History of Management.

UNIT-I
HISTORY OF MANAGEMENT
By Naveen Kumar Kolakani.
MBA,PDHRM.
kolakaninaveen@gmail.com
www.learnersconsultancy@gmail.com
WWW.NAVENSRERAJ.BLOGSPOT.COM
Most of the early management theorists were practicing
executives who described their own experiences from
which they developed principles.
A Great deal of management knowledge comes from the
Auto biographies and Memories of people who
practiced management .
Management professors ,Psychologists ,Sociologists
Anthropologists considered Management to be a social
phenomenon and mangers to be an important social
resources.
And numerous other professions such as mathematics
accounting, economics, law, political, science, engineering,
and philosophy also have contributed to The
understanding of management.
Serious study of management began in the late 1900 century.
It was the time when USA in the throes( straggle ) of Industrial Revolution
Industrial Revolution swept through Europe, canda, and united states.
The introduction of steam power ,and development of sophisticated machinery

and equipment changed the way in which goods were produced ,particularly in
the weaving and clothing industries .
Automobile plants, Steel mills , textile mills , rail road yards, and other major
industries were getting to started,
Immigrants from around the world assemble to U.S.A
USA become manufacturing capital of work
Management scholars(and text book writers) have looked
back on the history of management thought and have
grouped the diverse ideas into three basic approaches:
a) Classical approach .
b) The behavioral approach.
c)The management sciences approach.
These concepts we called as Theories of Management
Classical organization theory : classical theorists
formulated principles for setting up and managing
organizations. These views are labeled Classical
because they form the foundation for the field of
management thought.,
Classical approach .
The classical theorists focus on the job and
management functions to determine the best
way to manage all organizations
In the early 1900s, managers began an
organized approach to increasing performance
by focusing on the efficiency of managing job.
PROBLEM FOR MANAGERS:
Improve efficiency and productivity Unskilled workforce.
Effort to understand work force
These things made them to study early researches
produced theories, concepts, and practices that have
come to be labeled the CLASSICAL APPROACH.
Classical approach .
I) Classical organization theory,
II) Scientific Management ,
III) Administrative Management ,
a) Bureaucracy Management .
b) Mary Parker Follett
One aspect that concentrated on the problems of TOP-
Level managers face in managing the organization as
a whole it is known as Classical organization theory
Or
Classical Management theory(1900-1930)
Machines=Productivity +Consumer Cost.
Demand =Factories/workers
Classical organization theory :
An other aspect that concentrated on the problems of
LOWER-Level managers face day to day problems of
workforce. this perspective is known as Scientific
Management
Scientific Management- Fredrick Winslow Taylor,

-Henry Gantt,
-Franck&Lillian Gilberth
(Frank bunker Gilberth-Lillian Evelyn Moller)
Scientific Management- Fredrick Winslow Taylor
We can called Him as Father of Scientific Management,
According to Taylor it is concerned with knowing exactly

what you want men to do and the see in that they do it in the
best and cheapest way
He researched how man can be used efficiently at work .
During his research he found that the main cause of
inefficiency and wastage in factories was ignorance on the part
of both managers and workers of scientific
methods.(Scientific Management)
Efficiency can improved by investigations ,analysis and
measurement.
Functional Foremanship
Taylor has suggested the division of the work of factory manager into
two sub departments:
(i) Planning department, and (ii) production department.
Four experts are appointed in each department. The experts in the planning
department do planning and the experts in the production department help
in production.
(i) Specialists of Planning Department and their Functions
(a) Route Clerk: This clerk ensures the sequence of completing a
particular work, meaning thereby the stages it shall have to pass before being
finalised. He also decides the job to be done for the day and where it is to be
done.
(b) Instruction Card Clerk: This clerk prepares the instruction
cards for the workers and hands them over to the gang boss. These cards
contain information about the nature of the work, procedure of doing it,
material to be used and the details about machinery.
(c) Time and Cost Clerk: This clerk decides as to when a particular work is to be
started and finished, meaning thereby as to what time the whole work will take
place. It is also decided at the same time at what cost the product will be
produced.
(d) Discipline Officer: The discipline officer ensures that every work is being
performed in a disciplined manner.
(ii) Specialists of Production Department and their Functions
(a) Gang Boss: The workers are divided into various groups from
the point of view of control. A group leader is selected who is known as the gang
boss. He is expected to ensure that both the workers and the machines are fit
enough for production and that the material required for their use has been
made available to them.
b) Speed Boss: The main function of the speed boss is to
ensure that all the workers are performing their job at the
required or expected speed. If it is not so, the speed boss tries to
find out the cause of slow speed and hence a solution for it.
(c) Repair Boss: The main function of the repair boss is to

