HISTORICAL BACKGROUND OF

MANAGEMENT
Scientific Management
Frederick Winslow Taylor - widely known as F. W.
Taylor, was an American mechanical engineer who
sought to improve industrial efficiency.
He is regarded as the FATHER OF SCIENTIFIC
MANAGEMENT, and was one of the first
management consultants.
The systematic study of the relationships between
people and tasks for the purpose of redesigning the
work process for higher efficiency.
To replace informal rule of thumb knowledge
Taylor sought to reduce the time a worker spent on
each task by optimizing the way the task was done
4 Principles of Management
Develop a science for each element of an
individual work,which will replace the old rule of
thumb method.
Scientifically select and then train , teach &
develop the worker.
Heartily cooperate with the workers so as to
ensure that all work is done in accordance with
the principles of the science that has been
developed .
Divide work & responsibility almost equally
between management & workers. Management
takes over all work for which it is better fitted
than the workers.
Henri Fayol
Henri Fayol, a French engineer and director
of mines .
He has concentrated on the administrative
aspect of scientific management – Activities
of all managers.
Fayol's famous book “The general &
industrial administration” - is divided into
two parts . They are – Industrial activities
Industrial Activities - Henri
Fayol
Technical ( Production , Management )
Commercial ( buying, selling , Exchange )
Financial ( Search for optimum use of
capital )
Security ( Protection of property & persons)
.
Accounting ( Balance sheets , Cost
statistics)
Management ( Planning , Organising ....... )
DIVISION OF
WORK REMUNERATION
AUTHORITY: CENTRALIZATION:
DISCIPLINE: SCALAR CHAIN:
UNITY OF ORDER
COMMAND: EQUITY:
UNITY OF STABILITY OF
DIRECTION TENURE OF
SUBORDINATION PERSONNEL:
OF INDIVIDUAL INITIATIVE
INTERESTS TO THE ESPRIT DECORPS
GENERAL
INTERESTS:
HENRI FAYOL’S 14 Principles of Management
DIVISION OF WORK: Work should be divided
among individuals and groups to ensure that effort
and attention are focused on special portions of the
task. Fayol presented work specialization as the best
way to use the human resources of the organization.
AUTHORITY: The concepts of Authority and
responsibility are closely related.
Authority was defined by Fayol as the right to give
orders and the power to exact obedience.
Responsibility involves being accountable, and is
therefore naturally associated with authority. Whoever
assumes authority also assumes responsibility.
DISCIPLINE: A successful organization requires the
common effort of workers. Penalties should be
applied judiciously to encourage this common effort.
UNITY OF COMMAND: Workers should receive
orders from only one manager.
UNITY OF DIRECTION: The entire organization
should be moving towards a common objective in a
common direction.
SUBORDINATION OF INDIVIDUAL INTERESTS
TO THE GENERAL INTERESTS: The interests of
one person should not take priority over the interests
of the organization as a whole.
REMUNERATION: Many variables, such as cost of
living, supply of qualified personnel, general business
conditions, and success of the business, should be
considered in determining a worker’s rate of pay.
CENTRALIZATION: The degree to which
subordinates are involved in decision making. The
organization is centralized when the power is
concentrated with one person .
SCALAR CHAIN : States the instructions and orders
should be sent from the top management to the
lower management .
ORDER: People & materials should be in the right
place at the right time.
EQUITY: All employees should be treated as equally as
possible.
STABILITY OF TENURE OF PERSONNEL:
Management should provide orderly personnel planning
& ensure that replacements are available to fill vaccines
Retaining productive employees should always be a high
priority of management. Recruitment and Selection
Costs, as well as increased product-reject rates are usually
associated with hiring new workers.
 INITIATIVE: Management should take steps to
encourage worker initiative, which is defined as new
or additional work activity undertaken through self
direction.
 ESPIRIT DE CORPS: Management should
encourage harmony and general good feelings among
employees.