Management was developed since the time the world came into existence. Whenever group efforts are necessary to achieve anything there is a need for management. Kautilya’s Artha Shastra and Thiruvalluvar’s teachings enunciate management principles that can be applied to the modern world. For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc

1. Welingkar’s Distance Learning Division
CHAPTER-02
DEVELOPMENT OF
MANAGEMENT THOUGHT
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2. Welingkar’s Distance Learning Division
Introduction
 Management has developed since the time
when the world came into existence.
Whenever group efforts are necessary to
achieve anything, there is a need for
management. Kautilya’s artha Sastra and saint
Thiruvalluvar’s state the principles and
concepts of management. These principles
and concepts may be applied in our modern
world and in the future also.
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3. Welingkar’s Distance Learning Division
Introduction
 An individual can not achieve single handed.
Cooperation, group efforts, direction and
control are necessary to achieve the objective
or goals of an individual. In our modern world
an individual cannot survive separately. He
has to rely upon others. So, managerial
efficiency is an essential requisite to human
being.
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4. Welingkar’s Distance Learning Division
Does water flowing in a
distant mountain think
about its distance from
the ocean?
The distance between my
current position and my
desired goals is very big.
But I shall
reach my goals.
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5. Welingkar’s Distance Learning Division
Henry Fayol
 Henry Fayol was a French industrialist. The principles
of management of Henry Fayol were known to the
world only after 1949 later the publication of his
management thoughts in English.
 Henry Fayol concentrated on top management.
Management plays a very important part in the
government under kings, of all undertakings, large or
small, industrial, commercial, political religious or
any other.
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6. Welingkar’s Distance Learning Division
Henry Fayol
The management functions and organizational
functions are different.
 The management functions include planning,
organizing, staffing, directing and controlling.
 But organizational functional include
purchase, sales, productions and accounting.
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7. Welingkar’s Distance Learning Division
Classification of business activities
 Technical activities relating to production.
 Commercial activities relating to purchase of basic
raw materials and other resources, selling of
products and exchange.
 Security activities relating to the steps taken to
protect the property of enterprise and persons.
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8. Welingkar’s Distance Learning Division
Classification of business activities
 Accounting activities relating to the recording and
maintaining of accounts, stock taking and
preparation of cost sheets, balance sheets and
statistical data.
 Managerial activities relating to planning, organizing,
commanding, coordinating and controlling.
 Financial activities relating to identification and
utilization of available funds.
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Elements of management
 Planning
 Organizing
 Commanding
 Co-ordination
 Control
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Qualities of a Manager
 Physical (health, vigor and address)
 Mental (Ability to understand and learn)
 Moral (Energy, firmness, willingness to accept responsibility)
 General education (general acquaintance with matters not
belonging)
 Special knowledge (particular to the function)
 Experience
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11. Welingkar’s Distance Learning Division
Principles of Management
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Division of work
Authority and
responsibility
Unity of
command
Discipline
Remuneration
of personnel
Centralization Scalar Chain Order
Espirit de corps
Stability
Equity
Unity of
direction
Subordination of
individual to group
interest
Principles of
management

12. Welingkar’s Distance Learning Division
Frederick Winslow Taylor
 F.W. Taylor had observed the work
performance of managers and workers.
According to Taylor they follow the traditional
method of work and do not have the concept
of systematic performances of task. Taylor
found that greater output was possible
through systematization and stanrdization of
method of doing work.
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13. Welingkar’s Distance Learning Division
Scientific management
 Scientific management consists of a certain
philosophy of selection and training of right
workers for the right job, providing adequate
working conditions, providing a system of
monetary incentives to efficient workers and
assumption of responsibilities by managers
and supervisors.
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14. Welingkar’s Distance Learning Division
Principles of scientific management
 Science rot rule thumb
 Harmony in group action
 Co-operation
 Maximum output
 Improvement workers
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15. Welingkar’s Distance Learning Division
Elements or Features of scientific management
Seperation of planning
from executive Fatigue Study
function
Time Study
Scientific task Rate Setting
setting
Economy
Motion duty
Functional foremanship
Standardization Mental revolution
Work study Scientific selection Methods study Financial incentives
and training
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16. Welingkar’s Distance Learning Division
Contributions of F. W. Taylor
 He has applied the principles of scientific management to
solve the problems of management.
 According to him, it was the duty of the management to tell
the employees about the expectation of management from
employees. Besides, the management should the way through
which the job is to be completed.
