H Fayol, F W Taylor

1. EVOLUTION OF MANAGEMENT
THOUGHTS
By- Shivendra Singh
Assistant Professor, MG Central
University

2. • Management has been practiced in some
form or the other since the dawn of
civilization
• Ever since human beings started living
together in groups, techniques of organization
and management were evolved
• The Egyptian pyramids, the Great Wall of
China, for instance, are tangible evidence that
projects of tremendous scope, employing tens
of thousands of people, were undertaken well
before the modern times.

3. • Who told each worker that what did one do?
• Who ensured that there would be enough stones
at the site to keep the workers busy?
• The answer is Managers, regardless of what
managers were called at that time.
• However, pre-twentieth-century events played
significant roles in promoting the study of
management.

4. EVOLUTION OF MANAGEMENT
THOUGHTS

5. Scientific Management School
• Scientific management means application of the
scientific methods to the problem of management.
• It conducts a business or affairs by standards
established by facts or truth gained through
systematic observation, experiments, or reasoning.
• They dedicated to the increase in efficiency of
labour by the management of the workers in the
organization’s technical core.

6. • Industrial revolution necessitated the
development of new management principles
and practices.
• During this period, productivity was very low,
labour was highly dissatisfied and industries
had to face frequent strikes and lockouts.
• Thus, the best technique to handle these
problems needed to be discovered that could
be by executing the basic managerial
functions like selection, promotion,
compensation, training, and production which
needs to be applied and checked on a
continuous basis.

7. • The main contributors of this school of
management thought were Frederick Winslow
Taylor, Henry L. Gantt, Frank Gilbreth, Lillian
Gilbreth and Harrington Emerson.
• F.W. Taylor was the first person who responded to
the challenges of management and could find the
scientific way of handling organisational problems;
that’s why he is known as the father of Scientific
Management.

8. • The basic emphasis of this approach has been
on increasing production efficiency with the
help of specialised physical work, by
describing activities in advance and keeping a
close supervision.

9. F. W. Taylor’s Scientific Management
Frederick Winslow Taylor
(1865-1915) was a brilliant
engineer and a pioneer
management scientist and
practitioner in U.S.A.
during his career as a machinist and a foreman
conducted a series of experiments to improve upon the
production efficiency and to develop scientific and
systematic ways of doing things and get the optimum
utilization of resources.

10. • He insisted on applying scientific
methods to solve the management
problems rather than adopting rule of
thumb or trial and error method
• This theory has been also referred to as
“machine theory”.

11. Principles of Scientific Management
Job specialization
or division of
labour
Scientific selection,
training and
development of
workers
Complete harmony
between
management and
workers
Maximum output
to replace
restricted output
Mental Revolution

12. Job specialization or division of
labour
• Every worker should concentrate on his/her own
work only as they are specialized in their field
• The division of work and responsibility between
the management and the workers should be
equal
• Management must perform the decision making
function and should always try to give required
infrastructure, facilities and maximum
cooperation to the workers to ensure that work is
done according to the scientific techniques.

13. • And the workers must perform their job as per
the instructions given to them by the
management.
• In other words there should be proper co-
ordination between the worker and the
management.

14. Scientific selection, training and
development of workers
• Proper selection of employee’s i.e. right
person for right job improves the efficiency
and the productivity of the organization.
• Scientific training should be arranged from
time to time so that the employees are
friendly with the new or changing technology.

15. Complete harmony between
management and workers
• Complete harmony i.e. harmonious relationship
between the management and workers should
exist within the organisation to make sure that
the scientific principles of management are
followed to do the work.
• Taylor advocated that a complete and thorough
mental change of both, the management and the
workers, is the need of the hour to achieve the
desired goal of organisation.

16. Maximum output to replace
restricted output
• Taylor believed that the interest of both the
management and workers is in increasing the
productivity of the organisation.
• Increased productivity means larger surplus.
• And the higher wages can be given i.e. sharing
of the larger surplus by both the parties.

17. Mental Revolution
• Taylor emphasised that there is a great need of
revision of mental attitude of the workers
towards management and that of management
towards workers.
• They both should trust each other and cooperate
in achieving maximum production.
• The workers should not be work-shirkers, rather
should be disciplined, dedicated and sincere in
completing the work assigned to them.
• They should not indulge in wastage of resources.

