Why study

Management?
The Value of Studying Management
The universality of management
 Good management is needed
in all organizations.
The reality of work
 Employees either manage or
are managed.
Rewards and challenges of being
a manager
 Management offers challenging,
exciting and creative opportunities for
meaningful and fulfilling work.
 Successful managers receive
Universal Need for
Management
Evolution Of Management
Thought
 Evolution Of Management
Thought
Evolution of management thought is divided into the
following
four stages:
1. 1. Pre-scientific or Pre-classical management period
2. 2. Classical Management theory
a. Scientific Management of Taylor
b. Administrative Management of Fayol
c.Bereaucratic Model of Max Weber
3. Neo-classical theory or Behavioural theory
4. Modern theory
a. System approach
b. Contingency approach
Prescientific or Preclassical Management Period:
The advent of industrial revolution in the middle of the century
had its impact on management.
During the period, following the industrial revolution, certain
pioneers tried to challenge the traditional character
management by introducing new ideas and
of
approaches.
1. Robert
 Owen
Believed that(1771-1858)
worker’s performance in industry was
influenced by the working conditions and treatment the
workers.
 Introduced the new ideas of human relations such as
shorter
working hours, housing facilities, training of workers
in
hygiene, education of their children, provision of canteen
etc.
 Father of Personnel Management
2. Charles Babbage (1792-
1871) Father of Modern
Computing a little use of science
 mathematics
The and that they relied
manufacturers andupon opinions instead of
investigations
made and accurate knowledge.
 He felt that the methods of science and mathematics could
be applied to the solution of methods in place of guess work
for the solution of business problems.
 He advocated the use of accurate observations,
measurement
and precise knowledge for taking the business decisions.
 His management ideas anticipated the concept of profit
sharing to improve the productivity.
3. Henry Robinson Towne ( 1844-1924)
 President of the famous lock manufacturing company “yale
and town”
 He advised the combination of engineers and economists as
industrial managers.
 This combination of qualities together with at least some
skill as an accountant is essential to the successful
management of industrial workers.
 Classical Management
Theory
Developed during the Industry Revolution when new problems
related to the factory system started to appear.
Managers were unsure of how to train employees or deal with
the increased labour dissatisfaction, they began to
test
solutions.
The classical management theory developed from efforts to
find the “one best way” to perform and manage tasks.
Classical Management theory made up of three parts:
1. Scientific Management theory
2. Administrative management
theory
3. Bureaucratic management theory
 Scientific Management
Theory
 Defined as the use of the scientific method to define
the “one best way” for a job to be done.
 Developed due to the need to increase
the
productivity and efficiency.
 Trying to find the best way to get the most
work done by
 Examining how the work process was
accomplished
actually
 Scrutinizing the skills of the
workforce.
Major contributors of this scientific management theory:
1. Frederick W. Taylor (1856-1915)
Father of scientific management
Taylor’s Four Management
Principles:
 Develop a science for each element of an individual’s work,
 which replaces
Scientifically the old
select andrule of thumb
then train,method.
and develop the
teach (Previously, workers chose their own work)
worker.
 Heartily cooperation between management & workers.
 Divide and work responsibility almost equally
between
management and workers.
A mental revolution in the form of constant
cooperation
between the employer and employees should be given
the benefits of scientific management.
2. Henry Gantt(1861-1919)
 Developed the Gantt chart in which a bar graph measures
the
planned and completed work along each stage of
production.
 Used as a planning and control tool developed in 1910.
 Unique pay incentive system and social
responsibility of business.
 Unique pay incentive system providing extra wages for
extra work besides guarantee of minimum wages.
 If a worker completes the work laid out for him, he is paid a
definite bonus in addition to his daily minimum wages.
3. Frank Gilbreths(1868-1924) and Lillian
Gilbreths (1878- 1972)
 Break-up into each of its component actions and analyse
every
individual action necessary to perform a particular task
 Find better ways to perform each component action
 Reorganise each of the component actions so that the action
as a whole could be more efficiently performed at less cost
of time and effort.
 Time study [standard time * working hours = Fair day’s
work]
 Motion study
 Standardization
 Differential piece wage (Pay) Plan
Elements of Scientific Management:
Taylor conducted various experiments at the work place to find
out how human beings could be made more efficient by
standardizing the work.
1. Planning the task:
 Taylor suggests the separation of planning from actual
doing.
 Taylor says that the supervisor should do the planning
 The workers only concentrate on doing the work.
2. Scientific task and Rate-setting(Work study)
Work study may be defined as the systematic, objective and
critical examination of all factors governing the efficiency of any
specified activity in order to obtain the effective improvement .
It can be determined by method, motion, time and fatigue
studies
(a) Method study
The management should try to ensure that the plant is laid out
in the best manner and it is equipped with the best tools and
machinery.
The possibilities of eliminating or combining certain operations
may be studied.
(b) Motion study
Study of the movement of an operator (or even of a machine)
in performing an operation with the purpose of eliminating
useless motions.
(c) Time study
Determines the proper time for performing the operations. The
movement which takes minimum time is the best one.
It helps in firms/companies to know the fair work for a period.
(d) Fatigue
study
 Employees get both physical as well as mental fatigue easily.
 Fatigue study indicates the amount and frequency of rest
required in completing the job.
 Taylor suggests a fair day’s work requiring certain movements
and rest periods to complete it.
(e) Rate setting
Taylor recommended the differential piece wage system under
which workers performing the standard task within prescribed
time are paid much higher rate per unit than inefficient workers
who are not able to come up to the standard set.
3. Scientific selection and training:
 Taylor suggested that workers should scientifically be selected
by a central personnel department.
 The procedure of selection will also have to be
 A worker should be physically and technically most
suitable for the selected post.
 After selection, the workers should be given a proper training
which makes them more efficient and effective.
4. Standardization:
 Standards must be maintained in the aspect of equipments
and tools, materials, period of work, amount of work,
working conditions, cost of production etc.
 Standards will be fixed in advance on the basis of various
experiments.
5. Specialization:
Taylor developed a theory called “functional foremanship”
based on the specialization of function.
 Under this plan, two functions of planning and doing are
separated in the organization of the plant.
 Functional Foreman are specialists who join their heads to
give thought to the planning of the performance of the
operations in the workshop.
Eight functional foreman were involved to direct and control the
activities of the workers.
(i) Route clerk
To lay down the sequence of operations, the workers
are instructed about it.
(ii) Instruction card clerk:
To prepare the detailed instructions regarding
different aspects of work.
(iii) Time and cost clerk:
To send all information relating to their pay of the
workers and to secure the proper returns of work from
them.
(iv) Shop disciplinarian:
To deal with cases of breach of discipline and
absenteeism.
(v) Gang Boss:
To assemble and set up tools and machines and to teach
the workers to make all their personal motions at the
quickest and best way.
(vi) Speed
properBoss:
tools are used by the
workers.
To ensure that machines are run at their best speeds and
(vii) Repair boss:
To ensure that machines are run at their best speeds
and proper tools are used by the workers.
(viii) Inspector:
To show to the worker how to do the work.
6. Financial Incentives:
 Financial incentives can motivate the workers to put up
their
maximum efforts.
 Taylor has suggested that wages should be based on
individual performance and not on the position which he
occupies.
 According to this scheme, a worker who completes the
normal work gets wages at higher rate and who does not
7.Economy:
Scientific management enhances profit and economy.
The economy and profit can be achieved by making the
resources more productive as well as by eliminating the
wastages.
8. Mental Revolution:
 Scientific management is based on co-operation between
management and workers.
 Co-operation enhances the effective managerial activities.
 Mutual conflict should be replaced by mutual co-operation
which is beneficial to both.

