CHAPTER NO.

The Emergence of
American Business and
Management Thought

American Manager is well known to achieve

the goals

Skilled Manager can manage every business

activity

Skill is called Management

American Managers are admired by

international friends as well as enemies

Both men and women who valued the better

way to make American industry more
efficient and effective, and lead to American
into world production leadership

Links in the Management

Chain

American production efficiency has worldwide

reputation.

Scientific Management

Administration

Human Relations

Scientific Management

Charles Babbage lived in 1800s and was to

first to make scientific enquiry in production
area i.e., assignment of jobs various parts to
workers on the basis of their skills.

Division of labor was useful for

four reasons:
1.

Learning time is reduced because one

worker must learn only one skill.

2.

Less time is lost in changing from one skill

to another.

3.

Workers become specialist due to

repetition.

4.

Because the job is broken down into various

component parts, special tools and
equipment are to be developed.

The Father of Scientific

Management

Federick W. Taylor is usually known as

Father of Scientific Management

Major areas: Labor and Management

Gantt and Gilbreths

Elton Mayo Father of Human Relations

Famous Hawthorne Experiment

In management history employees began to

have rights.

Mayo Industrial Psychologist from Harvard

University agreed to participate Hawthorne
Plant of Western Electric Co. near Chicago.

Workers productivity under different

environmental conditions light, heat room,
color etc.

Mayos assistants began gradual changes of

all variables less light more rest time
different pay scales.

Surprisingly every change resulted in

increase in productivity. Even when lights
were like moonlight, the production
increased.

Special treatment called as Hawthorne effect

can bring positive results because of human
factor.

Productivity in function of workers attitude.

The Hawthorne experiment

demonstrated that:

Human, social and psychological needs are

every bit as effective as motivators as money.
The social interaction of the work group is as
influential as the organization of the actual
work.
The human factor can not be ignored in any
accurate management planning.

Henri Fayol (1841-1925)

The Principles as given by Fayol are

enumerated as under:

1.
2.
3.
4.
5.
6.

7.

Division of work
Authority and Responsibility
Discipline
Unity of Command
Unity of Direction
Subordination of individual interest to
general interest
Remuneration

8.
9.
10.
11.
12.
13.
14.

Centralization
Scalar Chain, that is, Line of Authority.
Order
Equity
Stability of the tenure of personnel
Initiative
Espirit de Corps, that is, Team Spirit