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Contributions to statistics

Pearson's work was all-embracing in the wide application and development of

mathematical statistics, and encompassed the fields of biology,

epidemiology, anthropometry, medicine and social history. In 1901, with

Weldon and Galton, he founded the journal Biometrika whose object was the

development of statistical theory. He edited this journal until his death.

Among those who assisted Pearson in his research were a number of female

mathematicians who included Beatrice Mabel Cave-Browne-Cave and Frances

Cave-Browne-Cave. He also founded the journal Annals of Eugenics (now

Annals of Human Genetics) in 1925. He published the Drapers' Company

Research Memoirs largely to provide a record of the output of the Department

of Applied Statistics not published elsewhere.

Pearson's thinking underpins many of the 'classical' statistical methods which

are in common use today. Examples of his contributions are:

Correlation coefficient. The correlation coefficient (first conceived by

Francis Galton) was defined as a product-moment, and its relationship with

linear regression was studied.[10]

Method of moments. Pearson introduced moments, a concept borrowed

from physics, as descriptive statistics and for the fitting of distributions tosamples.

Pearson's system of continuous curves. A system of continuous univariate

probability distributions that came to form the basis of the now conventional

continuous probability distributions. Since the system is complete up to the

fourth moment, it is a powerful complement to the Pearsonian method of

moments.

Chi distance. A precursor and special case of the Mahalanobis distance.[11]

P-value. Defined as the probability measure of the complement of the ballwith the hypothesized value as center point and chi distance as radius.[11]

Foundations of the statistical hypothesis testing theory and the statistical

decision theory.[11] In the seminal "On the criterion..." paper,[11] Pearson

proposed testing the validity of hypothesized values by evaluating the chi

distance between the hypothesized and the empirically observed values via

the p-value, which was proposed in the same paper. The use of preset

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evidence criteria, so called alpha type-I error probabilities, was later proposed

by Jerzy Neyman and Egon Pearson.[12]

Pearson's chi-squared test. A hypothesis test using normal approximation

for discrete data.

Principal component analysis. The method of fitting a linear subspace to

multivariate data by minimizing the chi distances.[13][14]

Principles

Of

Management

Aashiq

Gems b school

Contents : Acknowledgement Abstract CENTRALISATION AND

DECENTRALISATION

> Control of Personnel

> Motivation of Personnel

> Training of Personals

> Screening and selection of managerial personnel

> Sources of recruits of selection of managerial personnel

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> Selection of Managerial Personnel

> Managerial job evaluation

> Managerial job descriptions and man specifications

> Analysis of Managerial Jobs

> Nature and importance or staffing

> Role of Functional Manager

> Matrix Organization

> Characteristics of committee organization

> Committee Organization

> Advantages and Disadvantages of functional organization

> Line and Staff Organization

> Advantages and Disadvantages of Line Organization

CONCEPT OF MANAGEMENT

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> Systems Approach of Management Thought

> Human relations Approach of Management Thought

> Contribution of Henry Fayol of Classical Approach

> Harrington Emerson Contribution of Classical Approach

> Frank Gilbert Contribution of Classical Approach

> Taylor's Principles of Classical Approach

> Classical Approach of Management Thought

> Pre-Scientific Management

> Early Contribution

> Classification of Management Thought

> Development of management thought

> Managerial job in business

> Functions of management

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> Fayol's principles of management

>

ACKNOWLEDGEMENT :

The Project work was carried out under the remarkable guidance of Dr.

Lakshman Lecturer , Great Eastern Management School. I am grateful for his

guidance, valuable Suggestions and for the constant encouragement and co-

operation.

ABSTRACT :

The present study examines centralization and decentralization and concept

of management

Subjective well being among Principles of management.

Chapter 1 : CENTRALISATION AND DECENTRALISATION

Introduction :

The terms centralization and decentralization, however, are used to give

various connotations. The semantic variations range from administrative,physical and functional centralization to decentralization.

At the same time, decentralization is taken to mean separation of facilities, a

type of organization structure, and delegation of decision-making power. Its

more common use in management literature, however, shows extent of

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delegation of authority. Thus, centralization can be defined as the delegation

of authority to the lowest levels of management.

Centralization and decentralization describe the manner in which decision-

making responsibilities are divided among managers at different levels of

managerial hierarchy. Decentralization is different from delegation of

authority. Delegation simply refers to the entrustment of responsibility and

authority from one individual to another, decentralization refers to the

systematic delegation of authority in an organization-wide context. Thus

delegation is said to be the process and decentralization as the result of

process. There can neither be absolute centralization nor absolute

decentralization. The concepts of centralization and decentralization are nor

absolute decentralization. The concepts of centralization and decentralization

are two extreme points in matters of distributing authority in the organization

structure, and in between these two points, there may be a continuum ofauthority distribution

Control of Personnel

To control managers and their activities, the managerial performance is

assessed in terms of established standards, and any failing from the standard

is assumed to be the result of established standards, and any failing from the

standard is assumed to be the result of faulty decisions made by some

managers.

This system of remote and indirect control fails to trace out the responsible

managers in many cases and to prevent recurrence of undesirable results in

the organization. In the first place standards cannot be established for

measuring all activities of enterprise. Secondly, poor and unsatisfactory

performance may arise from some extraneous factors behind which

managers can take shelter to evade their unsatisfactory work; many minor

deviations from the standard are ignored as a matter of practical expediency.

Fourthly, where undesirable performances stem from the faulty decisions of

top managers, no precise steps can be taken to ensure their activities.

