DIZON, Jhoanna Rose M.

BSN IV- A THEORY - Scientific Management Theory

DLP (NCM 107 lecture) Nursing leadership and management THEORIST Frederick Winslow Taylor (1856-1915) is the father of Scientific Management CONCEPTS Scientific Management tries to increase productivity by increasing efficiency and wages of the workers. It finds out the best method for performing each job. It selects employees by using Scientific Selection Procedures. It provides Scientific Training and Development to the employees. It believes in having a close cooperation between management and employees. It uses Division of Labor. It tries to produce maximum output by fixing Performance Standards for each job and by having a Differential Piece-Rate System for payment of wages. Principles of Scientific Management Principles of Scientific Management 1. Performance Standards The work was fixed assuming rule of thumb or the amount of work done by an average worker. Taylor introduced Time and Motion Studies to fix performance standards. He fixed performance standards for time, cost, and quality of work, which lead to uniformity of work. As a result, the efficiency of the workers could be compared with each other. 2. Differential Piece Rate System Taylor used the differential piece (unit) rate system. Under differential piece rate system, a standard output was first fixed. Then two wage rates were fixed as follows :Low wage rate was fixed for those workers who did not produce the standard output. Higher wage rate was fixed for those workers

Submitted to: Vilma Imasa RN, MAN

ADVANTAGES Scientific management is essential for any type of business these days. It aims at introducing new and improved methods of production and removal of wastage and inefficiency in undertaking the production activities. One of its main aims is to effect a considerable increase in the level of production. On account of large scale production, per unit cost of production is considerably reduced. By resorting to the measures of standardization and effective supervision, better quality products are ensured. The division of labor is also given increased importance under this type of management as it strictly believes in the principle of scientific management. The work is simplified and is carried out in most economical and efficient manner. Scientific management is instrumental in developing healthy cooperation between the management and the subordinates thereby encouraging cordial and harmonious relations between the two. The result is that disagreements that are a common occurrence in industry get considerably reduced. A concept of mental revolution for the development of close understanding, mutual trust and confidence between the labor and the management is also given importance in this type of management. This type of management is also beneficial for the workers as they start getting higher salaries than before. The higher wages and different incentive plans are

DISADVANTAGES Although Taylors methods led to dramatic increases in productivity and to higher pay in a number of instances, workers and unions began to oppose his approach because as they feared that working harder or faster would exhaust whatever work was available causing layoffs. Moreover, Taylors system clearly meant that time was of the essence. His critics objected to the speed up conditions that placed undue pressures on employees to perform at faster and faster levels. The emphasis Productivity and by extension profitability led some managers to exploit both workers and customers. As a result, more workers joined unions and thus reinforced a pattern of suspicion mistrust that shaded labormanagement relations for decades. Henry L Gantt (18611919) worked with Taylor on several projects. But when he went out on his own as a consulting industrial engineer Gantt began to reconsider Taylors incentive system. Abandoning the differential rate system as having too little motivational impact, Gantt came up with new idea. Every worker who finished a days assigned work load would win a 50 cent bonus. Then he added a second motivation. The supervisor would earn a bonus for each worker who reached the daily standard, plus an extra bonus if all the workers reached it. This, Gantt reasoned would spur supervisors to train their workers to do a better job. Every workers progress was rated publicly and recorder on individuals bar charts in black on

who produced the standard output or who produced more than the standard output. Differential piece-rate system can be explained with following example :The standard output for a day is 10 units. The wage rate for producing less than 10 units is $ 5 per unit, and for producing 10 or more units is $ 8 per unit. If Mr. X produces 7 units, and Mr. Y produces 12 units, then their wages will be as follows :Mr. X's wage is 7 x 5 = $ 35 Mr. Y's wage is 12 x 8 = $ 96 Because of this system, the inefficient workers will try to improve their efficiency, and the efficient workers will be motivated to maintain or improve their production capacity. 3. Functional Foremanship Taylor started "Functional Foremanship". Here, 8 foremen (lower level manager or supervisor) are required to supervise the workers. This is because one foremen cannot be an expert in all the functions. Taylor's functional foremanship consists of two groups of supervisors At the Planning Level or Office Level. At the Doing Level or Factory Level. (a) At the Planning Level Taylor separated planning from doing. At the planning level there were four supervisors. They are Time and Cost Clerk : This boss prepares the standard time for completing the work and cost of doing that work. Route Clerk : This boss makes the exact route (way) through which each product has to travel from a rawmaterial to a finished product. Discipline Clerk : This boss looks after the discipline and

