Evolution of Mangement Thought

Historical Background

1700 - 1800's {Industrial Revolution}
Changes in industries and growth.
Workers started working in small industries those who were involved in agricultural activities.

Small shops → Industries
Hydropower Projects were started as a result electricity was regular available.

Machinery Innovation was implemented as a result it overall helps in increasing efficiency & productivity.

Transport Facilities was also improved, connectivity was for major cities which helped in overall industrial growth.

Emerging Issues (Problems)

• Large group of labours (how to deal with them)
• People working with machinery (how to make workers aware of working with latest machines and ensuring that they are working in proper manner)
• Increasing pace of Industry
• Effective solutions of companies problems.

Principles of Scientific Management

• Science, Not rule of thumb :-
  • This involves use of scientific methods in place of rule of thumb which involves trial & error methods which is a costly method.
  • Where as scientific methods involves investigation of work methods by work study and finding best practices and developing standard method which can be followed in an organization.
• Harmony not Discord(conflict) -
  • It means or focuses on maintaining harmony (good relations) between workers and management rather than conflicts, both must realize that they require support of each other.
  • Management should share profits with workers and workers should work hard with loyalty and must accept the changes for betterment of the organization.
• Cooperation not Individualism -
  • It explains that cooperation feeling must be there between management & workers instead of individualism.
  • Management must take suggestions of workers in doing task and while taking important decision which affect workers, and there should be equal division of workers and responsibility between workers and management.
• Development of each and every employee -
  • This principle involves development of each and every worker to its greatest efficiency.
  • Development of workers require proper training and development of workers at workplace to keep them fully fit according to new methods of working.

Techniques of Scientific Management

• Functional Foremanship -
  • Taylor has proposed functional foremanship technique for supervising workers.
  • It is a technique which involves supervision of each worker by 8 supervisors, out of which 4 are from planning department and 4 are from production department.
  • 
• Standardization and simplification of working -
  • It refers to setting standards for every activity to maximize output and make work task as simple as possible by eliminating unnecessary steps or products.
• Work study -
  • It refers to systematic, objective & critical evaluation of work with the aim of indentifying how work can be done in the best way.
  • In work study, 4 types of studies are undertaken -
    Motion study
    Method study
    Time study
    Fatique study
• Differential Piece wage system -
  • It is a wage payment system in which a worker who achieves or exceeds production target gets wage at higher price per piece, while a worker who does not achieve target gets wage at lower rate per piece.

Gant Chart

• He developed bar chart for managing work and project execution.
• This contribution is accepted as important management tool even today.
• It provides graphical representation of planning, controlling work and recording progress towards stages of project.
• 

Industrial Efficieny

• It can be increased only by application of scientific analysis to all work aspects.
• This industrial management rule is to improve the system by elimination of accidents, chances and waste.

Task and Bonus System

• He introduced flat concept of bonus to be paid to supervisors.
• Based on target achievement of workers working under them and how the teachings of supervisors helped in improving workers performance.

Social Responsibility of Workers

• Business have certain obligations for society welfare in which they operate for this various number of measures were used and motivated others to follow the same.

Contributions of Frank and Lillion Gilberth, Fran Bunker Gillberth & Lillian Moler Gilberth (team of husband and wife) were industrial engineers and efficiency experts and they were engaged in conducting various experiments to contribute to scientific managment.
Their contibutions are as :-

• Motion Study :
  • It includes various studies to identify required moments in doing work so as to determining least possible movements in doing work.
  • This resulted in reducing number of movements in doing a work and increasing workers efficiency.
• Fatique study :
  • It involved expreiments to identify the time by which workers felt fatigue and their efficiency goes down.
  • Based upon this time intervals of rest, rest period were defined for workers.
  • It overall helped in increasing productivity.
• Humanistic Approach :
  • According to Frank & Lillian Gilberth, ultimate aim to scientific management is to help workers to reach their full potential as human beings.

Critical analysis of Scientific Management

It created awareness about increasing efficiency by adopting systematic methods against rule of thumb.
Scientific management has following short comings.

• It is more concerned with problems at operation level and did not focus from managers point. Therefore it is more relevant from engineering point rather than managment perspective.
• Scientific managment has psychological variables affecting human behaviors at work place, both in terms of efficiency and motivating workers.
• It is based on mechanization and automation technical aspect rather than management aspect.
• Different Piece wage system is a failure. Even efficient workers, unions opposed this system by saying that it is new way of exploiting workers.

Industrial Activities :-

• Technical Activities
• Commercial Activities
• Financial Activities
• Security Activities
• Accounting Activities
• Managerial Activities

Managerial Qualities

Manager must have 6 qualities in order to be a good manager :-

• Physical {health, power}
• Mental {able to understand, learn, judge}
• Moral {polite, initiative, loyalty, etc}
• Educational
• Technical {functions being performed}
• Experience {arise from work}

General Principles of Mangement

1. Division of work
   • The whole work is divided into smaller task and each individual should do one task of the work according to his ability.
2. Authority and Responsibility
   • Authority means power to take decisions and responsibility means to complete the job assigned on time under the guidance of upper management.
   • There should be a balance between authority and responsibility. Mere responsibility without authority makes an executive less interested in discharging duties. Similarly, giving authority without assigning responsibility makes him arrogant and there is fear of misuse of power.
3. Discipline
   • the obedience to organizational rules by the subordinates. Discipline requires good supervisors at all levels, clear and fair agreements and judicious application of penalties.
4. Unity of command
   • An individual employee should receive orders from only one superior at a time, otherwise it will create confusion, conflict, disturbance and overlapping activities.
5. Unity of Direction
   • Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination.
6. Remuneration of Employees
   • The overall pay and compensation should be, fair to both employees and the organization. The employees should be given fair wages so that they can have a reasonable standard of living. Wages should be within the paying capacity of the organisation.
7. Subordination of Individual Interest to general interest
   • The interest of an organization should take priority over the interest of any individual employee. In simple words the organisation interest to be prioritiezed over individual interest.
8. Centralization and Decentralization
   • Centralization means concentration of decisions making authority in few hands at top level, whereas distribution of power at every level of management is decentralization. Both should be balanced as no organization can be completely centralized or completely decentralized.
9. Scalar Chain
   • The formal lines of authority between superiors and subordinates from the highest to the lowest ranks is known as scalar chain. This chain should not be violated but in emergency employees at same level can contact through Gang Plank by informing their immediate superiors.
     
10. Order
    • People and material should be in suitable places at appropriate time for maximum efficieny.
11. Equity
    • The working environment of any organization should be free from all forms of discrimination (religion, language, caste, sex, belief) and principles of justice and fair play should be followed. No worker should be unduly favoured or punished.
12. Stability of personnel
    • A personnel shoud be selected and appointed after strict procedure and the selected person should be kept at the post for a minimum tenure to show results.
13. Initiative
    • Workers should be encouraged to develop and carry out their plan for improvements. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan.
14. Espirit De Corps
    • Management should promote team spirit, unity and harmony among employees.

Bureaucratic Model :-

Bureaucracy is a system for controlling or managing country, company or organization, that is operated by large number of officials, employed to follow rules.

Characteristics of Bureaucracy :-

1. Administrative Class
2. Clear Hirercachy
3. Division of work as per specialization
4. Official Rules & Regulations
5. Impersonal Relationships/Competences Hiring
6. Official Record Keeping