HISTORY OF MANAGEMENT

By Naveen Kumar Kolakani. MBA,PDHRM.

ASSISTANT PROFESSOR,AT SRM PG COLLEGES,KARIM.NAGAR.

[email protected]

UNIT-IHISTORY OF MANAGEMENT

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Most of the early management theorists were practicing executives who described their own experiences from which they developed principles.A Great deal of management knowledge comes from the “Auto biographies” and “Memories of people” who practiced management .Management professors ,Psychologists ,Sociologists Anthropologists considered Management to be a social phenomenon and mangers to be an important social resources.

History of Management


And numerous other professions such as mathematics accounting, economics, law, political, science, engineering, and philosophy also have contributed to The understanding of management.



Serious study of management began in the late 1900 century.

It was the time when USA in the throes( straggle ) of “Industrial Revolution”

Industrial Revolution swept through Europe, canda, and united states.

The introduction of steam power ,and development of sophisticated machinery

and equipment changed the way in which goods were produced ,particularly in

the weaving and clothing industries .

Automobile plants, Steel mills , textile mills , rail road yards, and other major

industries were getting to started,

Immigrants from around the world assemble to U.S.A

USA become manufacturing capital of work



Classical approach.


EVOLUTION OF MANAGEMENTTHOUGHT .


Management scholars(and text book writers) have

looked back on the history of management thought and have grouped the diverse ideas into three basic approaches:

a) Classical approach . b) The behavioral approach. c)The management sciences approach.

These concepts we called as “Theories of Management”



Classical organization theory : classical

theorists formulated principles for setting up and managing organizations. These views are labeled “Classical” because they form the foundation for the field of management thought.,

Classical approach.


Classical approach .



The classical theorists focus on the job and management functions to determine the best way to manage all organizations

In the early 1900s, managers began an organized approach to increasing performance by focusing on the efficiency of managing job.

PROBLEM FOR MANAGERS:Improve efficiency and productivity Unskilled

workforce.Effort to understand work force These things made them to study early

researches produced theories, concepts, and practices that have come to be labeled the CLASSICAL APPROACH.


Classical approach.





I) Classical organization theory,II) Scientific Management ,III) Administrative Management , a) Bureaucracy Management . b) Mary Parker Follett


One aspect that concentrated on the problems of TOP-Level managers face in managing the organization as a whole it is known as “Classical organization theory”

Or “Classical Management theory”(1900-

1930)Machines=Productivity +Consumer Cost.Demand =Factories/workers


Classical organization theory :



An other aspect that concentrated on the

problems of LOWER-Level managers face day to day problems of workforce. this perspective is known as “Scientific Management ”

Scientific Management- Fredrick Winslow Taylor,

-Henry Gantt, -Franck&Lillian

Gilberth (Frank bunker Gilberth-Lillian

Evelyn Moller)



Classical approach . Scientific Management- Fredrick

Winslow Taylor


According to Taylor it is concerned with “knowing exactly what you want men to do and the see in that they do it in the best and cheapest way “

He researched how man can be used efficiently at work . During his research he found that the main cause of inefficiency and wastage in factories was ignorance on the part of both managers and workers of scientific methods.(Scientific Management)

Efficiency can improved by investigations ,analysis and measurement.



We can called Him as Father of Scientific Management,

Functional Foremanship Taylor has suggested the division of the work of factory

manager into two sub departments: (i) Planning department, and (ii) production department. Four experts are appointed in each department. The experts in

the planning department do planning and the experts in the production department help in production.

(i) Specialists of Planning Department and their Functions (a) Route Clerk: This clerk ensures the sequence of

completing a particular work, meaning thereby the stages it shall have to pass before being finalised. He also decides the job to be done for the day and where it is to be done.

(b) Instruction Card Clerk: This clerk prepares the instruction cards for the workers and hands them over to the gang boss. These cards contain information about the nature of the work, procedure of doing it, material to be used and the details about machinery.



(c) Time and Cost Clerk: This clerk decides as to when a particular work is to be started and finished, meaning thereby as to what time the whole work will take place. It is also decided at the same time at what cost the product will be produced.

(d) Discipline Officer: The discipline officer ensures that every work is being performed in a disciplined manner.

