Evolution of Management Thought

Evolution of Management Thought:

🔹 Contribution of F.W. Taylor – Father of Scientific Management

Frederick Winslow Taylor introduced Scientific Management, which focused on improving efficiency through standardization, time studies, and employee motivation through financial incentives.

Scientific Study of Work
Time and Motion Study
Differential Piece Rate System
Scientific Selection and Training
Division of Work

Significance: Laid the foundation for industrial engineering and rational task management.

🔹 Contribution of Henri Fayol – Father of Modern Management

Henri Fayol introduced the Administrative Theory and was the first to define management as a universal function that could be taught and practiced.

14 Principles of Management
Five Functions of Management
Administrative Focus (Top-down approach)

🔹 14 Principles of Management

Henri Fayol’s 14 principles provide a framework for managerial decision-making and leadership.

S.No.	Principle	Description
1	Division of Work	Specialization improves productivity.
2	Authority and Responsibility	Right to give orders must come with accountability.
3	Discipline	Respect and obedience are essential for success.
4	Unity of Command	One boss for one employee to avoid confusion.
5	Unity of Direction	One plan for activities with the same objective.
6	Subordination of Individual Interest	Company interest over personal interest.
7	Remuneration	Fair compensation motivates employees.
8	Centralization	Balance in decision-making power.
9	Scalar Chain	Clear line of authority from top to bottom.
10	Order	Right people and resources in the right place.
11	Equity	Kindness and fairness to all employees.
12	Stability of Tenure	Long-term employment increases efficiency.
13	Initiative	Encouraging new ideas from employees.
14	Esprit de Corps	Team spirit brings unity and strength.

🔹 Five Functions of Management

Fayol identified five key functions that make up the management process:

Planning: Thinking ahead and setting goals.
Organizing: Arranging resources and roles.
Commanding: Leading and guiding employees.
Coordinating: Aligning efforts and resources.
Controlling: Measuring progress and correcting deviations.

🔹 Administrative Focus (Top-down Approach)

Fayol emphasized a top-down approach, where authority flows from top to bottom, with clear roles, formal structure, and centralized decision-making. He believed in strong leadership and organization-wide principles to manage all levels efficiently.

Significance: His principles and functions are still taught in management studies and applied in organizations globally.

🔹 Business Ethics

Business ethics refers to the moral values and standards that guide behavior in the world of business. It ensures fairness, honesty, and transparency in all business dealings.

Examples: Fair pricing, no misleading ads, safe work environment, and honest communication.

🔹 Importance of Business Ethics

Builds reputation and trust
Retains loyal customers
Encourages employee satisfaction
Prevents legal issues
Ensures long-term success

🔹 Social Responsibility of Business

Social responsibility means that a business must act in ways that benefit not only the company but also society and the environment.

Types of Social Responsibility:

Economic: Earn profit fairly
Legal: Follow laws
Ethical: Do what’s right
Philanthropic: Charity, education, and welfare

🔹 Benefits of Being Socially Responsible

Improves brand trust
Boosts employee morale
Gains public and government support
Ensures sustainability
Increases long-term profits

🔹 Shift to Ethics in Business

Modern businesses are increasingly focusing on ethical behavior due to rising awareness, regulation, and customer demand. Companies are no longer judged only on profits but also on how ethically they operate.

Public expects fairness and integrity
Corporate scandals demand transparency
Governments enforce strict compliance laws
Globalization requires cultural sensitivity
Employees prefer value-based organizations

🔹 Tools of Ethics

To promote and maintain ethical conduct, businesses use the following tools of ethics:

Code of Ethics: Guidelines for acceptable behavior
Governance Policies: Ensure fairness and accountability
Ethics Committees: Monitor and resolve ethical issues
Training Programs: Educate employees about ethical choices
Whistleblower System: Safe way to report misconduct
Audits: Regular checks on ethical compliance