[Music] hello friends welcome to the class on evolution of management in this class an attempt is made to explain the evolution and early history of management as well as the efforts of some well-known contributors in the growth and development of the subject during this period management has a history as old as human being whenever human beings begin to live together whenever they started to conquer the earth with the group of words they might have used some kind of management techniques management in some form or other is an integral part of human living and is essential where our human efforts are undertaken to achieve common goals thus we can definitely believe that the concept of management is as old as the human race itself however the study of management in a systematic way and has a distinct body of knowledge is originated only recently when we examine the general history we can see some well-developed civilizations we have studied in history classes that there were many developed civilizations in ancient world how can we say that there was nobody to manage these matters it is very difficult to believe that there was nobody to manage such things history says that the kings ruled their kingdom with management and leadership skills they conquered other countries with the planet efforts what does this mean this means that there was some kind of management practices during that period we have also studied that the egyptians constructed pyramids in around 5000 bc the historians say that the construction of pyramids accomplished with the efforts of as many as 1 lakh people for over 20 years how can we say that there had been no planning behind it how can we say that there had been no supervision any direction over the workers we cannot say that there was no management at that time it is a fact that some kind of management was there but at that time there was no formal study on management as we have today there was no special management school there was no formal management thought there was no accepted principle all these formal ideas thoughts the principles etc have developed recently to be more specific the present form of management thoughts has been originated only about 250 years ago the studies on the history of management reveals that the management thoughts have been started during the last quarter of 19th century as far as we people the present managed students are concerned our study on the history of management is limited to these 150 years starting from the last quarter of 19th century when we talk about evolution of management we consider only the formal thoughts and growth of management it took place during this time however in this class we can discuss some earlier thoughts and contributions also we can study the evolution and history of management by dividing the entire period under foreheads they are termed as pre-classical classical neoclassical and modern management periods we can begin with the pre-classical period you can see here these various stages of evolution of management and the period around which it began it is very difficult to give the exact time or period for each stage as it is not started with a specific event or by a specific person however the time period shows the general considerations and opinions we can start from pre-classical period it is also called pre-scientific management period the period before 1880 is considered as pre-classical period of management pre-classical period is the period which is prior to the period of formal management thoughts it is believed that the formal management thoughts were started by fw taylor in the year 1880 his thoughts are called scientific management thus the period prior to 1880 is the pre-classical period in the history of management the pre-classical period can also be called as pre-scientific management period the pre-classical period is the longest period in the history of management it has a long history to reveal right from the human evolution itself the ancient civilizations construction of pyramids ancient greek and roman empires european supremacy arabian trade etc etc are part of this class a pre-classical period even though we can see the effect of management in those things the discipline called the management had not originated at the time however thoughts of some well-known persons delivered during that period are worth mentioning because their thoughts had influenced management in its growth afterwards one of these great personalities is robert owen and the other include charles babbage adam smith and some other personalities at first we can see the role of robert owen robert owen was a british industrialist he was the first to speak out on behalf of the organization's human resources he was a textile manufacturer a philanthropist and a social reformer owen born in the year 1771 and died at the age of 87 in the year 1858 he is well known for his efforts to improve factory working conditions for his workers you may know owen as the founder of cooperative movement he carried out experiments and introduced many social reforms cooperative movement was one among them he believed that workers performance would be influenced by the total environment in which they worked therefore he improved the working environment of his own factories and he took efforts to improve the relationships between employees and employers he did all this not as an expert in management but as a philanthropist he believed that a better working environment would increase satisfaction and productivity of workers owen worked for building up of a spirit of cooperation between the workers and managers he introduced new ideas of human relations to improve harmonious working environment in his own factories for example he implemented short-term working hours housing facilities for his employees he arranged education facilities for the children of his workers he provided candy facilities made arrangements to provide training to his workers especially in hygiene matters he made all this because he believed that better working conditions and smoother employer employee relations would result in better output he even criticized the other industrialists for not spending anything to improve the working conditions in their factories however owen is not considered as a management expert because at that time even the subject management was not emerging but it is a fact that his ideas and efforts powered ways for developing better management strategies later the next important personality to be remembered is charles babbage he lived in between 1792 and 1871. charles babbage was a professor of mathematics at cambridge university more than a mathematician he was a philosopher inventor and a mechanical engineer babbage originated the concept of a digital programmable computer you may better know him as father of computers as a mathematician he believed