helpful in increasing the standard of production. Increased standard of production leads to more turn over and enhances the profit of investor. Higher profits can be utilized for sloughing back or self-financing in order to provide sound financial base to the concern. One of the main principles of scientific management is that it undertakes scientific selection, placement and training of the industrial employees. The recruitment is also done on scientific lines and the right kind of man is chosen for the exact post. Scientific management provides proper atmosphere of work to the personnel. Proper working hours followed by rest pauses, adequate lightning, freshening, ensuring proper safety, provision of many other facilities etc. are made certain. Under scientific management, the work is carried out systematically in accordance with predetermined plans. Wastage of time is reduced to a minimum and the quality of work is enhanced. Production operations are preestablished and this results in lesser production delays.

days the worker made the standard in red when he or she fell below it. Going this, Gantt originated a charting system for production scheduling; the Gantt chart is still in use today. In fact, the Gantt Chart was translated into eight languages and used throughout the world. Starting in the 1920s, it was in Japan, Spain, and the Soviet Union. It also formed the basis for two charting devices which were developed to assist in planning managing and controlling complex organizations; the Critical Path Method (CPM), originated by Du Pont, and Program Evaluation and Review Technique (PERT), developed by the Navy. Lotus 1-2-3 is also creative applications of the Gantt Chart.

absenteeism problems in the organization. Instruction Card Clerk : The boss gives instructions about how to do a particular work. (b) At the Doing Level :At the doing level there were also four supervisors. They are :Gang Boss : He is responsible for setting up the machines and tools and for direct supervision of workers. Speed Boss : He is responsible for maintaining a proper speed of work. Repair Boss : He is responsible for the repairs and maintenance of machines. Inspector Boss : He is responsible for maintaining the quality of production. 4. Mental Revolution Taylor introduced the concept of "Mental Revolution". He said that the management and workers should have a positive attitude towards each other. This will result in close cooperation between them. This will increase productivity and profits. 5. Time Study Time study means to record the time taken for doing each part of a job.. This is done by using a stop clock. Time study helps the management to know exactly how much time it will take to do a particular job. This helps the management to fix the amount of work to be done by each worker in one hour or in one day. 6. Fatigue and Motion Study Frank and Lillian Gilbreth (Husband and Wife) introduced fatigue and motion studies. Fatigue and motion studies find out and remove unnecessary and wasteful movements while doing the job. According to the Gilbreths, fatigue

(tiredness) and motion (movements or actions) are interlinked. Gilbreths asked the workers to stop all unnecessary motions and to do only the motions which were necessary for doing the job. They reduced the bricklayers' motions from 18 to 5. This also reduced the fatigue of the bricklayers. Therefore, productivity of workers increased. 7. Gantt Charts Henry Gantt invented the Gantt chart. This chart shows the planned work and the completed work at each stage of production. It also shows the time taken to do the work. Gantt chart is the basis for following two concepts :The Critical Path Method (CPM), and The Program Evaluation Review Technique (PERT).

Bureaucratic theory

Max Weber

a formal system of organization based on clearly defined hierarchical levels and roles in order to maintain efficiency and effectiveness. three types of power in an organization :Traditional Power, Charismatic Power, and Bureaucratic Power Or Legal Power.

Features of Bureaucratic Organization The characteristics or features of Bureaucratic Organization are as follows :There is a high degree of Division of Labor and Specialization. There is a well defined Hierarchy of Authority. It follows the principle of Rationality, Objectively and Consistency. There are Formal and Impersonal relations among the member of the organization. Interpersonal relations

Top-level managers in bureaucratic organizational structures exercise a great deal of control over organizational strategy decisions, which is ideal for business owners with a command and control style. Strategic decisionmaking time can be shorter in a tall organizational structure, since less individuals are involved in the process. Standardization and best-practices are often highlights in companies with tall organizational structures, ensuring that work is consistently completed efficiently and effectively. Webers bureaucracy is based on logic and rationality which are supported by trained and qualified specialists. The element of a bureaucracy offers a stable and hierarchical model for an organization.

