EVOLUTION OF
MANAGEMENT
•
“Management”
refers to the organization and
coordination of work to produce a desired result. A
manager is a person who practices management by
working with and through people in order to
accomplish his or her organization’s goals.
• A manager marshals an organization’s resources (its
people, finances, facilities, and equipment) to
produce products and services to meet the needs and
wants of the marketplace.
SCIENTIFIC MANAGEMENT
THEORY
• Management began to emerge as a practice during the Industrial
Revolution and with the rise of large corporations in the late
nineteenth century and into the twentieth.
• The fundamental concepts of modern management were famously
explored by Frederick Winslow Taylor, an American engineer who
wrote ‘The Principles of Scientific Management in 1911. Taylor
aimed to couple the efficiency needs of a business with the
specialized talents of the employees. Each employee was then seen
as a cog in a wheel, as a useful yet expendable part of the whole
operation.
• Probably the most famous management pioneer of all is
Frederick Winslow Taylor (1856–1915), the father of
scientific management.
• Taylor rose from common laborer to chief engineer in six
years, and completed a home study course to earn a degree
in mechanical engineering in 1883.
• Worked in Midvale Steel Company in America.
• Also worked as a lecturer in Havard University.
• In trying to overcome inefficiency by the workers, Taylor
began a scientific study of what workers ought to be able
to produce. This study led to the beginnings of scientific
management. Taylor used time studies to break tasks down
into elementary movements, and designed complementary
piece-rate incentive systems
• Taylor’s analysis was heavily driven by the research
he conducted. His conclusion was that employees are
almost always driven by money. Because businesses
had very little production capacity, the principles of
management focused on driving this production by
enticing employees with more money for increased
production. Management’s focus was on producing as
much as possible to meet the consumer demand for
goods and services.
• Many industries during the early 1900s did not
have any competition, so they dominated their
industries.
• But
in
the
1920s,
the
world
of
business
conceptualized the assembly line and began to
automate some of the production processes. This
change
in
management
strategy
caused
businesses to rethink how they managed their
resources (people, finances, capital, and tangible
assets).
 By the late twentieth century, automation, higher
educational levels, and the push for speed had
changed management practices, and business had
largely moved away from the top-down, centralized
direction style to leaner organizations with less
regimentation.
 Nevertheless, Taylor’s theories and their lessons
remain important to this day as a foundation for
understanding how to manage large projects that
require a variety of skills and a large number of
workers.
Henri Fayol's Principles of Management
 Administrative Management Theory
Fayol's "14 principles" were first published in 1914, but are still
relevant to today's managers.
 Managers in the early 1900s had very few external resources to
draw upon to guide and develop their management practice. But
thanks to early theorists like Henri Fayol (1841-1925), managers began
to get the tools they needed to lead and manage more effectively.
Fayol, and others like him, are responsible for building the
foundations of modern management theory.
Background
 Henri Fayol was born in Istanbul in 1841. When he was 19, he
began working as an engineer at a large mining company in
France. He eventually became the director, at a time when the
mining company employed more than 1,000 people.
 Through the years, Fayol began to develop what he
considered to be the 14 most important principles of
management. Essentially, these explained how managers should
organize and interact with staff.
 In 1916, two years before he stepped down as director, he
published his "14 Principles of Management". Fayol also created
a list of the six primary functions of management, which go
hand in hand with the Principles.
Fayol's "14 Principles" was one of the
earliest theories of management to be
created, and remains one of the most
comprehensive. He's considered to be
among the most influential contributors to
the modern concept of management.
The theory falls under the Administrative
Management school of thought (as
opposed to the Scientific Management
School, led by Fredrick Taylor).
FAYOL'S 14 PRINCIPLES OF MANAGEMENT
1. Division of work: Work should be divided among individuals and groups
to ensure that effort and attention are focused on special portions of the
task. Fayol presented work specialization as the best way to use the human
resources of the organization.
2. Authority: 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: A successful organization
requires common effort of workers.
Penalties should be applied judiciously
to encourage this common effort.
4. Unity of command: Workers should
receive
manager.
orders
from
only
one
5. Unity of direction: The entire organization
should be moving towards a common
objective in a common direction.
6. Subordination of individual interests to
the general interests: The interests of one
person should not take priority over the
interests of the organization as a whole.
7. Remuneration
– Employee satisfaction
depends on fair remuneration for everyone.
This includes financial and non-financial
compensation.
8. Centralization – This principle refers to
how close employees are to the decisionmaking process. It is important to aim for
an appropriate balance.
9. Scalar Chain – Employees should be aware of
where they stand in the organization's hierarchy,
or chain of command
10. Order – The workplace facilities must be clean,
tidy and safe for employees. Everything should
have its place
11.Equity: All employees should be treated as equally
aspossible.
12.Stability of Tenure of Personnel – Managers
should strive to minimize employee turnover.
Personnel planning should be a priority.
13.Initiative – Employees should be given
the necessary level of freedom to create
and carry out plans.
14.Espirit de corps: Management should
encourage harmony and general good
feelings among employees