Unit 2-Evolution of Management Thought Capsule Note
CHAPTER 2: EVOLUTION OF MANAGEMENT THOUGHT – MICRO NOTES WHAT IS MANAGEMENT THOUGHT? Theories & principles guiding management of people in organisations. Three main schools: Classical, Neo-classical, Modern. 1. CLASSICAL APPROACH (1900-1930) Focus on work, efficiency, structure. Views organisation as machine, people as economic beings motivated by money. A. Scientific Management (F.W. Taylor – USA) Principles: Science not rule of thumb, Harmony not discord, Cooperation not individualism, Development of each person. Techniques: Time study, Motion study, Standardization, Scientific selection & training, Functional foremanship, Differential piece-rate wage system. B. Administrative Management (Henri Fayol – France) 14 Principles: Division of Work, Authority & Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interest, Remuneration, Centralization, Scalar Chain, Order, Equity, Stability of Tenure, Initiative, Esprit de Co...