-Too much emphasis on rules and regulations. The rules and regulations are rigid and inflexible. -No importance is given to informal groups. Nowadays, informal groups play an important role in all business organizations. -Bureaucracy involves a lot of paper work. This results in lot of wastage of time, effort and money. -There will be unnecessary delay in decision-making due to formalities and rules. Bureaucratic model may be suitable for government organizations. But it is not suitable for business organizations because business organizations believe in quick decision making and flexibility in procedures. -Too much importance is given to the technical qualifications of the employees for promotion and transfers. Dedication and commitment of the employee is not

are based on positions and not on personalities. There are well defined Rules and Regulations. There rules cover all the duties and rights of the employees. These rules must be strictly followed. There are well defined Methods for all types of work. Selection and Promotion is based on Technical qualifications. Only Bureaucratic or legal power is given importance. Administrative Theory Henri Fayol Fayol is called the "Father of Modern Management". Henri Fayol was a French industrialist and a management consultant. He started the functional approach to management. Administrative theory focuses on the total organization and attempts to develop principles that will direct managers to more efficient activities. Henri Fayol in his book titled "Industrial and General Administration" published in 1916, gave following 14 principles of management :-Division of Work, -Discipline, -Authority and responsibility, -Subordination of Individual Interest to General Interest, -Remuneration, -Centralization, -Order, -Equity, -Initiative, -Esprit De Corps, -Stability of Tenure, -Unity of Direction, -Scalar Chain, and -Unity of Command. Henri Fayol also classified (divided) the business activities into :-Technical, -Commercial, -Financial, -Accounting, -Security, and -Managerial Activities. According to Henri Fayol, there are five functions of management, viz., -Planning, -Organizing, -Commanding (Directing), -Coordinating, and -Controlling. According to Fayol, a manager requires the following qualities and skills :-Physical Qualities, Fayol believed by focusing on managerial practices he could minimize misunderstandings and increase efficiency in organizations. He enlightened managers on how to accomplish their managerial duties, and the practices in which they should engage. In his book General and Industrial Management. Fayol outlined his theory of general management, which he believed could be applied to the administration of myriad industries. His concern was with the administrative apparatus (or functions of administration), and to that end he presented his administrative theory, that is, principles and elements of management.

considered. There is difficulty in coordination and communication. -There is limited scope for Human Resource (HR).

Henri Fayol's management principles and functions are used even today for managing the organizations. However, his Administrative Management Theory is criticized on the following grounds :Management Oriented Theory : The administrative management theory is management oriented. It does not give much attention to the problems of the workers. Lack of Importance to Informal Organization : The administrative management theory does not give any importance to informal organization or groups. It gives importance only to the formal organization structure. Concepts Borrowed From Military Science : Some of the concepts of administrative management theory were borrowed from military science. They tried to apply these concepts to the social and business organizations. For e.g. Henri Fayol gave importance to "commanding" and not "directing" the workers. Mechanical Approach : The administrative management theory has a mechanical approach. It does not deal with some of the important aspects of management such as motivation, communication and leading.

-Mental qualities, -Moral qualities, -General education, -Special knowledge, and -Work Experience Theory X and Y Douglas Mcgregor theory x ('authoritarian management' style) -The average person dislikes work and will avoid it he/she can. -Therefore most people must be forced with the threat of punishment to work towards organizational objectives. -The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else. theory y ('participative management' style) -Effort in work is as natural as work and play. -People will apply selfcontrol and selfdirection in the pursuit of organizational objectives, without external control or the threat of punishment. -Commitment to objectives is a function of rewards associated with their achievement. -People usually accept and often seek responsibility. -The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population. -In industry the intellectual potential of the average person is only partly utilized. A strength is that it is easy to understand. Another strength is that it may help focus a managers thoughts on the different ways people relate to work. the biggest advantage of using Theory X and Theory Y is that they are easy to understand. In addition to this, they can help a manager to focus on his thoughts on the different ways in which individuals relate to and carry out work. A weakness is that McGregor's methodology was flawed (his sample was not representative so the results cannot be generalized) and his conclusions were not representative of even his flawed data. Contrary to what the theory suggests, most people in his sample did not fall into the extremes of orientation towards work he suggested but tended to be on a continuum between the two. McGregor's Theory X: Theory Y is, on balance, too simplistic and too flawed to be useful.

