3. What is Management ?
Learning Organizations
Total Quality Management
Mahmood Qasim
Contingency Views
Systems Theory
Management Science Perspective
Humanistic Perspective
Classical
Perspective
1870
1880
1890
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
2010
4. Classical Perspective
Scientific Management
Mahmood Qasim
Frederick Winslow Taylor
(1856 – 1915)
What is Scientific Management?
Scientific management means rigorous analysis of input, output and
costs. Scientific management has no place for guesswork, or rule of
thumb. It demands meticulous planning and systematic execution.
Suppose one wants to establish a new factory. A scientifically
trained manager will first collect basic information such as
expected sales, production capacity required, type of
machinery, capital, foreign exchange
requirements, organization structure and the proceed to frame
on integrated plan.
5. Classical Perspective
Scientific Management Approach
Mahmood Qasim
Productivity – a sign of health
The strength of an organization is its productivity. Taylor was
concerned with the health and vitality of firms. His thesis was that
productivity can be improved endlessly and if productivity
declines, everybody suffers – shareholders, workers, managers and
the nation at large.
He demonstrated the efficacy of his ideas by increasing the
output of loading and unloading of pig iron from 12 tons per
person per day to 48 tons per person per day. The exercise
comprised five steps – selection of men, finding of the best
possible method of doing the job, designing appropriate tools
and implements, training and motivating the personnel.
6. Classical Perspective
Scientific Management Approach
Mahmood Qasim
Scientific management and harmony
Scientific management aims at harmony between management and
labour: their main dispute generally about distribution of the income
of the firm. Taylor felt that if both parties cooperated instead of
fighting, they could increase the income several times and all could
have higher wages, more profits, better dividends and lower prices.
Management as a discipline
A good engineer is not always a good manager. Management is a
separate discipline. It needs to be studied separately. It has many
aspects, human relations, budgetary planning, controlling and
directing.
7. Classical Perspective
Scientific Management Approach
Mahmood Qasim
Training
Underdeveloped countries are undermanaged. The manger is the
captain of the firm. A weak and inefficient manager means
inefficient management. Management training is therefore
essential for the health and vigor of every firm, no matter how
small or big it may be. Scientific management must be studied
and practiced.
8. What went wrong with Taylor’s Scientific Management?
Mahmood Qasim
Taylor’s courage
Taylor was determined to stop all laziness on the shopfloor, ‘soldiering’ as he called it. When he became the gang
boss, the workers were frightened that he would increase the
workload. A regular battle ensued between Taylor and his
workers. There were planned breakdowns in the factory. Taylor’s
life was in danger. But he was a courageous person. He imposed
fines and restored discipline. He emerged victorious.
Man and machine
Taylor equated men with machine. Machines work best when
well-maintained and lubricated. Workers should likewise be
provided with good working conditions, they should be welltrained and properly paid. They would, Taylor thought, then
automatically work best. His concept of man was defective. Man
is creative. He has feelings and emotions; he has intelligence.
Taylor lost sight of these essentials
9. What went wrong with Taylor’s Scientific Management?
Mahmood Qasim
No questions
Taylor’s approach to human problems was mechanical. One of his
worker used to frequently ask him questions suggesting changes
in the preplanned method of doing a job. Taylor was exasperated.
He told him bluntly : ‘You are not asked to think; there are other
people here who are paid to do that work.’
No best method
Taylor assumed that there is one best method of doing any
particular job. This is not the case. Everyone has a way of doing
things. No two outstanding teachers teach in an identical manner.
Everyone has a style of his own. Taylor’s insistence on one best
method was a misconception.
10. What went wrong with Taylor’s Scientific Management?
Mahmood Qasim
Revolt against scientific management
There was an outcry against scientific management in America. It was
condemned as brutal. It was considered to be a device of the
capitalists to exploit labor. The Bethlehem Steel Company where
Taylor carried out his famous experiment of loading pig iron
summarily dismissed him. The President of the firm wrote him a one
line letter saying. ‘I beg to advise you that your services will not be
required by the cimpany after May 01, 1901.’
