Notes On Management

EVOLUTION OF
MANAGEMENT &
MANAGEMENT GURUS

Evolution of Management & Management Gurus Christ University Bengaluru
INDEX
Page
S.No. Chapter Title
No.
EVOLUTION OF MANAGEMENT THOUGHTS

1. 3
(MANAGERIAL FUNCTION)
2. 21
MANAGEMENT GURUS
52
3. GLOBALIZATION AND CROSS-CULTURAL LESSONS
ANCIENT INDIAN MANAGEMENT PRINCIPLES
“VIDUROPADESA”
4. 57
THE 50 PRINCIPLES OF VIDUROPADESA
2
CHAPTER-1
EVOLUTION OF MANAGEMENT THOUGHTS (MANAGERIAL

FUNCTION)
Management is studied in business academics since earlier times and it is considered as an

integral part to understand business operations. People have been changing and redesigning
organizations for centuries. Though the 20th century is noticeable in history as an 'Era of
scientific management', still it does not indicate that management tactics were not used in
yester years. Many studies indicated that Management theory evolved with "scientific" and
"bureaucratic" management that used measurement, procedures and routines as the basis for
operations. Firms developed hierarchies to apply standardized rules to the place of work and
penalized labour for violating rules. With the "human relations" movement, companies
emphasized individual workers. Modern management theories, including system theory,
contingency theory and chaos theory, focus on the whole organization, with employees as a
key part of the system.
The evolution of management can be categorized into different parts:
• Pre-Scientific Management Era (before 1880),
• Classical management Era (1880-1930),
• Neo-classical Management Era (1930-1950),
• Modern Management era (1950-onward).
Classical Management includes Scientific Management School, Administration Management
School, and Bureaucracy Management. Neo- classical Management includes Human relation
school and Behavioral Management School. Modern Management includes Social system
school, Decision theory school, Quantitative Management School, System Management
School, and Contingency Management School.
Early Management Thought

The period of 1700 to 1800 emphasizes the industrial revolution and the factory system
highlights the industrial revolution and the importance of direction as a managerial purpose.
Thus, the development of management theory can be recognized as the way people have
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struggled with relationships at particular times in olden periods. Many economic theorists
during this period described the notion of management. Adam Smith and James Watt have
been recognized as two theorists who launched the world toward industrialization. Adam
Smith brought about the revolution in financial thought and James Watt's steam engine
provided cheaper power that revolutionized English commerce and industry. Both provided
the base for modern concepts of business management theory and practice. Adam Smith
explicated the concept of division of labour and Jacques Turgot described the importance of
direction and control. Smith stated that market and competition should be the controllers of
economic activity and that tax policies were destructive. The specialization of labour was the
basis of Smith's market system. According to Smith, division of labour provided managers
with the maximum opportunity for improved output. In the period of 1771–1858, Robert
Owens studied for concern for the workers. He was repulsed by the working conditions and
poor treatment of the workers in the factories across Scotland. Owen became a reformer. He
reduced the use of child labour and used ethical influence rather than physical punishment in
his factories. He reproached his fellow factory owners for treating their equipment better than
they treated their workers.
In quantitative approach of early management thought, Charles Babbage (1792–1871) is
recognized as the supporter of operations research and management science. Babbage's
scientific innovations are mechanical calculator, a versatile computer, and a punch-card
machine. His projects never became a commercial reality. However, Babbage is considered
the creator of the concepts behind the present day computer. The most popular book of
Babbage, On the Economy of Machinery and Manufacturers, described the tools and
machinery used in English factories. It discussed the economic principles of manufacturing,
and analysed the operations and the skills used and suggested improved practices. Babbage
considered the benefits of division of labour and was a supporter of profit sharing. He
developed a method of observing manufacturing that is the same approach utilized today by
operations analysts and consultants analysing manufacturing operations. Other theorists who
contributed in quantitative approach of early management thought were Robert Owen,
Andrew Ure and Charles Dupin, Henry Robinson Towne.
Another theorist Baptiste, explained the significance of planning. But management appeared
as a different discipline in the second half of 19th century with the beginning of Joint Stock
Company. This type of enterprise separated management of business from their ownership
and gave emphasis to labour incompetence and improper systems of wage payments. To
resolve such problems, people began to identify management as a separate field of study.
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During 20th century, Management has become a more scientific discipline with standard
principles and practices.
The Classical Approach

The classical approach is the earliest thought of management .The classical approach was
associated with the ways to manage work and organizations more efficiently. The classical
approach are categorized into three groups namely, scientific management, administrative
management, and bureaucratic management.
Scientific Management: Scientific management which is also referred to Taylorism or the

Taylor system is a theory of management that evaluates and synthesizes workflows, with the
aim of improving labour productivity. In other words, conventional rules of thumb are
substituted by accurate procedures developed after careful study of an individual at work.
Universal approaches of Scientific management are developed for Efficiency of workers,
Standardization of job roles/activities and Discipline - the role of managers and the business
hierarchy. The scientific management theory had an enormous impact on the business
industry at the beginning of the 20th century. Many big and victorious organizations, such as
McDonalds hamburger chain or call centres, utilised a modern version of scientific
management. Among famous theorists, Taylor's contribution in the area of scientific
management is invaluable. The components of scientific management are determination of
the task, planning, proper selection and training of worker’s improvement in methods,
modification of organization and mental evolution such as 'job specialization'. As a result, it
became more concerned with physical things than towards the people even though it
increased the output. Scientific Management focuses on worker and machine relationships.
Organizational productivity can be increased by enhancing the competence of production
processes. The competence viewpoint is concerned with creating a job that economizes on
time, human energy, and other productive resources. Jobs are planned so that each worker has
a specified, well controlled task that can be performed as instructed. Principles of scientific
management are the replacement of old rule of thumb method, and include scientific
selection and training, labour management co-operation, maximizes output, and ensure equal
division of responsibility. There are four scientific management systems such as develop a
science for each element of the job to replace old rule of thumb method, Scientifically select
employees and then train them to do the job as described in step, supervise employees to
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make sure they follow the prescribed method for performing their job and continue to plan
the work but use worker to actually get the work done.
Taylor's Scientific Management: Academic records indicated that F.W. Taylor and his
colleagues developed the first systematic study in management. He initiated an innovative
movement in 1910 which is identified as scientific management. Frederick Taylor is known
as the father of Scientific Management and he published Principles of Scientific Management
in which he proposed work methods designed to boost worker productivity. Taylor asserted
that to succeed in these principles, it is necessary to transform completely the part of
management and labour. His philosophy was based on some basic principles. The first
principle is separation of planning and doing. In the pre-Taylor era, an employee himself
used to choose or plan how he had to do his work and what machines and equipment would
be necessary to perform the work. But Taylor divided the two functions of planning and
doing, he stressed that planning should be delegated to specialists. Second principle of
Taylor's management approach is functional foremanship. Taylor launched functional
foremanship for administration and direction. Under eight-boss-scheme of functional
foremanship, four persons like route clerk, instruction card clerk, time and cost clerk and
disciplinarian are associated with planning function, and the remaining four speed boss,
inspector, maintenance foreman, and gang boss are concerned with operating function. Third
principle is elements of scientific management. The main constituents of scientific
management are work study involving work importance and work measurement using
method and time study, standardization of tools and equipment for workmen and improving
working conditions, scientific Selection, placement and training of workers by a centralized
personal department. Fourth principle is bilateral mental revolution. Scientific management
involves a complete mental change of employees towards their work, toward their fellow-
men and toward their employers. Mental revolution is also necessary on the part of
management's side, the foreman, the superintendent, the owners and board of directions. Fifth
principle is financial incentives. In order to encourage workers to give better performance,
Taylor introduced differential piece-rate system. According to Taylor, the wage should be
based on individual performance and on the position which a worker occupies. Economy is
the other principle of management devised by Taylor. According to him, maximum output is
achieved through division of labour and specialization. Scientific Management concentrates
on technical aspects as well as on profit and economy. For this purpose, techniques of cost
estimates and control should be adopted. Taylor concluded that science, not rule of thumb,
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Harmony, not discord, Cooperation and not individualism, Maximum output, in place of
restricted output, are key.
Administrative Management: Administrative Management emphasizes the manager and the

functions of management. The main objective of Administrative management is to describe
the management process and philosophy of management. In contradiction of scientific
management, which deals mainly with jobs and work at individual level of scrutiny,
administrative management gives a more universal theory of management.
Henry Fayol's Administrative Management (1841–1925): Henri Fayol is known as the