Motivation of Personnel

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Motivation must begin with the managers who, in turn, are expected to

motivate other employees of the enterprise.

To motivate the managers, their basic wants and desires are to be satisfied

by the enterprise. Some of the important wants of the management

personnel are: (a) opportunity for development; (b) satisfactory spirit of the

organization grounded in high standards of justice, integrity and conduct; (c)

status prestige and respect for the manager in the enterprise; (d) freedom of

operation within the framework of a clearly defined character of right, duties

and obligations; and (e) satisfying the rewarding job. If these wants are not

fulfilled, management members are bound to develop frustration, discontent,

and even bitterness in course of time, and as a result their performance will

come down to safe mediocrity.

There are three vital areas in which managerial wants are highlighted by

decisions for them.

First, placement decisions with respect to mangers should be made by

systematic appraisal of the managers performance, ability, potentiality and

aptitude. Secondly, promotion decisions become crucial to manger's

motivation. Promotions must always be based upon measured performance

and proven ability. Thirdly, remuneration of mangers should be high enough

to give the necessary status and prestige in the organization. In respect of

salary, what matters more is not the absolute amount of remuneration but

salary differentials between managers.

Training of Personals

Training may be given in a variety of way, partly within the organization and

partly through study courses at outside centers.

The training methods are to be specific to suit the needs of both candidates

and the enterprise. Combination of two or more methods has been found to

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yield satisfactory results. Some of the important methods are job assignment,

job rotation, internal coaching, study courses, case studies, training

positional; task force on special assignment, committees and junior boards,

conferences and seminar. Methods of training vary according to the three

distinct levels of management, viz., supervisory training, junior-executive

training and senior executive training.

By job assignment, trainees are made familiar with the pattern of duties that

they are going to undertake and with the problems and situations that they

are to cope with. Necessary guidance an counseling are provided by senior

managers through answering queries, making suggestions and giving

explanations in all phases of the job.

Under job rotation, a trainee is experienced in different activities so as to

enrich his knowledge, vision and capacity. The number of jobs and their

sequence carefully chosen by senior mangers, and the trainees are kept at

each job for a fairly long period so that they can get into the techniques and

practices utilized by the enterprise to reach its objectives.

Internal coaching is provided by the trainee's superior to make him familiar

with policies andprocedures relating to specific work. In addition,

management principles and techniques, in general terms, are brought within

the knowledge to trainees who are deficient techniques, in general terms, are

brought within the knowledge to trainees who are deficient in this respect. A

series of written instructions is used for management teaching within the

enterprise.

Study courses are arranged with a formally organised institution which

imparts training in various aspects of the management study. As the

management skill is in rudimentary in our country special study appear to be

more important for upgrading the management competence.

Case studies provide sample though-provoking materials to trainees for the

purpose of increasing their analytical ability, they offer also an opportunity to

master the art of utilizing theoretical knowledge for practical purpose, there

by bridging the gap between theory and practice.

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Committees and junior boards are constituted by some selected managers of

the middle-level group in order to prepare candidates for senior-executive

positions.

Screening and selection of managerial personnel

The actual selection is based on the appraisal of three basic factors-ability,

personality an social traits.

Ability traits are composed of intelligence, education, training and experienceof the candidate. Personality traits centre round the power to get along with

people and include the attributes of firmness, determination, stability and

leadership. Under social traits, the candidate's economic position, community

status, willingness to travel and radiness to shift residence to other place are

appraised. These three basic traits are examined by means of biographical

records, psychological test are put to a further study and observation at the

interview stage.

Sources of recruits of selection of managerial personnel

There are three basic sources, from which managerial personnel can be

obtained, viz., candidates from other companies, persons promoted from

within the company, and fresh graduates universities and technical

institutions.

The first source is tapped sometime for securing managers of special ability

in connection with manufacturing and marketing activities. To tone up themanagement efficiency an outsider is occasionally taken in at the top level

for infusing new blood, vigor and drive in the enterprise. The second source is

much to the liking of employees and acts as a strong incentive to satisfactory

work performance. Most of the higher level jobs are filled from promotions

within the company. The third source is becoming popular with large

companies which have adopted programmes for management development.

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Fresh graduates with wider outlook and satisfactory background knowledge

prove to be excellent materials for developing them into successful mangers.

Selection of Managerial Personnel

Selection of managerial personnel requires considerations of the sources of

recruits and the screening method applied

Sources of recruits

Screening and selection

Managerial job evaluation

Evaluation of managerial jobs is concerned with the ranking or gradation of

such in terms of known-how required, problems encounted and accountability

involved.

The comparative worth of different jobs is indicated in respect of

remuneration, status, prestige, office facilities and other like thing. There are

two usual methods for evaluating managerial jobs, viz., (a) comparison

method, and (b) job factor method. Under the comparison method, the

managerial jobs at different levels are compared to some key positions like

the chief executive, the accountant and the factory superintendent both

within and outside the company but applying subjective judgment, the job

differences are expressed in salary differentials between managers. Under

the job factor method, the pertinents job factors like education, training,l

experience, responsibility and work conditions are assigned individual

weights and points for comparing managerial jobs on the basis of aggregatepoints these point-rating systems are mostly used for lower-level jobs with a

view to fixing their salary scales and levels.

Managerial job descriptions and man specifications

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Position or job descriptions involve an analysis of responsibilities and duties

associated with various managerial positions in the organisation structure.