(ii) Specialists of Production Department and their Functions

(a) Gang Boss: The workers are divided into various groups from the point of view of control. A group leader is selected who is known as the gang boss. He is expected to ensure that both the workers and the machines are fit enough for production and that the material required for their use has been made available to them.





b) Speed Boss: The main function of the speed boss is to ensure that all the workers are performing their job at the required or expected speed. If it is not so, the speed boss tries to find out the cause of slow speed and hence a solution for it.

(c) Repair Boss: The main function of the repair boss is to keep the machines and tools in working condition.

(d) Inspector: He inspects the things produced and compares their quality with the standard prescribed for them and tries to find out the difference. In case of unfavourable result he initiates corrective action.

Scientific Study of Work It means to conduct the deep analysis of all the activities being performed in

the organisation with the aim of producing maximum possible quality output at minimum costs. Taylor has conducted the following studies:

(i) Method Study, (ii) Motion Study, (iii) Time Study, and (iv) Fatigue Study. (i) Method Study: It refers to identify the most suitable way to do a

particular activity. To conduct this study, process chart and operation research techniques are used. The main objective of this study is to minimise the cost of production and maximise the quality and level of consumer satisfaction.

(ii) Motion Study: It refers to conduct the study of motions being performed by workers and machines while doing the job. The movie camera is used to conduct this study. The main objective of this study is to eliminate the unnecessary motions.

For example, during an experiment it was found that while laying a brick, a mason was conducting 18 different activities, but after eliminating the unnecessary activities the number of activities could be reduced to five, and in certain cases even down to two activities.



(iii) Time Study: It refers to determine the standard time required to complete a particular activity. The standard time is determined on the basis of average time taken by the several experiences of the same work.

This study is conducted with the help of a stopwatch. The main objectives of the study are (i) to get the estimated figure of labour costs, (ii) to determine the number of required workers and (iii) to decide about the suitable incentive plan.

(iv) Fatigue Study: It refers to determine the duration and frequency of rest intervals to complete a particular job. The rest refreshes the workers. They work again with their full capacity.

The main objective of this study is to maintain the efficiency level of workers. There may be so many causes of fatigue, such as long working hours, poor working conditions, unsuitable work, unhappy relations with the boss, etc.





Differential Wage System/Differential Piece RateTaylor has advised the adoption of differential wage systems in order to motivate the employees. According to this system, wages are paid on the basis of work done and not on the basis of time spent in doing the work.In this system two different wage rates are used: one is the high wage rate and the other is the low wage rate. Those workers who are able to produce the standard number of units within a fixed duration are paid as per the high wage rate, and those workers who are not able to produce the standard number of units within the same time are paid as per the lower wage rate.For example, let the standard output per day be 20 units and the two wage rates be 5 per unit and 4 per unit respectively. Worker ‘A’ produces 20 units in a day and in doing so he earns 100 (20 units X 5 per unit).Another worker ‘B’ produces only 18 units in a day and hence he will earn only 72 (18 units x 4 per unit). In this way, even though ‘B’ has produced only 2 units less than ‘A’ the difference in their wages will be 28 100 – 72).As a result, less efficient workers will be motivated to work more and efficient workers will be motivated to maintain their efficiency.

Standardisation of Work

(i) Standardised Material(ii) Standardised Machines and Tools(iii) Standardised Methods(iv) Standardised Working Conditions



Scientific Management: -Henry Gantt



He developed daily balance sheetHe developed TASK AND BONOUS PLAN instead of Piece rate system

Scientific Management: Franck& Lillian

Gilberth



Although their contributions were many, what the Gilbreths are most known for is their work on motion studies.

The management theory of Frank and Lillian Gilbreth can be summed up by the following:

1. Reduce the number of motions in a task to increase efficiency.

2. Focus on the incremental study of motions and time to understand an entire task.

3. The goal of increased efficiency is both increased profit and greater worker satisfaction.



Administrative Management : HENRY FAYOL()



HENRY FAYOL a French industrialist , Fayola was a classical

management theorist, widely regarded as the father of modern operational-management . His ideas are a fundamental part of modern management concepts.

He was a mining engineer and worked for all positions like managing director ,

He divided the activities of an industry into Six groups , i.e., Technical, commercial ,financial, security, accounting ,and managerial

He looked at the problems of managing with the management point of view and not with the workers point of view.

Taylor in his focus and developed his ideas independently. Taylor was concerned with task time and improving worker efficiency,




His writings guided managers on how to accomplish their managerial duties and on the practices in which they should engage. In his book "General and Industrial Management“

Fayol outlined his theory of general management, which he believed could be applied to the administration of myriad industries. As a result of his concern for workers, Fayol was considered one of the early fathers of the human relations movement.

