MANAGEMENT THAUGHTS

SUBMITED TO PROF. LATA SINGH

PRESENTED BY SANTANU DUTTA ROLL NO.PG-11038 PGDM 2011-13

Frederick W. Taylor(18561915) father of Scientific Management Frederick W. Taylor rested his

philosophy on four basic principles: The development of a true science of management, so that the best method for performing each task could be determined. The scientific selection of workers, so that each worker would be given responsibility for the task for which he or she was best suited. The scientific education and development of the worker. Intimate, friendly cooperation between 22 management and labour.

Contributions of Scientific Management Theory

The efficiency techniques of scientific management theory have been applied to modern assembly line & to many tasks in nonindustrial organizations (e.g., fast-food service) and increased their efficiency.

33

Limitations of Scientific Management Theory

Workers & unions began to oppose this approach because they feared that working harder or faster would exhaust whatever work was available causing layoffs. His critics objected to the speed up conditions that placed undue pressures on employees to perform at faster & faster levels. The emphasis on productivity and by extension profitability led some managers to exploit both workers and customers.
44

Classical Organization Theory School Henri Fayol (1841-

1925)
He is generally hailed as the founder of the classical management school not because he was the first to investigate managerial behavior, but because he was the first to systematize it.

55

1.

Division of Labour: The most people specialize, the more efficiently they can perform their work, e.g., modern assembly line. Authority: Besides formal authority, managers musty have personal authority to compel obedience. Discipline: Members in an org. need to respect the rules & agreements that govern the org. Unity of Command: Each employee must receive instructions from only one person. Unity of Direction: Operations within the 66 org. having the same objective should be

Fayols 14 Principles of Management

2.

3.

4.

5.

6.

Subordination of individual interest to the common good. Remuneration: Compensation for worm done should be fair to both employees and employers. Centralization: decreasing the role of subordinates in decision making is centralization; increasing their role is decentralization. He believed that managers should retain final responsibility but at the same time give the subordinates enough authority to do their jobs properly. The problem is to find the proper degree of centralization in each case. Hierarchy: The line of authority in an org. runs in order of rank from top management 77

7.

8.

9.

10.

Order: Materials & people should be in the right place at the right time. Equity: managers should be both friendly and fair to their subordinates. Stability of Staff: A high employee turnover rate undermines the efficient functioning of an org. Initiative: Subordinates should be given the freedom to conceive and carry out their plans, even though some mistakes may result. Esprit de Corps: Promoting team spirit will give the org. a sense of unity.
88

12.

13.

14.

15.

Human Relations Theory

The Hawthorne Studies Hawthorne Works of Western Electric Company 1924 - Chicago Research focus: Relation of quality and quantity of illumination to efficiency in industry Four Important Studies

The Hawthorne Studies

lumination Study (November 1924)

esigned to test the effect of lighting intensity on worker productivity

euristic value: influence of human relations on work behavior

elay Assembly Test Room Study (1927-1932)

ssembly of telephone relays (35 parts - 4 machine screws)

roduction and satisfaction increased regardless of IV manipulation

Workers increased production and satisfaction related to supervisory practices

uman interrelationships are important contributing factors to worker productivity

ottom Line: Supervisory practices increase employee morale AND productivity

nterviewing Program (1928-1930)

nvestigate connection between supervisory practices and employee morale

mployees expressed their ideas and feelings (e.g., likes and dislikes)

rocess more important than actual results

ank Wiring Room Observation Study (November 1931 - May 1932)

ocial groups can influence production and individual work behavior

Q: How is social control manifested on the shop floor?

nformal organization constrains employee behavior within formal organizational structure

Principles of Human Relations Human relations Theory theory is characterized by a shift in emphasis from TASK to WORKER
Go beyond physical contributions to include creative, cognitive, and emotional aspects of workers Based on a more dyadic (two-way) conceptualization of communication. SOCIAL RELATIONSHIPS are at the heart of organizational behavior-effectiveness is contingent on the social well-being of workers Workers communicate opinions, complaints, suggestions, and feelings to increase satisfaction and production Origins (Hawthorne Studies & work of Chester Barnard) Human Relations School of Management - Elton Mayo (Harvard

Hawthorne Studies - Criticisms

Not conducted with the appropriate scientific rigor necessary Too few subjects (N=5) No control groups Subjects replaced with more cooperative participants WORTHLESS GROSS ERRORS INCOMPETENCE

Max Weber Father of Theory of Bureaucracy

Weber defined bureaucracies as "goal-oriented organizations designed according

to rational principles in order to efficiently attain the stated goals" complex societies the ideal bureaucracy has these characteristics:

Weber saw the formation and execution of bureaucracies as necessary to

official business is conducted on a continuous basis business is conducted in accordance with some rules every official's responsibility and authority are part of a hierarchy of authority officials do not own the resources necessary for them to perform their assigned functions, but they are accountable for the use of those resources offices cannot be appropriated by their incumbents in the sense of property that can be inherited or sold on the basis of written documents

Theory of Bureaucracy:authority & res. Division of labour with clear

Hierarchy of authority Rules & regulations Decisions record Management should be separate from ownership.

Conclusion
..Most effective managers learn their skills through a combination of education and experience . They progress through a verity management situations .