Organizing 3.Staffing 4.Leading 
5.Controlling 
 Developed a set of 14 general principles of 
management.
(1)DIVISION OF WORK OR 
SPECIALIZATION 
Division of work makes a man specialist. The reason is that 
division of work helps to specialize in an activity which 
increases the output with perfection. It also avoids wastage of 
time. Division can be applied to both technical and managerial 
kind of work.
(2)AUTHORITY AND RESPONSIBILITY 
The concepts of Authority and responsibility are closely 
related. Authority was defined by Fayol as the right to give 
orders and the power to exact obedience. Responsibility 
involves being accountable, and is therefore naturally 
associated with authority. Whoever assumes authority also 
assumes responsibility.
(3)DISCIPLINE 
Discipline is essential in all levels of management. Discipline 
is obtained through judicial application of penalties. Limits of 
acceptable behavior are absolutely necessary to define, so that 
everyone in an organization knows what can and cannot be 
done. Often this principle is difficult for a supervisor to apply 
impartially.
(4)UNITY OF COMMAND 
An employee should receive orders from only one 
supervisor. Yet, because of a number of interacting 
variables in any job situation, line and staff as authority 
become opposed to line and staff as function.
(5)UNITY OF DIRECTION 
The entire organization should be moving towards a 
common objective in a common direction. 
There should be only one plan, and the person should 
be responsible for supervising it; all activities have the 
same objective, should be supervised by one person.
(6)SUBORDINATION OF INDIVIDUAL TO 
GENERAL 
The interests of one employee should not be allowed to 
become more important than those of the group. This 
includes managers. 
Generally speaking however, the companies’ interests must 
be put ahead of personal interests .
(7)REMUNERATION 
Employee satisfaction depends on fair remuneration for 
everyone. This includes financial and non-financial 
compensationRemuneration for work must be fair and 
accurate, affording maximum satisfaction for both 
employee and employer.
(8)CENTRALIZATION 
This principle refers to how close employees are to the decision-making 
process. It is important to aim for an appropriate 
balance. Fayol thought centralization of authority to be 
desirable, at least for overall control. In other words, For 
different business aspects, different solutions must be found.
(9)LINE OF COMMAND/SCALAR CHAIN 
Employees should be aware of where they stand in the 
organization's hierarchy, or chain of command. Organizations 
need a formalized hierarchy that reflects the flow of authority 
and responsibility. Fayol suggested that a chain of command 
is necessary most of the time. The communication flows to 
top to bottom or bottom to top. It should be proper.
(10)ORDER 
It is applied to both material and men. The material should 
be kept in order in the place where it is necessary. The 
personnel are selected scientifically and assigned duties 
according to there qualification and ability.
(11)EQUITY 
Employees must be seen as persons, not things to be 
manipulated. If managers hope to create a good working 
environment, they must treat everyone fairly and with 
equity. Equity refers to a combination of fairness, 
kindness and justice.
(12)STABILITY OF TENURE 
The management should ensure stability or security of 
job to every employee of the undertaken.
(13)INITIATIVE 
Employees should be given the necessary level of freedom 
to create and carry out plans. The power of thinking out, 
proposing and executing. Management should encourage 
employees to originate and carry out plans. This urging 
tends to boost levels of effort.
(14)ESPRIT DE CORPS 
– Organizations should strive to promote team spirit and 
unity. Fayol emphasizes the importance of meetings and 
personal communication over written communications. The 
importance of teamwork is mentioned, and Fayol warns 
managers against believing they could achieve their goals by 
the strategy “divide an rule”. This means union is strength or 
Team Spirit. He felt that all successful organizations survive 
only when a feeling of unity pervades the group.
History of Management
MAX WEBER(1864-1920) 
•German theorist and 
sociologist. 
•Follower of General 
Administrative Theory 
proposed by Henry Fayol. 
•Introduced most of the 
concepts on Bureaucratic 
Organizations.
Birth of Bureaucracy 
• A Bureaucracy is a way of administratively organizing large 
numbers of people who need to work together. 
• Organizations in the public and private sector, including 
universities and governments, rely on Bureaucracies to 
function. 
• The term Bureaucracy literally means “rule by desk or 
office”, a definition that highlights the often impersonal 
character of Bureaucracies.
Hierarchy: A bureaucracy is set up with clear chains of 
command so that everyone has a boss. At the top of the 
organization is a chief who oversees the entire 
bureaucracy. Power flows downward.
Specialization: Bureaucrats specialize in one area of the issue 
their agency covers. This allows efficiency because the 
specialist does what he or she knows best, then passes the 
matter along to another specialist. 
Division of labour: Each task is broken down into smaller 
tasks, and different people work on different parts of the task. 