father of modern Management. He was a popular industrialist and successful manager. Fayol
considered that good management practice falls into certain patterns that can be recognized
and analysed. From this basic perspective, he devised a blueprint for a consistent policy of
managers one that retains much of its force to this day. Fayol provided a broad analytical
framework of the process of management. He used the word Administration for
Management. Foyal categorized activities of business enterprise into six groups such as
Technical, Financial, Accounting, Security, and Administrative or Managerial. He stressed
constantly that these managerial functions are the same at every level of an organization and
is common to all firms. He wrote General and Industrial Management. His five function of
managers were plan, organize, command, co-ordinate, and control. Principles of
administrative management: 1.Division of labour, 2.Authority & responsibility, 3.Discipline,
4.Unity of command, 5.Unity of direction, 6.Subordination of individual interests to general
interest, 7.Remuneration of personnel, 8.Centralization, 9.Scalar chain, 10.Order, 11.Equity,
12.Stability of tenure, 13.Initiative and14 .Esprit de corps (union of strength). These 14
principles of management serve as general guidelines to the management process and
management practice. His principles of management are described below.
1. Division of work: This is the principle of specialization which is detailed by
economists as important to efficiency in the utilization of labour. Fayol goes beyond
shop labour to apply the principle to all kinds of work, managerial as well as
technical.
2. Authority and responsibility: In this principle, Fayol discovers authority and
responsibility to be linked with the letter, the consequence of the former and arising
from the latter.
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3. Discipline: This discipline denotes "respect for agreements which are directed at
achieving obedience, application, energy and the outward marks of respect". Fayol
declares that discipline requires good superiors at all levels, clear and fair agreement,
and judicious application of penalties.
4. Unity of command: This is the principle that an employee should receive orders from
one superior only.
5. Unity of direction: Fayol asserted that unity of direction is the principle that each
group of activities having the same objective must have one head and one plan. As
distinguished from the principle of unity of command, Fayol observes unity of
direction as related to the functioning of personnel.
6. Subordination of individual interest to general interest: In any group the interest of the
group should supersede that of the individual. When these are found to differ, it is the
function of management to reconcile them.
7. Remuneration of personnel: Fayol recognizes that salary and methods of payment
should be fair and give the utmost satisfaction to worker and boss.
8. Centralization: Fayol principle of centralization refers to the extent to which authority
is concentrated or dispersed in an enterprise. Individual circumstances will determine
the degree of centralization that will give the best overall yield.
9. Scalar chair: Fayol believed in the scalar chair as a line of authority, a 'Chain of
Superiors" from the highest to the lowest ranks and held that, while it is an error of
subordinate to depart 'needlessly' from lines of authority, the chain should be short-
circuited when scrupulous following of it would be detrimental.
10. Order: Breaking this principle into 'Material order' and 'Social Order', Fayol thinks of
it as the simple edge of "a place for everything (everyone), and everything (everyone)
in its (his) place". This is basically a principle of organization in the arrangement of
things and persons.
11. Equity: Fayol perceives this principle as one of eliciting loyalty and devotion from
personnel by a combination of kindliness and justice in managers dealing with
subordinates.
12. Stability of tenure of personnel: Finding that such instability is both the cause and
effect of bad management, Fayol indicated the dangers and costs of unnecessary
turnover.
13. Initiative: Initiative is envisaged as the thinking out and execution of a plan. Since it
is one of the "Keenest satisfactions for an intelligent man to experience", Fayol
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exhorts managers to "Sacrifice Personal Vanity" in order to permit subordinates to

exercise it.
14. Esprit de corps: This is the principle that 'union is strength' an extension of the
principle of unity of command. Fayol here emphasizes the need for teamwork and the
importance of communication in obtaining it.
Bureaucratic Management:
Bureaucratic management denotes the perfect type of organization. Principles of Bureaucracy
include clearly defined and specialized functions, use of legal authority, hierarchical form,
written rules and procedures, technically trained bureaucrats, appointment to positions based
on technical expertise, promotions based on competence and clearly defined career paths.
The German sociologist, Max Weber recognized as father of modern Sociology, appraised
bureaucracy as the most logical and structure for big organizations. With his observation in
business world, Weber summarized that earlier business firms were unproductively managed,
with decisions based on personal relationships and faithfulness. He proposed that a form of
organization, called a bureaucracy, characterized by division of labour, hierarchy, formalized
rules, impersonality, and the selection and promotion of employees based on ability, would
lead to more well-organized management. Weber also argued that authoritative position of
managers in an organization should be based not on tradition or personality but on the
position held by managers in the organizational hierarchy.
Max Weber (1864-1920) devised a theory of bureaucratic management that emphasized the
need for a firmly defined hierarchy governed by clearly defined regulations and lines of
authority. He considered the perfect organization to be a bureaucracy whose activities and
objectives were reasonably thought out and whose divisions of labour were clearly defined.
Weber also believed that technical capability should be emphasized and that performance
evaluations should be made completely on the basis of merit. Presently, it is considered that
bureaucracies are huge, impersonal organizations that put impersonal competence ahead of
human needs. Like the scientific management theorists, Weber sought to advance the
performance of socially important organizations by making their operations predictable and
productive. Although we now value innovation and flexibility as much as efficiency and
predictability, Weber's model of bureaucratic management evidently advanced the
development of vast corporations such as Ford. Bureaucracy was a particular pattern of
relationships for which Weber saw great promise. Although bureaucracy has been successful
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for many companies, in the competitive global market of the 1990s organizations such as
General Electric and Xerox have adopted bureaucracy, throwing away the organization chart
and replacing it with ever-changing constellations of teams, projects, and alliances with the
goal of unleashing employee creativeness.
Chester Barnard (1886-1961) also devised components to classical theory such as Follett
that would be further developed in later schools. Barnard, who became president of New
Jersey Bell in 1927, used his work experience and his wide reading in sociology and
philosophy to devise theories about organizations. Barnard stated that people join in formal
organizations to accomplish such goals that cannot be fulfilled by working alone. But as they
follow the organization's goals, they must also gratify their individual needs. Barnard came to
the conclusion that an enterprise can operate efficiently and survive only when the
organization's goals are kept in balance with the aims and needs of the individuals working
for it. Barnard denotes a principle by which people can work in stable and mutually
constructive relationships over time. Barnard believed that individual and organizations
purposes must be in balance if managers understood an employee's zone of indifference that
is, what the employee would do without questioning the manager's authority. Apparently, the
more activities that fell within an employee's zone of indifference the smoother and more
cooperative an organization would be. Barnard also believed that managers had a duty to
inspire a sense of moral purpose in their employees. To do this, they would have to learn to
think beyond their narrow self-interest and make an ethical promise to society. Although
Barnard emphasized the work of administrative managers, he also focused substantial
attention on the role of the individual employee as the basic strategic factor in organization.
Modern Management Approaches
Behavioral Approach: Numerous theorists developed the behavioural approach of

management thought as they observed weaknesses in the assumptions of the classical
approach. The classical approach emphasized efficiency, process, and principles. Some
management scholars considered that this thought ignored important aspects of
organizational life, particularly as it related to human behaviour. Therefore the behavioural
approach concentrated on the understanding of the factors that affect human behaviour at
work. This is an improved and more mature description of human relations approach. The
various theorists who have great contribution in developing principles of management in this
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are Douglas McGregor, Abraham Maslow, Curt Levin, Mary Porker Follelt, and Rensis
Likert. Behavioural Scientists hold the classical approach as highly mechanistic, which is
found to degrade the human spirit. They choose more flexible organization structures and
jobs built around the capabilities and talent of average employees. The behavioural approach
is based on the following principles.
1. Decision-making is done in a sub-optimal manner, because of practical and situational
constraints on human rationality of decision-making. The behaviourists attach great
weightage on participative and group decision-making.
2. Behavioural Scientists promote self-direction and control instead of imposed control.
3. Behavioural Scientists believe the organization is a group of individuals with certain
goals.
4. Behavioural scientists perceive that the democratic-participative styles of leadership
are enviable, the autocratic, task oriented styles may also be appropriate in certain
situations.
5. Behavioural scientists propose that different people react differently to the same
situation. No two people are exactly similar and manager should tailor his attempts to
influence his people according to their needs.
6. Behavioural scientists identify that organizational variance and change are
predictable.
Approach of Mary Parker Follett: Mary Parker Follett (1868-1933) developed the structure
of the classical school. However, she initiated many new elements particularly in the area of
human relations and organizational structure. In this, she introduced trends that would be
further developed by the talented behavioural and management science schools. Follett was
persuaded that no one could become a whole person except as a member of a group. Human
beings grew through their relationships with others in organizations. In fact, she explained
management as "the art of getting things done through people." She took for granted Taylor's
statement that labour and management shared a common purpose as members of the same
organization, but she considered that the artificial difference between managers and
subordinates is vague in this natural partnership. She believed in the power of the group,
where individuals could combine their diverse talents into something bigger. Moreover,
Follett's "holistic" model of control took into account not just individuals and groups, but the
effects of such environmental factors as politics, economics, and biology. Follett's model was
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a significant precursor of the idea that management meant more than just what was
happening inside a particular organization.
Maslow's theory of self-actualization: His theory is recognized as Hierarchy of Needs. It is
illustrated in a pyramid and elucidates the different levels and importance of human's
psychological and physical needs. It can be used in business by managers to better understand
employee motivation. The general needs in Maslow's hierarchy include physiological needs
(food and clothing), safety needs (job security), social needs (friendship), self-esteem, and
self-fulfillment or actualization. Maslow's Hierarchy of Needs relates to organizational theory
and behaviour because it explores a worker's motivation. Some people are prepared to work
just for money, because of friends, or the fact that they are respected by others and
recognized for their good work. The final level of psychological development can be
achieved when all basic and mental needs are fulfilled and the "actualization" of the full
personal potential takes place. In the organizational situation, if an employee's lower need on
the hierarchy is not met, then the higher ones are ignored. For example, if employees are
worried that they will be fired, and have no job security, they will not be concerned about
friendship and respect.
Douglas McGregor’s theory of management suggested that there is a need to motivate
employees through authoritative direction and employee self-control and he introduced the
concept of Theory X and Y. Theory X is a management theory focused more on classical
management theory and assumes that workforce need a high amount of supervision because
they are inherently lazy. It presupposes that managers need to motivate through coercion and
punishment. Theory Y is a management theory that assumes employees are determined, self-
motivated, exercise self-control, and generally enjoy mental and physical work duties.
Theory Y is in line with behavioural management theories. Theory X and Theory Y relates to
Maslow's hierarchy of needs in how human behaviour and motivation is the main priority in
the workplace in order to maximize output.
Theory X: The theory that employees are inherently lazy and irresponsible and will tend to
avoid works unless closely supervised and given incentives, contrasted with Theory Y.
Theory Y: The theory that employees are capable of being ambitious and self-motivated
under suitable conditions, contrasted with Theory X.
An influential theorist in behaviour approach of management thought was Likert. His
principles based on four Systems such as supportive relationships between organizational
members, multiple overlapping structures, with groups consisting of superiors and their
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subordinates, group problem solving by consensus within groups and overlapping

