The Evolution of Management thought.

Frederick Taylor and Scientific Management (1856 – 1912)

Frederick Taylor is considered the of “Scientific Management “. He worked in a steel

company (Midvale Steel Company in Philadelphia) as a machinist in 1878. And rose to
the position of Chief Engineer after getting a degree in Engineering through evening
study.

His theory about Scientific Management is Concern with Production, Introduction of new
technology, Equipment and Tools.

His Primary concern was to increase productivity through greater efficiency in

production and increase pay for worker, through the application of Scientific method.

He introduced 5 basic principles.

1) Replacing rules of thumb with Science.

2) Obtaining Harmony in group action rather than chaotic (discord,
individualism)
3) Achieving Cooperation of human beings rather than chaotic (individualism
or disorder).
4) Working for maximum out put rather than restricted out put.
5) Developing all workers to the fullest extent possible for their own and their
company highest prosperity.

Now we explain all these in detail.

1) Replacing rules of thumb with science. Taylor says that we should replace the rule s
of thumb with science. All the decision will be taking in the light of accurate knowledge.
Rules of thumb mean those rules in which change did not occur. Like Army rules,
Government constitution, universal truth like sun rises in the east, God is one, Earth is
round, Sky is blue.
So it means that in organization we did not follow these kind of rules in which we can not
bring change. But the rules should be flexible, in which we easily make changes when
ever we needed. And we make these rules in the light of accurate knowledge.

2) Obtaining harmony in group action rather than discord (conflict, holding the
opposite position): In this principle of Taylor says that brings all employees together and
works collectively in group to achieve organization goal rather than work individually.
Create such an environment in which each and every individual understand each other
and they work in friendly environment. And no conflict occurs among them.

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3) Achieving cooperation of human being rather than discord: This principle of
Taylor shows that achieve cooperation of every one. It means that those who are
employed in your organization and those who effect your organization, mean the
external environment. So get the cooperation of all factors inside your organization as
well as out side the organization. Rather than give every one free hand and ignore them.

4) Working for maximums out put, rather than restricted out put: In this principle
Taylor say that always think that how to maximize the out put. Don’t rely on quota
system. Means to produce same amount for ever.

5) Developing all workers to the fullest extent possible for their own and their
company highest prosperity: In this principle Taylor says that you need to develop your
worker at the highest level, through training, through compensation and benefit. It is
beneficial for both, for organization as well as for the employee. Because when once your
employees are satisfied from you, they will give more out put.

HENRI FAYAL (1841 – 1925)

The real father of modern management theory is the French industrialist

Henri Fayol.

Henri Fayol identifies 14 Principles of modern management theory. these principles was
appeared for the first time in 1916 in French.

Henri Fayol gives the concept of Industrial Activities for the firs time.
Foyol found that industrial activities could be divided into 6 groups.

1) Technical (Production).
2) Commercial (Buying and Selling).
3) Financial (Search for and use of Capital).
4) Security (Protection of property and person).
5) Accounting (To keep the record of business transaction).
6) Managerial Function (Planning, Organizing, Staffing, leading and
controlling).

14 principles of Henri Fayol.

1) Division of Work: Henri Fayol says that if we distribute the work

among the employees. They will give maximum out put. Through
this way they will be more efficient and they can perform easily all
their task.

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2) Authority and responsibility: Fayol says that authority and
responsibility both are interrelated with each other. If you give
responsibility to some one, it is necessary that he has also some
authority to perform easily his responsibility.

3) Discipline: Henri Fayol says that discipline is must in all types of

work. You should follow the discipline of the organization. If in the
organization authority is assign to you. So you should use this
authority under the rules and regulation of the organization.

4) Unity of Command: According to this principle of Fayol, you

should follow the command of your head. The concern person under
whom you are working. There should be an authorized person in the
Organization and every person has the right to follow him.

5) Unity of Direction: In this principle Fayol say that there should

be unity in the direction of all workers or all departments in the
organization. The destination of all departments will be same.

6) Subordination of individual to general interest: This

principle of Fayol shows that when different people work in your
organization and they belong to different areas, different cultures
different religion etc. So the organization must care about these
things.

7) Remuneration: This principle of Fayol shows that when you give

salaries and other type of benefits to your employees that must be
on faire basis. There should be no discrimination in this. Always
pay the salaries on stated date.

8) Centralization: Here Fayol says that if the organization system is

centralized. All the power use by Head office and all the activities
are control by center. So there will be a lot of burden on head office
and some time they make wrong decision. So your organization
system should be decentralized in which every department or
regional office has some authority to run their own system to
achieve organizational goal.

9) Scalar chain: It means that in your organization their should be a

chain of hierarchy. Every department or individual report to their
supervisor or concern manager.

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 10) Order: Henri Fayol says that each and every thing should be use in
proper order. It means that all the things should be use in proper
manner according to their need and demand.

11) Equity: this principle of Fayol shows that the manager should treat
their fairly. But here equity does not means that the entire employee
will be treated equally. But they should be treated according to their
performance.

12) Stability of tenure: This principle of Fayol shows that there

should be stability in turnover of employees. Because if the rate of
turnover of the employees are very high. It is very harmful for the
organization. And it also increase cost for the organization.
13) Initiative: When you want to start a mission and you have a group.
Which work like a team? So don’t interfere in each and every
thing. You must give a chance to your subordinate also and leave
them that what they are going to do.

14) Esprit de corps (Devotion to follow worker): This principle of

Fayol tells that there should be unity in the organization. Because “
in unity there is a strength “ so this is necessary that all worker
should work like a team and there should be a proper
communication channel among them.

Elton Mayo: (1880 – 1949)

Elton Mayo and his colleges conduct a research at Hawthorn plant of the Western
Electric Company between 1927 and 1932.

This research is known by the name of Hawthorn Studies.

In this research they study that how they can improve their productivity. What are the
factors through which we can improve our productivity?

After completing the research they came to conclusion that through only these factors
like , modifying rest period , shorting work days, varying incentive pay system. We
cannot improve our productivity

Mayo and his researcher then find out some other factors through which we can improve
our productivity. They found that improvement in productivity is possible due to such
social factors as moral satisfactory interrelationship between members of a work group
and effective management. Effective management is a kind of management that would

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understand human behavior especially group behavior and serve it through such
interpersonal skills as motivating, counseling, leading and communication.

This Research show us that to run a business successfully, only machinery and methods
are not important but a proper social system is important is important in which each and
every one under stand themselves