Job descriptions are spelled out in greater details so as to find out the exact

scope of varying jobs in the enterprise. Once job descriptions are prepared,

an assessment of future managerial requirements can be made from known

retirements, projected expansions and anticipated changes.

Analysis of Managerial Jobs

Staffing of executive personnel must be preceded by an analysis of

managerial jobs.

Unless the content or the make up of managerial job is known, recruitment of

managerial personnel is not possible. The results of job analysis are usually

indicated by the preparation of position descriptions or job descriptions.

Managerial job descriptions and man specifications

Managerial job evaluation

Nature and importance or staffing

The systematic approach to the problem of selecting, training, motivating an

retaining good personnel in any organisation is referred to as staffing. The job

of staffing is concerned with recruitment and development of managers and

their maintenance in a high spirit

It entails management manpower planning with a view to recruiting and

training executives. Also, it calls for the satisfaction of managerial wants

through the provision of individual motivation and the introduction of self-

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control on the part of mangers.

Management manpower planning involves an estimate of the present and

future requirements of executive positions in the enterprise. The demand for

mangers has steadily grown in all progressive and expanding enterprises

during the past several decades. In addition to this demand, existing

managers require constant replenishment because of their retirement,

resignation, death or oven dismisal in some cases. Accordingly, management

manpower planning must be undertaken on a continuous basis. But without

studying the organisation structure and its job requirements, the managerial

positions can neither be planned nor filled.

To make an effective manpower planning, organisation planning must begone

through to find out the exact time when a certain number and type of

managerial personnel are required in the enterprise.

Role of Functional Manager

A functional manager is charged with managing a functional entity in support

of the system of projects that are flowing through the organisation

In this context, the role of a functional manager is as follows:

A functional manager is responsible for one of the principle elements of the

organisation, such as production, marketing, finance, etc. He has to provide

functional services in his disciplines and for supporting all; the projects in the

organisation.

The functional manger has line authority over this personnel in the project.He is responsible through the chain of command for his department. A

functional manager tends to concentrate on the activities of his discipline.

Each functional manger tends to emphasise his own function. Sometimes,

this tendency creates conflict in the organisation. Since the responsibility of

the functional manager is limited to his area, he seeks to make that area as

efficient and effective as possible, often without regard to the effect of his

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function on others or on the basic task which the organisation has to perform.

Matrix Organisation

Matrix organisation is the realization of a two-dimensional organisation which

emanates directly from the two dimensions of authority

Two complementary organisations- the pure project organisation and

functional organisationare merged to create the matrix organisation.

Sometimes matrix and project organisations are considered as the same

because of the same nature of authority relationships. For taking and

managing projects, separate identifiable units are created. In pure projectorganisation, complete responsibilities for the task as well as all the resources

needed for its accomplishment are usually assigned to one project manager.

In large projects, the organisational units for projects resemble a regular

division, relatively independent of any other division. In matrix organisation,

the project manager is usually not assigned complete responsibility for

resources. Instead, he shares them with the rest of the orgnaisation. Pure

project organisation is most effective when an organisation is dealing with a

small number of major projects. When the organisation has a variety of

projects, ranging from large to small, it is often desirable to use a matrix

organisation. For programmes of major magnitudes, a project type of

management may be established, but the rest of the operations may be

carried out by the functional organisation. In such a case, there are well-

established functional departments which have skills and capabilities for

preformance of a variety of programmes. Essentially programmes flow

through the functional complex and receive the services of these specialised

departments.

In matrix orgnaisation, a project manager is appointed to co-ordinate the

activities of the project. Personnel are drawn from their respective

administrative department. Upon completion of the project, these people may

return to their original departments for further reassignment. In the

functioning of the matrix organisation, the unity of command principle is

violated. Each functional staff has two bosses-his administrative head and his

project manager.

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Characteristics of committee organisation

On the basic of the definition, following broad characteristics of a committee

any be spelled out.

A committee is a group of persons there should be at least two persons.

There is no limitation on the maximum number of persons. However, if

number of persons rises above seven, communication tends to become

centralized because committee members do not have adequate opportunity

to communicate directly with one another.

A committee is charged with dealing with specific problems and it cannot

go in for actions in all sphere of activities. There are strictly defined

jurisdictions within which a committee is expected to justify its existence.Beyond these limited spheres a committee is doomed to fail as an organ of

action.

Members of the committee have authority to go into details of the

problems. This authority usually is expressed in terms of one vote for each

member.

A committee have the authority either to take a final decision or it may

merely decision or it may merely deliberate on problems without authority to

decide.

A committee may be constituted at any level of organization. Moreover,

the members of a committee may be drawn from various levels. Usually in

such a case, all the members of the committee enjoy equal authority.

Committee Organisation

Organisation committees are quite popular at different levels for various

functions. The board of directors is a committee.

Similarly, there may be executive committee, finance committee, audit

committee, bonus committee, planning committee, grievance committee,

etc. Exact definition of a committee is difficult because there are many

different kinds of committees and the concept of a committee may be

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defined as a group of persons in an organization to another. However, a

committee may be defined as a group of persons in an organization for taking

or recommending certain decisions.

Advantages and Disadvantages of functional organization

The main advantages of functional organisation are the greater degree of

specialisation, increase in operational efficiency, economic flexibility, co-

ordination within the function, and projecting of outstanding skills.

The major drawbacks are the problems and difficulties of multiple command,

indifferent approach of managers, problems of co-ordination, and lack of well-defined responsibility.

