 2.

1 concept of managerial thoughts

 VARIOUS APPROACHES TO MANAGEMENT
 1. The Classical School including:

 The Scientific Management School

 The Management Process School

 The Bureaucracy Theory School.

 2. The Human Relations School

 3. The Decision Theory School

 4. The Management Science School

 5. The Systems Theory School

 6. The Contingency Theory School

  

 1. The Classical School

 The classical school includes three theories. Two of these theories - the Scientific Management Theory and the
Management Process Theory - developed separately, but at about the same time period. The Scientific
Management Theory owes its origin to Frederick W. Taylor, who is regarded as “the father of scientific
management”. He aimed at making management a science based on “well recognized clearly defined and fixed
principles, instead of depending on more or less hazy ideas.”
 The Management Process Theory was developed by Henry Fayol. He focused on a systematic understanding of
the overall management process.
 Another important classicist was Max Weber, who developed the theory of bureaucratic organization and
management. It has provided the point of departure for the study of organization structure and function for over
half a century.
2.2 CONTRIBUTION OF F.W. TAYLOR
 The Scientific Management School
 Frederick Winslow Taylor

 Taylor, commonly known as the father of scientific management was born in 1856
in Philadelphia, USA. He started his career as the operator in small machine
making shop in 1870 and rose to the position of Chief Engineer of Midvale Steel
Works in 1884 at the age of 28. He conducted a series of experiments in
management science for two decades. After leaving Medvale Steel Work he joined
Bethlehem Steel Company, where he introduced his scientific management. He
was opposed by both workers and management and unceremoniously terminated
in 1901.
 Taylor contributed to management science by presenting the following papers and
books:
 A piece-rate system – 1895

 Shop management – 1909

 Principles and methods of scientific management – 1911

 Testimony before the special house committee – 1912

 Taylor was the first person to introduce scientific approach to management.

 Scientific Management
 Meaning

 Scientific management refers to the application of science to management

practices. It involves use of scientific methods in decision-making for
solving management problems rather than depending on rule of thumb or
trial & error methods for the purpose.
 The use of scientific methods in the field of management is called scientific
management.
 Principles of Scientific Management

 Scientific study and analysis of work

 Cooperation between labour and management

 Division of responsibility between workers and management

 Scientific selection, training and development of workers

 Maximum prosperity of employers and employees

 Mental revolution
 Technique of Scientific Management
 In order to achieve the desired result the introduction of scientific management, techniques of work studies, standardization,
administrative re-organization and scientific rate setting should be adopted.
 1. Work Studies
 The ultimate end of scientific management is to maximize production at minimum cost. It is, therefore, necessary that the
best possible contribution from every factor should be obtained. It requires scientific scrutiny of every factor, influencing
efficiency with a view to effect improvement therein. This critical examination is known as work studies. Work study is
classified as under:
 Methods Study
 Motion Study
 Time Study
 Fatigue Study
 2. Standardization
 According to Taylor maximum objectives of the business can be achieved only when the new material, labour, machines
equipments, methods and techniques are standardization and predetermined, so that nothing could be left to trial and error,
standardization may take the following forms:
 3. Administrative Reorganization – Functional Foremanship
 F. W. Taylor in his administrative reorganization advocated functional foremanship i.e., the appointment of specialist
foremen for specific jobs. He classified specialist foremen into two departments viz. Planning and Production department
and thus differentiated his views from the traditional approach, wherein foremen were responsible for both planning and
productive activities. Both the departments have four foremen each.
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 4. Scientific Rate Setting – Differential Piece Rate System
 Differential piece-rate system is also a part of F.W. Taylor’s
scientific management. In this method, increase in efficiency is co-
related with an increase in the wage rates. This is why, an efficient
worker gets more wages, whereas an inefficient gets lesser. The
system is a source of incentive to workers, who go on improving
their efficiency to get more wages. The important characteristics of
the system are as under:
 Differential piece-rate system has two different rates:
 Higher rate for those, who produce standard quantity or more.
 Lower rates for those who produce lesser than the standard
quantity.
 Minimum wages is not guaranteed.

 Standard time is fixed for the standard amount of work.