that mathematics has a lot to do to improve efficiency and productivity of workers in factory he was a proponent of the specialization of labor and believed that the efficiency of laborers can be improved through specialization when we talk about the specialization we cannot discard the contributions of adam smith the father of economics adam smith liberty during 1723 and 17 19. charles babbage was born in 1792 two years after the death of adam smith adam smith had written about specialization at that time in their 1776. adam smith in his writing particularly in his book titled the wealth of nations had described about division of work and time and motion studies in that book he had even urged employers that they should implement a division of work in their organizations in the writings of ancient greek philosopher plateau we can see about specialization strategy his teacher socrates had discussed about management issues you should understand that plato the greek philosopher had lived during bc for 28 to 347 period socrates liberty during bc for 69 to 399 period at that time these visionaries had mentioned specialization for efficiency like plateau and adam smith babbage also advocated specialization as a mathematician babbage applied mathematics to the efficient use of materials and production facilities he advocated that the managers should conduct a time studies of data to establish work standards for anticipated work performance levels chance babaji was the first person who suggested to reward the workers with the bonus to the extent by which they exceed their standards we can see that many of these thoughts and suggestions were later became part of management we know that when taylor introduces scientific management many of these ideas such as specialization bonus scheme time and emotional studies etc were included as part of it thus in that sense we can argue that the strategies of scientific management were originally started from these early philosophers and writers including charles babbage similarly the application of quantitative techniques in managerial decision making is also considered as a major contribution of babbage charles babbage is known as the patron center of operation research and management science it is to be noted that operation research and management science were adopted as management strategies during 1950s only babaj wrote about this some hundred years before bhavic was really a remarkable contributor to the management discipline still it is to be remembered that all these people were part of pre-scientific or pre-classical management period the management developed as a formal discipline years after the death of these expert contributors now we can move to the next period the classical management period the period from 1880 to 1930 can be considered as classical management period it is in this classical period that the management was born formally as a field of study many theories on management were developed during this classical period the management philosophies theories and principles developed during this period are together called classical theories on management and this have been included under classical school of management thought the classical period is very much crucial not only for the management but for the industrial development also because the classical management period was the period of industrial revolution also because of this to know more about classical theories it is better to have an idea about industrial revolution do you know about industrial revolution industrial revolution is the transformation process of production and manufacturing from manual and labor-oriented methods to mechanized and factory-oriented methods it was the industrial revolution which changed the countries from an agrarian and handicraft economy to the one dominated by industry and machine manufacturing it means that prior to industrial revolution most of the workforce was employed in agriculture either as self-employed farmers as land donors or tenants or as landless agricultural laborers the industrial revolution changed the scenario to mechanize the and the industry-oriented economy the industrial revolution began in the late 1770s is believed that the first industrial revolution was started in britain and continued till the end of first quarter of 19th century after two or three decades the second industrial revolution started during the mid 19th century and it lasted until early 20th century the first european countries to be industrialized after britain were belgium france and germany its effect spread over to america and japan in addition to the continent of europe however the effect of industrial revolution was specifically visible in america and europe it was during this second industrial revolution the classical management records were aroused we can see how it took place as early mentioned the industrial revolution was a period of major industrialization and innovation when the industrial revolution took place the human workforce was mostly replaced by machines and factories transportation communication banking etc became more advanced when the factor is increased in number and complexity the demand for managers were also increased the number of people employed as managers grew tremendously along with the number of industries the problems and complexities of industries also increased there was a huge demand for expert managers who can find a solution to problems encountered in the workplace at that time the study of management became more systematized and formal and various approaches or so-called schools of management thoughts began to develop in various parts of the world as already mentioned classical management theory was initiated in their 1880 during the time of industrial revolution at that time the industries were competing with each other in maximizing productivity and profitability every industry was trying to find ways to make use of machines and men and tried new methods to increase their output the managers were eagerly searching for new techniques to improve their productivity and to increase quality of the products along with a reduced cost of production the managers were thinking about ways to manage workers and organizations more efficiently three major management philosophies were developed during this period these are scientific management administrative management and bureaucratic management the interesting fact is that these three theories or philosophies were developed in three different parts of the world the scientific management was emerged in america the administrative management started in france and the bureaucratic management was formed in germany all these theories were emerged in entirely different areas of the world almost in the same period we can have a quick look at these three classical theories at first the scientific