Development of Management thoughts by

F.W Taylor and Henry Fayol

 Development of management
thought by F W Taylor

F.W. Taylor: “Management is the art of knowing what you want to do in the best
and cheapest way.” (an American Mechanical engineer, widely known for his methods
to improve Industrial efficiency.
Development of management thought by F W Taylor

• Frederick Winslow Taylor (1856-1915) is generally acknowledged as “the father

of scientific management.” Because of an eye problem, he could not attend
Harvard University. As a result, he started working as a common labourer in a
small machine shop in Philadelphia, USA. Later on, he worked as an apprentice,
a foreman, a master mechanic, and rose to the eminence of a chief engineer of
a steel company after obtaining a degree in engineering through evening study.

• This varied experience gave him ample opportunity to have first hand knowledge
and intimate insight into the problems and attitude of workers and to explore
great possibilities for improving the qualities of management in the workplace.
Wherever he worked; he found a very ineffective use of employees,
unsystematic methods of work, utterly poor co-operation between management
and labour. He also observed gross inefficiency, waste, and widespread output
restriction among workers which he termed “systematic soldering.” (standard
wages for fixed hours)
Area of study by F W Taylor

• Separation of planning with doing (Workers will not plan, the supervisor/gang boss will do
planning)

• Functional foremanship(functions based on specialization, against the unit of command)

• Job Analysis (the best way of doing job, reducing time and cost-Time, motion, fatigue
study)

• Standardization –in terms of tools, time and period of work, working conditions

• Scientific selection and training of people.

• Financial incentives (not fixed salary for any work)

 Development of management thought by F W
Taylor

These principles refer to Frederick Taylor’s theory. Such as:-

1.Science, not the Rule of Thumb

2.Harmony, not Discord

3.Co-operation, not Individualism

4.Development of Worker as per their Efficiency and Prosperity

5.Maximum, not Restricted Output

 Development of management thought by F W
Taylor

1.Science, not the Rule of Thumb:

The basic principles of scientific management theory by Taylor, are adopting a scientific
approach to decision making. Even abandons the all unscientific approach from
managerial activities. These principles suggest the mantra think before doing.

2. Harmony, not Discord:

An organization consists of two groups, i.e., ‘workers’ and ‘management.’ They must
create the ‘Give and Take’ relationship in the workplace. Therefore, Taylor emphasized
on Mental Revolution, which means a change of attitude of both groups based on this
principle. They should share their opinions and ideas with each other.
 Development of management thought by F W
Taylor

3. Co-operation, not Individualism:

It shows the importance of each other (management and workers). Management

should reward and appreciate the employees for their helpful suggestions. At the
same time, employees also cooperate with the management for the improvement of
the organization.

4. Development of worker as per their Efficiency and Prosperity:

Employees should be properly trained and selected scientifically (hire good people,
trained people) and it is essential for each organization. For implementing this task,
Taylor arranged some techniques, for instance, work-study, time study, motion
study, fatigue study, and method study.
 Development of management thought by F W
Taylor

**Time & Motion study - Every task you do, except for thinking, requires some
movement. Whether it's typing code, plugging in a pressure washer or sketching
and building a plan, movement is key. It's why's the time & motion study is
applicable even in the modern environment. By analyzing how employees
operate, and the time they spend, a company can pinpoint where the problem is.
Removing inefficiencies increases the productivity of your staff.

5. Maximum, not Restricted Output:

Maximum productivity is the basic purpose of an organization. In this case, Taylor
has emphasized production maximization in his principles.
Critical analysis of principles of F W Taylor

• Mainly focused on the problems of the operating level rather than the emphasizing
on the management of organization.

• Side lined the human aspect

• Workers were not allowed to raise their voices

• Trade unions were opposing as they believed that this was the new way of exploiting
workers.
Advantages of F W Taylor principles

The three advantages of scientific management are as follows:

1. Reduced cost of production

2. Increased efficiency

3. Less production time

 Development of management thought by
Henri Fayol

Henry Fayol: “To manage is to forecast and plan, to organize, to command, to

co-ordinate, and to control.”
A French Mining Engineer who developed a general theory of business administration
that is often called Fayolism. Fayol described management as a process of five
functions such as planning, organizing, commanding, coordinating and controlling.
 Development of management thought by
Henri Fayol

• The real father of modern management theory is the French industrialist Henri Fayol.

• A successful industrialist, Fayol headed a steel and coal combine in France and
considered as the father of the universal process or operational management theory

• As opposed to Taylor, Fayol endeavour’s to deal with “classical administration.” He

focuses his attention on the enterprise as a whole than on a single segment of it.

• He pioneered the concept of viewing management as being made up of functions,

and his work supplied a comprehensive framework from which management could
be studied and developed. He also repeatedly emphasized that his principles apply
not only to business but also to political, religious, philanthropy, military, and other
undertakings.
 Development of management thought by Henri
Fayol

Industrial Activities Identified by Henry Fayol-

Fayol identifies the following six major activities of any industrial or business
organization-

1-Technical (production and manufacturing)

2- Commercial (buying, selling and exchanging)

3- Financial (search for optimum use of capital) Security (safeguarding property and
people)

4- Accounting (including statistics)

5- Managerial (planning, organization, command, coordination, and control)
 Development of management thought by Henri
Fayol
Fayol’s Principles of Management:
In addition to these six management activities, Fayol identifies fourteen universal
principles of management which are aimed at showing managers how to carry
out their functional duties. He himself followed them-

1.Division of labor: This improves the efficiency of labor through specialization,

reducing labor time, and increasing skill development.

2.Authority: This is the right to give orders which always carry responsibility
commensurate with its privileges.
Development of management thought by Henri
Fayol
3- Discipline: It relies on respect for the rules, policies, and agreements that
govern an organization. Fayol ordains that discipline requires good superiors at all
levels.

4- Unity of command: This means that subordinates should receive orders from
one superior only, thus avoiding confusion and conflict.

5- Unity of direction: This means that there should be unity in the directions given
by a boss to his subordinates. There should not be any conflict in the directions
given by a boss.
 Development of management thought by Henri
Fayol
6- Subordination of individual interest of common good: According to this
principle, the needs of individuals and groups within an organization should not take
precedence over the needs of the organization as a whole.

7- Remuneration: Wages should be equitable and satisfactory to employees and

superiors.

8- Centralization: Levels at which decisions are to be made should depend on the

specific situation, no level of centralization or decentralization is ideal for all
situations.
Development of management thought by Henri Fayol

9- Scalar chain: The relationship among all levels in the organizational hierarchy and exact
lines of authority should be unmistakably clear and usually followed at all times.

10- Order: Here Henry Fayol means that there should be a place for everything and
everyone, and everything and everyone should be in its place. This is essentially a principle of
organization in the arrangement of things and people. (place for Everything and everything on
its place)

11- Equity: Employees should be treated equitably in order to elicit loyalty and devotion from
them. (EEO Policy, equal treatment of employees, respect)
Development of management thought by Henri
Fayol
12- Stability of tenure: Viewing unnecessary turnover to be both the cause and the
effect of bad management, Fayol points out its danger and costs.

13- Initiative: Subordinates should be encouraged to conceive and carryout ideas.

14- Esprit De Corps: It means managers should create and foster among their
employees the morale, common spirit, sense of identification, feeling of pride,
loyalty, devotion, honor, solidarity, unity and cohesiveness with respect to their
organization or organizational department.
Thanks