keep the machines and tools in working condition.
(d) Inspector: He inspects the things produced and compares

their quality with the standard prescribed for them and tries to
find out the difference. In case of unfavourable result he
initiates corrective action.
Scientific Study of Work
It means to conduct the deep analysis of all the activities being performed in the
organisation with the aim of producing maximum possible quality output at
minimum costs. Taylor has conducted the following studies:
(i) Method Study, (ii) Motion Study, (iii) Time Study, and (iv) Fatigue Study.
(i) Method Study: It refers to identify the most suitable way to do a particular
activity. To conduct this study, process chart and operation research techniques
are used. The main objective of this study is to minimise the cost of production
and maximise the quality and level of consumer satisfaction.
(ii) Motion Study: It refers to conduct the study of motions being performed by
workers and machines while doing the job. The movie camera is used to conduct
this study. The main objective of this study is to eliminate the unnecessary
motions.
For example, during an experiment it was found that while laying a brick, a
mason was conducting 18 different activities, but after eliminating the
unnecessary activities the number of activities could be reduced to five, and in
certain cases even down to two activities.
(iii) Time Study: It refers to determine the standard time required to
complete a particular activity. The standard time is determined on the
basis of average time taken by the several experiences of the same work.
This study is conducted with the help of a stopwatch. The main
objectives of the study are (i) to get the estimated figure of labour costs,
(ii) to determine the number of required workers and (iii) to decide
about the suitable incentive plan.
(iv) Fatigue Study: It refers to determine the duration and frequency of
rest intervals to complete a particular job. The rest refreshes the workers.
They work again with their full capacity.
The main objective of this study is to maintain the efficiency level of
workers. There may be so many causes of fatigue, such as long working
hours, poor working conditions, unsuitable work, unhappy relations
with the boss, etc.
Differential Wage System/Differential Piece Rate
Taylor has advised the adoption of differential wage systems in order to motivate the
employees. According to this system, wages are paid on the basis of work done and
not on the basis of time spent in doing the work.
In this system two different wage rates are used: one is the high wage rate and the
other is the low wage rate. Those workers who are able to produce the standard
number of units within a fixed duration are paid as per the high wage rate, and those
workers who are not able to produce the standard number of units within the same
time are paid as per the lower wage rate.
For example, let the standard output per day be 20 units and the two wage rates be 5
per unit and 4 per unit respectively. Worker A produces 20 units in a day and in
doing so he earns 100 (20 units X 5 per unit).
Another worker B produces only 18 units in a day and hence he will earn only 72 (18
units x 4 per unit). In this way, even though B has produced only 2 units less than A
the difference in their wages will be 28 100 72).
As a result, less efficient workers will be motivated to work more and efficient
workers will be motivated to maintain their efficiency.
Standardisation of Work
(i) Standardised Material

(ii) Standardised Machines and Tools
(iii) Standardised Methods
(iv) Standardised Working Conditions
Scientific Management: -Henry Gantt
He developed daily balance

sheet
He developed TASK AND
BONOUS PLAN instead of
Piece rate system
Scientific Management: Franck& Lillian Gilberth
Although their contributions were many, what the Gilbreths
are most known for is their work on motion studies.
The management theory of Frank and Lillian Gilbreth can be
summed up by the following:
1. Reduce the number of motions in a task to increase

efficiency.
2. Focus on the incremental study of motions and time to

understand an entire task.
3. The goal of increased efficiency is both increased profit and

greater worker satisfaction.
Administrative Management : HENRY FAYOL()
HENRY FAYOL a French industrialist , Fayola was a classical management theorist,
widely regarded as the father of modern operational-management . His ideas are a
fundamental part of modern management concepts.
He was a mining engineer and worked for all positions like managing director ,
He divided the activities of an industry into Six groups , i.e., Technical, commercial
,financial, security, accounting ,and managerial
He looked at the problems of managing with the management point of view and not
with the workers point of view.
Taylor in his focus and developed his ideas independently. Taylor was concerned with
task time and improving worker efficiency,
Taylor viewed management improvements as happening from the bottom up, or starting
with the most elemental units of activity and making individual workers more efficient.
In contrast,
Fayol emphasized a more top-down perspective that was focused on educating
management on improving processes first and then moving to workers. Fayol
believed that by focusing on managerial practices organizations could minimize
misunderstandings and increase efficiency.
His writings guided managers on how to accomplish their managerial duties

and on the practices in which they should engage. In his book "General and
Industrial Management
Fayol outlined his theory of general management, which he believed could be

applied to the administration of myriad industries. As a result of his concern for
workers,
Fayol was considered one of the early fathers of the human relations movement.
Fayol's Five Elements of Management
Fayola is also famous for his five elements of management, which outline the key
responsibilities of good managers.
1. Planning: Managers should draft strategies and objectives to determine the