management it can be defined as the systematic study of work and various methods to do it in order to improve efficiency maximization of output at a minimum effort and cost was the main objective of this philosophy frederick winslow taylor was its main proponent other major contributors were frank gilbert lillian gilbert and henry gand scientific management has some principles firstly it calls for the application of the scientific methods instead of all traditional and less effective methods second principle of scientific management suggested that the workers should be selected scientifically based on their qualification and should be given proper training to perform their job efficiently third principle urged for genuine cooperation between workers and management finally it is suggested that a management should take a complete responsibility for planning the work and workers should take responsibility to implement these plans these were the principles put forward by the scientific management for improving productivity in addition to these principles scientific management also suggested some other strategies like standardization differential piece right systems bonus plans etc for improving the efficiency of workers scientific management had a tremendous influence on management practice in the early 20th century many of the views of scientific management are still valid as already mentioned the scientific school of thought of seeds roots to several major contributors including fw taylor henry gant and frank and lillian gilbert we cannot discard the contributions of charles babbage also frederick vincelo taylor called the father of scientific management henry gandhi was an associate of taylor he developed the famous gand chart county chat is a bar graph that measures planet and a completed work along with each stage of production and this is widely used as a planning and control tool since its development in 1910. frank and lillian gilberts were husband and wife team who conducted motion studies frank gilbert was interested in standardization and method study also he was basically a construction contractor he gave up his contracting carrier in 1912 to study scientific management after hearing taylor's speak at a professional meeting it is believed that frank gilbert was the first person who conducted motion studies to find out the best possible method of performing a given job his wife lillian was a psychologist she studied work arrangements to eliminate wasteful hand body emotions lillian is known as the first lady of management this team identified and classified 17 basic hand motions used by workers to complete a particular job they could precisely analyze the exact elements of workers and movements they tried to identify the one best way to perform a task in the most comfortable and time efficient manner later they could find out the types and frequencies of motions and how it causes in the creation of fatigue among workers this is how they identified unnecessary motions which waste the workers energy they proved that by eliminating inappropriate emotions and also focusing on appropriate emotions the work fatigue can be minimized and workers performance can be improved it is better to watch the classroom scientific management for better awareness on the topic these all are about scientific management we can move to the next step the second management philosophy under classical management is administrative management this was formulated by henry fayol henry fayol was a french mining engineer and a management practitioner he was born in 1841 and died in 1925. when taylor was proceeding with the scientific management practices in america failed was formulating principles for general management in france henry fayol is known as father of general management the management philosophy developed by fayol is often called general management or administrative management administrative management focuses on the management process and the principles of management unlike scientific management administrative management provides a more general theory of management henry fayol presented 14 principles for management which included the division of work authority and responsibility discipline unity of command unity of direction subordination of individual interest to general interest remuneration to personal centralization scalar chain order equity stability of general personnel initiative and team spirit these principles provide general guidelines to modern day managers on how a supervisor should organize the department and manage the staff these principles are still widely used in management theories according to fayol all managerial tasks can be classified under six groups such as technical commercial financial security accounting and managerial out of this the technical tasks are related to production the commercial tasks include buying selling and exchange the financial activities include search for capital and its optimum use security denotes protection for property and the person accounting is the activities relating to recording and taking stock of materials its cost to profit liabilities keeping balance sheet making statistical analysis etc etc the final task is managerial it consists of planning organizing commanding coordinating and controlling he pointed out that these activities exist in every organization okay now we can move to the third management philosophy under classical period it is bureaucratic management bureaucratic management focuses on the ideal form of an organization it describes the nature and structure of an ideal organization max weber was the major contributor to bureaucratic management he was a german sociologist he developed a theory of authority structures and described organizational activities on the basis of authority relations based on his observation many early organizations were inefficiently managed with decisions based on personal relationships and loyalty at that time the business organizations were performed on the interests of the owner or proprietor he was the main investor he decided the policies he took all decisions he decided everything thus the old business was similar to one-man show max weber described that an ideal type of organization must be characterized by division of labor clearly defined hierarchy detailed rules and regulations selection and promotion of employees based on ability etc it should never be a one-man show it should never be on the shoulders of a single authority weber undoubtedly insisted that an ideal organization should have impersonal relationships impersonal relationships are not based on personal likes and dislikes it should be based on the positions and duties in an organization everybody must have certain duties and responsibilities there is no place for personal relations likes dislikes etc he called this state of organization as