Line and Staff Organisation

Line and staff organisation refers to a pattern in which staff specialists advice

line managers to perform their duties.

When the work of an executive increase, its performance requires the

services of specialists which he himself cannot provide because of his limited

capabilities on these fronts.

Such advice is provided to line managers by staff personnel who are

generally specialists in their fields. The staff positions or departments are of

purely advisory nature. They have right to recommend, but have no authority

to enforce their preference on other departments.

In actual practice, sometimes it is difficult to determine which departments

are line or staff. The problem can be usually solved by classifying activities

within an organisation in two types: (i) that which is objective (direct) in its

contribution. to the organisations' overall objectives, and (ii) that which is

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objective (indirect) in the contribution to the organisations' The departments

performing former group of activities are line ones, and those performing

latter group of activities are staff ones.

Advantages and Disadvantages of Line Organisation

The main advantages of line organisation are it is simplicity, clear authority

and responsibility, unified control, quick decisions, co-ordination, and

discipline.

The disadvantages include no scope for specialisation, rigidity, unitary

system, problems in departmentation and red-tapism. In the modern businessworld. Its scope is limited only to small organisations. In a large organisation,

where high premium is placed on specialisation, this form is totally

unsuitable.

Chapter 2 : CONCEPT OF MANAGEMENT

Intoduction :

Management is an activity process composed of some basic functions, for

getting the objective of any enterprise accomplished through the efforts of its

personnel. Wherever and whenever objectives are to be achieved through

organized and co-operative endeavour, management becomes essential for

directing and unifying the group efforts towards a common purpose. As

human aims and beliefs are mostly realized through the establishment of

diverse associations in our society, management is universally needed for

operating all such organisation.

Management, viewed as a functional concept, is of equal necessity to the

educational religious, charitable and other non-business institutions as it is

required for business Organizations.

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Furthermore, the greatest and the most comprehensive of our social

organizations, viz., the Government of all types needs management as others

require, perhaps more than all other social organizations. That the

Government without requires a management process has been apply pointed

out in the statement: A Government without good management is a house

built on sand. Put in short, management is an essential accompaniment of allsocial organizations, and it is to be found everywhere as a distinct, separate

and dominate activity. The nature and significance of the activity do not

change even if it is called administration in some social in situations and

management in others.

Management is the only activating element of any enterprise for getting

things done through it personnel. The job of management is to provide

dynamic leadership that combines the productive but passive resources into

a fruitful organization. Not only does it adapt itself to existing opportunities,restrictions and pressures, but it exercises a positive influence as well as to

make the future events favourable for the enterprise. With a view to getting

the expected results and seeing that things happen as they should,

management has to become a creator of the economy rather then its

creature. Management forges ahead through innovations in operating

situation and the adoptian of far-sighted planning. It visualize the future,

initiates changes and achieves the purpose of any enterprise under highly

dynamic conditions. As an activity process, management plans the future

course of action, organizes people and their work, directs the operation an

controls the performance, and thus ensures the accomplishment of enterpriseobjectives. Adaptations and innovations permeate through each of these

phases of the management process.

Management acts as a creative and invigorating force in the organisation. It

creates result that is bigger than the sum total of efforts put in by the group.

Management adds real plus value to the operation of any enterprise by

enlisting as little extra value out of each person. It provides new ideas,

imaginations and visions to the group working an integrates its efforts in such

a manner as to account for better results. It ensures a smooth flow of work inthe organization by focusing on strong points, neutralizing weak link,

overcoming difficulties and establishing team spirit. Management strives to

secure the maximum result by the use of minimum resources.

Systems Approach of Management Thought

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The systems approach, also labeled as modern theory of management, is a

relatively new approach though neither the terms management and

organization nor the system is a new concept.

Over the past tow decades or so the systems approach has emerged as

vigorous and lively. Now, we are bombarded with reference to system in

various walks of life. Everything is a system and the system thinking is the by

work. We have entered a period that forces man to find more accurate

answers to questions involving the 'wholeness' of an operation. This age of

synthesis forces management to think out in new and different ways- as

suggested by the systems approach. In this view the whole is not merely a

combination of the system but distinct from it s parts. Before analyzing how

an organization functions as a system, it is imperative to analyze the concept,and working of the system.

A system is defined as the assemblage of things connected or

interdependent, so as to form a complex unity; a whole composed of parts in

orderly arrangement according to some scheme or plan. This has been

defined as 'an organized' or complex whole; an assemblage or combination of

things or parts forming a complex unitary whole.

Various authors on systems approach have attempted to develop a

generalized theory which can be applied to any system-physical, biological,

or social. They have termed is as General Systems Theory (GST). The theory

is concerned with developing a systematic, theoretical framework for

describing the empirical world. Buckley describes its role as such, 'A which

functions as a whole by virtue of the inter-dependence of its parts I called a

system and the method which aims at discovering how this is brought about

in widest variety of systems has been called General Systems Theory.

General Systems Theory seeks to classify systems by the way their

components are organized and to derive the laws, or typical patterns ofbehavior, for the different classes of systems singled but by the taxonomy.

The first basic stage in system management is the determination of

organization system. Since organization is a deliberate and purposive

creations, the basic objectives of the organization should be determined

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before its creation. Determination of objectives is important because every

attempt is directed towards realization of these objectives. In the second

stage, each element of the organization is arranged in some combination to

provide desired results.