Standard operating procedure (SOP): Also called formalized 
rules, SOP informs workers about how to handle tasks and 
situations. Everybody always follows the same procedures to 
increase efficiency and predictability so that the organization 
will produce similar results in similar circumstances. SOP can 
sometimes make bureaucracy move slowly because new 
procedures must be developed as circumstances change.
ABRAHAM MASLOW(1908 – 1970) 
 Maslow was aa ppssyycchhoollooggiisstt wwhhoo ssttuuddiieedd 
tthhee lliivveess aanndd aaccttiivviittiieess ooff iinnddiivviidduuaallss tthhaatt hhee 
ffoouunndd ccoonnssiiddeerreedd tthheemm ttoo bbee ““ssuucccceessssffuull 
aanndd pprroodduuccttiivvee””.. 
 MMaassllooww iiss aa ffaammoouuss tthheeoorriisstt wwhhiicchh 
eennccoommppaassss eevveerryytthhiinngg ffrroomm bbaassiicc nneeeeddss ttoo 
sseellff--aaccttuuaalliizzaattiioonn iinn oorrddeerr ttoo ddeemmoonnssttrraattee 
wwhhaatt mmoottiivvaatteess ppeeooppllee.. 
We all have a hierarchy of needs that 
ranges from "lower" to "higher." As lower 
needs are fulfilled there is a tendency for 
other, higher needs to emerge.
MASLOW THEORIES 
There are 5 levels of needs 
All these needs are arranged in a hierarchy 
Once one level is satisfied, the next level will emerge as the 
depressed need seeking to be satisfied 
The physiological and security needs are finite but the needs 
of higher order are infinite and are likely to be dominant in 
persons at higher levels in the organization. 
Maslow suggests that various levels are interdependent and 
overlapping.
MASLOW LEVELS OF PYRAMID
Physical Needs: Level One 
These are the basic human needs including food, clothing, 
shelter and other necessities of life. 
Air 
Water 
Food 
Rest 
Exercise 
According to Maslow’s theory, if such needs are not satisfied 
then one’s motivation will arise from the quest to satisfy them. 
Higher needs such as social needs and esteem are not felt until 
one has met the need’s basic to one’s bodily functioning.
Safety Needs: Level Two 
Provide a working environment which is safe, relative job 
security, and freedom from threats 
• The innate desire to have a stable/safe life, a sense of 
orderly world and personal as well as financial security 
constitutes safety needs
Social Needs: Level Three(Generate a feeling 
of acceptance, sense of belongingness ) 
• Social needs: Need for love, affection, emotional needs, 
warmth and friendship. 
• Love 
• Belongingness 
• Affection 
Once a person has met the lower level physiological and 
safety needs, higher level motivators awaken. Social 
needs are those related to interaction with others. 
•
Esteem Needs: level Four 
• Self-esteem: Ego or self esteem, self respect, self 
confidence, recognition. 
• Strength (esteem) 
• Status (esteem) 
• Maslow later refined his model to include a level 
between esteem needs and self – actualization the need 
for knowledge and aesthetics.
Self Actualization Needs: level five 
• Self actualization needs: desire for personal 
achievement or mission of his life. 
• Self – actualized persons have frequent occurrence of 
peak experiences, which are energized moments of 
profound happiness and harmony. According to Maslow, 
only a small percentage of the population reaches the 
level of self- actualization.
History of Management
1 sur 45

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History of Management

  • 1. Gujarat Power Engineering & Research Institute By- -Ishani Bhatt(03) -Karan Thawani(58) -Jay Tindwani(59) -Sarthak Purohit(48) -Ravi Patel(51)
  • 2. Management Historic Times Contents:- -Taylor’s Scientific Management -Fayol’s Administrative Management -Weber’s Bureaucracy Management -Abraham’s Hierarchy of Needs
  • 3. FFooccuusseess oonn tthhee iinnddiivviidduuaall wwoorrkkeerr’’ss pprroodduuccttiivviittyy FFooccuusseess oonn tthhee ffuunnccttiioonnss ooff mmaannaaggeemmeenntt FFooccuusseess oonn tthhee oovveerraallll oorrggaanniizzaattiioonnaall ssyysstteemm
  • 4. MAJOR CONTRIBUTORS •FREDERICK WINSLOW TAYLOR (1856-1915) •HENRI FAYOL (1841-1925)
  • 5. • MAX WEBER (1864-1920) ABRAHAM MASLOW(1908 – 1970)
  • 6. FEDRICK WINSLOW TAYLOR(1856-1915) Father of Scientific Management “one best way for doing the job” • Frederick Winslow Taylor (20 March 1856-21 March 1915), widely known as F. W. Taylor, was an American mechanical engineer who sought to improve industrial efficiency. • He is regarded as the father of scientific management, and was one of the first management consultants. • He is sometimes called as “Father of Scientific Management”.
