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Development of

Management Thought

Early Contributions
Classical School of
Management
Neo classical school of
management
Modern school of
management

1
Classical School of
Management
1. Scientific
Management
2. Bureaucracy
3. Administrative
Management 2
Scientific Management(The salient
features as propounded by F. W.
Taylor)
• Planning and setting task standards for workers
before doing the operations
• Separation of planning function from doing
functions
• Management doing more and more thinking
functions from workers so as to make their work
purely mechanical through the formulation of
rules, laws and formulas
• Analytical search for best methods or “One best
way of doing things”
• Replacing traditional management by scientific
management

3
Salient features of Scientific
Management
• Scientifically determining each man’s work on the basis of
elementary motions and operations
• Standardizing machines and equipments and fixing correct
motions of their use.
• Division of work
• Creating functional organization with eight supervisors to
supervise the shop work on functional basis. Out of these eight
functional foreman four(Route clerk, Inspection card clerk, Time
and cost clerk, Shop disciplinarian) were to placed under
Assistant Works Manager(Planning) and the remaining four(Gang
Boss, Speed Boss, Repair Boss and Inspector) were to be placed
under Assistant Works Manager (Production)

4
Main essence of scientific
Management
• SEPERATION OF PLANNING FROM DOING
• DETERMINING FAIRDAY’S WORK AND
ONE BEST WAY OF DOING WORK
• WAGES ACCORDING TO INDIVIDUAL
PERFORMANCE
• MENTAL REVOLUTION
• FUNCTIONAL FOREMANSHIP

5
Advantages of Scientific
Management
1. Reduction in the Cost of Production
2. Better quality of Products
3. Benefits of Division of Labor
4. Increased wage
5. Higher profits
6. Proper selection and training of workers
7. Provision of better working conditions
8. Instructions of work

6
Bureaucracy Theory School
Contributions of Max Weber
• Division of tasks into very specialized jobs
• A rigorous set of rules
• A well defined hierarchy of authority
• Impersonal attitude of superiors in dealing
with their subordinates
• Written rules, decisions, and maintenance
of extensive filing system
• Specified specifications for executives
holding office

7
Various advantages of
Bureaucratic organization
• Precision
• Speed
• Unambiguity (no dual meanings)
• Knowledge of the files
• Strict subordination
• Reduction of friction and that of
material and personnel cost

8
Drawbacks of Bureaucratic
organization
• Rigidity of rules
• Impersonal relations with
subordinates
• Lack of initiative and freedom of
taking decision beyond the rules
• Red tapism
• Dishonesty
• Favoritism

9
Administrative
Management(Contributions of
Henry Fayol). Fourteen principle
• Division of Labor of Mgmt
• Authority and Responsibility
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of individual interest to general interest
• Remuneration
• Centralization of Authority
• Scalar chain of Organization
• Order
• Equity
• Stability of Tenure
• Initiative
• Espirit de Corps

10
Neo Classical School of
Management

11
Human Relations Approach
Contributions of Elton Mayo(BASIC
FEATURES)
• Emphasis on Human Element
• Multi- dimensional Model of
motivation
• The Informal Workgroups
• Work Environment
• Democratic Leadership

12
Appraisal of Human Relations
Approach
• Lack of Scientific basis
• No evidence of consistency in
Productivity and Happiness
• Group Decision making is fraught
with Dangers
• Failed to identify Conflict as a
Creative force
• Anti- Individualistic
13
Modern School of
Management

14
Characteristics of Systems
Approach
• Several parts and Subsystems
• Interdependence
• Multiplicity of Objectives
• Interaction
• Closed and open system
• Input and Output system

15
Features of Systems theory
• Parts of Organization as a System
• Subsystems
• Boundary of a System
• Interdependence of Parts and Subsystems
• Linking Processes
• Multi dimensional goals
• Open, Organic, and Probabilistic System
• Input –Output System
• Use of Feedback Mechanisms
• Principles of Equifinality
• Multidisciplinary Approach

16
Frederick Winslow Taylor
(1856-1915) USA
• Father of Scientific Management. He stated his career as an apprentice machinist at Cramp Shipyard,
Philadelphia USA. After 3yrs joined Midvale Steel Works as an ordinary worker engaged in Metal
cutting. Because of his hard work he was promoted as a gang boss after 2 years. After 4 years he
became Chief Engineer in the same firm. Parallely he obtained graduation degree in Physics and
Mathematics from Harvard University. And then masters degree in Engineeering . After getting his
engineering degree he was promoted to operating mgr in the same company.
• Industrial resources was not fully used . The business was managed by the rule of thumb. There was
no systematic effort to be made to find out the best way of doing a work. There was no proper division
of responsibilities between mgmt and workers for the successful completion of the work the
management was dependant on the goodwill of the worker. All this forced and encouraged him to
improve the then existing practices of management. He aimed at making mgmt a science based on
“well” recognized , clearly defined and fixed principles, instead of depending on more or less hazy
ideas. His views on management in two books Taylors major publications, Shop Mgmt(1903). The
Principles of Scientific management (1911). Because of this Scientific mgmt became popular.

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