4. SCIENTIFIC MANAGEMENT
F .W .TAYLOR
• He is Known as Father of
Scientific Management
• Born into a wealthy family in
the US in 1856.
• Graduated from Stevens
Institute Technology as a
mechanical engineer in 1883.
5.
6. PREVAILING STATE OF AFFAIRS
•Taylor found administration or management in
his time in a highly unsatisfactory state of
development.
•There was no standardization of work.
•The work in the factory was completely
unplanned
7. SCIENTIFIC MANAGEMENT THEORY
• Scientific Management a term coined in 1910 by Louis Brandies
• Created and promoted by Frederick W. Taylor (1856– 1915) and his
followers.
• Also called Taylorism, it was a theory of management that analyzed
and synthesized workflows
• Main objective was improving economic efficiency, especially labor
productivity. It was one of the earliest attempts to apply science to the
engineering of processes and to management.
8. PRINCIPLES OF SCIENTIFIC MANAGEMENT
The development of a science for each element of a mans work to
replace the old rule-of-thumb methods.
• The scientific selection, training and development of workers instead
of allowing them to choose their own tasks and train themselves as
best they could.
• The development of a spirit of hearty cooperation between workers
and management to ensure that work would be carried out in
accordance with scientifically devised procedures.
• The division of work between workers and management in almost
equal shares, each group taking over the work for which it is best
fitted instead of the former condition in which responsibility largely
rested with the workers.
9. ADVANTAGES
• Enhanced teamwork- Cooperation between managers and
workers.
• Better planning and decision making
• Improved economic and work efficiency
• Increased opportunities for workers to acquire scientific
training.
14. • Henri Fayol, the French industrialist and management consultant of the
early twentieth century.
• He has long been acknowledged as a founding father of the classical
management school of thought.
• Administrative Management Henry Fayol • One of his major work is
"General and Industrial Management(1916)"
• His paper on,"The Theory of Administration in the State" is considered as
major contribution to the theory of public administration.
• By Fayol, Administrative Theory: Universal
• Without doubt, Fayol is the best remembered for a three-fold contribution
to management thought.
15. • Firstly, Fayol is credited with the belief that organizational
and business life was an amalgam of six activities of an
industrial undertakings.
• Secondly, Fayol identified five key functions or elements that
comprised managerial activity.
• Finally, Fayol advocated fourteen principles designed to guide
the successful manager.
16.
17. Henri Fayol: Elements of Management
Fayol classifies the key functions of management into five main elements:
• a) Planning: Forethought to the operation of an organization. Experience, Unity,
continuity, flexibility, precision are features of Good Planning.
• b) Organizing:Material organization and human organization (leadership,
organizational structure).
• c) Commanding: Rests on certain personal qualities and knowledge of general
management.
• d) Coordinating: Coordinating by integrating subordinates and keeping balance
among material, social and functional parts.
• e) Controlling: Verifying whether activities take place in conformity with the plan
adopted, instructions issued and principles established.
18. ADMINISTRATIVE MANAGEMENT THEORY-
FAYOL’S 14 PRINCIPLES
1. Division of work. This principle is the same as Adam Smith's
'division of labor'. Specialization increases output by making
employees more efficient.
2. Authority. Managers must be able to give orders. Authority
gives them this right. Authority should be commensurate to
responsibility.
3. Discipline. Employees must obey and respect the rules that
govern the organization. Good discipline is the result of
effective leadership, a clear understanding between
management and workers regarding the organization's rules.
1. Division of work. This principle is the same as Adam Smith's
'division of labor'. Specialization increases output by making
employees more efficient.
2. Authority. Managers must be able to give orders. Authority
gives them this right. Authority should be commensurate to
responsibility.
3. Discipline. Employees must obey and respect the rules that
govern the organization. Good discipline is the result of
effective leadership, a clear understanding between
management and workers regarding the organization's rules.
19. 4. Unity of command. Every employee should receive orders from
only one superior.
5. Unity of direction. Each group of organizational activities that
have the same objective should be directed by one manager
using one plan.
6. Subordination of individual interests to the general interest. The
interests of any one employee or group of employees should not
take precedence over the interests of the organization as a
whole.
7. Remuneration. Workers must be paid a fair wage for their
services.