memberships between groups by members who serve as linking pins.
Human Relations Approach: The human religionists, which also denote neo-classicists,
focused on the human aspect of business. These theorists emphasize that organization is a
social system and the human factor is the most vital element within it.
There are numerous basic principles of the human relations approach that are mentioned
below:
1. Decentralization: The concept of hierarchy employed by classical management
theorists is replaced with the idea that individual workers and functional areas (i.e.,
departments) should be given greater autonomy and decision-making power. This
needs greater emphasis on lateral communication so that coordination of efforts and
resources can occur. This communication occurs via informal communication
channels rather than the formal, hierarchical ones.
2. Participatory Decision-Making: Decision-making is participatory in the sense that
those making decisions on a day-to-day basis include line workers not normally
considered to be "management." The greater sovereignty afforded individual
employees and the subsequent reduction in "height" and increase in span of control of
the organizational structure requires that they have the knowledge and ability to make
their own decisions and the communication skill to coordinate their efforts with others
without a nearby supervisor.
3. Concern for Developing Self-Motivated Employees: The importance of a system of
decentralized and autonomous decision-making by members of the organization
necessitates that those members be extremely "self-motivated". The goal of managers
in such an organization is to design and implement organizational structures that
reward such self-motivation and autonomy. Another is to negotiate working
relationships with subordinates that foster effective communication in both directions.
Therefore, the human relations approach implies modifications in the structure of the
organization itself, in the nature of work, and in the association between manager and
assistant. Each of these changes depends upon assumptions about the individual, the
organization, and communication, just like any other theory of organizations. Elton Mayo and
others conducted experiments that were known as Hawthorne experiments and explored
informal groupings, informal relationships, patterns of communication, and patterns of
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internal leadership. Elton Mayo is usually popular as father of Human Relations School. The
human relation personnel advocate several factors - after conducting Hawthorne experiments
- which are mentioned below.
1. Social system: The organization in general is a social system and consists of

numerous interacting parts. The social system established individual roles and
establishes norms that may differ from those of formal organizations.
2. Social environment: The social climate of the job affects the workers and is also
affected.
3. Informal organization: The informal organization does also exist within the frame
work of formal organization and it affects and is affected by the formal organization.
4. Group dynamics: At the place of work, the workers often do not act or react as
individuals but as members of groups. The group plays an important role in
determining the attitudes and performance of individual workers.
5. Informal leader: There is an appearance of informal leadership as against formal
leadership and the informal leader sets and enforces group norms.
6. Non-economic reward: Money is an encouraging element but not the only motivator
of human behaviour. Man is diversely motivated and socio psychological factors act
as important motivators.
Behavioral Science: Behavioral science and the study of organizational behaviour emanated
during 1950s and 1960s. The behavioural science approach was a natural development of the
human relations movement. It concentrated on applying conceptual and analytical tools to the
problem of understanding and foresees behaviour in the place of work. The behavioural
science approach has contributed to the study of management through its elements of
personality, attitudes, values, motivation, group behaviour, leadership, communication, and
conflict, among other issues.
Contingency Approach: This approach of management thought focuses on management

principles and concepts that have no general and universal application under all conditions.
Joan Woodward in the 1950s has contributed to develop this approach in management.
Contingency school states that management is situational and the study of management
recognize the important variables in the situation. It distinguishes that all the subsystems of
the environment are interconnected and interrelated. By studying their interrelationship, the
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management can find resolution to specific situation. Theorists stated that there is no
effective way of doing things under all business conditions. Methods and techniques which
are extremely effective in one situation may not give the same results in another situation.
This approach proposes that the role of managers is to recognize the best technique in a
particular situation to accomplish business goals. Managers have to develop situational
understanding and practical selectivity. Contingency visions are applicable in developing
organizational structure, in deciding degree of decentralization, in motivation and leadership
approach, in establishing communication and control systems, in managing conflicts and in
employee development and training. The contingency approach is associated with applying
management principles and processes as dictated by the sole characteristics of each situation.
It depends on various situational factors, such as the external environment, technology,
organizational characteristics, characteristics of the manager, and characteristics of the
subordinates. Contingency theorists often implicitly or explicitly disapprove of the classical
approach as it focuses on the universality of management principles.
The Quantitative Approach of Management Thought

The quantitative approach aimed at enhancing the process of decision making through the use
of quantitative techniques. It evolved from the principles of scientific management.
1. Management Science (Operations Research): Management science which is also
known as operations research utilized mathematical and statistical approaches to
resolve management issues. It was developed during World War II as strategists
attempted to apply scientific knowledge and methods to the intricate troubles of war.
Industry started to apply management science after the war. The introduction of the
computer technology made many management science tools and concepts more
practical for industry
2. Production and Operations Management: This approach emphasizes the operation
and control of the production process that changes resources into manufactured goods
and services. This approach emerged from scientific management but became a
specific area of management study after World War II. It uses many of the devices of
management science. Operations management underlines productivity and quality of
both manufacturing and service organizations. W. Edwards Deming exercised a great
influence in developing contemporary ideas to improve productivity and quality.
Major areas of study within operations management include capacity planning,
facilities location, facilities layout, materials requirement planning, scheduling,
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purchasing and inventory control, quality control, computer integrated manufacturing,

just-in-time inventory systems, and flexible manufacturing systems.
Systems Approach of Management Thought

The systems approach deals with thoroughly understanding the organization as an open
system that converts inputs into outputs. The systems approach had a great impact on
management thought in the 1960s. During this period, thinking about managing practices
allowed managers to relate different specialties and parts of the company to one another, as
well as to external environmental factors. The systems approach focuses on the organization
as a whole, its communication with the environment, and its need to achieve equilibrium.
Systems approach
To summarize, there are important theories of Management and each theory has a distinct
role to play towards the knowledge of what managers do. Management is an interdisciplinary
and global field that has been developed in parts over the years. Numerous approaches to
management theory developed that include the universal process approach, the operational
approach, the behavioural approach, the systems approach, the contingency approach and
others. F W Taylor, Adam Smith, Henry Fayol, Elton Mayo and others have contributed to
the development of Management concept. The classical management approach had three
major categories that include scientific management, administrative theory and bureaucratic
management. Scientific management highlighted the scientific study of work methods to
improve worker efficiency. Bureaucratic management dealt with the characteristics of a
perfect organization which operates on a rational basis. Administrative theory explored
principles that could be used by managers to synchronise the internal activities of
organizations. The behavioral approach emerged mainly as an outcome of the Hawthorne
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studies. Mary Parker Follet, Elton Mayo and his associates, Abraham Maslow, Douglas
McGregor and Chris Argyris were the main players of this school.
Early Management Principles

The Early management principles were born of necessity. The most influential of
these early principles were set forth by Henri Fayol, a French mining engineer. In 1888,
Fayol became director of a mining company. The company was in difficulty, but Fayol was
able to turn it around and make the company profitable again. When he retired, Fayol wrote
down what he’d done to save the company. He helped develop an “administrative science”
and developed principles that he thought all organizations should follow if they were to run
properly.
Fayol’s 14 Principles of Management
1) Specialization/Division of Labor: By specializing in a limited set of activities,

workers become more efficient and increase their output.
2) Authority/Responsibility: Managers must have the authority to issue commands, but
with that authority comes the responsibility to ensure that the work gets done.
3) Discipline: Workers must obey orders if the business is to run smoothly. But good
discipline is the result of effective leadership: workers must understand the rules and
management should use penalties judiciously if workers violate the rules.
4) Unity of Command: An employee should receive orders only from one boss to avoid
conflicting instructions.
5) Unity of Direction: Each unit or group has only one boss and follows one plan so that
work is coordinated.
6) Subordination of Individual Interest: The interests of one person should never take
precedence over what is best for the company as a whole.
7) Remuneration: Workers must be fairly paid for their services.
8) Centralization: Centralization refers to decision making: specifically, whether
decisions are centralized (made by management) or decentralized (made by
employees). Fayol believed that whether a company should centralize or decentralize
its decision making depended on the company’s situation and the quality of its
workers.
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9) Line of Authority: The line of authority moves from top management down to the
lowest ranks. This hierarchy is necessary for unity of command, but communication
can also occur laterally if the bosses are kept aware of it. The line should not be
overextended or have too many levels.
10) Order: Orderliness refers both to the environment and materials as well as to the
policies and rules. People and materials should be in the right place at the right time.
11) Equity: Fairness (equity), dignity, and respect should pervade the organization.
Bosses must treat employees well, with a “combination of kindliness and justice.”
12) Stability of Tenure: Organizations do best when tenure is high (i.e., turnover is low).
People need time to learn their jobs, and stability promotes loyalty. High employee
turnover is inefficient.
13) Initiative: Allowing everyone in the organization the right to create plans and carry
them out will make them more enthusiastic and will encourage them to work harder.
14) Esprit de Corps: Harmony and team spirit across the organization builds morale and
unity.
Time and Motion

