evolution of management

2. Contents.....
 Introduction of Management
 Early Contribution
 Scientific Management
 Administrative Theory
 Human Relation Management
 Social System Approach
 Decision Theory Approach

3. Management
 The organization and coordination of the activities of
a business in order to achieve defined objectives.
 "Management is the art of getting things done
through and with people in formally organized
groups.“-Harold Koontz
 "To manage is to forecast and to plan, to organize, to
command, to co-ordinate and to control.“- Henri
Fayol,

4. Adam Smith(1723-1790)-
Father of “Liberal Economics”
 Focus on Market and competition
analysis for economic conditions
 Specialized Labour
 Division of labour leads to Increased
Productivities.
 Job Security.

5. Scientific management
management of a business, industry, or economy, according to
principles of efficiency derived from experiments in methods of
work and production, especially from time-and-motion studies.
FREDERICK W. TAYLOR[1856-1956]-
Father of Scientific Management
 Used time study for Division of Task.
 Focused on Best method of performing each task.
 Scientific Selection of worker.
 Scientific Education and development of Worker.
 Emphasized on Individual worker not the group.

6. Criticism of Scientific
Management
Workers Viewpoint-
 Unemployment - Workers feel that management reduces
employment opportunities from them through replacement of
men by machines.
 Exploitation - Workers feel they are exploited as they are not
given due share in increasing profits which is due to their
increased productivity. Wages do not rise in proportion as rise in
production.
 Over speeding - The scientific management lays standard
output, time so they have to rush up and finish the work in time.
These have adverse effect on health of workers.
Employer’s Viewpoint-
 Expensive - Scientific management is a costly system and a
huge investment is required in establishment of planning dept.,
standardization, work study, training of workers.
 Time Consuming - Scientific management requires mental
revision and complete reorganizing of organization.

7. HENRY Gantt(1861-1919)
 Like Taylor, Gantt also focused on the
scientific study of tasks, movements,
working conditions, and worker
cooperation.
 also focused on the connection between
the involvement of management and
financial interests.

8. Administrative Theory
HENRI FAYOL(1841-1925)
 Fayol took a top-down approach to management by focusing on
managerial practices to increase efficiency in organizations.
 The major difference between Fayol and Taylor is Fayol's
concern with the "human" and behavioral characteristics of
employees and his focus on training management instead of on
individual worker efficiency.
 Fayol stressed the importance and the practice of forecasting
and planning in order to train management and improve
workplace productivity.
 Fayol is also famous for putting forward 14 principles of
management and the five elements that constitute managerial
responsibilities.

9. Fayol is also famous for putting forward 14
principles of management that constitute
managerial responsibilities.
 Division of Work
 Authority
 Discipline
 Unity of Command
 Unity of Direction
 Subordination of Individual Interest
 Remuneration
 Centralization
 Scalar Chain
 Order
 Equity
 Stability of Tenure of Personnel
 Initiative

10. Max weber(1864-1920)
Max Weber Principles
 Job specialization
 Formal rules and regulations
 Impersonality, partiality
 Career orientation

11. Human Relations Management
ELTON MAYO(1880-1949)
 This theory stressed on formal structure.
 He found that work satisfaction depended to a large
extent on the informal social pattern of the work
group. Where norms of cooperation and higher
output were established because of a feeling of
importance, physical conditions or financial
incentives had little motivational value.
 People will form work groups and this can be used
by management to benefit the organization.

12. Elements of Human Relations
Management theory
 Individual: – According to this theory
each person bring his own set of
attitudes and skills to the job. The
workers production depends upon the
human relation at the work
 Participative management - He
advocated participation of workers in
decision making with regard to their
working conditions.

13. Hawthorne Experiment and
Conclusions
 Communication
 Interest in Workers
 Work is a Group Activity
The traditional view of how to motivate
employees is that you offer monetary
rewards (pay increases, bonuses etc) for
work completion. However the Hawthorne
experiments may suggest that motivation
can be improved through improving working
relationships and social interaction.

14. System Approach
 Systems theory is one of the dominant organizational
theories in management today. It treats an organization as
either an open or closed system.

15. Decision Theory
approach
 Decisions are made through choice among
different alternatives available. It is a
choice making activity and choice
determines our activity. Decision theories
have expanded their area of theory building
in the decision making process to the study
of decisions, decision-maker, and the
environment of decision-maker.
 Whatever a manager does, he does
through making decisions.
Hence, decision making is central to
managing.