MG8591-PRINCIPLES OF MANAGEMENT/ V. REVATHY / AP- CSE /AEC

Benefits of Scientific Management:
The benefits of scientific management:
1. Replacement of traditional rule of thumb method by
scientific techniques.
2. Proper selection and training of workers.
3. Incentive wages to the workers for higher production.
4. Elimination of wastes and rationalization of system of
control.
5. Standardization of tools, equipment, materials and
work methods.
6. Detailed instructions and constant guidance of the
workers.
7. Establishment of harmonious relationship between
workers.
quality products at lower
Criticism of Scientific Management:
It is accepted that the scientific management enables
the management to put resources to its best possible
use and manner, yet it has not been spared of severe
criticism.
Workers view Point:
 Unemployment
Workers feel that management reduces employment
opportunities from them through replacement of men by
machines and by increasing human productivity less workers
are needed to do work leading to chucking out from their
jobs.
 Monotony:
Due to excessive specialization the workers are not able to
take initiative on their own.
Jobs become dull.
Weakening of Trade Union:
 To everything is fixed and predetermined by management.
So it leaves no room for trade unions to bargain as
everything is standardized, standard output, standard
working conditions, standard time etc.
 This further weakens trade unions, creates a rift
between efficient & inefficient workers according to
their wages.
Over speeding:
 The scientific management lays standard output, time so
they have to rush up and finish the work on time.
 These have adverse effect on health of workers. The
workers speed up to that standard output, so scientific
management drives the workers to rush towards output
and finish work in standard time.
Employer’s view point:
Expensive
 Scientific management is a costly system and a huge
investment is required in establishment of planning
department standardization, work study, training of
workers.
 It may be beyond reach of small firms.
 Heavy food investment leads to increase in overhead costs.
Time consuming:
 Scientific management requires mental revision and
complete
reorganizing of organizing.
 Lot of time is required for work, study, standardization
& Specialization.
 During this overhauling of organization, the work