Frederick Winslow Taylor, a contemporary of Fayol’s, formalized the principles of
scientific management in his 1911 book, The Principles of Scientific Management. Taylor
described how productivity could be greatly improved by applying the scientific method to
management; for this reason, the scientific approach is sometimes referred to as Taylorism.
Taylor is most famous for his “time studies,” in which he used a stopwatch to time how long
it took a worker to perform a task, such as shoveling coal or moving heavy loads. Then he
experimented with different ways to do the tasks to save time. Sometimes the improvement
came from better tools. For example, Taylor devised the “science of shoveling,” in which he
conducted time studies to determine how much weight a worker could lift with a shovel
without tiring. He determined that 21 pounds was the optimal weight. But since the employer
expected each worker to bring his own shovel, and there were different materials to be
shoveled on the job, it was hard to ensure that 21-pound optimum. So, Taylor provided
workers with the optimal shovel for each density of materials, such as coal, dirt, snow, and so
on. With these optimal shovels, workers became three or four times more productive, and
they were rewarded with pay increases.
18
Frank Gilbreth and his wife, Lillian Moller Gilbreth (who outlived Frank by 48 years!),
were associates of Taylor and were likewise interested in standardization of work to improve
productivity. They went one better on Taylor’s time studies, devising “motion studies” by
photographing the individual movements of each worker (they attached lights to workers’
hands and photographed their motions at slow speeds). The Gilbreths then carefully analyzed
the motions and removed unnecessary ones. These motion studies were preceded by timing
each task, so the studies were called “time and motion studies.”
Applying time and motion studies to bricklaying, for example, the Gilbreths devised a way
for workers to lay bricks that eliminated wasted motion and raised their productivity from
1,000 bricks per day to 2,700 bricks per day. Frank Gilbreth applied the same technique to
personal tasks, like coming up with “the best way to get dressed in the morning.” He
suggested the best way to button the waistcoat, for example, was from bottom up rather than
top down. Why? Because then a man could straighten his tie in the same motion, rather than
having to raise his hands back up from the bottom of the waistcoat.
Limitations of the Early Views
Fayol, Taylor, and the Gilbreths all addressed productivity improvement and how to run an
organization smoothly. But those views presumed that managers were overseeing manual
labor tasks. As work began to require less manual labor and more knowledge work, the
principles they had developed became less effective. Worse, the principles of Taylorism
tended to dehumanize workers. The writer Upton Sinclair who raised awareness of deplorable
working conditions in the meatpacking industry in his 1906 book, The Jungle, was one of
Taylor’s vocal critics. Sinclair pointed out the relatively small increase in pay (61%) that
workers received compared with their increased productivity (362%). Frederick Taylor
answered Sinclair’s criticism, saying that workers should not get the full benefit because it
was management that devised and taught the workers to produce more. But Taylor’s own
words compare workers to beasts of burden: The worker is “not an extraordinary man
difficult to find; he is merely a man more or less the type of an ox, heavy both mentally and
physically.”
When work was manual, it made sense for a manager to observe workers doing a task and to
devise the most efficient motions and tools to do that task. As we moved from a
manufacturing society to a service-based one, that kind of analysis had less relevance.
19
Managers can’t see inside the head of a software engineer to devise the fastest way to write
code. Effective software programming depends on knowledge work, not typing speed.
Likewise, a services-based economy requires interactions between employees and customers.

Employees have to be able to improvise, and they have to be motivated and happy if they are
to serve the customer in a friendly way. Therefore, new management theories were developed
to address the new world of management and overcome the shortcomings of the early views.
Finally, early views of management were heavily oriented toward efficiency, at the expense
of attention to the manager-as-leader. That is, a manager basically directs resources to
complete predetermined goals or projects. For example, a manager may engage in hiring,
training, and scheduling employees to accomplish work in the most efficient and cost-
effective manner possible. A manager is considered a failure if he or she is not able to
complete the project or goals with efficiency or when the cost becomes too high. However, a
leader within a company develops individuals to complete predetermined goals and projects.
A leader develops relationships with his or her employees by building communication, by
evoking images of success, and by eliciting loyalty. Thus, later views of management evoke
notions of leaders and leadership in discussing the challenges and opportunities for modern
managers.
Management Ideas of the 1990s
Peter Drucker was the first scholar to write about how to manage knowledge workers, with
his earliest work appearing in 1969. Drucker addressed topics such as management of
professionals, the discipline of entrepreneurship and innovation, and how people make
decisions.
In 1982, Tom Peters and Robert Waterman wrote In Search of Excellence, which became
an international best seller and ushered a business revolution by changing the way managers
viewed their relationships with employees and customers.
20
Chapter-2
MANAGEMENT GURUS
Management gurus have over the years transformed businesses with their intelligent
strategies, and given direction to millions of students and professionals on the best
management practices and winning ways. They have enlightened the world with a wealth of
information and taught invaluable lessons on discovering one's true potential.
They stand out for their wisdom, ability to think differently, face adversities with strength
and more importantly lead by example. India prides itself in having some of the best
management thinkers and scholars who have proved that, "Winners do not do different
things. It is all about doing things differently."
C K Prahalad
"Strategy is about stretching limited resources to fit

ambitious aspirations."
He was ranked as the world's most influential business thinker
in The Thinkers 50 list, published by The Times in 2009.
Professor, researcher, speaker, author and consultant, CK
Prahalad donned many roles. His book titled, 'The Fortune at the Bottom of the Pyramid:
Eradicating Poverty through Profits', highlights the need for multinational companies to
realize that the huge growth market of the under-served, the bottom of the pyramid. He co-
authored the bestseller, 'Competing for the Future', with Gary Hamel.
Prahalad was born and brought up in Coimbatore. He started his career at a young age of 19
at the Union Carbide after taking a degree in Physics.
The Union Carbide experience was an unforgettable experience for him. When he left, his
colleagues gifted him a gold chain. "I learned about the extraordinary wisdom of ordinary
people," he said on his first job. Four years later, he did his post-graduation in management
from Indian Institute of Management, Ahmedabad.
21
He then moved to the US. At the Harvard Business School, Prahalad wrote a doctoral thesis
on multinational management in just two and a half years. He then returned to India, where
he taught at the Indian Institute of Management, Ahmedabad.
Subsequently, he was the Professor of Business Administration at the University of Michigan
Business School and offered corporate strategy consultation to a number of multinational
corporations. He also headed a high-technology company called Praja Inc.
Ram Charan
"Real leaders, I have found, exhibit an enthusiasm for

selecting people who are better than they are."
Ram Charan is one of the world's most popular business
advisors. Known for his ability to solve the toughest business
problems, he has worked with some of the most successful companies, including GE,
Verizon, Novartis, Dupont, Thomson Corporation, Honeywell, etc. over the last three
decades.
Born in 1939 in Uttar Pradesh, Charan participated actively in the family's shoe business.
With an engineering degree, he left India to take up a job in Australia and then in Hawaii. He
later did his MBA and doctorate degrees from Harvard Business School, where he graduated
with high distinction. After receiving his doctorate degree, he started teaching at the Harvard
Business School.
Charan is known for offering timely and relevant advice to solve complex business problems.
He is the author of multiple books, including his latest publication, “The Attacker’s
Advantage: Turning Uncertainty into Breakthrough Opportunities”.
He served on the Blue Ribbon Commission on corporate governance and was selected as a
Distinguished Fellow of the National Academy of Human Resources. He sits on the boards of
Austin Industries and Tyco Electronics. Charan runs his business management consulting
company under the name Charan Associates located in Dallas.
22
Vijay Govindarajan
"Globalization means that multinationals target only the top

of the pyramid in these markets, the wealthiest 10%. But the
real potential lies in unlocking the other 90 per cent."
Vijay Govindarajan is one of the world's leading experts on
strategy and innovation. Govindarajan says the biggest opportunities for multinationals in
next 25 years will be customers moving from poor countries.
He is the Professor of International Business and the Founding Director of the Center for
Global Leadership at the Tuck School of Business at Dartmouth College. He is also the chief
innovation consultant for General Electric.
Govindarajan has ranked among the top five most respected executive coach on Strategy by
Forbes. He has also been rated as an outstanding faculty member by Business Week.
Govindarajan has been a member of the faculty at the Harvard Business School and the
Indian Institute of Management Ahmedabad.
Shiv Khera
"If we are not a part of the solution, then we are the problem."
Shiv Khera's story is truly inspirational. Three decades ago, he
used to wash cars and sell insurance policies in the United States.
Today, he has a multimillion-dollar empire.
Shiv Khera is the founder of Qualified Learning Systems Inc. He
has established himself as an educator, business consultant and a successful entrepreneur. He
motivates and encourages people to explore their true potential and succeed in whatever they
do.
He has been recognized as a "Louis Marchesi Fellow" by the Round Table Foundation. Shiv
Khera's client list includes, among others, Lufthansa, Johnson & Johnson, Motorola, Nestle,
GSK, Tetrapak, Phillips, Gillette, HSBC, Carrier, IBM, Ericsson and GM. He has authored
12 books including the best seller book, 'You can win'.
23
Bala Balachandran
Bala Balachandran is one of the top management gurus of

