Department Of Technical Education

Andhra Pradesh
Name : A. Satyanarayana
Designation : Head of Mechanical Engineering
Branch : Mechanical Engineering
Institute : S.M.V.M.Polytechnic, Tanuku
Semester : VI Semester
Subject : Industrial Management & Entrepreneurship
Subject Code: 9EC602
Topic : Principles of Management,Organisation
structure and behaviour
Duration : 50 mts
Sub Topic : Definitions-Industry, Trade, Business
Teaching Aids : Diagrams
Revised by : B.S.L.Prasanna
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 Objectives

On completion of this period, you would be

able to know about
• Business
• Trade
• Commerce
• Industry
• Evolution of Management

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 Some 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.

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 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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 Pre Scientific Period

• This era is prior to Taylor’s 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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 Prominent Theorists

P.F Ducker
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 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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 Summary

In this class, 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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 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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 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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 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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 Assignment

1. Identify the Companies performing the

following activities in your town/city
a) Trading
b) Commerce
c) Industry

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