Department of Technical Education

Andhra Pradesh
Name
Designation
Branch
Institute
Semester
Subject
Subject Code
Topic
Duration
Sub Topic
Teaching Aids
Revised by

: A. Satyanarayana
: Head of Mechanical Engineering
: Mechanical Engineering
: S.M.V.M.Polytechnic, Tanuku
: VI Semester
: Industrial Management & Entrepreneurship
: M602
: Principles and Functions of Management
: 50 min
: Definitions-Industry, Trade, Business
: Diagrams
: S.Srinivas .SL/Mech,GPW,Suryapet
9M602.1

Objectives
On completion of this period, you would be
able to know about

Business
Trade
Commerce
Industry
Evolution of Management

9M602.1

Definitions
Business : Means the state of being busy.
It includes trade , commerce and industry.
Trade

: Means buying and selling of goods

Commerce : It involves distributive process.

Consists of Trade, Storing, Grading, Packaging,
Financing,
Insuring and Transporting
Industry

: It is a process of Extraction or Production of

goods

9M602.1

Evolution of Management Theories

Evolution of Management thought can be divided
into four stages
Pre scientific period

Scientific management period (1900 1930)

Human relationships in organization (1930 1960)

(Neo classical period)

Modern period (Systems approach 1960 present)

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4

Pre Scientific Period

This era is prior to Taylors scientific management
movement
Prominent theorists during this period are
- Charles Babbage
- James Watt
- Henry Robinson Towne

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Scientific Management Period (1900-1930)

This is also known as classical period
During this period management was viewed as a
systematic network of functions
Prominent management theorists during this period are
- F.W. Taylor
- H.L.Gantt
- Henri Fayol
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Human Relations in Organisation

(Neo Classical Theory 1930 1960)
It considered the organisation as a socio technical system
It gave importance to factors like
- Motivation
- Leadership
- Communication
- Group Dynamics
Prominent theorists are
- Elton Mayo
- P.F. Drucker
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Prominent Theorists

F.W Taylor

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Elton Mayo

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Modern Period
(Systems Approach 1960 Present)
This recognised the organisation as system consisting of
several sub systems
It also recognised that organisation is a dynamic system
and is subjected to changes in environment
Prominent management theorists are
- Burns and Stalker
- P.R.Lawrence
- F.E.Kast
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10

Prominent Theorists

P.F Ducker
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11

Principles of Scientific Management

These principles were given by F.W.Taylor
He is considered as father of scientific management
The principles can be summarised as follows
- Science, not rule of thumb
- Co operation, not individualism
- Maximum output, In place of controlled output
- Harmony, not discontent
- Developing the worker to his greatest efficiency
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12

Summary
In todays Period, We have learnt about
Business

: State of busy

Trade

: Buying and selling

Commerce : Includes trade and Distribution

Industry

: Conversion process

Learnt evolution of management theories

Learnt scientific management principles.

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13

Quiz
1. State of busy is known as
a) Trade
b) Commerce
c) Business
d) Internal Trade

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Quiz
2. Art of converting raw material into finished product
a) Commerce
b) Domestic Trade
c) Productivity
d) Industry

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Quiz
3. Rate of production of goods is known as
a) Productivity
b) Production
c) Plant
d) Planning

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16

Quiz
4. Who is the father of scientific management
a) Charles Babbage
b) James Watt Jr.
c) F.W.Taylor
d) P.F.Drucker

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17

Quiz
5. One of the Proponents of Neo Classical theory
a) L. Gantt
b) P.F. Drucker
c) Henri Fayol
d) F.E.Kast

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18

Assignment
1. Identify the Companies performing the
following activities in your town/city
a) Trading
b) Commerce
c) Industry

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19