History of Business

History of Business

History of Management

    • People have been working with other people since the beginning of time. As a result of this, there are several theories in the study of management.

    • The main schools of management thought include:

        1. Classical Management (developing universal principles for use in management situations)
        2. Behavioural Management (human needs, workgroup, societal factors)
        3. Quantitative Management (using math techniques to solve problems)
        4. Modern Approach to Management (systems, contingency plans)

  1. Classical Management Approach
    • Classic management approaches include scientific management, administrative principles and bureaucratic organizations.
    • The basic assumption of classical management approaches is that people are rational. This theory assumes that people will rationally consider the opportunities available to them and do whatever is necessary to maximize their economic gain.
    • Frederick Taylor is known as the “Father of Scientific Management” He advocated the four principles of scientific management:
        a. Develop a science for every job, including rules of motion, standardized work implements, and proper working conditions.
        b. Carefully select workers with the right abilities for the job
        c. Carefully train workers and provide proper incentives
        d. Support workers by carefully planning their work and by smoothing the way as they go about their jobs

    • Frank and Lillian Gilbreth expanded on scientific management and produced motion study '   the science of reducing a job or task to its basic physical motions. Wasted motions are eliminated to improve performance. (Bricklayers, UPS) \

      The first person to come up with administrative principles based on classical management was Henri Fayol.

    • Fayol was a French executive who advanced the following five “rules” of management:
        a. Foresight -   to complete a plan of...

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