Systems design provides the overall framework for implementing systems

concepts. It includes strategic and comprehensive planning for the entire

organizational system, as well as the development of operation and

facilitating sun-system. The third stage-operation and controlrefers to

conversion of inputs into outputs. Inputs may be in the form of information,

materials, and energy. The inputs are allocated to plan, though it is possible

to eliminate parts of the planning required during operations by designing

system with predetermined input allocation structuring the system to operate

in a specified fashion and with more predictable results.

Operation of the system requires some sort of control, that is, a mechanism

for output or related characteristics, comparing he measurement with the

standard, and activating the unit to adjust inputs to correct the deficiency.

This is necessary to maintain the equilibrium of the system near the ideal

point. The fourth stage pertains to review and evaluation, that is, to ascertain

how well the system has performed. This is different from the control in the

sense that control refers to operating efficiency, while the concept of review

and evaluation is more comprehensive, and always relates the functioning of

the system to its objectives. The review and evaluation occur at periodicintervals during the life cycle of a system and lead to design changes in the

present system or recommendations for changes which may be operated in

future systems.

Human relations Approach of Management Thought

The classical approach which focused attention on the mechanical an

physiological variables of organizational functioning was tested on the field to

increase the efficiency of organizations.

Surprisingly, positive aspects of these variables could not evoke positive

response in work behavior, and researchers tried to investigate the reasons

for human behavior at the work. They discovered that the real cause of

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human behavior was something more than physiological variables. Such

findings generated a new phenomenon about the human behavior and

focused attention of the human beings in the organizations. As such, this new

approach his been called 'human approach of management'.

Even in the writings of classical approach, notably, Taylor, Fayol, Henry Gantt,

Follet, Urwick, and others, the human element in the organisation was

recognized, but they emphasized it very little. The human relations approach

was born out of reaction to classical approach and during the last four

decades, a lot of literature on human relations had been developed. The

essence of the human relations contributions is contained in two points; (I)

organizational situation should be viewed in social terms as well as in

economic and technical terms, and (ii) the social process of group behavior

can be understood in terms of clinical method analogous to the doctor's

diagnosis of the human organism. Among human relations approach, thereare many contributions and many more researches are being carried on.

These include contributions form famous 'Hawthorne Experiments', many

sociologists-Bakke , Selznic, Homans , dubin , and Dalton; many

psychologists-McGregor, Likert, Argyris, March and Simon, Leavitt, Blake,

Sayles, Brown, etc. There will be relatively lengthy discussion of the results

and implications of the Hawthorne studies because of their historical

importance to the behavioral approach to the analysis of management

problems. In fact, for the first time, an intensive and systematic analysis of

human factor in organizations was made in the form of Hawthorne

experiments.

Contribution of Henry Fayol of Classical Approach

Perhaps, the real father of modern management theory is Henry Fayol. He

was a French mining engineer, who after obtaining engineering degree joined

a French coal firm as technician in 1880.

Fayol observed the organizational functioning from manager's point of view.

He found that all activities of the organisation could be divided into six

groups:

Technical (relating to production)

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Commercial (buying, selling, and exchange)

Financial (search of capital and its optimum use)

5. Accounting (including statistics)

6. Managerial (planning, organisation, command, co-ordination and control).

He points out that these activities exist in every organisation. He further

observes that first five activities. Fayol has divided his approach of studying

management in three parts: (I) managerial qualities and training. (ii) General

principles of management, and (iii) elements of management.

Harrington Emerson Contribution of Classical Approach

Emerson made scientific management more acceptable to people. He wrote a

book in 1912 on 'Efficiency', in which he has given 12 principles of increasing

efficiency.

These are (1) ideals (2) common sense (3) competent counsel (4) discipline

(5) fair deal (6) reliable, immediate, adequate, and permanent records (7)

dispatching (8) standards and schedules (9) standardized conditions (10)

standardized operations (11) standard practice instructions (12) reward for

efficiency.

Frank Gilbert Contribution of Classical Approach

Frank Gilbreath and his wife Lilian Gilbreath were contemporary of Taylor, but

they worked independently on time and motion study.

Besides time and motion study, they ave also developed a comprehensive

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body of planning an control techniques for construction industry. In 1908,

Frank Gilbreath published a book 'Field System' and Mrs. Lilian wrote a

research paper on 'The Psychology of Management'.

Taylor's Principles of Classical Approach

Although Taylor's principles were intended for broad application, his emphasis

was not on general management; but on management at the shop level.

He was more concerned about the efficiency of workers and mangers at

actual work and left the principles of management which could be followed in

other functional areas. These principles, more specifically time, motion, andfatigue study, became the basis for some time, but the much talked mental

revolution could not take place. The adoption of scientific management was

resisted by manages on that plea that it involved extra costs on their part in

various experiments, and by workers also on the plea that by this method

they could put in more work, however, the profit did not go to them. Both the

parties took a short-term view.

Classical Approach of Management Thought Classical Approach of

Management Thought

The approach has focused on on input-output mediators and given less

attention to constraining an facilitating factors in the external environment.

The writers have dealt with human motivation only in a very rudimentary

manner.

In the classical approach, wherein organisation is treated as a machine, the

efficiency of the organisation can be increased by making each individual

efficient in it. The emphasis is more on specialisation of performance and co-

ordination of various activities. In fact among the classical writers, few

emphasized on individual efficiency and others emphasized on group

efficiency. As such, it was given tow streams-scientific management and

administrative management. However, it should be made clear, here, that

classical label does not mean that views are static and time-bound many of

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their views still hold good today.