Indian origin in the United States. Two decades ago,
Balachandran was the only Indian professor at the prestigious
Kellogg Graduate School of Management in Chicago, where he
has specialized in accounting information systems and decision
sciences.
He has been with Kellogg School for the past 34 years. He has played a key role in building
the Indian School of Business, Hyderabad. He has also set up his own B-school, the Great
Lakes Institute of Management, in Chennai. Earlier he worked as an advisor in the Planning
Commission.
He is on the board of directors of the Credit Rating Information Services of India (CRISIL).
He is working on projects to integrate information technology in states such as Gujarat,
Maharashtra, Punjab and Rajasthan. He is also a consultant to the governments of Israel,
Malaysia and Peru.
Rakesh Khurana
"Even if you have a (person) with the same sort of qualities

of Steve Jobs, the company is never going to be as animated
or as authentic as it was when you had the founder running
it."
Rakesh Khurana is an associate professor of organizational
behavior at Harvard Business School. He worked for three years
as a founding team member of Cambridge Technology Partners before starting graduate
school in 1994.
He started teaching at MIT's Sloan School of Management. In 2000, he joined the Harvard
Business School. His research focuses on managerial labour markets. He is best known for
his book, Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs and
several managerial articles.
24
Promod Batra
"Your mind is a Thoughts Factory and you are the

production manager. It can produce either positive or
negative thoughts. The ideas of others are your raw
materials."
Happiness, wealth, fame, fun, success, stress reduction, writing
more books, traveling - you name it- are all byproducts of goal-
setting, says Pramod Batra. Batra along with his son Vijay Batra have published several
motivational books.
Promod Batra did his MBA from University of Minnesota, USA. He worked with Escorts for
over three decades.
His workshops across different companies in India have been very popular. He has written
several books on management, enhancing selling skills, simple solutions to retain customers,
pearls of wisdom for the family and even on ways to live peacefully with in-laws!
25
GLOBAL MANAGEMENT GURUS
DR. JOHN P. KOTTER
John Kotter has been a Harvard Business School professor for over 30 years and is an
internationally renowned author on leadership and change. His 18 books include
international bestseller Leading Change and followed by Our Iceberg Is Melting, which
puts his 8-step process for change into a fun and easy to read format. In addition to the
Leadership Guru Award John Kotter was awarded, Business Week magazine rated
Kotter the #1 leadership guru in America based on a survey they conducted of 504
enterprises in 2001. After his 30 years of success in teaching, he decided to start a
company that would arm leaders to tackle the challenges of changing times, Kotter
International helps organizations execute Kotter’s strategies, and leaves them with the
capability to take on future business challenges and react to them quickly with agility
and direction. John Kotter received full marks on being unique with his concepts and
ideas. His presence on the stage alone commands absolute attention allowing listeners
to gather enough information to use in the future. His comeback to the guru list is
attributed to the licensing of his Leading Bold Change workshops based on his
bestseller Our Iceberg is Melting which is refocusing the international business public
to his global contribution.
26
TOM PETERS
Navy personnel turned management professional Tom Peters writes and speaks about a
very special area of management i.e. personal and business empowerment and problem
solving methodologies. Peter went to Severn School for High School and attended
Cornell University receiving a bachelor’s degree in civil engineering in 1965 and a
master’s degree in 1966. He later studied business at Stanford Business School
receiving an M.B.A. and Ph.D. In 2004 he also received an honorary doctorate from the
State University of Management in Moscow. He is called the most provocative and
engaging management guru in the USA. He is also called the Red Bull of management
thinkers. He is a best-selling author of the book "In Search of Excellence" which
became a bestseller and had exposure in the United States at a national level when a
series of television specials based on the book and hosted by him appeared on PBS.
27

MICHAEL EUGENE PORTER
Michael Eugene Porter is a Bishop William Lawrence University Professor at

Harvard Business School. After his B.S.E. with high honors in aerospace and
mechanical engineering from Princeton University, Porter received an M.B.A. with
high distinction in 1971 from Harvard Business School. Michael Porter authored 19
books and numerous articles including Competitive Strategy, Competitive Advantage,
Competitive Advantage of Nations and On Competition. Michael Porter’s core field is
competition and company strategy. He is generally recognized as the father of the
modern strategy field. His ideas are taught in virtually every business school globally.
His work is recognized in many governments, corporations, and academic circles
around the globe. He is a leading authority on company strategy and the
competitiveness of nations and regions. He chairs Harvard Business School’s program
dedicated for newly appointed CEOs of very large corporations. Recently, Porter has
paid remarkable attention to the health care sector and published a good number of
articles.
28

JOSEPH STIGLITZ
Former senior vice president and chief economist of the World Bank and a professor at
Columbia University, Joseph Eugene Stiglitz is a great economist. He received the
Nobel Memorial Prize in Economic Sciences in 2001 and the John Bates Clark Medal
in 1979. His latest book The Price of Inequality hit The New York Times best seller list
in 2012. He is known for his critical view of the management of globalization. Stiglitz
founded the Initiative for Policy Dialogue (IPD), a think tank on international
development based at Columbia University in the year 2000. He chaired very important
positions in institutions like Columbia University, University of Manchester's Brooks
World Poverty Institute, Pontifical Academy of Social Sciences. Stiglitz has over 40
honorary doctorates and at least eight honorary professorships, as well as an honorary
deanship. Stiglitz's work focuses on income distribution, asset risk management,
corporate governance, and international trade.
29
JAMES COLLINS III
Mr. James Collins III is a management philosopher, a consultant, a teacher, and

author of several best-selling books. He is the author of the books Built to Last,
Successful Habits of Visionary Companies, Good to Great, How the Mighty Fall And
Why Some Companies Never Give In, Great by Choice, Uncertainty, Chaos and Luck
and Why Some Thrive Despite Them All. Dedicated to his craft of helping companies
excel and sustaining their success, Jim started his research and teaching career in the
faculty at the Stanford University Graduate School of Business where he received the
Distinguished Teaching Award in 1992. In 1995, Collins served as a senior executive at
CNN International and also worked with social sector organizations. In 2005, he
published a monograph Good to Great and the Social Sectors. His most recent book is
Great by Choice Uncertainty Chaos and Luck Why Some Thrive Despite Them All
coauthored with Morten Hansen.
30
NASSIM NICHOLAS TALEB
Nassim Nicholas Taleb is a Lebanese American essayist and scholar whose works
focus on problems of randomness, probability and uncertainty. He was born in Amioun,
Lebanon to Minerva Ghosn and Najib Taleb a physician, an oncologist and a researcher
in anthropology. He is a bestselling author and has been a professor at several
universities currently at Polytechnic Institute of New York University and Oxford
University. His book The Black Swan was described in a review by the Sunday Times
as one of the twelve most influential books since World War II. In his career, he has
also been a practitioner of mathematical finance, a hedge fund manager, a derivatives
trader and is a scientific adviser at Universa Investments and the International
Monetary Fund. He criticized the risk management methods used by the finance
industry and warned about financial crises subsequently making a fortune out of the
late 2000s financial crisis.
31
GARY HAMEL
Gary Hamel was recently ranked by The Wall Street Journal as the world’s most
influential business thinker and by Fortune magazine as the world’s leading expert on
business strategy. Hamel authored books like Competing for the Future Leading the
Revolution and The Future of Management and What Matters Now. In twenty years
Hamel has authored 17 articles for the Harvard Business Review and is the most
reprinted author in the Review’s history. He has also written for the Wall Street
Journal, Fortune, The Financial Times, and many other leading publications around the
world. Currently, he is a Visiting Professor of Strategic and International Management.
As a consultant and management educator, Hamel has worked for companies such as
General Electric, Time Warner, Nestle, Shell, Best Buy, Procter Gamble, 3M, IBM, and
Microsoft. His pioneering concepts such as strategic intent, core competence, industry
revolution and management innovation have changed the practice of management in
companies around the world.
32
CHRIS ANDERSON
Born in London and brought up in the USA, Chris Anderson is an American author
and entrepreneur. He is the co-founder and currently the CEO of 3DRobotics, a drone
manufacturing company. He worked with The Economist and WIRED magazine. He is
known for his 2004 article entitled The Long Tail which he later expanded into the
2006 book The Long Tail Why the Future of Business Is Selling Less of More.
Anderson enrolled for a degree program in physics from George Washington
University and went on to study quantum mechanics and science journalism at the
University of California, Berkeley. He later did research at Los Alamos National
Laboratory. He began his career as editor at the two scientific journals Nature and
Science. He then joined The Economist in 1994 where he remained for seven years.
During his The Economist tenure he was stationed in London Hong Kong and New
York in various positions ranging from Technology Editor to US Business Editor.
33
DANIEL GOLEMAN
Daniel Goleman is an internationally recognized psychologist who lectures frequently

to professional groups, business audiences, and on college campuses. He currently co-
directs the Consortium for Research on Emotional Intelligence in Organizations at
Rutgers University. Goleman is a board member of the Mind & Life Institute, which
fosters dialogues and research collaborations among contemplative practitioners and
scientists. The Financial Times, Wall Street Journal and Accenture Institute for
Strategic Change have listed Goleman among the most influential business thinkers. He
is a co-founder of the Collaborative for Academic, Social, and Emotional Learning. His
book, Emotional Intelligence was on The New York Times bestseller list for a year-
and-a-half, with more than 5,000,000 copies in print worldwide in 40 languages. This
book was named one of the 25 Most Influential Business Management Books by TIME
Magazine. Also, he has written books on topics such as self-deception, creativity,
transparency, meditation, social and emotional learning, ecoliteracy and the ecological
crisis.
34
HOWARD EARL GARDNER
Howard Earl Gardner is an American developmental psychologist. He is the John H.