  • 7. • He started the Scientific Management movement, and he and his associates were the first people to study the work process scientifically •They studied how work was performed, and they looked at how this affected worker productivity. •Taylor's philosophy focused on the belief that making people work as hard as they could was not as efficient as optimizing the way the work was done. •In 1909, Taylor published "The Principles of Scientific Management." In this, he proposed that by optimizing and simplifying jobs, productivity would increase.
  • 8. •Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair day's pay for a fair day's work.“ • In other words, if a worker didn't achieve enough in a day, he didn't deserve to be paid as much as another worker who was highly productive. •With a background in mechanical engineering, Taylor was very interested in efficiency. •As such, he found that by calculating the time needed for the various elements of a task, he could develop the "best" way to complete that task.
  • 9. •He also advanced the idea that workers and managers needed to cooperate with one another. •This was very different from the way work was typically done in businesses beforehand. •A factory manager at that time had very little contact with the workers, and he left them on their own to produce the necessary product. •There was no standardization, and a worker's main motivation was often continued employment, so there was no incentive to work as quickly or as efficiently as possible.
  • 10. •Time study measures how long it takes an average worker to complete a task at a normal pace. •Motion study is based upon the analysis of work motion, consisting in part of filming the details of worker’s activities and their body posture while recording the time. •These "time and motion" studies also led Taylor to conclude that certain people could work more efficiently than others. These were the people whom managers should seek to hire where possible.
  • 11. Therefore, selecting the right people for the job was another important part of workplace efficiency. Taking what he learned from these workplace experiments, Taylor developed four principles of scientific management
  • 12. (3)Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working. (4)Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently.tific management. These principles are also known simply as "Taylorism"..
  • 14. The main things Taylor noticed for inefficiency
  • 15. HENRI FAYOL(1841-1925) Father • of Administrative Management -French mining engineer and a management theorist. -Started as an engineer at a mining company and became Director in 1888. - Viewed management as a profession that can be trained and developed. -First one to analyze the functions of management.He is sometimes called as “Father of Administrative Management”. Efficiency alone is not enough to produce organizational success. Success also depends on treating workers well.
  • 16. Major Contributions of Henri Fayol First recognized that successful managers had to understand the basic managerial functions and believed specific management skills could be learned and taught. He mentioned Six activities of an enterprise: •Technical (production, manufacture, adaptation) •Commercial (buying, selling, exchange) •Financial (search for an optimum use of capital)
  • 17. • Security (protection of property and persons) • Accounting (Stock taking, balance sheets, cost statistics) • Managerial: Fayol’s universal management functions: • 1.Planning 2.Organizing 3.Staffing 4.Leading 5.Controlling  Developed a set of 14 general principles of management.
  • 18. (1)DIVISION OF WORK OR SPECIALIZATION Division of work makes a man specialist. The reason is that division of work helps to specialize in an activity which increases the output with perfection. It also avoids wastage of time. Division can be applied to both technical and managerial kind of work.
  • 19. (2)AUTHORITY AND RESPONSIBILITY The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.
  • 20. (3)DISCIPLINE Discipline is essential in all levels of management. Discipline is obtained through judicial application of penalties. Limits of acceptable behavior are absolutely necessary to define, so that everyone in an organization knows what can and cannot be done. Often this principle is difficult for a supervisor to apply impartially.
  • 21. (4)UNITY OF COMMAND An employee should receive orders from only one supervisor. Yet, because of a number of interacting variables in any job situation, line and staff as authority become opposed to line and staff as function.
  • 22. (5)UNITY OF DIRECTION The entire organization should be moving towards a common objective in a common direction. There should be only one plan, and the person should be responsible for supervising it; all activities have the same objective, should be supervised by one person.
  • 23. (6)SUBORDINATION OF INDIVIDUAL TO GENERAL The interests of one employee should not be allowed to become more important than those of the group. This includes managers. Generally speaking however, the companies’ interests must be put ahead of personal interests .
  • 24. (7)REMUNERATION Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensationRemuneration for work must be fair and accurate, affording maximum satisfaction for both employee and employer.
  • 25. (8)CENTRALIZATION This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance. Fayol thought centralization of authority to be desirable, at least for overall control. In other words, For different business aspects, different solutions must be found.
  • 26. (9)LINE OF COMMAND/SCALAR CHAIN Employees should be aware of where they stand in the organization's hierarchy, or chain of command. Organizations need a formalized hierarchy that reflects the flow of authority and responsibility. Fayol suggested that a chain of command is necessary most of the time. The communication flows to top to bottom or bottom to top. It should be proper.
  • 27. (10)ORDER It is applied to both material and men. The material should be kept in order in the place where it is necessary. The personnel are selected scientifically and assigned duties according to there qualification and ability.