Theory Z

One was developed by Abraham H. Maslow in his paper Theory Z and the other is Dr. William Ouchi's so-called "Japanese Management" style popularized during the Asian economic boom of the 1980s. The third was developed by W. J. Reddin in Managerial Effectiveness

Theory Z is the name applied to the so-called "Japanese Management" style popularized during the Asian economic boom of the 1980s. In contrast Theory X, which stated that workers inherently dislike and avoid work and must be driven to it, and Theory Y, which stated that work is natural and can be a source of satisfaction when aimed at higher order human

William Ouchis Theory Z have all proven to be useful in the management field. Many companies have successfully integrated similar economic and human principles in a management style from theories Y and Z. Many Japanese employees are guaranteed a position for life, increasing their loyalty to the company. Careful evaluation

Type Z organizations tend to experience a loss of professionalism. Emphasis is placed on working as a team rather than the hiring of specialized skills. Employees tend to read fewer journals, write fewer articles, and attend fewer professional meetings. They may have an attitude that all valuable information can be found within the company; this leads no

psychological needs, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Dr. William Ouchi, its leading proponent, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction. Characteristics of the Theory Z * Long-term employment and job security * Collective responsibility * Implicit, informal control with explicit, formalized measures * Collective decisionmaking * Slow evaluation and promotion * Moderately specialized careers * Concern for a total person, including their family Theory Z is a form of management in which workers are involved in the work process on the factory floor. Schedules, division of labor, work assignments, and other aspects of the labor process are given over to workers to do as they see best. Investment policies, wages, fringe benefits and kind of product are not given over to workers to decide; only how best to do that decided by top management.

occurs over a period of time, and the responsibility for success or failure is shared among employees and management. Most employees do not specialize in one skill area, but work at several different tasks, learning more about the company as they develop. And Japanese companies are often concerned about all aspects of their employees' lives, on and off the job. According to Ouchi, Type Z organizations tend to have stable employment, high productivity, and high employee morale and satisfaction.

external point of comparison. Type Z companies also tend to be sexist and racist. The cast of people is homogeneous.

Theory Z essentially advocates a combination of all that's best about Mcgregor's XY theory and modern Japanese management, which places a large amount of freedom and trust with workers, and assumes that workers have a strong loyalty and interest in teamworking and the organization. Theory Z also places more reliance on the attitude and

responsibilities of the workers, whereas Mcgregor's XY theory is mainly focused on management and motivation from the manager's and organizations perspective.

Two factor theory

Frederick Herzberg

Hygiene Factors Hygiene factors are based on the need to for a business to avoid unpleasantness at work. If these factors are considered inadequate by employees, then they can cause dissatisfaction with work. Hygiene factors include: - Company policy and administration - Wages, salaries and other financial remuneration - Quality of supervision - Quality of interpersonal relations - Working conditions - Feelings of job security Motivator Factors Motivator factors are based on an individual's need for personal growth. When they exist, motivator factors actively create job satisfaction. If they are effective, then they can motivate an individual to achieve aboveaverage performance and effort. Motivator factors include: - Status - Opportunity for advancement - Gaining recognition - Responsibility - Challenging / stimulating work - Sense of personal achievement & personal growth in a job There is some similarity between Herzberg's and Maslow's models. They both suggest that needs have to be satisfied for the employee to be motivated. However, Herzberg argues that only the higher levels of the Maslow Hierarchy (e.g. self-actualization, esteem needs) act as a

The advantages of Herzberg's theory is in identifying that there are factors that in general will motivate and demotivate groups of employees, some of which are in the control of managers (like level of responsibility and working conditions) and some which are outside of their control (like personal life). Herzberg's model can be used to identify broad issues that need to be addressed or mitigated in general. For example, in an environment where employees are unsure of their job security, managers can try to mitigate the demotivating effect by providing open communication, and by reassuring employees about the situation.

-The two-factor theory overlooks situational variables. -Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by -Herzberg stressed upon satisfaction and ignored productivity. -The theorys reliability is uncertain. Analysis has to be made by the raters. The raters may spoil the findings by analyzing same response in different manner. -No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job. -The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. Also, the employees will give credit to themselves for the satisfaction factor at work. -The theory ignores blue-collar workers. Despite these limitations, Herzbergs Two-Factor theory is acceptable broadly.

motivator. The remaining needs can only cause dissatisfaction if not addressed.