Transcript MANAGEMENT*. AN INTRODUCTION

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F W Taylor
Henry Fayol
Elton Mayo
Hawthorne Studies
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Frederick W Taylor is regarded as
“The Father of Scientific
Management.” (Early 90’s)
He spent a large part of his life in
Midvale Steel Company, USA, as
an ordinary worker engaged in
metal cutting.
He noticed that business
enterprises were using the rule of
thumb instead of systematic
effort.
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Science, not rule of thumb.
Harmony, not discord.
Co-operation, not individualism.
Maximum output, in place of restricted
output.
The development of each man to his greatest
efficiency and prosperity.
1. Work Study: Work study is related to analysing
the work to be performed by eliminating
unnecessary operations and finding out the
quicker way for doing it.
2. Standardisation of Tools & Equipments:
Taylor wanted to do only ‘the best way of
doing the work’. Proper tools & equipments
are essential for increasing the efficiency and
speed of work.
3. Scientific Selection, Placement & Training:
According to Taylor, workers should be selected
by considering their education, experience and
attitude towards work.
Placement should be such that only most
suitable person are assigned the work .
Orientation training should also be imparted to
the employees to meet the new challenges.
4. Development of Functional Foremanship:
Functional foremanship is the extension of
the principle of specialisation or division of
labour.
5. Introducing Costing System: Scientific
management also introduced an efficient
system of cost accounting. It is a technique to
calculate cost per unit and total cost of
production.
6. Mental Revolution: Mental revolution is
concerned with bringing basic change in the
mental attitude of workers and management
towards each other.
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Fayol started his career as a
junior engineer in a coal mine
company in France and then
became general manager.
His famous published book
was General and Industrial
Management in 1929.
He has given 14 principles of
management.
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Division of work: The object of division of
work is to derive the benefits from the
principles of specialisation.
Authority & Responsibility: Authority is the
right to give orders and power. Its exercise
must be accompanied by reward and penalty,
and must carry with it responsibility.
Responsibility is a natural consequence of
authority.
3. Discipline: According to Fayol, discipline is
obedience, application, energy and outward marks
of respect. He considered discipline as absolutely
essential for the smooth running of business.
4. Unity of Command: Fayol warned that in all human
associations, “dual command is a perpetual source
of conflict.” Dual command creates havoc in the
organisation. So, an employee should receive orders
from one superior only.
5. Unity of Direction: The principles of Fayol is
that ‘there should be one head and one plan’
for a group of activities having the same
objectives.
“A body with two heads is in the social sphere a
monster and has difficulty in surviving.”
6. Subordination of Individual Interest to
General Interest: Common interest is above
the individual interest and when there is a
conflict between the two, common interest
must prevail.
7. Remuneration to Personnel: A contented
staff is a solid asset to the management.
Remuneration should enable the employees
to lead a satisfactory life and in addition offer
special incentives to those who are more
versatile or meritorious.
(Monetary & Non Monetary)
8. Centralisation: Question of centralisation and
decentralisation is a simple question of proportion.
Small concerns have absolute centralisation
because the management orders go directly to
employees.
But in large companies, there is less degree of
centralisation, since a manager’s orders pass
through a number of levels and intermediaries to
reach the operators.
9. Scalar Chain: According to Fayol, scalar chain is
“the chain of superiors” ranging from the
ultimate authority to the lowest ranks.
Communication should be free flow to avoid
problems.
10. Order: By order, Fayol meant a place for
everyone and everyone in his/her place. He also
stressed on the scientific selection of competent
personnel and bring about correct assignment
of duties to the respective persons.
11. Equity: A manager should strive to install a
“sense of equity” through out all levels of scalar
chain. prejudices, personal likes or dislikes
should be avoided by the management.
12. Stability of Tenure of Personnel: No
employee should be removed within a short
period of time. Frequent change should be
avoided. According to Fayol, “Time is required
for an employee to get used to new work and
succeed in doing it well.”