  • 28. (11)EQUITY Employees must be seen as persons, not things to be manipulated. If managers hope to create a good working environment, they must treat everyone fairly and with equity. Equity refers to a combination of fairness, kindness and justice.
  • 29. (12)STABILITY OF TENURE The management should ensure stability or security of job to every employee of the undertaken.
  • 30. (13)INITIATIVE Employees should be given the necessary level of freedom to create and carry out plans. The power of thinking out, proposing and executing. Management should encourage employees to originate and carry out plans. This urging tends to boost levels of effort.
  • 31. (14)ESPRIT DE CORPS – Organizations should strive to promote team spirit and unity. Fayol emphasizes the importance of meetings and personal communication over written communications. The importance of teamwork is mentioned, and Fayol warns managers against believing they could achieve their goals by the strategy “divide an rule”. This means union is strength or Team Spirit. He felt that all successful organizations survive only when a feeling of unity pervades the group.
  • 33. MAX WEBER(1864-1920) •German theorist and sociologist. •Follower of General Administrative Theory proposed by Henry Fayol. •Introduced most of the concepts on Bureaucratic Organizations.
  • 34. Birth of Bureaucracy • A Bureaucracy is a way of administratively organizing large numbers of people who need to work together. • Organizations in the public and private sector, including universities and governments, rely on Bureaucracies to function. • The term Bureaucracy literally means “rule by desk or office”, a definition that highlights the often impersonal character of Bureaucracies.
  • 35. Hierarchy: A bureaucracy is set up with clear chains of command so that everyone has a boss. At the top of the organization is a chief who oversees the entire bureaucracy. Power flows downward.
  • 36. Specialization: Bureaucrats specialize in one area of the issue their agency covers. This allows efficiency because the specialist does what he or she knows best, then passes the matter along to another specialist. Division of labour: Each task is broken down into smaller tasks, and different people work on different parts of the task. Standard operating procedure (SOP): Also called formalized rules, SOP informs workers about how to handle tasks and situations. Everybody always follows the same procedures to increase efficiency and predictability so that the organization will produce similar results in similar circumstances. SOP can sometimes make bureaucracy move slowly because new procedures must be developed as circumstances change.
  • 37. ABRAHAM MASLOW(1908 – 1970)  Maslow was aa ppssyycchhoollooggiisstt wwhhoo ssttuuddiieedd tthhee lliivveess aanndd aaccttiivviittiieess ooff iinnddiivviidduuaallss tthhaatt hhee ffoouunndd ccoonnssiiddeerreedd tthheemm ttoo bbee ““ssuucccceessssffuull aanndd pprroodduuccttiivvee””..  MMaassllooww iiss aa ffaammoouuss tthheeoorriisstt wwhhiicchh eennccoommppaassss eevveerryytthhiinngg ffrroomm bbaassiicc nneeeeddss ttoo sseellff--aaccttuuaalliizzaattiioonn iinn oorrddeerr ttoo ddeemmoonnssttrraattee wwhhaatt mmoottiivvaatteess ppeeooppllee.. We all have a hierarchy of needs that ranges from "lower" to "higher." As lower needs are fulfilled there is a tendency for other, higher needs to emerge.
  • 38. MASLOW THEORIES There are 5 levels of needs All these needs are arranged in a hierarchy Once one level is satisfied, the next level will emerge as the depressed need seeking to be satisfied The physiological and security needs are finite but the needs of higher order are infinite and are likely to be dominant in persons at higher levels in the organization. Maslow suggests that various levels are interdependent and overlapping.
  • 39. MASLOW LEVELS OF PYRAMID
  • 40. Physical Needs: Level One These are the basic human needs including food, clothing, shelter and other necessities of life. Air Water Food Rest Exercise According to Maslow’s theory, if such needs are not satisfied then one’s motivation will arise from the quest to satisfy them. Higher needs such as social needs and esteem are not felt until one has met the need’s basic to one’s bodily functioning.
  • 41. Safety Needs: Level Two Provide a working environment which is safe, relative job security, and freedom from threats • The innate desire to have a stable/safe life, a sense of orderly world and personal as well as financial security constitutes safety needs
  • 42. Social Needs: Level Three(Generate a feeling of acceptance, sense of belongingness ) • Social needs: Need for love, affection, emotional needs, warmth and friendship. • Love • Belongingness • Affection Once a person has met the lower level physiological and safety needs, higher level motivators awaken. Social needs are those related to interaction with others. •
  • 43. Esteem Needs: level Four • Self-esteem: Ego or self esteem, self respect, self confidence, recognition. • Strength (esteem) • Status (esteem) • Maslow later refined his model to include a level between esteem needs and self – actualization the need for knowledge and aesthetics.
  • 44. Self Actualization Needs: level five • Self actualization needs: desire for personal achievement or mission of his life. • Self – actualized persons have frequent occurrence of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self- actualization.