and Elisabeth A. Hobbs Professor of Cognition and Education at the Harvard Graduate
School of Education at Harvard University and a Senior Director of Harvard Project
Zero. He authored over twenty books that were translated into thirty languages. He is
best known for his theory of multiple intelligences as presented in his book Frames of
Mind The Theory of Multiple Intelligences. Howard Gardner has been heavily involved
in school reform efforts in the United States since 1980's. Most of Gardner’s post-
secondary education has taken place at Harvard University. He is currently a board
member at Amherst College and the Museum of Modern Art (MoMA). He served on
the board of the Spencer Foundation for 10 years (2001-2011). In his books, articles,
and presentations, Howard always shows up with his spirit of psychological
development of humans and thereby the improvement of the entire social system.
35
MANFRED F.R. KETS DE VRIES
Manfred F.R. Kets de Vries had held professorships at McGill University the ecole
des Hautes Etudes Commerciales Montreal, and Harvard Business School, and has
lectured at management institutions around the world. He is the author, co-author or
editor of more than thirty five books and has published over 300 scientific papers as
chapters in books and as articles. His books and articles have been translated into thirty
one languages. He is the founder of INSEAD’s Global Leadership Centre, the program
director of INSEAD’s top management seminar The Challenge of Leadership Creating
Reflective Leaders, and the scientific director of the program Consulting and Coaching
for Change Executive Master’s Program. He has received INSEAD’s distinguished
teacher award five times. Vries is also the founder of the Kets de Vries Institute, a
partnership that counsels individual CEOs and top executive teams, using a clinical
orientation to leadership coaching and organizational transformation. He is best known
for bringing a different view to the much studied subjects of leadership and the
dynamics of individual and organizational change.
36
BARBARA KELLERMAN
Barbara Kellerman is the James MacGregor Burns Lecturer in Public Leadership at

Harvard University's John F. Kennedy School of Government. Kellerman received her
B.A. from Sarah Lawrence College and her M.A., M.Phil., and Ph.D. degrees from
Yale University. In 2010 she was given the Wilbur M. McFeeley award by the National
Management Association. She was awarded a Danforth Fellowship and three Fulbright
fellowships. Once she was the Founding Executive Director of the Kennedy School’s
Center for Public Leadership. Also, from 2003 to 2006 she served as the Center’s
Research Director. Kellerman has held professorships at Fordham Tufts, Fairleigh
Dickinson, George Washington, Uppsala, and Dartmouth. She also served as Dean of
Graduate Studies and Research at Fairleigh Dickinson and as Director of the Center for
the Advanced Study of Leadership at the University of Maryland. Kellerman speaks to
audiences all over the world on various topics of management and leadership. She has
written and edited 16 books on leadership and followership.
37
KJELL ANDERS NORDSTROM
Kjell Anders Nordstrom is Europe’s number one Strategic Management thinker. He is

a Swedish economist writer and public speaker. He first studied engineering and
thereafter economics at the Stockholm School of Economics, where he earned a Ph.D.
Until 2004 he was an Assistant Professor at the Institute of International Business (IIB)
at the Stockholm School of Economics. His research and consulting focus is in the
areas of strategic management, multinational corporations, and globalization. He has
served as an adviser/consultant to several large multinational organizations and to the
government of the United Kingdom. Webzine Management General rated His book
Funky Business Talent Makes Capital Dance as one of the five best business books of
the year. Another survey ranked it as the 16th best business book of all time. The book
was described as a manifesto of what our time requires from business firms and their
leaders and has been translated into 33 languages.
38
DR. PHILIP KOTLER
Dr. Philip Kotler is a world famous Management and Marketing guru and a
distinguished professor at the Northwestern University Kellogg Graduate School of
Management in Chicago. He is hailed by Management Centre Europe as the foremost
expert on the strategic practice of marketing in the world. Dr. Kotler is known to many
as the author of what is widely recognized as the most authoritative textbook on
marketing, Marketing Management. Also, he has authored or co-authored dozens of
leading books on marketing. In addition, Dr. Kotler has published more than one
hundred articles in leading journals including the Harvard Business Review, Sloan
management Review, Business Horizons California. Dr. Kotler presents seminars on
leading management and marketing concepts and developments to companies and
organizations in the U.S., Europe, and Asia. A seasoned business concept guru, Kotler
is hired by businesses and organizations from every corner of the world to train up and
develop their people so as to prepare them for new challenges.

39

LYNDA GRATTON
Lynda Gratton is a Professor of Management Practice at London Business School.

Founder of the Hot Spots Movement, Lynda has written several books and academic
articles on organizational behaviour. In 2011 she was ranked by The Times as one of
the top 15 Business Thinkers in the world today. She was also ranked number one in
Human Resources Magazines Top 25 HR Most Influential UK Thinkers 2011 poll. She
continues to work as a consultant with many of the world’s biggest companies
including Vodafone, Shell, and Unilever. She is a former Chief Psychologist at British
Airways and Human Resources Director for PA Consulting Group. She authored
Living Strategy Putting People at the Heart of Corporate Purpose which has since been
translated into more than 15 languages. She was a Senior Fellow of the UK’s Advanced
Institute of Management Practice. She is a leading management thinker in the UK.

40

NOEL M. TICHY
Dr. Noel M Tichy is an American management consultant author and educator. Dr.
Tichy not only extends his expertise to business firms and private sectors but also to the
academies as well. A dedicated Professor of Organizational Behaviour and Human
Resource Management at the Ross School of Business at the University of Michigan,
Noel is also the Director of Global Business Partnership which ran the Global
Leadership Program. He has a great impact in developing senior executives managing
skills, especially in this age, when there are huge threats of globalization for small and
rising organizations. His past works include heading GE’s Leadership Center and also a
working as a professor at Columbia University Business School. Dr. Tichy is the author
of a good number of books. His most recent book is JUDGMENT How Winning
Leaders Make Great Calls. His huge contribution in management arena regarded him as
one of the Top 10 Management Gurus by Business Week. He is widely known in North
America.
41
RHENALD KASALI
Rhenald Khasali is an academic and business practitioner who was born in Jakarta. He
is a respected professor at the Faculty of Economics Universities Indonesia and
Chairman of the Graduate Management Science University’s Faculty of Economics. As
a professor, he holds a Ph. D. from the University of Illinois. Several books have been
produced and among them are Nine Phenomenon, Business Success, Presentation
Change, Recode, Change Your DNA and many more. Rhenald Khasali focuses on
development business. He asserts that real luck is when opportunity meets with
preparation furthermore Entrepreneurship does not exist by itself, but must be created.
42
HENRY MINTZBERG
Henry Mintzberg is a professor at McGill University in Montreal for 40 years. He is a

consistently contrary Canadian academic who sometimes seems to be undermining the
very industry that he works in. He is very critical of managers nowadays and especially
in the MBA courses offered in the universities. He has been controversial through his
1975 Harvard Business Review article in which he examined what a number of
managers in different industries actually did and found that they were not the robotic
paragons of efficiency that they were usually made out to be. He found that the average
manager is jumping from topic to topic and they are not good listeners. He said the
pressures of his job drive the manager to be superficial in his actions. He termed the
MBA as the bread and butter course saying that this course teaches the managers to do
nothing. He analyzed and found types of organizations - the simple structure, the
machine bureaucracy, the professional bureaucracy, and the divisionalized form.
43

TAMMY ERICKSON
Tamara J. Erickson is a McKinsey Award-winning author, a leading expert on

generations in the workplace, and a widely-respected authority on leadership, the
changing workforce, collaboration and innovation, and the nature of work in intelligent
organizations. She has three-times been named one of the 50 most influential living
management thinkers in the world by Thinkers50, the respected ranking of global
business thinkers. Erickson is an Executive Fellow, Organisational Behaviour, at
London Business School, where she has designed and co-directs the school's premier
leadership programme for senior-most executives, Leading Businesses into the Future.
She is the Founder and CEO of Tammy Erickson Associates, a research-based firm
dedicated to helping clients build intelligent organizations. An experienced executive,
Erickson has served on the Board of Directors of two Fortune 500 corporations, with
experience in the Governance, Audit, and Compensation Committees. She holds a BA
degree from the University of Chicago, and an MBA from the Harvard Graduate
School of Business Administration.
44
CHARLES HANDY
Charles Handy is an Irish author and philosopher specialising in organisational

behaviour and management. Handy began his career as an employee of Royal Dutch
Shell, an Anglo Dutch oil company. He was given the assignment of a drilling
operation in the jungles of Borneo where he made mistakes and was given a chance to
redeem himself. Handy’s subsequent written work has almost always been a search for
ways in which companies can go beyond the pure pursuit of profit. He authored a book
The Gods of Management wherein he identified four different management cultures
which he likened to four Greek gods Apollo, Athena, Dionysus, and Zeus. His vivid use
of metaphor and his accessible writing style have made his books extremely popular.
Due to his rigorous working life in Britain, Handy became the country's leading
management spokesperson. Handy’s main interest was organisations and his message
was that they are not machines that can be neatly designed, mapped, measured, and
controlled.
45
JONAS RIDDERSTRALE
Currently a visiting professor at Ashridge Business School and IE Business School.