 He was the first person who supported mental revolution both
on the part of the employee.
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17. Welingkar’s Distance Learning Division
Peter F. Drucker
 Peter F. Drucker was born in 1909 in Vienna.
He had written many books on management.
The practice of management, the economic
man, the future of industrial man, Concept of
corporation America’s next twenty years,
landmarks of tomorrow. Managing for results.
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18. Welingkar’s Distance Learning Division
Contributions of Peter F. Drucker
 Nature of management
 Functions of management
 Organization structure
 Centralist control with a structure of decentralization
 Management by objectives
 Organizational changes
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19. Welingkar’s Distance Learning Division
Frunk Bunkar Gilberth
 Frank Bunker Gillbreth’s wrote several wrote
several books which incorporate his research
findings. Concrete system, Bricklaying system,
and motion study for the handicapped. He
gave importance to time study and motion
study. He stressed minimum motions and
avoidance of unnecessary motions to discover
the best way of doing a job.
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20. Welingkar’s Distance Learning Division
Frunk Bunkar Gilberth
 He found out 18 basic elements. Search, fine,
select, grasp, position, assemble, disassemble,
inspect, Transport loaded, Preposition,
Release load, Rest Wait unavoidable, delay
Use, Plan.
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21. Welingkar’s Distance Learning Division
Mrs. Lillian Moller Gillerth
 Lillian Moller was Gilbreth’s wife. She and her
husband recognized the human factor which
is very essential in management.
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22. Welingkar’s Distance Learning Division
Max Weber
 Max Weber was a germen social scientist. He
emphasized the strict adherence of rules and
regulation in an organization. This type of
organization can be termed as of organization
can be termed as “Bureaucracy”. This is the
oldest form of organization. Bureaucracy is
based on the principles of logic, order and
legitimate authority.
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23. Welingkar’s Distance Learning Division
Bureaucracy
 Max Weber analyzed the various points
before finalizing an ideal form of organization.
Maximum benefits can be derived from a
form of organization. In this direction,
Bureaucratic organization offers a lot of
benefits to the public.
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Characteristics or features
 Functional specialization
 Hierarchy of authority
 Rules and regulations
 Rights and duties
 Technical competence
 Fixation of procedure
 Record-keeping
 Impersonal relations
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Advantages of bureaucracy
 Specialization
 Employee behavior
 Structure
 No conflict
 Advance decision
 Optimum utilization of human resources
 Democracy
 Perpetual succession
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Disadvantages of bureaucracy
 Rigidity
 Red tapism
 Displacement of goal
 Impersonal nature of work
 Failure of co-operation and co—ordination
 No mutual understanding
 Mechanical treatment
 Empire building
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27. Welingkar’s Distance Learning Division
Mary Parker Follett
 Mary parker Follett wrote books to ventilate her
views on management principles. Her major books
are; The speaker of the use of representatives, The
new state, Creative experience, business
management as a profession, dynamic
administration and freedom and co-ordination, She
published many papers on management. She has
expressed her view on different aspects of
management.
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28. Welingkar’s Distance Learning Division
Mary Parker Follett
 Conflict
 Authority
 Group
 Participation
 Integration
 Leadership
 Co-ordination
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29. Welingkar’s Distance Learning Division
Hawthorne Experiments
 Illumination experiments
 Relay assembly test room experiments
 Mass interviewing programme
 Bank wiring observation experiments
 Unemployment problem
 Unduly high standard
 Protection of slow workers
 Satisfaction of management
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Findings of Hawthorne Experiments
 Social factors
 Group influence
 Production level
 Motivation
 conflicts
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31. Welingkar’s Distance Learning Division
Findings of Hawthorne Experiments
 Leaderships
 Cordial relationship
 Behavior of workers
 Supervision
 Communication
 Reaction of workers
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32. Welingkar’s Distance Learning Division
Criticism of hawthorone experiments
 Derecognization
 Pro-management bias
 No scientific enquiry
 Clinical bias
 Lack of universal application
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33. Welingkar’s Distance Learning Division
Criticism of hawthorone experiments
 Overlooking social factors
 Limited scope of research
 Treatment of workers
 Undue importance to observation
 Doubtful validity
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34. Welingkar’s Distance Learning Division
Criticism of hawthorone experiments
 Undue importance to worker satisfaction
 Highlighting only known facts
 Evaluation
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