Taylor and other contributories, notably Frank Gilbreath an Lilian Gilbreath,

Henry Gantt, Emerson, investigated the effective use of human beings in

industrial organizations. In industrial organizations. They studied primarily the

use of human beings as adjuncts to machines in performance of routine task.

The area of human behavior in organizations investigated by them was quite

narrow, and the theories of human behavior in this approach encompass

primarily physiological variables. This is because of the historical accidents of

their positions and training in the industry and the type of problems they

faced there.

Pre-Scientific Management

Though Frederic W. Taylor is known as the founder of scientific management,

many persons before him made considerable contribution to the

development of management thought.

Prominent among them were James Watt and Boulton, Owen, Babbage and

Poor. Their main contributions are as follows:

(i)James Watt and Boulton. These two men took charge of the management of

the Soho Engineering Foundry when it was established in 1796 in Great

Britain. Watt was in charge of organisation and administration, and Boulton

was responsible for the sales or commercial activities. They developed many

management techniques. Prominent among them were market research an

forecasting in marketing ares; planned machine layout in terms of work- flow

requirements, production planning, production-process standards, and

standardization of product component in production area; calculation of cost

and profit for each machine and department in costing area; training anddevelopment of workers and executive, work study and payment by results,

welfare programme and constitution of a committee to administer it in

personnel area.

(ii) Robert Owen. He carried out most of his experiments in the area of

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personnel management when he was engaged in managing the textile mills

in Scotland between 1800 and 1828. Owen improved working conditions in

the factory, provided meals to employees in the factory, provided housing

and marketing store facilities to the employees. His main philosophy was that

good personnel management paid dividends to the employer and it was in

essential part of every manager.

(iii) Charles Babbage. Babbage was a professor of Mathematics at Cambridge

University (1818-39) and took keen interest in the problems of manufacturing

operations. He is best remembered for his book 'On the Economy of

Machinery and Manufactures' published in

1832. He was specially interested in the economics of division of labour and

development of scientific principles to govern a manager's use of facilities,

materials and labour to get the best possible results.

(IV) Henry Varnum Poor. He was editor of 'American Railroad Journal' in the

latter half of the nineteenth century. While on this position he watched and

analyzed the progress of American railroad system. He visualized the scope

for effective management to bring the railroad in the light direction. He gave

many recommendations many of which might be termed as most modern. He

felt the need for a managerial system with a clear organisation structure in

which people have clear responsibility and can be held accountable.

Early Contribution

The early contributions have come mainly from Roman catholic Church,

military organizations and camera lists.

The contributions of Roman Catholic Church were the development of the

hierarchy of authority with its territorial organization, the specialization of

activities along functional lines and the early use of staff device for efficiency.

The military organizations in the past have emphasized what is called today

as 'Unity of Doctrine' and the use of staff for line personnel. The camera lists

were a group of Austrian and German public administrators and intellectuals

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from sixteenth to eighteenth centuries. They emphasized systematic

administration as a source of strength for the State.

Classification of Management Thought

Management is old as civilization and it has been of some concern to

organized society thought civilized history. Various examples exist today to

remind us the result of the organized activities of the past.

However, the principles of such organized activities are either not available or

not applicable in present day social structure. In fact, no organized effort

towards developing management principles was carried on before the presentcentury and most of the earlier contributions towards increasing the

efficiency of organized groups were scattered. Another significant point in the

context of the development of thought is that the contributions have been

made by practicing managers as well as academicians. Thus the total

contribution is the result of practical experience as well as the organized

researches. If we analyze various thought from period point of view, the role

of organized researches successively increase in the development of

management principles. For the sake of analysis, the management thoughts

have been classified as:

Classical approach

Human relations approach and

Systems approach

1. Classical approach

Starting with the early beginnings of management we come across the

Scientific Management also known as Taylorism, named after his founder

and father Frederick Winslow Taylor.

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His theory was one of control and co-ordination. For an increase in

production, managers should take control of the whole process. They should

observe their workers and analyze each step in terms of time spent and

energy expended and then uses the results to determine the best methods

for working processes. They should give workers the right tools and

equipment and a standardized method of doing the job. These persons do itlike they were asked to, not thinking about what they do and what for.

Management will do all the work which workers are not able to do. But acting

in behalf of this theory manager's supervised every step of the workers closer

and closer, so that they had no more autonomy at all. The workers got

unhappy about the situation and thought that they know more about their

work then all the managers and experts.

Even today this theory of management is common in many places.

Companies and managers use time and motion studies to increaseproductivity of their workforce. They hire the best qualified employees and

design incentive systems based on output they are bringing. ical approach.

2. Human relations approach

The human relations approach to management was originated in the 1930s

as a reaction against the mechanistic view of organizations and the

pessimistic view of human nature suggested by the classical approach. The

human relations approach argues that people are emotional rather than

economicrational beings; organizations are cooperative social systems rather

than mechanical ones; and organizations are composed of informal

structures, rules, and norms as well as formal practices and procedures. The

human relations approach represents a distinct break from the classical

approach. However, both share two important similarities. First, they see

organizations as closed and unchanged entities. Second and relatedly, they

believe that there is one best way of managing the organization, regardless

of the type, nature, or size of the organization, and that their way is the best

way.Important theoretical advancements in the human relations approachinclude the famous Hawthorne experiments conducted by Elton Mayo,

Chester Barnard's cooperative system, Abraham Maslow's hierarchy of needs,

Douglas McGregor's Theory XTheory Y, and Warren Bennis's the death of

bureaucracy. Despite these intellectual advancements, the human relations

school remained operationally weak until the 1950s and 1960s when the

advent of the job design movement offered operational guidelines to

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organizations

3. Systems approach

The systems approach to management is a concept which views a company

as an interconnected purposive system that consists of several business

sections. It is a management approach which enables the leadership to see

the company as a unified part or a major section of the larger outside

corporate environment. Even a small activity in a part has a substantial effect

on other sections in the company. Such a system may be biological, physical

or social; and may enable the management to efficiently determine the long-

term goals of the company. The systems approach states that for realizing

the operations of an entity, it is essential to see the entity as a complete

system.