Dr.Jonas Ridderstrale is a Swedish business speaker thinker and author. He did his
graduate and post graduate studies at the Stockholm School of Economics and holds an
MBA and a PhD in international business. His doctoral dissertation - Global Innovation
- focuses on product development efforts in multinational corporations. He did research
and wrote his thesis at the Institute of International Business at the Stockholm School
of Economics. He wrote the book Funky Business Talent makes capital dance in 2000,
which has been ranked at number 16 in a Bloomsbury Publishing survey of the best
business books of all time. The sequels, called Karaoke Capitalism Management for
mankind and Funky Business Forever How to enjoy capitalism also describe recipes for
how to make it in the new world of commerce. All three books were co-authored with
Kjell A. Nordstrom, another management guru.
46

COSTAS MARKIDES
Costas Markides who holds the Robert P. Bauman Chair of Strategic Leadership at the
London Business School is a professor of strategic and international management. A
native of Cyprus, Markides received a BA and MA in Economics from Boston
University, MBA and DBA from the Harvard Business School. His books include All
the Right Moves A Guide to Crafting Breakthrough Strategy 2000 and Fast Second How
Smart Companies Bypass Radical Innovation to Enter and Dominate New Markets 2005
with Paul Geroski. Fast Second is a metaphor of a landscape to describe the business
world dividing organizations into colonists and consolidators. The former ones are good
at exploring new business opportunities but the latter ones are better adapted to
commercializing them. Nowadays, Markides has turned his attention to how
management ideas can be used to address social issues such as reducing drug related
crime and improving education. Currently he is working on the topic of strategic
innovation, how companies can break the rules in their existing businesses.
47

GARY BRADT
Who would never recognize the blockbuster book of Spencer Johnson called Who
Moved My Cheese an Amazing Way to Deal with Change in Your Work and in Your
Life? Dr. Gary Bradt was chosen by Dr. Spencer Johnson, the renowned author of the
book as a speaker worldwide of the said book. Dr. Bradt earned his BA in psychology
from Duquesne University in Pittsburgh PA. He earned his doctorate in clinical
psychology from Hahnemann University and Hospital in Philadelphia PA which in 2007
honored him with the Excellence in Professional Psychology award. As a speaker, Dr
Bradt embraces his audiences with a powerful message, authentic stories, and some
humor to lighten them up. His topics include Change Management and Leadership. He is
uniquely qualified to bring off guidance and strategies on the subject of change in
adapting to and leading through change. Dr. Gary Bradt is also the author of the Ring in
the Rubble Dig Through Change and Find Your Next Golden Opportunity which has
earned many compliments from readers.
48
NIALL CAMPBELL DOUGLAS FERGUSON
Primarily a teacher of History, Niall Campbell Douglas Ferguson later became a

management personality and politician. He graduated in history in 1985 and received his
D.Phil. from Magdalen College in 1989, with a dissertation entitled “Business and
Politics in the German Inflation: Hamburg 1914 to 1924”. He is the Laurence A. Tisch
Professor of History at Harvard University. He is also a Senior Research Fellow of Jesus
College, University of Oxford, and a Senior Fellow of the Hoover Institution, Stanford
University. In 2004, Ferguson was named as one of the 100 most influential people in
the world by Time magazine. Since 2011, he has been a contributing editor for
Bloomberg Television and a columnist for Newsweek. Ferguson was appointed as an
investment management consultant by GLG Partners, focusing on geopolitical risk as
well as current structural issues in economic behavior relating to investment decisions.
He is a great author of the books The Cash Nexus, Colossus and Empire, War of the
World, The Ascent of Money, Civilization.
49
ERIC EMERSON SCHMIDT
Eric Emerson Schmidt is a software engineer, a politician and a management

professional. He is the executive chairman of Google. During his early career, Schmidt
co-authored the Lex analysis software program for the Unix computer operating system.
From 1997 to 2001, he was chief executive officer of Novell. From 2001 to 2011, he
served as the CEO of Google. Schmidt served on the board of directors of Apple Inc. He
also sat on the boards of trustees for both Carnegie Mellon University and Princeton
University. During the last presidential election, Schmidt was a campaign advisor and
major donor to Barack Obama. After Obama won, Schmidt became a member of
President Obama’s transition advisory board. He proposed the easiest way to solve all of
the problems of the United States at once, at least in domestic policies, by a stimulus
program that rewards renewable energy and, over time, attempts to replace fossil fuels
with renewable energy.
50

DON TAPSCOTT
Don Tapscott is Adjunct Professor of Management at the Joseph L. Rotman School of

Management, University of Toronto. He is a Canadian business executive, author,
consultant and speaker who specializes in business strategy, organizational
transformation and the role of technology in business and society. Tapscott holds a B.Sc.
in Psychology and Statistics, and a M.Ed. specializing in Research Methodology. He
also holds three honorary Doctor of Laws granted by the University of Alberta, Trent
University, and McMaster University. During his Masters of Education at the University
of Alberta, he ran for mayor of Edmonton in the 1977 municipal election. Tapscott has
authored or co-authored fourteen books on the application of technology in business and
society. His book, Wikinomics: How Mass Collaboration Changes Everything, co-
authored by Anthony D. Williams, was an international bestseller and was translated into
20 languages. His another book The Digital Economy was among the first to show how
the internet would change the way we did business.
***************************************************************************
51
Chapter – 3
GLOBALIZATION AND CROSS-CULTURAL LESSONS
Despite the growing importance of global business, Fortune 500 companies have reported a
shortage of global managers with the necessary skills. Some experts have argued that most
U.S. companies are not positioned to implement global strategies due to a lack of global
leadership capabilities.
It’s easy to understand the problem: communicating and working with people from different
countries can be a challenge—not just because of language issues but also because of
different cultural norms. For example, in the United States, they tend to be direct in their
communication. If you ask a U.S. manager a question, you’ll tend to get a direct answer. In
other cultures, particularly in southern Europe and Japan, the answer to a question begins
with background and context—not the bottom line—so that the listener will understand how
the person arrived at the conclusion. Similarly, in some cultures, it is considered rude to
deliver bad news or say “no” to a request—instead, the speaker would give a noncommittal
answer like “we’ll see” or “we’ll try.”
Country-by-country differences are so prevalent that a worldwide team of scholars proposed
to create and validate a theory of the relationship between culture and societal,
organizational, and leadership effectiveness. Called the GLOBE Project, it included 170
researchers working together for ten years to collect and analyze data on cultural values and
practices and leadership attributes from more than 17,000 managers in 62 societal cultures. In
its 2006 report, GLOBE identified the following nine dimensions of culture.
Performance Orientation
Should you reward people for performance improvement and excellence? In countries such
as the United States and Singapore, the answer is yes. Organizations in these countries use
employee training and development to help people improve their skills and performance. In
countries such as Russia and Greece, however, family and background count for more than
performance.
52
Uncertainty Avoidance
Life often brings unpredictable events, and with them, anxiety. Uncertainty avoidance
reflects the extent to which members of a society attempt to cope with anxiety by minimizing
uncertainty. Should you establish rules, procedures, and social norms to help your employees
deal with uncertainty? In countries where uncertainty avoidance is high, such as Brazil and
Switzerland, the answer is yes. People in such societies want strict rules, laws, and policies to
eliminate or control the unexpected. Employees in these countries tend to seek order,
consistency, and structure. Countries with low uncertainty avoidance, in contrast, are less
rule-oriented. They tolerate a variety of opinions and are open to change and taking risks.
Countries with low uncertainty avoidance include Hong Kong and Malaysia.
Assertiveness
How assertive, confrontational, or aggressive should you be in relationships with others? In
highly assertive countries such as the United States and Austria, competition between
individuals and groups is encouraged. Managers may set up incentives that reward the best
idea, even if it is contrary to established practices. People in less assertive countries, such as
Sweden and New Zealand, prefer harmony in relationships and emphasize loyalty and
solidarity.
Power Distance
Power distance reflects the extent to which the less powerful members of institutions and
organizations expect and accept that power is distributed unequally. Should you distribute
decision-making power equally among the group? In high-power-distance countries such as
Thailand, Brazil, and France, the answer is no. People in these societies expect unequal
power distribution and greater stratification, whether that stratification is economic, social, or
political. People in positions of authority in these countries expect (and receive) obedience.
Decision making is hierarchical with limited participation and communication. Australia, in
contrast, has a power distance rating that is much lower than the world average. The
Australian view reinforces cooperative interaction across power levels and stresses equality
and opportunity for everyone.
Gender Egalitarianism
Should you promote men rather than women? Countries with low gender egalitarianism are
male dominated. Men hold positions of power to a much greater extent in low-gender-
53
egalitarianism countries like Egypt and South Korea. Companies operating in more gender-
egalitarian countries such as the Nordic countries, Germany, and the Netherlands encourage
tolerance for diversity of ideas and roles, regardless of gender.
Institutional Collectivism
Institutional collectivism refers to the extent to which people act predominantly as a member
of a lifelong group or organization. Should you reward groups rather than individuals? In
countries with high institutional collectivism such as Sweden, the answer is yes. Countries
with low institutional collectivism, such as in the United States, emphasize individual
achievement and rewards.
Humane Orientation
Should you reward people for being fair, altruistic, generous, and kind to others? In countries
such as Malaysia, this practice is more prevalent and encouraged than in low-humane-
orientation countries such as Germany.
Future Orientation
Will your employees favor activities that involve planning and investing in the future for
long-term payoff? Or do they want to see short-term results? Future orientation is defined as
one’s expectations and the degree to which one is thoughtful about the future. It is a
multifaceted concept that includes planning, realism, and a sense of control. Companies in
countries with high future orientation, such as China and Singapore, will have a longer-term
planning horizon, and they will be more systematic about planning. Corporations in countries
that are the least future-oriented, such as Argentina and Russia, will be more opportunistic
and less systematic. At the same time, they will be less risk averse.
Global Ventures Gone Awry