13. Initiative: Initiative is concerned with
thinking out and execution of a plan. It
becomes a source of strength in different
situations and is desirable because of
psychological effects on the individuals.
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14. Espirit De Corps (Team Spirit): This is the
principle of ‘unity is srtength’. The phrase
Espirit De Corps means the spirit of loyality
and devotion which unites the members of a
group.
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Elton Mayo was originally a
medical student but
developed interest in
psychology and philosophy.
He considered human beings
as a focus of the management
action.
He is the founder of Human
Relations Approach.
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Elton Mayo and his associates conducted
Hawthorne studies between 1927-1932 at the
Hawthorne plant of Western Electric Company
near Chicago in USA.
The initial objective was to examine the effect of
fatigue on workers but this was greatly extended
to evaluate attitudes and psychological reaction
of the workers in on the job situations.
1.
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Illumination Experiments (Phase I): This
experiment was conducted to observe the effect
of illumination on two group of employees
making telephone relays.
In one group, intensity of light was changed
whereas in other group, the illumination (light)
was kept constant.
Surprisingly, the result concluded that
illumination was not the cause of low
productivity.
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This phase lasted for two and a half years.
Then, the researchers concluded that certain
other factors might be responsible for low
productivity, therefore, second phase of
experiments was undertaken.
2. Relay Assembly Test Group (Phase II): In
this experiment, two groups of six female
telephone relay assemblers were put under
observation in separate rooms.
 Each room was known as ‘Relay Assembly
Test Room’.
 in one room(Test Room), a no of experiments
were made over a period of two years.
 Whereas, in the second room(Control Room)
no changes were made.
a.
Rest Pauses: over a period of two years, rest
periods changes were made as follows:
i.
One 5 min rest: One rest pause in the
morning session. Subsequently, the time
was increased to 10 min. there was increase
in the production in this group.
ii.
Six 5 min rests: The output decreased
slightly when six 5 min rest pauses were
introduced.
iii.
Two rest pauses of 10 min: The workers
were served snacks with coffee or soup in
the rest periods. The output recorded an
increase.
b. Changes in week days and working hours: The
decrease in working hours by one hour led to an
increase in production.
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When five days week was tried (Sat off), the
production increased and absenteeism reduced.
After some time the original schedule was reinforced
and production went up still higher.
Researchers concluded that increase in output was
not due to changes in physical factors but on account
of positive attitude of girls and feeling of sense of
responsibility.
c. Change in Incentive System: Workers of test
room were offered financial incentives for
increased production and the output went
up.
d. Changes in Work: Workers were consulted
before making the changes and the work was
also simplified.
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The result of this special attention and recognition
caused them to carry a feeling of group pride and
belongingness.
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At this stage, the researchers were interested to
know that why the attitudes of the employees had
became positive after participating in the Test
Room.
3. Interviewing Programme (Phase III): Mayo
initiated a three year long interviewing
programme and covered more than 21,000
employees to find out the reasons for increase
in production.
 When the questions were asked directly most of
the employees did not answer properly.
 But, when indirect interviews were taken, there
came a difference.
 For the first time, the importance of informal
groups was recognised.
4. Bank Wiring Observation Room Experiment
(Phase IV): These experiments were conducted to
find the impact of small groups on the individuals.
 In this experiment, a group of 14 male workers
were formed.
 Their work was to attach wires to the switches.
 Hourly wage for each worker was fixed on the basis
of average output of each worker.
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Bonus was also payable on the basis of group
effort.
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The workers cited various reasons for a
collaborative effort. (fear of unemployment, fear of
output and desire to protect slow workers)
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This experiment clearly showed that a man at work
is motivated by more than the satisfaction of
economic needs.
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Management should recognise that people are
essentially being social beings and economic
beings.
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As a social being, they are members of a group and
the management should try o understand group
attitudes and group psychology.
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Social Unit
Group Influence
Group Behaviour
Motivation
Supervision
Working Conditions
Employee Morale
Communication
Balanced Approach
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Father of human relations approach
Non economic awards
Social man
Organisation as a social system