1. Module 1 Introduction
Nature of Management, The Evolution
of Management- Science or Art:
Functions of Management- Planning
and Decision Making, Organizing and
Staffing, Controlling and Directing
2. Introduction
Evolution of Management
The classical thought to management developed during
industrial revolution in the year 1900 when different
problems related to production and labour began to
appear. Managers think how to increase the productivity
and efficiency of the workers. Efforts were made to find
out the best way to get the most work done by examining
the work process and dividing the work according to the
skills of the workforce.
3. As a result, the classical thought to management
developed. It is the oldest thought to management
and the principles developed under this thought
are accepted even today. Frederic Winslow Taylor,
Frank & Lillian Gilberth, Henri Fayol and Max
Weber are the major contributors to the classical
school of management. This thought includes
scientific, administrative and bureaucratic
management.
4. Scientific Management
Fredric Winslow (F.W.) Taylor develops the concept of scientific management.
He is known as the father of scientific management. He was born in 1856 in
Philadelphia USA. He belonged to a middle class family. In 1878 he joined the
Midvale Steel Company in USA as a labourer and within a short span of six years
(1884) he was able to reach the position of Chief Engineer in the same company.
During this period Taylor conducted many experiments and gave suggestions how
to select and trained the workers to improve their performance for maximum
output. In 1911 he also wrote a famous book “Principles of Scientific Management”
which make a history in the field of management. Frank & Lillian Gilberth, Henry L
Gantt and Harrington Emerson have also made significant contribution to the
development of scientific management.
5. Introduction to Management:
According to Theo Heimann, Management has three different meanings,
viz.,
Management as a Noun: refers to a Group of Managers.
Management as a Process: refers to the Functions of Management i.e.
Planning, Organising, Directing, Controlling, etc.
Management as a Discipline: refers to the Subject of Management.
6. Management is indispensable wherever human efforts are
to be undertaken collectively to achieve certain objective.
Management is a vital aspect in any organized group
activity, be it business activity or any other activity
Management integrates the human and the physical
resources for efficient achievement of objectives. Without
the leadership provided by management, the resources of
production remain resources only.
7. Principles of Scientific Management
1. Replacing the Rule of Thumb with Science:
According to this principle instead of old rule of thumb
efforts should be made to develop new techniques of
production to accomplish the maximum possible work in
an efficient manner and at the minimum possible cost. All
the related activities must be performed in a scientific
manner.
8. 2. Scientific Selection and Training of Workers: -
Scientific selection means only those persons
should be selected who possess the necessary
capabilities and capacities to perform a specific
task. The workers must be provided proper training
from time to time so, that their knowledge and
efficiency may be increased.
9. 3. Cooperation:
According to Taylor there must be cooperation between
management and labour. Taylor develops the concept of
‘Mental Revolution’ which means there must not be any clash
between the labour and management. Both of them are
complementary to each other as one has no existence without
the other. Management must understand the problems of
labour and labour should also cooperate with management.
10. 4. Division of Work/ Responsibility:
This principle states that only that work should be assigned to
a group which can be perform effectively and efficiently.
Management should take decisions and make plan and labour
should be responsible for actually doing the work. In this way,
each will be responsible and accountable for their tasks and
the productivity of the organization will increase. All this
promoted the division of responsibility and work
11. 5. Maximum Output:
Taylor suggested that both labour and
management should make efforts to increase
the production and it must be continuous.
Continuous increase in production ensures
the optimum utilization of resources and it
will bring higher profits. As a result higher
wages will be given to the workers.
12. Techniques of Scientific Management
1. Functional Foremanship
2. Scientific Study of Work
3. Standardization of Work
4. Scientific Task Planning
5. Differential Wage System
6. Mental Revolution
13. 1.Functional Foremanship:
F.W. Taylor suggested the concept of functional foremanship. This
concept is totally based on the principle of specialisation and makes
full utilisation of the expertise of various experts. Taylor stated that
four foremen should be appointed for planning department and four
for production department which is known as ‘functional
foremanship’. In planning department they were route clerk,
instruction cord clerk, time and cost clerk and disciplinarian and in
production department they were speed boss, gang boss, repair boss
and inspector.
14. 2. Scientific Study of Work:
Taylor conducted various studies like
method study, motion study, time study
and fatigue study on the workers during
their job. Scientific management
requires detailed analysis of all the
activities being performed in the
organization with the aim of producing
maximum possible quality output at
minimum possible cost.
15. 3. Standardization of Work:
Taylor recommended that the standard should be
fixed for different factors. He explained that the
work to be done by a worker may be decided.
Similarly, the standard may also be set for raw
materials, machines and tools, techniques,
condition of work etc. which will help in maximum
output at minimum cost.
16. 4.Scientific Task Planning:
Taylor stated that all the different aspects related
to a job must be analysed before accomplish it. In
any organisation it should be decided in advance
that what work is to be done? How is it to be done?
Where, when and by whom is it to be done? For
this purpose a planning department should be
established.
17. 5. Differential Wage System:
Taylor has advised that there should be differential
wage systems in order to motivate the employees.
In this system, wages are paid on the basis of work
done and two different wage rates are used one, is
the high wage rate and the other is the low wage
rate and minimum standard of work also fixed.
High wage rate pay to those workers who are able
to produce the minimum standard of work and
those workers who are not able to produce the
minimum standard of work are paid as per the
lower wage rate.
18. 6. Mental Revolution:
Taylor develops the concept of mental revolution which calls for a
change in the mindset of both employers and workers which will
promote the cooperation and understanding between employers and
workers. According to Taylor, instead of fighting over division of
profits, both the parties should make efforts for increasing the profits.
Such a situation will result in an increase in production, and as such
a high increase in profits will ensure the higher payment to the
workers.