8. Centralization. The degree to which subordinates are involved
in decision making. Whether decision making is centralized (to
management) or decentralized (to subordinates) is a question of
proper proportion. The task is to find the optimum degree of
centralization for each situation.
20. • Scalar chain. The line of authority from top management to the
lowest ranks represents the scalar chain. Generally, formal
communications should follow this chain.
• Order. People and materials should be in the right place at the
right time.
• Equity. Managers should be kind and fair to their subordinates.
• Stability/tenure of personnel. High employee turnover is
inefficient. Management should provide orderly personnel
planning and ensure that replacements are available to fill
vacancies.
• Initiative. Employees who are allowed to originate and carry out
plans will exert high levels of effort.
• Esprit de corps. Promoting team spirit will build harmony and
unity within the organization.
21. ADMINISTRATIVE MANAGEMENT
LUTHER HALSEY GULICK
(1892-1992)
• A specialist in municipal finance and administration
• Gulick works with the Institute of Public Administration, professor of
municipal science and administration at Columbia, and serves on
Franklin D. Roosevelt’s Committee of Government Administration
• Gulick and Urwick wrote in 1937 “paper on the science of
administration”. In this paper they stretched on the importance of
structure of organization in determining function. • Based on which the
structure of the organization can be designed.
22. • Luther Gulick Gulick specified 10 principles of organization:
1. Division of work
2. Departmentalization: He identified 4 basis of departmentalization
purpose(function of organization)
process(skills)
persons(clients)
place(area)
3. Coordination: It means interrelating and unified the various part of work
in a whole.
4. unity of command
5. Decentralization
6. Delegation
23. 7. Span of control: It means the number of subordinates or the
unit of work that a superior can effectively control. It depends
on 4 factors: a) Function(nature of work) b) Stability of the
organization. c) Place of work. d) Personality of the superior.
8. Line and staff: The line agencies directly work for the
achievement of the organizational objective. They are given
authority to make decision, issue, orders and directions. The
staff agencies includes specialist who perform secondary or
supportive function. They assist the line agencies in the
accomplishment of organizational purpose.
25. 1. Planning - developing an outline of the things that must
be accomplished and the methods for accomplishing
them
2. Organizing - establishes the formal structure of
authority through which work subdivisions are
arranged, defined, and coordinated to implement the
plan
3. Staffing - selecting, training, and developing the staff
and maintaining favorable working conditions
4. Directing - the continuous task of making decisions,
communicating and implementing decisions, and
evaluating subordinates properly
26. 5. Coordinating - all activities and efforts needed to bind
together the organization in order to achieve a common
goal
6. Reporting - verifies progress through records, research,
and inspection; ensures that things happen according to
plan; takes any corrective action when necessary; and
keeps those to whom the chief executive is responsible
informed
7. Budgeting - all activities that accompany budgeting,
including fiscal planning, accounting, and control
28. URWICK’S PRINCIPLES ARE 8 TYPES:
1. Principle of objective: an organization should have a definite purpose or objective.
2. Principle of correspondence: Authority and responsibility must go together at all
levels.
3. Principle of responsibility: The supervisor must take the responsibility of his
subordinate workers.
4. scalar principle
5. principle of span of control
6. specialization / division of work
7. coordination
8. Principle of definition: Clear description of duties, authority and responsibility of each
position and its relationship and other positions.
29. 29 PRINCIPLES INTEGRATED
Fayol’s fourteen principles
Mooney and Reiley’s principles of process and effect,
Taylor’s principles of management and the ideas of
Follett and Graicunas
31. INTRODUCTION MAX WEBER’S
BUREAUCRATIC THEORY
• Bureaucratic Theory was developed by a German Sociologist and political
economist Max Weber(1864-1920).
• According to him, bureaucracy is the most efficient form of organization.
The organization has a well- defined line of authority.
• It has clear rules and regulations which are strictly followed.
• Bureaucracy refers to a specialized system and process of maintaining
uniformity or authority within an organization. Bureaucratic processes are
most common in Large organizations Government
32.
33. Job specialization Jobs are divided into simple, routine and fixed category based on competence
and functional specialization.
Authority Hierarchy • Officers are organized in hierarchy in which higher officer controls lower
position holders i.e. superior controls subordinates and their performance of subordinates and
lower staff could be controlled.
Formal selection • All organizational members are to be selected on the basis of technical
qualifications and competence demonstrated by training, education or formal examination.
