UNIT 2 MANAGEMENT THOUGHT
2.0 Introduction 2.1 Unit Objectives 2.2 Approaches to Management 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 Max Weber's Bureaucracy F.W. Taylor's Scientific Management Henri Fayol's Process and Operational Management Human Relations Approach Behaviourial Approach System Approach and Contingency Approach
2.3 2.4 2.5 2.6 2.7
Summary Key Terms Answers to ‘Check Your Progress’ Questions and Exercises Further Reading/References
The practice of management is as old as human civilization itself. In fact, much of the progress made by mankind over the centuries may be attributed to the effective management of resources. Examples of effective management of resources can be the irrigation systems, existence of public utilities and the construction of various monuments like Taj Mahal and the Egyptian pyramids of the bygone era. These examples amply demonstrate the practice of management in the olden days. The ancient civilizations of Mesopotamia, Greece, Rome and Indus Valley displayed the marvellous results of fine management practices. However, the study of management in a methodical fashion as a distinguished body of knowledge originated only recently. This is the reason for management being expressed as the ‘oldest of the arts and youngest of the sciences. Therefore, the practice of management cannot be considered as a new venture. Management has been practiced for thousands of years. But the science part of it, which refers to the systematic body of knowledge, is no doubt a phenomenon of the present century. The traditional management practices remained quite stable until the Industrial Revolution that began in the mid-eighteenth century. The Industrial Revolution substituted man power by machine power through several scientific inventions. As a result, within a few decades, industrial activity went through a metamorphosis. Man’s quest for finding new ways of doing things while adopting the scientific and technological inventions in the production of various goods and services, resulted in the following: • Mass production due to anticipation of demand • Advent of corporate form of organization, which led to large-scale production Self-Instructional Material
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Spectacular improvements in the transport and communication facilities Increase in competition for markets Establishment of the new employer–employee relationship and so on Industrial Revolution, which sowed the seeds of modern management
The development of a systematic management thought took place in the twentieth century. But this should not create the impression that this was developed in this century alone. Attempts at solving management problems date back to ancient times. For example, the importance of organization and administration in the ancient times is evident From the interpretation of the early Egyptian papyri dating back as early as 1300 BC. In his parables, Confucius gave practical suggestions in regard to public administration and advised the selection of unselfish, honest and capable officers. There are many examples in Greek, Roman and other civilizations of the use of scientific principles of management and administration. Military leaders also used many such principles. The Roman Catholic Church had the most formal organization in the history of western civilizations. Striking examples of these techniques are the development of the hierarchy of authority with its scalar territorial organization, specialization of activities along the functional lines and the early and intelligent use of staff.
2.1 UNIT OBJECTIVES
After going through this unit, you will be able to: • Trace the history of management • Understand the classical approach, its advantages and disadvantages • Identify the various approaches in the development of management thought • Analyse the role of F.W. Taylor in the...
References: 1. Drucker, P. The Practice of Management. Harper & Row, New York, 1954. 2. George, C. S. The History of Management Thought. Prentice Hall, 1968, pp. 20-21. 3. Wren, D. A. and R. D. Hay. Management Historians and Business Historians; Differing Perceptions of Pioneer Contributors. Academy of Management Journal (Sept. 1977), pp. 470-476. 4. Garbut, D., C. Babbage: Pioneer of Scientific Operations Research. The Accountant, London, Sept. 16, 1971, p. 389. 5. Babbage, C. On the Economy of Machinery and Manufacturers. Carey and Lea, Philadelphia, 1832.
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