18. Techniques of Scientific Management
• Taylor also developed certain techniques so
that the above principles of scientific
management may be implemented.
• He advocated creation of elaborate and new
set of rules for regulating each and every
aspect of work behaviour of workers at work
in stead of depending on rule of thumb.

19. (1)Work study
• He suggested that a systematic analysis of
each work and operation should be done to
subdivide the production processes into
individual tasks to achieve task specialization.
• This can be easily done using time and motion
studies.

20. • i) by establishing the standard time required
to perform a particular task under the
specified conditions through Time Study.
• The purpose of the time study is to define a
day’s work and also to avoid any uncertainty
on the effort and productivity expected

21. • ii) through a systematic and critical study of
the movement of both the workers and
machines known as Motion Study.
• This aims to improve the way of doing the
work and detect unnecessary and wasteful
movements so that the most efficient method
for performing each work task can be
determined along with necessary rest periods
for the workers.

22. (2) Scientific Task Planning
• The planning of the day’s work should be based
on the scientific logics and the objective must
not be illusory.
• Each and every step should be taken at the right
time, right proportion and the right place.
• Thus scientifically setting the tasks provides
answers to questions like what work is to be
done, how it has to be done, where it is to be
done, and when it is to be done.

23. (3) Differential Piece Rate System
• Under this techniques Taylor created a direct
link between remuneration and productivity
of organization.
• He advocated “Pay the workers and not the
job” in order to maximize the employee work
effort.

24. (4) Functional Foremanship
• Taylor felt that a supervisor cannot be an expert
in all the fields.
• So, he suggested two types of functional
foremanship, that is, planning and operations.
• The foremen like route clerk, instruction card
clerk, time and cost clerk and shop disciplinarian
are to be concerned with planning of work and
the other four, gang boss or setting up boss,
speed boss, repair boss, and quality inspector are
to be involved in the execution of work at the
shop floor.

25. (5) Scientific selection and training of
workers
• The selection and training of the employees
should be done after thorough investigations
of personalities and skills along with the
requirements of the organization.
• They also should be given just right kind of
training at the proper time to enhance their
capabilities and skills to perform their jobs
efficiently and reduce the wastages in the
production process.

26. Critical Evaluation
Appreciation
• Taylor’s work was largely appreciated since it
helped in increasing production which was the
need of the hour
• His principles helped to overcome the conflict-
driven relationship between the management
and workers and turned out to be a win-win
situation for both.

27. • Taylor emphasised on building complete
harmony, striking out the discord of
competition
• He considered the interests of workers and
manager as mutually dependent and believed
that improving organizational efficiency leads
to wage increase.

28. • He was the first to describe management as a
profession thereby justifying the discipline of
management.
• He provided practical tools to managers for
acquiring better control over their
organizations.
• He was also the first one to use statistical
control to analyze work and gave a basis for
time and motion studies

29. Criticisms
• But at the same time this approach was
criticised not only by workers and managers
but also by the psychologists and the general
public on the grounds of being unrealistic,
limited in scope, being too much mechanical
• it treats worker as one of the factors of
production

30. • Workers were forced to boost speed to
increase the efficiency, affecting their health,
physically and mentally.
• Specialization and standardization further
makes the work monotonous and dull.
• Scientific management is quite limited in
scope. It focused on the lower level
management or production management
only.
• The concept of functional foremanship was
also criticised since it was not feasible to take
orders from eight foremen.

31. Conclusions
• In spite of all such criticisms, undoubtedly,
Taylor was the pioneer in introducing scientific
reasoning to the discipline. He made a lasting
contribution to making jobs and their
management more efficient and productive.
• In the opinion of Peter F. Drucker, scientific
management is one of the great liberating and
pioneering management thought which made
a real study of human beings at work .

32. Henry Fayol’s Administrative Model
Theory
Administrative theory was propounded by
Henri Fayol5 (1841-1925), a French executive.
He worked as mining engineer and later
become a chief executive.
administrative approach mostly confines itself
to development of concepts and principles
relating to the internal structural and
administrative aspects of formal organizations.
•They tried to identify the functions of a manager with emphasis
on coordination of resources towards the achievement of
predetermined objectives.

33. • Contributors towards this thought of
management include Henri Fayol, Mary Parker
Follett, and Chester I. Barnard.
• They studied the flow of information within an
organization and also emphasized the importance
of understanding how an organization operates.
• The advocates of this school of thought perceive
management as a process involving certain
functions such as planning, organising, directing
and controlling.
• That is why it is also called the functional
approach to management.