Formal rules and Regulations • To ensure uniformity and to regulate actions of employees,
managers must depend heavily upon formal organizational rules and regulations. Thus, rules of
law lead to impersonality in interpersonal relations.
Impersonality • Rules and controls are applied uniformly, avoiding involvement with personalities
and preferences of employees. Biasness and favoritism are not preferred.
Career orientation • Career building opportunity is offered. Promotions and salary hikes are
strictly based on technical competence. They work for a fixed salaries and pursue their career
within the organization.
34. CRITICISM OF BUREAUCRATIC ORGANIZATION
Bureaucratic organization is criticized because of the following reasons :-
• Bureaucratic organization is a very rigid type of organization. It does not give
importance to human relations. It is suitable for government organizations. It is
also suitable for organizations where change is very slow.
• Too much emphasis on rules and regulations. The rules and regulations are
rigid and inflexible.
• There will be unnecessary delay in decision-making due to formalities and
rules. • Bureaucracy involves a lot of paper work. This results in lot of wastage
of time, effort and money
36. HUMAN RELATIONS THEORY
ELTON MAYO (1880 – 1949)
• Elton Mayo (1880 – 1949) was an Australian psychologist, an industrial
researcher and an academic organizational management scientist. His
conducted studies, together with the Hawthorne studies, became the base
for his lifelong breaking theories on Human Relations and scientific
management.
• Elton Mayo is considered the founder of the Human Relations Theory
Meaning of Human Relations
Human relations are the study of the ways in which people relate to each other
in group situations, especially work, and how communication skills and
sensitivity to other people’s feelings can be improved. Definitions of Human
Relation--
37. The main characteristics of human relations are as follows:
1. Human relations are an important process through which an individual’s attitude and
work are integrated with a view to achieving a willing cooperation on their part in the
achievement of the interests of an organization as a whole.
2. Members of the organization contribute their bit to get individual and group
satisfaction.
3. The satisfaction desired by employees may be economic, social and psychological.
4. Human relations in an organization are a process of improving motivation by proper
working condition, training programmes, timely payment of wages and incentives etc.
5. Human relations are an integrated approach derived from different disciplines such as
psychology, sociology, economics and management.
6. Human relations are all pervasive; they are required in business and non-business
organizations, small and large organizations, and at all levels.
7. Human relations are a continuous activity.
8. Human relations are a goal-oriented and focused approach
38. HAWTHORNE STUDIES (1924-1933)
This Theory gives higher importance to human relationship.
It consider employees as a higher being rather than factor of production.
It gives importance to workers need, feeling & interest on jobs. Its
primary focus is on human factor of an organization.
They consist a series of experiments that focuses on behavior in work place.
Productivity is not only a technical but also social phenomenon or workers
attitude groom productivity.
Workers are motivated by social needs.
Team work improve Efficiency
39.
40. ILLUMINATION EXPERIMENT ELECTRICITY
This Experiment was conducted to measure the affects of lightning on
the productivity to work in different department.
Under this experiment adequate lightning facility was provided to one
department where as other department was not provided sufficient amount
of lightning.
But the both condition, the productivity increase.
This experiment shows that the productivity not only depend on working
condition but also social relationship among the worker at the work place.
41. RELAY ASSEMBLY TEST ROOM EXPERIMENT
Under this experiment 6 female & telephone assembled & were
put in a separate room.
Frequently change were made in their working, in spite of such
changes in the performance & productivity was increasing.
Thus, this experiment suggest that socio-physiological factors are
keys for higher performance & productivity.
42. MASS INTERVIEW PROGRAM
Under this a huge mass of workers were interviewed in order to
know their perception on the working life.
This theory primarily focuses on human relation rather than
physical working condition.
This interview confirmed that the importance of informal relation
helps in satisfying personal & social satisfaction to workers &
influence their behavior in order to provide higher output
43. BANK WIRE ROOM OBSERVATION
EXPERIMENT
Under this experiment 14 male workers were found in a small group & were
duly observed by the superior.
The main purpose of the experiment was to know the effect of social
relationship in a work group.
This experiment concluded that employee would work hard. If they believe
that management are concerned about their welfare & if superior paid attention
& care to them.
According to this experiment employees are guided more by group product
norms.
44. HAWTHORNE EFFECT
Productivity increases when workers believe that they are being
observed closely.