When Corning proposed a joint venture with a Mexican glass manufacturer, Vitro, the match
seemed made in heaven. But just two years later, the venture was terminated. What
happened? Cultural clashes eroded what could have been a lucrative partnership. To start,
American managers were continually frustrated with what they perceived to be slow decision
making by Mexican managers. Mexico ranks higher on the power distance dimension than
the United States—company structures are hierarchical, and decisions are made only by top
54
managers. Loyalty to these managers is a high priority in Mexico, and trying to work around
them is a big taboo. Mexicans also have a less urgent approach to time. They see time as
more abundant than their U.S. counterparts. As a result, Mexicans thought that Americans
wanted to move too fast on decisions, and they perceived American directness in
communication as aggressive. Additional vignettes on managing across borders are shared
next.
**********************************************************************
55
Chapter-4
ANCIENT INDIAN MANAGEMENT PRINCIPLES
“VIDUROPADESA”
THE 50 PRINCIPLES OF VIDUROPADESA
Hundreds of ancient Indian management books are available even today in the printed form.
Most important among them are Bhagavath Gita, Yoga Vaasishta, Sukra neetisaara,
Bhartruhari’s upadesa sataka, Chanakya neetisaara, Bhishmopadesa, Bharatopadesa,
Lakshamnopadesa, hundreds of Subhashitas, dialogues/advice given by the gurus /Rushies
in Ramayana and Mahabharata…and so on. These books and many other books of the same
quality explain the management messages adoptable and adaptable for the 21st
century. Here, we present a few messages from Viduropadesa in the same order as it is given
in his book. These messages are given by Vidura, to Dhrutharaashtra, when the latter was
terribly confused whether to support his son Duryodhana who was practicing all adharma
or support Dharmaputra who was the embodiment of dharma. At the junction of this
confusion and self-analysis, Dhrutharaashtra invited his brother Vidura for consultation and
for a solution to overcome the problems. The messages given by Vidura to Dhrutharaashtra
are known as Viduropadesha, which is a part of Mahabharatha, the great epic of Bharath.
56
The 50 Principles
1. A scholar/ manager should have spiritual knowledge, devotion towards work, patience,
endurance, moral strength.
2. He should use the moral strength for protecting dharmic values; devotion towards work
should be used for earning money and controlling luxurious expectations and the spiritual
knowledge should be used for detachment.
3. The scholar should follow dharma and never practice adharma.
4. He should have faith in God and concentration towards work.
5. He should not get angry nor get excited / nor show the ego /nor be childish. He should not
be a spent thrift and should not think ‘I am great and respectable’.
6. Should take other’s advice/ opinion before undertaking /doing a work.
7. He should not disclose everything about a work before it is completed.
8. Heat, cold, fear, happiness, unhappiness, luxury, poverty, etc., should not affect him
positively or negatively.
9. He should not focus too much on the negatives or positives.
10. He should focus mainly on the work (Karma) / mission only.
11. A scholar/manager should use his wisdom for dharmic mission and also for prosperity in
a dharmic way.
12. He should get away/ relieved from luxury / extravaganza in his life.
13. Expect what he deserves and whole heartedly work to achieve the goal (expectations).
14. Never ignore anything nor consider as silly; take the work seriously.
15. Try to listen as much as possible from all sources.
16. Try to learn quickly and systematically.
17. Never start any work without a deep understanding about the work.
18. Never interfere with others’ work without their consent.
57
19. Never talk in between without the consent of the speaker.
20. Never expect which you will not get; never feel sad on what you lost forever and keep
stability during crisis.
21. A manager should use powerful and attractive words during discussions.
22. He should be in a position to convince others easily.
23. His words should reflect his wisdom and should be capable for interpreting the rules
positively.
24. He should become a model for others in words and deeds.
25. His knowledge + experience + wisdom + action should work complementary to each
other.
26. His qualification, method of action and attitudes should also complement each other.
27. He should never become crazy for money but should earn that through hard work.
28. Never give up any mission undertaken without completing it, however difficult may that
be.
29. Never interfere with others’ work if it does not come under your purview.
30. Treat the friends with the same dignity they show to you and never be over polite to those
who do not respect / love you and never give up any good friends.
31. Do not show affection / love to those who do not reciprocate and never try to fight with
strong and powerful people.
32. Never try to impress by showing that an enemy is your friend.
33. Never ill treat your good friends and never do bad against them / others.
34. Never try to project yourself, never doubt others (for everything).
35. Do the work undertaken within specific time limit.
36. Respect the parents and forefathers, keep faith in the divine power and also try to make
good friends.
58
37. Never enter into a house without invitation, never try to answer to a question without
asking and never try to put trust on those who are not trustworthy.
38. Criticizing others for doing something and doing the same thing by self is foolishness.
39. Knowing well that self is incapable of doing something and then getting angry on
others is foolishness.
40. Without knowing our own limitations and without doing any work / strain, trying to grab
wealth of others is foolish.
41. Never advise those who do not deserve/ seek your guidance.
41. Expect nothing from a miser and from a useless fellow.
42. Try to follow the footsteps of highly educated, hardworking man who makes money in a
dharmic way.
43. Share the food and money with others for making friendship.
44. Remember that many people do heinous work and others suffer.
45. Many a times those who create problems escape from the punishment.
46. The arrow shot from a bow may or may not kill but the intellectual power shot from an
intelligent man can even uproot a nation.
47. A poison and an arrow may kill only to whom it was given/shot, the advice of a manager
can destroy the whole system, including the manager himself.
48. Never eat tasty food alone, never analyze a serious matter alone, never go for a long tour
alone, and never walk away from a group of people sleeping together.
49. Just as a ship is needed for crossing the ocean, similarly truth is needed for solving the
problems.
50. Only one criticism / blame may have to be faced by a manager having good patience.
That is ‘the manager is a coward’’ he will not have to face any other blame
because patience is a great quality which attracts many.
59
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EVOLUTION OF

EVOLUTION OF MANAGEMENT THOUGHTS

ANCIENT INDIAN MANAGEMENT PRINCIPLES

EVOLUTION OF MANAGEMENT THOUGHTS (MANAGERIAL

Management is studied in business academics since earlier times and it is considered as an

Early Management Thought

The Classical Approach

Scientific Management: Scientific management which is also referred to Taylorism or the

Administrative Management: Administrative Management emphasizes the manager and the

Henry Fayol's Administrative Management (1841–1925): Henri Fayol is known as the

exhorts managers to "Sacrifice Personal Vanity" in order to permit subordinates to

Modern Management Approaches

Behavioral Approach: Numerous theorists developed the behavioural approach of

subordinates, group problem solving by consensus within groups and overlapping

1. Social system: The organization in general is a social system and consists of

Contingency Approach: This approach of management thought focuses on management

The Quantitative Approach of Management Thought

purchasing and inventory control, quality control, computer integrated manufacturing,

Systems Approach of Management Thought

Early Management Principles

Fayol’s 14 Principles of Management

1) Specialization/Division of Labor: By specializing in a limited set of activities,

Time and Motion

Likewise, a services-based economy requires interactions between employees and customers.

"Strategy is about stretching limited resources to fit

"Real leaders, I have found, exhibit an enthusiasm for

"Globalization means that multinationals target only the top

Bala Balachandran is one of the top management gurus of

"Even if you have a (person) with the same sort of qualities

"Your mind is a Thoughts Factory and you are the

GLOBAL MANAGEMENT GURUS

DR. JOHN P. KOTTER

Michael Eugene Porter is a Bishop William Lawrence University Professor at

JAMES COLLINS III

Mr. James Collins III is a management philosopher, a consultant, a teacher, and

NASSIM NICHOLAS TALEB

Daniel Goleman is an internationally recognized psychologist who lectures frequently

HOWARD EARL GARDNER

Howard Earl Gardner is an American developmental psychologist. He is the John H.

MANFRED F.R. KETS DE VRIES

Barbara Kellerman is the James MacGregor Burns Lecturer in Public Leadership at

KJELL ANDERS NORDSTROM

Kjell Anders Nordstrom is Europe’s number one Strategic Management thinker. He is

DR. PHILIP KOTLER

Lynda Gratton is a Professor of Management Practice at London Business School.

Henry Mintzberg is a professor at McGill University in Montreal for 40 years. He is a

Tamara J. Erickson is a McKinsey Award-winning author, a leading expert on

Charles Handy is an Irish author and philosopher specialising in organisational

Currently a visiting professor at Ashridge Business School and IE Business School.

NIALL CAMPBELL DOUGLAS FERGUSON

Primarily a teacher of History, Niall Campbell Douglas Ferguson later became a

ERIC EMERSON SCHMIDT

Eric Emerson Schmidt is a software engineer, a politician and a management

Don Tapscott is Adjunct Professor of Management at the Joseph L. Rotman School of

GLOBALIZATION AND CROSS-CULTURAL LESSONS

Global Ventures Gone Awry

ANCIENT INDIAN MANAGEMENT PRINCIPLES

THE 50 PRINCIPLES OF VIDUROPADESA

Bhartruhari’s upadesa sataka, Chanakya neetisaara, Bhishmopadesa, Bharatopadesa,

Lakshamnopadesa, hundreds of Subhashitas, dialogues/advice given by the gurus /Rushies

endurance, moral strength.

knowledge should be used for detachment.