Genius on the threshold
The American Government was forced to appoint two commissions to
investigate the ill-effects of ‘Taylorism”. The use of stop watches was
banned in defense factories. Taylor could not understand why there
was so much opposition to scientific management which he though
was meant to benefit everyone. Taylor had a clear understanding of
the role of management and of the need to improve productivity. But
he did not know how to inspire men at work.
11. Different ways of Organizing Work
Mahmood Qasim
Division of work
Division of work is a cardinal principle of scientific management as
envisaged by Taylor. This principle requires that every job is
subdivided into minute operations so that different operations can be
assigned to individual workers. Every worker is supposed to specialize
in a particular type of work. This is the principle of specialization.
Division of work leads to specialization.
Advantage of specialization
If an individual has to perform only a few operations, he can be
trained easily. He can also specialize in his work and attain the
highest level of efficiency. Hence minute division of work and
specialization are recommended from the standpoint of higher
productivity.
12. Different Ways of Organizing Work
Mahmood Qasim
Monotonous nature of work
However, when work is organized in this manner, it becomes
extremely monotonous and boring. It lacks variety and challenge. A
worker may, for instance, be required to press a set of buttons
throughout the day. He naturally loses all interest in work. He
becomes depressed and gloomy. He hates the machine and his work.
Work satisfaction
A worker is happy when he can see the end product and directly
associate himself with its creation. If on the other hand he is only
producing nits and bolts all his life, he feels that his work is
meaningless. There is no scope for using his knowledge, imagination
and intelligence in his day to day work.
13. Different Ways of Organizing Work
Tank manufacturing factories
Mahmood Qasim
There is an interesting case of two factories manufacturing tanks in the last world war.
Let us call them factories A and B.
Factory A was housed in an old building. Its organization was not streamlined and
planning was rather flexible and restricted to essentials. Planning at the shop-floor was
left to the foremen and the workers. Factory B was a modern factory housed in a new
building. It was organized strictly according to the principles of scientific management.
Everything was planned down to the minutest detail. Every worker was assigned a
specific task.
But factory B which was supposed to be a model organization proved to be a
depressing failure. Absenteeism was on the increase. Labor turnover was higher. The
workers were depressed and showed no enthusiasm for the work. In contrast, factory
A was humming with activity. Labor turnover was low. A lively spirit of camaraderie
prevailed in factory A. Productivity in factory B organized on the principles of scientific
management was lower by 16 percent. Rigidity of planning and excessive division of
work had diminished human interest in work.
14. Different Ways of Organizing Work
Mahmood Qasim
Ergonomics
This is a new science of fitting the job or the machine to the worker.
In designing a machine or a job, several
psychological, physiological, anatomical and economic factors are
required to be considered. The aim is to make the work more
interesting and less tiring
The whole man goes to work
We cannot forget that a worker is not merely a pair of hands. The
whole man goes to work, with intelligence, imagination, feelings and
aspirations. The work is required to be so organized that there is
enough scope for his essential abilities as a human being.
15. Classical Perspective
Contributor to Scientific Management
Mahmood Qasim
Henry Laurance Gantt
(1861 – 1919)
H.L. Gantt tried to improve systems or organization through task
scheduling and reward innovation. Essentially Gantt’s most famous
contribution was the Gantt Chart a system of control and scheduling
we still use today
17. Classical Perspective
Contributor to Scientific Management
Mahmood Qasim
Frank B. Gilbreth
(1868 – 1924)
Lillian M. Gilbreth
(1878 – 1972)
The Analysis of work
Frank and Lillian Gilbreth are celebrated names in the history of
management for their quest for the best method of doing a manual
job. They are the pioneers of Motion Study.
Flow Process Chart
Gilbreth devised many methods for the analysis of work. The flow
process chart is probably the simplest method for the purpose. In the
flow process chart, all work is broken down into five basic elements:
Operation, Transportation, Inspection, Storage and Delivery.
18. Classical Perspective
Mahmood Qasim
Therbligs
The term Therblig is coined by Gilbreth by spelling his name backwards.