Taylor viewed management improvements as happening from the bottom up, or starting with the most elemental units of activity and making individual workers more efficient. In contrast, Fayol emphasized a more top-down perspective that was focused on educating management on improving processes first and then moving to workers. Fayol believed that by focusing on managerial practices organizations could minimize misunderstandings and increase efficiency.


https://www.boundless.com/management/definition/efficient/

Fayol's Five Elements of ManagementFayola is also famous for his five elements of management, which outline the

key responsibilities of good managers.

1. Planning: Managers should draft strategies and objectives to determine the stages of the plan and the technology necessary to implement it.

2. Organizing: Managers must organize and provide the resources necessary to execute said plan, including raw materials, tools, capital, and human resources.

3. Command (delegation): Managers must utilize authority and a thorough understanding of long-term goals to delegate tasks and make decisions for the betterment of the organization.

4. Coordination: High-level managers must work to integrate all activities to facilitate organizational success. Communication is key to success in this component.

5. Monitoring: Managers must compare the activities of the personnel to the plan of action; this is the evaluation component of management.




Bureaucracy Management


1864-1920


Bureaucracy Management


He was a German sociologist

Aim this concept was to develop a set of rules and procedures to ensure that all employees were treated fairly It is an organizational design that relies on specialization of labor, a specific authority hierarchy, a formal set of rules and procedures, and rigid promotion and selection criteria.

Mary Parker Follett was an American social worker, management consultant and pioneer in the fields of organizational theory and organizational behaviour.


Mary Parker Follett Classical approach .

1868-1933

She has given importance to people rather than engineering techniques . Follett contributed to administrative management by emphasizing the need for worker participation, conflict resolution , and shared goals.

Barnard`s and Follett contributions led to the behavioral theory


Mary Parker Follett Classical approach .

The behavioral theorists focus on people to determine the best way to manage in all organizations.

Management writers began questioning the classical approach to management and change their focus from job itself to the people who perform the job.

It got stressed the need for Human skills rather than technical skills.


BEHAVIORAL THEORY

He pioneered the human relations movement. He headed a group of Harvard researchers in conducting HAWTHORNE STUDIES

Manager Treatment of people had an important impact on performance


ELTON MAYO BEHAVIORAL THEORY

He pioneered the Hierarchy of needs theory and he researched on MOTIVATION


ABRAHAM MASLOWBEHAVIORAL THEORY


ABRAHAM MASLOWBEHAVIORAL THEORY

Developed Theory X -Theory YTheory X: Managers assumes that people

dislike work and that only if managers plan, organize, and closely direct and control their work will workers perform at high levels.

Theory Y: Managers assume that people like to work and do not need close supervision.


DOUGLAS McGREGOR BEHAVIORAL THEORY


DOUGLAS McGREGOR BEHAVIORAL THEORY

It focus on viewing the organization as a whole and as the interrelationships of its parts.

In 1950s management theorists attempted to integrate the classical, behavioral, and management science theorists into a holistic view of the management process

Started assuming that an organization is a system that transforms inputs(Resources ) into outputs(products and /or services)


Systems Approach Management Science Theory

Russell Ackoff, said that managers tend to break the organization into its basic Parts DEPARTMENTS.



Understand the behavior and properties of the parts, and add the understanding of the parts together to understand the whole.

They focus on making independent departments operate as efficiency as possible.

Example: Cricket Team.



Systems approach to management1. Open or closed systems.2. Sub-System3. Synergy 4. Boundaries5. Feedback mechanism 6. Multidisciplinary7. Consideration of whole system 8. Input output system



The contingency theorists focus on deterring the best management approach for given situation.

In 1960s-1970s management researchers wanted to determine how the environment and technology affected the organization

Identified two environment1. Stable(Where there is little change).2. Innovative(Great change )


Contingency Approach Management Science Theory

Identified two management systems1. Mechanistic( similar to behavioral and

classical).2. Organic (non Bureaucratic)



JOAN WOODWARD

JOAN WOODWARD 1. Stable & Mechanistic(Mass production

technology)(automobile assembly line)2. Innovative & Organic(small batch

products and long run process technology)(refining crude oil)



HISTORY OF MANAGEMENT

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