This classification is based on the grouping of various thoughts which have

similarity in the approach of how managers get the things done. The

classification in not very rigid suggesting that the thoughts can be classified

in some other ways. Before we proceed to the study of management in an

organized way, let us have a look on the early contributions mostly in

scattered way.

Development of management thought

Although the systematic management has a recent origin, the practice of

management is as old as human society.

Human beings, being gregarious in nature, have been living in groups since

the very beginning. The history of human beings is full of evidence of

organizational activity that indicates a knowledge of many to the ideas later

expressed by the pioneers of scientific management. However, the study of

how managers achieve the results is predominantly a twentieth century

phenomenon.

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Managerial job in business

All social institutions, whether they are business or non business ones,

require the same process of management of achieving their objectives.

But there are some special considerations that put the business enterprises in

a class by itself from other social institutions. The criteria of efficiency,

productivity and accountability are not so exacting and demanding in the

case of other social institutions as in the case of business. Leaving aside

communist countries where totalitarian planning takes place, the very

survival of business depends upon the fulfillment of objectives in the face of

competition and many other odds.

The manager performs three types of work simultaneously-managing a

businest managing managers and managing workers and work. Almost every

decision or action a, manager takes affects all these facts. Managing a

business is the task pertaining to the economic performance of the enterprise

and calls for the supply of goods and services at acceptable prices. To be

effective, a manager must be creator rather than' a creature of the economy.

Secondly, managing mangers is necessary for making a productive

organisation out of human and material resources. It involves co-ordination of

efforts and functions of managerial personnel, setting goals for them and

directing their activities Finally, managing workers and work is concerned

with organizing and directing the employees and their work. It calls for the

evaluation of the worker both as a human being and as a resource.

Managers are supposed to confine themselves to managerial duties. But in

actual practice, all managers do a lot of non-managerial duties in addition to

their managerial duties. The lower an level of managers, the managerial

content of the job gradually shrinks and non-management duties in

predominate. Even the top job are not immune from non-managerial duties.

To take some examples, sales calls on important customers are usually made

by the sales manager, although such duties are not managerial in character.

The chief executive of a company is very often found to undertake public

relations activities by way of making public addresses, having press

conferences and going through other like non-managerial duties. A supervisor

at the bottom performs many non-managerial duties like making reports,

preparing invoices, operating equipment, and so on.

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Functions of management

There are four basic functions of management, viz., planning, organization,direction and control.

These functions are closely interlinked and interwoven in character. All

executives or mangers, regardless of their area and position, a are o

discharge these functions.

These functions are the identifying marks by which a manger can bedifferentiated form a non-manager. Of the four functions, however, the upper

or top executives are mostly preoccupied with the first two functions-planning

and organization, while the lower-ranking executives are largely busy with

direction and largely busy with direction and control. But the thinking

functions of planning and organisation cannot be separated in to water-tight

compartments from the doing functions of direction and control. Irrespective

of their levels and spheres of activity, executives are required to perform all

the four functions in varying degrees.

1. Planning Is the rational and orderly thinking about ways and means for the

realization of certain goals. It involves thought and decision pertaining to a

future course of action. It anticipates and precedes action rather than making

a reflective thinking abut the past events. Absence of planning before doing

implies rashness, imprudence or shortsightedness in the performance of

work. Before undertaking any work, is to be done, and who is to do the work.

In considering these points, managers have to clarify objectives or goals and

to evolve policies and procedures for guiding those who do the work; they

have to chart the proposed lines of action with proper time schedules for the

execution of work. For providing a factual basis for future action, managers

have to map out a programme indicating the best course of action to be

followed, fixing the targets and standards of work performance there in and

evolving the strategies and remedies for possible hindrances to the smooth

flow of work. In other words, programmes provide a complete road map for

the guidance of managers to get things done through operators.

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In a sense, planning and decisions making are synonymous. Like decision

making, planning is made for providing guide to action in problem areas.

There is much common ground between the steps planning and of decision

making-diagnosis of the problem, development of alternative, evaluation of

alternative and selection of the best course of action. The decision phase of

planning is so important that many writers have treated planning as asynonym of decision making.

2. Organization Provides the mechanism or apparatus for purposive,

integrated and co-operative action by two or more persons with a view to

implementing any plan.

With a few persons, organization calls for the allocation of tasks to individuals

and the requires the efforts of many people, several departments come into

existence under the charge of different managers who are tied together

neatly by authority relationships for integrated action. That is, organization

involves the division and subdivision of activities, into departments, sections

and jobs as well as the integration of activities and positions into a co-

ordinate whole. The division of activities entails three thing, viz.,

determination of total activities, grouping of such activities and assignment of

jobs to both managers and operators. The integration of activities is effected

through positions which are bound together in a consistent pattern by the

fabric of inter-relationships among enterprise functions, jobs and personnel.