It is used top describe the basic elements of movement during the work
cycle i.e. Search, select, grasp, reach, move, hold, release, position, preposition, inspect, assemble, disassemble, use, unavoidable
delay, avoidable delay, plan, rest to overcome fatigue.
Taylor and Gilbreth
Taylor was concerned with the question: What is a fair day’s work for a
fair day’s wage? Gilbreth raised a further question: How can a fair day’s
work be utilized in the most productive manner? A worker may put in a
certain amount of labor in a day. But much of it might be wasted.
Gilbreth wanted to eliminate all such wasteful effort and make his labor
most productive.
He believed that there is only one best method of doing a job, and
motion study, fatigue study, skill and time study enable us to determine
the best method.
19. Classical Perspective
Mahmood Qasim
Motion Study
Motion study is the systematic analysis of all movements involved in
doing a job. When all such movements are analyzed and tabulated, it is
possible to see which of the movements are unnecessary. By
eliminating these unnecessary movements, the best method can be
determined.
Fatigue Study
The purpose of this study is to eliminate unnecessary fatigue.
Adequate facilities for rest must be provided to workers. This ensures
their cooperation in efficiency studies. Gilbreth’s recommendation on
the point is : Provide facilities for rest irrespective of the fact whether
it is considered to be needed or not. For instance, a comfortable chair
reduces strain considerable. A typist's chair if designed properly
reduces fatigue and thereby increases output.
20. Classical Perspective
Bricklaying: a classic experiment
Mahmood Qasim
Bricklaying is an ancient trade in which for hundreds of years there had not
been any change. Gilbreth himself had worked as a bricklayer for some time
and had observed that there were various ways in which this work is done. One
method is adopted for training apprentices, another when the bricklayer wants
to work slowly ad still another when he wants to work fast.
Gilbreth made a very throughout microscopic study of this operation. He made
many improvements and evolved the best method of bricklaying. He designed
a special scaffold which was adjustable in height. In the old method, the
bricklayer had to bend down to the level of his feet and straighten up for each
brick. He had to perform this exercise hundreds of times in the course of a day.
This was no longer necessary in the new method proposed by Gilbreth which at
one stroke reduced the workload very substantially. The total number of
movements involved in laying a brick was reduced from 18 to 5. For instance
the provision of an adjustable scaffold eliminated bending and straightening
movements. As a result of this improved method, the bricklayer could lay 350
bricks per hour instead of 120 as in the olden days.
21. Classical Perspective
Bureaucratic Approach
Mahmood Qasim
Max Weber
(1864 – 1920)
A systematic approach developed in Europe that looked at the
organization as a whole is the bureaucratic organizations approach, a
subfield within the classical perspective. Max Weber, a German
theorist, introduced most of the concepts on bureaucratic organization.
Bureaucratic Organization
A subfield of the classical management perspective that emphasized
management in an impersonal, rational basis through elements such as
clearly defined authority and responsibility, formal record keeping and
separation management and ownership.
22. Classical Perspective
Weber’s Ideal Bureaucracy
Mahmood Qasim
Managers are career
professionals, not
owners of units they
manage
Career
Orientation
Impersonality
Uniform application
of rules and
controls, not
according to
personalities
Jobs broken down
into
simple, routine, and
well-defined tasks
Positions organized in
a hierarchy with a
clear chain of
command
Division of labor
A Bureaucracy
Should Have
Formal rules
and Regulations
System of written
rules and standard
operating
procedures
Authority
hierarchy
Formal
Selection
People selected for
jobs based on
technical
qualifications
23. Classical Perspective
Administrative Management Approach
Mahmood Qasim
Henri Fayol
(1841 - 1925)
Fayol wrote during the same time as Taylor. While Taylor was concerned
with management at the lowest organizational level and used the
scientific method. Fayol’s attention was directed the activities of all
managers. He wrote from personal experience as a practitioner since he
was the managing director of a large French coal-mining firm.
Fayol described the practice of management as something distinct from
accounting, finance, production, distribution, and other typical business
functions. He argued that management was an activity common to all
human endeavors on business, government, and even in the home. He
then proceeded to state 14 principles of management – fundamental
rules of management.