bureaucracy thus his ideal organization was called bureaucratic organization weber insisted that managers authority in an organization should be based not on tradition or charisma but on the position held by managers in the organizational hierarchy weber characterized a bureaucratic organization as an ideal type of organization according to him the organization should never function on the basis of personality or charisma of the manager the organization may have charismatic and powerful managers as well as other age skilled managers the functioning of the organization need not depend on the power or charisma of leaders but it should be based on the well-defined position in the organization structure there must be proper line of authority with clearly defined duties and responsibilities the position of a person is more important than his personality thus the person in the position of manager can function effectively irrespective of his charisma and personality thus any organization can function even if one or two managers are not skilled or charismatic the organizations based on this position based management is called bureaucratic organization according to weber a bureaucratic organization must have some essential features in a bureaucratic organization labor is to be divided with a clear indication of authority and responsibility there must be the principle of hierarchy in the organization the selection and promotion of personnel must be on the basis of qualifications there must be clear written rules it should be made applicable to old impersonally and uniformly technical competency must be the basis of promotion webber believed that where all these conditions are strictly followed such an organization would grow and develop even without charismatic leadership now the term bureaucracy is often associated with mindless rules and red tape it is often criticized as the role of employees however the bus concept of the ideal bureaucratic organization was extremely powerful bureaucracies work well under many conditions especially in stable organizations and in stable environments okay so far we could understand the nature and features of three important theories under classical management the classical period ended at around 1930 however these theories are still discussed widely among the experts and practitioners of management we can see what happened to these classical theories after 1930. after failed luther garlic expanded the works of henry sayor with the view to build a foundation for the management theory like henry farrell he also believed that management functions are universal luther gillick was an american political scientist he along with a british management consultant named lindell irving elaborated henry fayol's management ideas in their management paper titled notes on theory of organizations they published this paper in 1937. they suggested seven functions for management and presented it in the form of an acronym post corp which stands for planning organizing staffing directing coordinating reporting and budgeting this acronym and functions are widely used in management practices and studies even though gaelic was a strong supporter of failover he agreed with some ideas of taylor also you might have had the term span of control it was gillig who added the concept of span of control which explains the factors which limit to the number of people a manager could supervise effectivity lindell f dervik the teammate of garlic was a long lived man who died in 1983 at the age of one not two he is recognized for integrating the idea of henry fayol into a comprehensive theory of management administration he published a list of 10 principles for improving managerial effectiveness in the book titled the elements of administration published in 1943 lindel aravik tried to synthesize and consolidate the previous writings on management especially about the structure of organizations and the functions of executives as a part of it garlicky and advocative redefined the management principle unity of command given by henry fayol they distinguished the functions of line and staff organizations and introduced a new method to apply the principle of unity of command under this situation similar to gaelic and they are wicked another two persons called james d monet and allen c rayleigh associated together to develop some organizational theories james monet was an executive at the general motors and the rnc rayleigh was a historian they wrote a book titled onboard industry in 1931 and later revised and renamed it as principles of organization in that book they questioned the argument that an efficient organization should be based on certain formal principles and premises according to them the organization required only one basic principle they called it as coordination principle they defined coordination as the orderly arrangement of work group efforts that provides unity of action in pursuit of common goals they opened that the coordination is the main function of manager along with the coordination the managers should ensure two other things also these can be considered as additional principles they are scalar principle and the functional principle scanner principle is almost similar to the principle of henry fayol it described the grading of duties in accordance with the amount of authority processed at different organizational levels functional principle is about the differences in the duties of different levels in short different duties are performed at different levels of the organization the manager needs to coordinate these works in order to ensure that these works are directed to attain the common goal of the organization these are all about the classical theories of management when we analyze this we can understand that all these theories emphasize the consistency efficiency and clear rules for productivity and profitability when we examine these theories we can realize that these all neglected the needs of the workers classical theories explained the methods to increase efficiency of the organization and their scope was limited to the internal affairs of the organization such theories failed to connect to the organization with its environment outside the factory the greatest criticism of these early schools is that they place undue emphasize on the formal aspects of organization and neglected entirely the effects of individual personalities informal groups intraorganizational conflicts and the decision making process etc criticizers argued that these theories are suitable only for uncomplicated and relatively stable organizations and not helpful to solve more complex problems however these theories provided a way to organize and manage large organizations in an efficient way okay with this we can stop this class we can continue the discussion on the evolution of management in the next class thank you