Delegation of authority is the cement that holds the positions together as oneentity.

The concept of organization has a number of implications. First, it has two

aspects: technical or mechanistic aspect pertaining to activities and social or

humanistic aspect pertaining to people. For the personal contentment and

social satisfaction of people, organization calls for the matching of jobs with

individuals and vice-versa. Secondly, as a mechanism for action, organization

is required to be changed when either the volume and nature of action or the

personnel change. Although some amount of reorganization takes place withevery personnel change, upper-level personnel change is more significant in

effect. Thirdly, delegation of authority takes place not only between

management members, but it extends to operators as well. In addition to

managerial jobs, the operating jobs are also put to the same process of

delegation.

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3. Direction is largely a function of human relations and motivation. This

function is, of course, denoted variously by different writers, such as

command, leadership, motivation, execution or actuating. The organizational

mechanism is to be energized, activated or put into action for carrying out

the management plan. This is what is actually done through directing

function to set the organization in motion. But human beings are notinanimate cogs in a machine; they have emotions, aspirations, sentiments,

capacity to participate or to withhold such participation. Like a machine, they

could not be ordered to do a predetermined work. With the purpose of

inducing the members of the organization to put forth their best endeavor,

managers direct the employees through the medium of leadership, guidance,

supervision, communication and counseling. Direction involves personal and

social-group relationships. The working terms are inspired and motivated to

do the work willingly and whole-heartedly because of providing desirable job

satisfaction and wanted team spirit.

4. Control ensures qualitative and quantitative performance of work in the

organization for completing plans and achieving objectives. Under the control

function, measuring standards or yardsticks are established and

communicated to managers so that they can regulate employee performance

and can work by self-control.

Moreover, control brings to light any management lapses that hinder

satisfactory work progress, and thus it provides the managers with anopportunity to take remedial action before it is too late. The control function

furnishes new data and facts that enable the managers to verify the accuracy

of their decisions with regard to planning, organizing and directing functions.

Controlling as a process involves measurement, evaluation and correction of

performance in the light of standards established through planning. That

planning and controlling are inter-dependent can be explained form the

nature of either functions. As control forces events to conform to plans, three

can exist no control without planning. Likewise, plans are not capable of self-

achieving without the exercise of controlling function. In the past, control was

work-focused rather than work-focused.

Fayol's principles of management

Fayol evolved fourteen principles of management which may be briefly stated

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as follows

Division of work. The object of division of work is to derive the benefits

from the principle of specialization which can be applied not only in technical

work, put in all other work as well. Unlike Taylor, Fayol pointed out that

division of work has its obvious limits.

Authority and responsibility. Authority and responsibility are correlated

terms; responsibility is the essential counterpart of authority and they go

hand. An ideal manger is expected to have official authority arising from

official positions as well as his inherent personal authority. Such person

authority is compounded of intelligence experience, moral worth, ability to

lead, past services, etc.

Discipline. Discipline is in essence obedience, application, energy,

behavior, and outward marks of respect shown buy employees. Discipline is

what the leaders make it through the observance of agreements, because

agreements spell out to formalities of discipline. Three requisites of discipline

are (a) good supervisors at all levels, (b) clear and fair agreements, and (c)

judicious application of penalties of sanctions.

Unity of direction. This principle requires than employee should receive

orders form one superior only. Dual command wreaks havoc in all concerns,

since authority is undermined, discipline in jeopardy, order disturbed and

stability threatened.

Unity of direction. Fayol discussed this principle of unity of direction in a

different way from that of unity of command. While unity of direction is

concerned with the functioning of the body corporate, unity of command is

only concerned with the functioning of personnel at all levels. For the

accomplishment of a group of activities having the same objective, there

should be one head and one plan. A body with two heads is in the social as

in the animal sphere a monster, and has difficulty in surviving.

Subordination of individual interest to general interest. Common interest

must prevail over individual interest, but some factors like ambition, laziness,

weakness and others tend to reduce the importance of general interest.

Remuneration of personnel. As the prices of services rendered

remunerations should be fair and satisfactory to both the parties.

Centralization. Everything which goes to increase the importance of the

subordinate's role is decentralization, everything which goes to reduce it is

centralization. The question of centralization or decentralization holds the

key to the utilization of all faculties of the personnel.

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Scalar chain. It is the chain of superiors or the line of authority form the

highest executive to the lowest one for the purpose of communication. The

need for swift action should be reconciled with due regard to the line of

authority by using gang plank or direct contact.

Order. This is a principle of organization relating to things and personsmaterial order requires a place for everything and everything in its place

and social demands the engagement of the right man in the right place.

Equity. Equity is greater than justice, since it results from the combination

of kindliness and justice. The application of equity requires much good

sense, experience and good nature with a view to securing devotion and

loyalty form employees.

Stability of tenure of personnel. Stability of tenure is essential to get an

employee accustomed to doing a new work and to enable him in performing

it well. Instability of tenure is an evidence of bad running of affairs.

Initiative. The freedom to purpose a plan and to execute it is what is known

as initiative that increases zeal and energy on the part of human beings.

Since initiative is one of the keenest satisfactions for an intelligent man to

experience. Fayol advised managers to secure as much initiative from

employees as possible.

Esprit de corps. This is an extension of the principle of unity of command

whereby team work is ensured. To maintain proper esprit de corps in the

organization, personality politics and abuse of written and communications

are to to be guarded against.

REFERENCES :

http://www.bookrags.com

http://www.wikipedia.org

http://www.freemba.in