24. Classical Perspective
Mahmood Qasim
Fayol’s 14 Principles of Management
1. Division of work.
2. Authority.
3. Discipline.
4. Unity of command.
5. Unity of direction.
6. Subordination of individual interest to the general interest.
7. Remuneration.
8. Centralization.
9. Scalar chain.
10.Order.
11.Equity.
12.Stability of tenure of personnel.
13.Initiative.
14.Esprit de corps.
25. Humanistic Perspective
The Human Relations Movement
Mahmood Qasim
Elton Mayo
(1880 - 1949)
A management perspective that emerged around the
late nineteenth century that emphasized understanding
human behavior, needs, and attitudes in the workplace.
26. Humanistic Perspective
Mahmood Qasim
Hawthorne Studies
A series of experiments on worker productivity begun in
1924 at the Hawthorne plant of Western Electric
Company in Illinois, attributed employees’ increased
output to managers’ better treatment of them during
the study.
Illumination and Productivity
In a large industrial concern in America, the Western Electric
Company, labor unrest was growing. Productivity was low and the
management was confused over the state of affairs. They decided to call in
industrial consultants. The consultants attributed low productivity to
defective, unsatisfactory physical conditions of work such as poor
ventilation and inadequate illumination. To start with they decided to
investigate whether productivity was affected by illumination. They made a
number of experiments.
27. Humanistic Perspective
Hawthorne Investigations
Mahmood Qasim
The First Assembly Test Room Experiments
In this investigation, variations in the output of the work of five girls
assembling a small telephone part were minutely studied. Their weekly
working hours were reduced from 48 hours to 40 hours and 40 minutes.
Rest pauses were introduced and varied time to time. They were given free
lunches. Even a fide-day week was introduced. At the end of the
experiment all concessions were withdrawn and the girls reverted to the
original conditions.
Surprisingly the girls did not react negatively to the situation. On the
contrary, they set new record in production. Originally the average output
per girl per week was 2400 pieces. Now the figure jumped up to 3000. It
just showed what people can do when they are given recognition and
appreciation.
28. Humanistic Perspective
Hawthorne Investigations
Mahmood Qasim
Bank Wiring Observation Room
It was concerned with the working of a group of 12 workers, 2 inspectors
and 1 supervisor. The study brought our certain revealing features of the
organization. The official production records did not reflect the correct
state of affairs. Side by side with the official organization, there existed an
informal organization. Workers had evolved their own norms of production
and ignored the official norms in various ways. Work would be slowed
down for one reason or another, real or imaginary. They had their own
leader in preference to the official foreman. The management insisted on
higher production while the informal organization resisted any such move.
The foreman had to bear the brunt of the attack from both directions.
29. Humanistic Perspective
Mahmood Qasim
Hawthorne Investigations
Conclusion of the Hawthorne Investigations
Productivity is not only a technical phenomenon. It is also a social
phenomenon. It is the workers’ attitude towards wok, their workmates and
supervisors that governs their productivity. This is one of the main
conclusions of the Hawthorne Investigations.
30. Humanistic Resource Perspective
Hierarchy of Needs
Mahmood Qasim
Abraham Maslow
(1908 - 1970)
Maslow’s hierarchy started with physiological needs and progressed to
safety, belongingness, esteem, and , finally, self-actualization needs.
It is obvious that of all the resources at the disposal of a manager, human
resources are most important.
Most managers, however, know very little about this valuable resource.
They hardly understand their own men. They feel that people behave in a
disobedient manner, that they are unreasonable and unpredictable.
Managers seldom think about what makes men work, what factors govern
their behavior.
31. Humanistic Resource Perspective
Theory X and Theory Y
Mahmood Qasim
Douglas McGregor
(1906 - 1964)
McGregor’s famous book The Human Side of Enterprise has exerted
immense influence on the minds of managers the world over. In this book
he has put forward his celebrated theory Y which is in marked contrast
with the traditional theory which McGregor has called theory X.
32. Humanistic Resource Perspective
Assumptions of Theory X
Mahmood Qasim
The average human being has an inherent dislike of work and will avoid
it if possible.