Employees perform better when managers & co-workers make them feel
valued.
Financial rewards are not necessarily conductive to increasing worker
productivity.
Workers are about self-fulfillment, autonomy, empowerment, social
status & personal relationships with co-workers.
46. SIMON’S DECISION MAKING PROCESS
• It is a three-phase model of problem solving.
• Simon’s model continues to withstand the test of time and, even
today, serves as the basis of most models of management decision
making.
• Notice that the model depicts the problem-solving process as a
flow of events that can proceed in either a linear or iterative
fashion.
• That is, at any point in the process, the problem solver may
choose to return to the previous step(s) for additional refinement
47.
48. Intelligence
• The problem is identified, and information is collected concerning the
problem. This can be a long process, as the decision to be made comes from
the information. The intelligence stage may involve, for example, comparing
the current status of a project or process with its plan. The end result of the
intelligence phase is a decision statement.
Design
The design phase develops several possible solutions for the problem. This
phase may involve a great deal of research into the available options.
49. Choice
In this phase, we evaluate the alternatives that we developed in the design
phase and choose one of them. The end product of this phase is a decision that
we can carry out.
Implementation
The decision that is ultimately carried out. The intelligence, design and choice
we have made will be implemented in this phase.
Reality of situation
After implementing the previous phases, we find the outcome. If the outcome
is a failure then we have to start the procedure again or just go to the previous
phase and check for any mistake or error. And if the outcome is a success then
we will compare it with the reality of situation to check whether the decision is
required one or not.
51. ECOLOGICALAPPROACH
FRED W. RIGGS (1917-2008)
Professor Emeritus at political science Department of University of Hawaii.
Well known for his works in Comparative Public Administration.
His theory finds lots of relevance in developing countries.
Riggs criticizes “first generation” of modernization theories, especially
Rostow’s stages of economic development that most developing countries tried to
follow in the 60s and early 70s.
Riggs began with a bipolar analytical framework known as the so-called
Agraria-Industria model.
Contextual distinction of public administration between the traditional
agrarian societies and modern industrial nations.
Riggs was searching for a more appropriate model.
52. Later he developed the prismatic model to explain the
administrative systems of Developing World.
He categorized societies into three: 1-Fused 2-Prismatic 3-
Diffracted
He used Fused model to explain the ecology of traditional
societies.
Prismatic society to explain the developing world.
Diffracted society to explain the developed societies.
According to him no societies is neither totally fused nor
diffracted. Everyone share some features of the other.
53.
54. Fused Society….
Heavily depend on agriculture; Economic system based on Barter
system.
King and officials nominated by the King carry out all
administrative, economic and other activities.
The conscious establishment of policies is negligible.
There is no distinct political or administrative structures.
The political system is neither democratic, nor autocratic.
55. • Prismatic Society….
In a prismatic Society, there exists characteristics of Fused and diffracted
Societies side by side. No real structural differentiation.
• Diffracted Society….
Highly differentiated.
Highly developed specialized structures of work.
Functions of the society are very specific.
Level of integration is high.
Pattern of behavior is characterized by norms of universalism and
achievements.
56. INNOVATION AND ENTREPRENEURSHIP BY
PETER F. DRUCKER
Text Drucker, P. F. (1986). Innovation and entrepreneurship. New York, NY:
Harper & Row. Long career at Claremont College.
Entrepreneur J. B. Say, “The entrepreneur shifts resources out of an area of
lower and into an area of higher productivity and greater yield.” Joseph
Schumpeter 1911, Theory of creative destruction. Change is normal.
57. 7 SOURCES OF INNOVATIVE OPPORTUNITY
• Systematic innovation consists in the purposeful and organized
search for changes and in the systematic analysis of the
opportunities such changes might offer for economic or social
innovation.
• Internal: unexpected, incongruity, process need, changes in
industry structure
• External: demographics, changes in perception, mood, and
meaning, new knowledge
58. Principles of Innovation
• Begin with analysis of opportunities.
• Innovation as conceptual and perceptual.
• Simple and focused.
• Start small.
• Aims at leadership.
Don’ts
• Don’t be clever.
• Don’t diversify.
• Don’t diversify for the future;
• diversify for the present.
59. Conditions
• Innovation is work.
• It builds on strength.
• Innovation is an effect in economy and society.