1. Welcome to our presentation
about the evolution
of management theories

3. • Few workmen
• Very Skilled and qualified
• Customized cars
• Workman :
– Director
– Manufacturer
– Salesman

4. Disadvantages
• Manufacturing costs extremely high
• Maintenance and repair costs very high
• No Research and Development

5. Henri Fayol (1841-1925)
• One of the most influential contributors to
modern concepts of management
• Father of modern operational management
theory
• General and Industrial Management (1916)

6. Biography
• Educated at “Ecole des Mines” in St. Etienne
• Almost 60 years of experience as an engineer
and Director at “Houilleres de Commentry”
• 1916: Publication of “General and Industrial
Management”

7. Theory
• Fayol’s theory holds that there are five
primary functions of management:
(1) Planning:
(2) Organizing:
(3) Commanding:
(4) Coordinating:
(5) Controlling:

8. Theory
• Modern management theories (e.g. Richard
Daft) have reduced the five functions to four:
(1) Planning
(2) Organizing
(3) Leading
(4) Controlling

9. The Classical School of Management

10. Taylorism
Taylor : a Quaker!
• Principles 1:

Replace rule-of-thumb work methods with methods based on a
scientific study of the tasks.
• « the natural instinct and tendency of men is to take it easy »
F.W.TAYLOR
• Principle 2
• Scientifically select, train, and develop each employee rather than
passively leaving them to train themselves.
• « they sould...do what they are told to do promptly and without
asking questions or making suggestions » F.W. TAYLOR

11. Taylorism
• Principle 3
• Provide "Detailed instruction and supervision of each worker in
the performance of that worker's discrete task".
• Principle 4
• Divide work nearly equally between managers and workers, so
that the managers apply scientific management principles to
planning the work and the workers actually perform the tasks.
• « The Work of every workman is fully planned out by the
management , each man receive complete written instructions ,...
This task specifies not only what is to be done but also how it is to
be done and the exact time allowed for doing it » F.W. TAYLOR

12. Henry Ford (1863-1947)
• Father of modern assembly lines
• Mass production
• Model T automobile
• Prolific inventor (161 U.S. patents)

13. Philosophy of Fordism
• Widespread prosperity and rise corporate profits
How ?
• High wages allow the workers to purchase the output they
produce.
The idea :
Convert workers into customers

14. Division of labor
• Distinctive division of labor allows complex tasks to be
divided into several simple and repetitive one.
• Skilled labor is no more needed in the production.

15. Standardisation -Major issue of custom made
cars : Each producers have
-Hand-made steel parts have to their own parts and
be recalibrate after beeing components. (even not the
quenched. same metric system)
-Ford invented a
process to directly
shape parts out of a
quenched steel
block.

16. Optimize the working space
• Typically similar machinery
are installed one next to
another.
• Ford rearrange them into
the correct sequence to
follow the production
patern.
• Various parts of the
production process are
linked together by a moving
conveyor belt : "Bring the
work to the workers."

17. Disadvantages
Advantages

18. Alfred P. Sloan (1875-1966)
• A pure product of the MIT…
– Graduated in electrical engineering
in 1895, at 20
– Member of ΔΥ fraternity
– Founded in 1950 the School
of Industrial Management

19. … & A selfmade man,
1937-1956
1923-1946
1918
1916
1899
1895

20. Sloan’s Management approach

21. Sloan’s Marketing approach
• Establishing annual styling changes
planned obsolescence
• Impeding alternative transports to car
monopolysing
• Pricing discrimination
• Market segmentation

22. Sloan’s pricing discrimination
Price / Quality
r
pl ye
p
Su
Mkt
$!
Co
ns
um
er
Quantity

23. #1 #2 The 2515 Brands car in after
Manufacturer forin 2007 1967
The 100 Millionth Years 1930-2006
Manufacturer 76
75
50 1962
1955
1945

24. Toyota Production System
• A production system was developed between
1948 and 1975 for Toyota Motor company by:
– Taiichi Ohno,
– Shigeo Shingo
– Eiji Toyoda

25. • Difficulties for the company :
– Small market with high competition
– Poor consumers

26. Aim
• Eliminate all muni, mura, muda (overburden,
inconsistency, waste) from the operation to
stay competitive.

27. Toyota Production System House

28. Just in time production
• Created by the founder of Toyota : Sakichi
Toyoda, his son Kiichiro Toyoda and the engineer
Taiichi Ohno.
• Based on the 7 wastes:
– over-production
– motion (of operator or machine)
– waiting (of operator or machine)
– conveyance
– processing itself
– inventory (raw material)
– correction (rework and scrap)

29. Jidoka
• TPS emphasizes the participation of all
employees.
• Toyota organized their workers by forming
teams
• Each team has a leader who also works on the
line
• Teams are responsible for :
– Training to do many specialized tasks.
– Housekeeping and minor equipment repair.

30. Jidoka
• Product defects must be discovered as soon as
possible.
• Workers are responsible for the discover of
defects.
• Workers are able to stop the entire line by
pulling a cord (Jidoka).
• Workers are controlling machine’s work.

31. • Global Warming
• Financial crisis
• Energy crisis
• Unemployment
• …