stages of the plan and the technology necessary to implement it.
2. Organizing: Managers must organize and provide the resources necessary

to execute said plan, including raw materials, tools, capital, and human resources.
3. Command (delegation): Managers must utilize authority and a thorough

understanding of long-term goals to delegate tasks and make decisions for the
betterment of the organization.
4. Coordination: High-level managers must work to integrate all activities to
facilitate organizational success. Communication is key to success in this
component.
5. Monitoring: Managers must compare the activities of the personnel to the plan of
action; this is the evaluation component of management.
Bureaucracy Management
1864-1920
Bureaucracy Management
He was a German sociologist
Aim this concept was to develop a set of rules and

procedures to ensure that all employees were treated
fairly
It is an organizational design that relies on specialization
of labor, a specific authority hierarchy, a formal set of
rules and procedures, and rigid promotion and selection
criteria.
Mary Parker Follett
1868-1933
Mary Parker Follett was an

American social
worker, management
consultant and pioneer in
the fields of organizational
theory and organizational
behaviour.
Mary Parker Follett
She has given importance to people rather than engineering
techniques . Follett contributed to administrative
management by emphasizing the need for worker
participation, conflict resolution , and shared goals.
Barnard`s and Follett contributions led to the behavioral

theory
The behavioral theorists focus on people to determine
the best way to manage in all organizations.
Management writers began questioning the classical
approach to management and change their focus from
job itself to the people who perform the job.
It got stressed the need for Human skills rather than
technical skills.
ELTON MAYO
He pioneered the human relations movement. He
headed a group of Harvard researchers in
conducting HAWTHORNE STUDIES
Manager Treatment of people had an important
impact on performance
ABRAHAM MASLOW
He pioneered the Hierarchy of needs theory and he
researched on MOTIVATION
ABRAHAM MASLOW
DOUGLAS McGREGOR
Developed Theory X -Theory Y
Theory X: Managers assumes that people dislike
work and that only if managers plan, organize, and
closely direct and control their work will workers
perform at high levels.
Theory Y: Managers assume that people like to work
and do not need close supervision.
Systems Approach
It focus on viewing the organization as a whole and
as the interrelationships of its parts.
In 1950s management theorists attempted to
integrate the classical, behavioral, and
management science theorists into a holistic view
of the management process
Started assuming that an organization is a system
that transforms inputs(Resources ) into
outputs(products and /or services)
Systems Approach
Russell Ackoff, said that managers tend to break
the organization into its basic Parts
DEPARTMENTS.
Systems Approach
Understand the behavior and properties of the
parts, and add the understanding of the parts
together to understand the whole.
They focus on making independent departments
operate as efficiency as possible.
Example: Cricket Team.
Systems Approach
Systems approach to management
1. Open or closed systems.
2. Sub-System
3. Synergy
4. Boundaries
5. Feedback mechanism
6. Multidisciplinary
7. Consideration of whole system
8. Input output system
Contingency Approach
The contingency theorists focus on deterring the
best management approach for given situation.
In 1960s-1970s management researchers wanted to
determine how the environment and technology
affected the organization
Identified two environment
1. Stable(Where there is little change).
2. Innovative(Great change )
Identified two management systems
1. Mechanistic( similar to behavioral and classical).
2. Organic (non Bureaucratic)
JOAN WOODWARD
JOAN WOODWARD
1. Stable & Mechanistic(Mass production
technology)(automobile assembly line)
2. Innovative & Organic(small batch products and
long run process technology)(refining crude oil)

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UNIT-I

Industrial Revolution swept through Europe, canda, and united states.

The introduction of steam power ,and development of sophisticated machinery

Immigrants from around the world assemble to U.S.A

USA become manufacturing capital of work

These concepts we called as Theories of Management

Scientific Management- Fredrick Winslow Taylor,

According to Taylor it is concerned with knowing exactly

(c) Repair Boss: The main function of the repair boss is to

(d) Inspector: He inspects the things produced and compares

(i) Standardised Material

He developed daily balance

1. Reduce the number of motions in a task to increase

2. Focus on the incremental study of motions and time to

3. The goal of increased efficiency is both increased profit and

His writings guided managers on how to accomplish their managerial duties

Fayol outlined his theory of general management, which he believed could be

1. Planning: Managers should draft strategies and objectives to determine the

2. Organizing: Managers must organize and provide the resources necessary

3. Command (delegation): Managers must utilize authority and a thorough

Aim this concept was to develop a set of rules and

Mary Parker Follett was an

Barnard`s and Follett contributions led to the behavioral

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