Role of Taylor and Fayol in the Evolution of Management!
Introduction to Role of Taylor and Fayol in Management Evolution:
Before we proceed to describe the evolution of management in the neo-classical period, i.e., 1930-1960, let us describe the role of Taylor and Fayol in management evolution. The industrial revolution brought about radical changes in the methods and techniques of production and distribution.
Joint stock enterprise provided an ideal form of business organisation to deal with mass production and mass distribution. Company organisation demanded management by experts and gradually management assumed a professional character.
Until 1900, we did not have any formal concepts of management. Taylor and Fayol both contributed a lot for the development of modern concepts of management. Parallel activities of Du Pont Company also provided concrete support for the growth of management theory and practice.
Since 1930, Lever Brothers, Radio Corporation of America, General Foods, General Electric, and many other such multinational business concerns helped the development of management thought and brought about a managerial revolution, i.e., firm establishment of professional management.
Scientific Management (Taylorism):
F. W. Taylor:
Taylor provided a base upon which much of our current thinking about is firmly established. He saw the need of systematic management, to analyse the work to be done, to measure it and to assign portions of work to the people best selected and trained to perform the work. He published his book. The Principles of Scientific Management in 1911.
Taylor’s chief ideas were:
(1) Separation of planning from doing.
(2) Manager to plan in advance the work to be done.
(3) Manager to select and train the workers.
(4) Time and Motion Studies.
(5) Differential Wage Plan.
(6) Functional foremanship and division of labour.
(7) Standardisation of tools and equipment.
H. Fayol (Father of Modern Management):
He can be rightly considered the father of modern theory of general and industrial management. Henri Fayol analysed the process of management as he had observed it firsthand.
He divided general and industrial management into six groups:
(1) Technical activities (production, manufacture, adaptation).
(2) Commercial activities (buying, selling and exchange).
(3) Financial activities (search for and optimum use of capital).
(4) Security activities (protection of property and persons).
(5) Accounting activities (stock-taking, balance sheet, cost, statistics).
(6) Managerial activities (planning, organisation, command, co-ordination and control).
This six functions had to be performed to operate successfully any kind of business. He, however, pointed out that the last function, i.e., the ability to manage, was the most important for upper levels of managers.
There is no doubt that Fayol established the pattern upon which our modern concepts of management are built. Fayol’s grouping approximately tallied with the analysis of managerial work of many companies even before 1930.
The process of management as an on-going managerial cycle involving planning, organising, directing, coordinating, controlling, is actually based on the analysis of general management by Fayol. Hence, it is said that Fayol established the pattern of management thought and practice. Even today, management process has general recognition.
Other Ideas of Fayol:
Fayol’s contribution to the evolution of modern management is really remarkable.
(1) He gave us over-all concepts of general management
(2) He gave us the typical functions of management.
(3) He recognised the value of staff specialists to guide and advise line managers in complex of organisation Later management experts developed line and staff organisation.
(4) He recommended selection and training of workers and managers. This would create skilled workers and professional managers.
(5) He advocated the use of organisation charts to describe at a glance the organisational relationships, authority- responsibility flows and scalar chain,
(6) He introduced with great emphasis the principles of unity of command and unity of direction,
(7) He pointed out the importance of financial incentives,
(8) He identified the key problem of delegation and decentralisation of authority,
(9) He emphasised planning function, of higher management.