Mahmood Qasim slides History of Management for BBA and MBA students

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  • 1. Mahmood Qasim In The Name of Allah The Most Beneficent The Most Merciful.
  • 2. Mahmood Qasim Principles of Management
  • 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
  • 16. Mahmood Qasim Classical Perspective
  • 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.
  • 39. Mahmood Qasim Chapter Review Thank you