34. • He is regarded as a father of management.
• He defined management in terms of certain
activities or functions and then he laid down
fourteen principles of general management
which according to him have universal
applicability.
• He argued that managerial ability can be
acquired as any other technical ability.
• He recommended the formal teaching in
management.
• Thus he was a pioneer in the field of
education and it was the first step of
management being a professional discipline.

35. Classification of Activities
• Fayol began with classifying all business operations
undertaken in a business organisation into six
categories:
• Technical (related to manufacturing of products);
• Commercial (buying, selling and exchange of goods and
services);
• Financial (Optimum utilization of funds from various
alternatives);
• Accounting (recording all business transaction and
ascertainment of profit and loss);
• Security: (involving protection of workers as well as the
property) and
• Managerial (having a series of functions planning,
organizing, commanding, co-ordinating and controlling).

36. Principles of Management
SN Principles
1 Division of Work
2 Authority and Responsibility
3 Discipline
4 Unity of Command
5 Unity of Directions
6 Subordination of Individual to General Interests
7 Remuneration of Personnel
8 Centralization
9 Scalar Chain
10 Order
11 Equity
12 Stability
13 Initiative
14 Esprit de Corps

37. 1. Division of Work:
• Division of work leads to specialisation which
helps to do more and better work with the
same effect.
• In other words, quality work should be
accepted rather than the quantity.
• And division of work helps to achieve it
because of increase in specialization.

38. 2. Authority and Responsibility:
• Authority and responsibility are
complementary to each other.
• Wherever authority is exercised responsibility
arises.
• Therefore, parity should be maintained
between them.
• Without authority responsibility has no sense
and responsibility without authority cannot be
achieved.

39. 3. Discipline:
• It implies respect for the rules and regulations of
the organization.
• Each person must show good behaviour with
others and with the management.
4. Unity of Command
• Every employee must get instructions from one
boss and only be accountable to the same boss.
• It is necessary to avoid the conflictions among
the workers.

40. 5. Unity of Directions:
• There should be one head under one plan for
proper co-ordination in the enterprise. Unity of
command should commensurate with unity of
directions.
6. Subordination of Individual to General
Interests:
• Every individual have their own interest,
therefore, efforts should be made to reconcile
individual interest with common interest.

41. 7. Remuneration of Personnel:
• The technique of payment to the employee
should be fair and not complicated.
• It is important that the employees understand
the technique.
8. Centralization:
• Fayol is of the opinion that one should
determine the degree of centralisation or
decentralisation as per the requirements of the
needs of organisation.
• It should be left to the choice of the
management of the organisation concerned.

42. 9. Scalar Chain:
• It refers to a chain of superiors ranging from top
level management to lower level.
• In this information is passed step by step.
• To avoid the delay in quick decision two or more
different employee of same level can take the
action, this is known as “gang plan”.
10. Order:
• This principle is concerned with the placement of
people as well as materials.
• In other words, it means there should be a place
for everything and everything should be in its
proper place.

43. 11. Equity:
• It implies that employees should be treated
equally at par with others.
• There should be no difference between the
management and workers and workers and
workers.
12. Stability:
• The assurance of job security ensures efficiency
in work.
• This gives stability to both employees as well as
the organisation.
• This develops the dedication towards the
organisation.

44. 13. Initiative:
• It refers to the freedom to think and express
their new ideas to the management.
• It develops interest of employees in their jobs
and provides job satisfaction to them.
14. Esprit de Corps:
• It implies unity of effort through common
harmony among the employee.

45. Critical Evaluation
Appreciation
• Fayol’s contribution to modern management
theory has been of immense importance.
• Though not always applicable in every situation,
his principles are generally in use today with
slight modifications.
• His contributions provided a foundation to the
development of management thought.
• The functions of management developed by him
provide systematic understanding to the process
of management.

46. Criticism
• Many of the principles of Fayol’s theory are
vague in nature i.e. not properly defined.
• The principle of division of work did not define
the way the work should be divided.
• It overemphasises the formal structure of the
organisation and ignores informal needs of
the workers. It does not pay adequate
attention to workers.

47. • Fayol’s theory were based on his personal
experience and limited observations which
have not even been verified under controlled
scientific conditions.