Because of the human characteristic of dislike for work, most people
must be coerced, controlled, directed, or threatened with punishment to
get them to put forth adequate effort toward the achievement of
organizational objectives.
The average human being prefers to be directed, wished to avoid
responsibility, has relatively little ambition, wants security above all.
33. Humanistic Resource Perspective
Assumptions of Theory Y
Mahmood Qasim
The expenditure of physical and mental effort in work is as natural as
play or rest. The average human being does not inherently dislike work.
External control and the threat of punishment are not the only means
for bringing about effort toward organizational objectives. A person will
exercise self-direction and self-control in the service of objectives to which
he or she is committed.
The average human being learns, under proper condition not only to
accept but to seek responsibility.
The capacity to exercise a relatively high degree of
imagination, ingenuity, and creativity in the solution of organizational
problems is widely, not narrowly, distributed in the population.
Under the conditions of modern industrial life, the intellectual
potentialities of the average human being are only partially utilized.
34. Chapter Review
Mahmood Qasim
Multiple Choice.
1. All of the following are criticisms of scientific management except it
a.
tends to regard workers as uninformed and ignored their ideas
and suggestions.
b.
does not appreciate the higher needs of workers.
c.
does not appreciate the careful study of tasks and jobs
d.
does not acknowledge variance among individuals.
e.
does not appreciate the social context of work.
2. _________________ created time and motion study and other scientific
management principles independently of Taylor.
a.
Henry Ford
b.
Max Weber
c.
Henri Fayol
d.
Elton Mayo
e.
F.W. Taylor
35. Chapter Review
Mahmood Qasim
Multiple Choice.
1. All of the following are criticisms of scientific management except it
a.
tends to regard workers as uninformed and ignored their ideas
suggestions.
b.
does not appreciate the higher needs of workers.
c.
does not appreciate the careful study of tasks and jobs
d.
does not acknowledge variance among individuals.
e.
does not appreciate the social context of work.
2. _________________ created time and motion study and other scientific
management principles independently of Taylor.
a.
Frank and Lillian Gilbreth
b.
Max Weber
c.
Henri Fayol
d.
Elton Mayo
e.
F.W. Taylor
and
36. Chapter Review
Mahmood Qasim
Multiple Choice.
3. Positions organized in a hierarchy of authority is an important characteristic
of
a.
scientific management
b.
Bureaucratic organizations
c.
the human relations movements
d.
time and motion study
e.
administrative management approach
4. Which of the following is not one of Fayol’s 14 general principles of
management?
a.
Unity of command
b.
Division of work
c.
Wage incentives
d.
Unity of direction
e.
Scalar chain
37. Chapter Review
Mahmood Qasim
Multiple Choice.
5. Most early interpretations of the Hawthorne studies
a.
agreed that money was the cause of increased output.
b.
pointed to the importance of illumination in affecting productivity
c.
supported Frederick W. Taylor’s scientific management.
d.
pointed to human relations as the best explanation for increased
output.
e.
were of medical importance, which led to the founding of the Mayo
Clinic in honor of Elton Mayo, one of the chief researchers.
6. The assumption that the average human learns, under proper conditions, not
only to accept but to seek responsibility is an assumption of
a.
Theory Y
b.
Abraham Maslow
c.
Henri Fayol
d.
Theory X
e.
Frederick W. Taylor
38. Chapter Review
Mahmood Qasim
Discussion Question
1. What similarities do you see among the four management functions of
planning, organizing, leading, and controlling? Do you think these functions
are related; that is, us a manager who performs well in one function likely to
perform well in the others?
2. What is the difference between efficiency and effectiveness? Which is more
important for performance? Can an organization succeed in both
simultaneously?
3. What changes in management functions and skills occur as one is promoted
from a nonmanagement to a management position? How can managers
acquire the new skills?
4. F. W. Taylor has proposed the idea of one best way, do you see any part of it
in the modern management.
5. How would you analyze Taylor’s scientific approach against Fayol’s
Administrative approach?
6. Discuss Mcgregor’s theory X and theory Y.