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Prof SR RAWAT
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Evolution of Mgmt Thought
Classical Th Behavioral Th Modern Th
Scientific Th(Taylor)
Administrative Th(Fayol)
Human Relation App(Mayo & Others )
Behavioral Science App(Maslow , McGregor)
Mgmt Science & App System App
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F. W. Taylor was an American mechanical
engineer completed his degree in Mechanical
Engineering from Stevens Institute of
Technology in 1883. He is well known as thefather of scientific management.
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In 1874 as an Apprentice Machinist.
In 1884 as Executive at Midville Steel
Company.
In 1898 at Bethlehem Iron Company, later itwas Bethlehem Steel Company.
In 1900 as Professor at „Tuck School of
Business‟.
From 1906 to 1907 as President of „AmericanSociety of Mechanical Engineers‟.
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„Notes on Belting‟ in 1893.
„A Piece Rate System‟ in June 1895.
„Concrete, Plain and Reinforced‟ in 1906.
„On the Art of Cutting Metals‟ December
1906.
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„The Principles of Scientific Management‟
series of articles published in „The American
Magazine‟ During march-may 1911, later
published in book form. „The making of a putting green‟ a series of
articles published in 1915.
„Not for the genius but for the average man‟
published in „The American Magazine‟ inMarch 1918
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The main elements of the Scientific
Management are:
Separation of planning from actual doing of
work. Functional foremanship, based on
specialization of functions.
Job analysis to find out the best way of doing
the things.
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Standardization of things shall be fixed in
advance on the basis of Job analysis, etc.
Selection of workers on scientific basis and
should be trained. Financial incentives to workers to motivate
them.
Apart from considering the Scientific and
Technical aspects adequate considerationshould be given to economy and profits.
Suitable environment to create mutual co-
operation between management and workers
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1. Time n Motion Study : Identified the reasonable work expected from a
work man.
Best way of doing a work through his Time n
Motion Study .
2. Differential Payment
Linked incentives with prodution on the basis of achieving standards n surpassing
them
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3. Drastic Reorganization of Supervision
Suggested two concepts:
Separation of planning n doing
Functional foremanshipTrend: foreman would only explain what is
to be done ? NOT How it is to be done?
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4. scientific Recruitment and Training
Develop the worker to perform higher, more
interesting n more profitable job.
5. Intimate friendly cooperation between themanagement and workers.
Suggested coordinated efforts between
management and workers.
He believed, both parties have one commoninterest ie Increasing Productivity
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The principles of Scientific Management are:
Replacing rule of thumb with science.
Obtaining harmony in group action rather
than discord.Co-operation rather than chaotic
individualism.
Increase in production and productivity
instead of restricted production.
Development of workers by providing
training.
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His concepts n Principles were refined by his
followers like Henry L. Gantt and the
Gilberths
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Worked with Taylor at Midvale Steel Company
Specialized in incentive wage plans
Introduced a differential piece rate system – Task work with a bonus
Permitted workers to improve the productionsystem
Introduced a bonus for foremen based on thenumber of their workers who earned bonus
Brought the concept
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Developed tohelp industrial
age managers
plan for mass
productionUtilized to
coordinate WWI
shipbuilding
Visual displayused to
schedule based
on time
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- Associates of Fredrick
Winslow Taylor, theirwork was intertwinedwith his and theirmotion studiespredated Taylor‟s
system first publishedin 1903.
- Developed the lawsof human motion fromwhich evolved theprinciples of motioneconomy
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Pioneers in the field of motion studies andprovided the foundation for job simplification,meaningful work, and incentive wage plans.
Analyzed each motion of work for wasted
efforts in an attempt to reduce each task to thesmallest amount of expended time and energy.
Professed: effective training, effective workmethods, improved work environment, positivepsychological perspective.
Made the connection between standardizationand efficiency
Believed that time could not be separated frommotion; the two were intertwined.
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Systematically examined how repetitive taskswere performed
These repetitive tasks were broken down intoTherbligs, the small units, meant for analyzing
the motions involved in performing a task. Thisconsisted of identification of individual motions,as well as moments of delay in the process,designed to find unnecessary or inefficientmotions and to utilize or eliminate even split
seconds of wasted time. Invented and refined Therbligs roughly between
1908 and 1924. Each Therblig had a mnemonicsymbol and standard color for charting
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Believed that public administration could
have made more effective if it were
practiced according to a set of
guidelines. All organizations are characterized by a
tension between the need for division
and the need for coordination.
Work division is the foundation of
organization.
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It is important to recognize that there
are limits beyond which labor cannot
usefully be divided.
Gulick stated, “It might be more efficient
to have the front half of the cow in the
pasture grazing while the rear half is inthe barn being milked, but any attempt
to divide the cow in this fashion would,
for obvious reasons, fail.”
Gulick believed that, labor divided makesfor efficiency, but only if the labor and
its outputs are harmonized with the
organization‟s goals
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By Purpose – the aims of the work unit
By Process – what the unit actually does
By Clientele – work with similar materials orclients
By Location – organized together due togeographic location, regardless of function
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Planning
Organizing
Staffing
Directing
Coordinating
Reporting Budgeting
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The most difficult task of the chief executive
is not command, it is leadership, which is the
development of the desire and will to work
together for a purpose in the minds of those
who are associated in any activity.
Gulick sees ideas as more potent and more
powerful than organizations.
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GILBRETHS- Devoted to Efficiency
- Analyzed Motion and
Movements of Workers
- Created Therblig System
- Their studies were part
of the manufacturing
revolution in the U.S.
GULICK- Applied Scientific Method to
Management
- Division of Labor andIntegrated Organization
- Applied Scientific approachto Personnel Management
Defined work in terms of positions needed to carryout a process, rather thanthe people doing the work
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Weberian Model of Bureaucracy
Division of Labor and Specialization
Impersonal Orientation Hierarchy of Authority
Rules and Regulations
Career Orientation
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Charismatic
Traditional
Legal
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Dysfunctional Consequences
Neglect of the Informal Organization
Internal Inconsistencies
Gender BiasOppressive Features
Organizational Pathologies
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Described the bureaucratic characteristics
used by most educational institutions.
Described organizations as social systems
that interact and are dependent upon theirenvironments.
Provides a starting point for modified
structures.
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Fayol‟s Five Functions of Management
1. Forecasting and Planning
2. Organization3. Command
4. Coordinate
5. Control
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1. Division of Labor: allows for jobspecialization.Fayol noted firms can have too much specialization
leading to poor quality and worker involvement.
2. Authority and Responsibility: Fayolincluded both formal and informal authorityresulting from special expertise.
3. Unity of Command: Employees should haveonly one boss.
4. Line of Authority: a clear chain from top tobottom of the firm.
5. Centralization: the degree to whichauthority rests at the very top.
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6. Unity of Direction: One plan of action to
guide the organization.
7. Equity: Treat all employees fairly in
justice and respect.8. Order: Each employee is put where they
have the most value.
9. Initiative: Encourage innovation.
10. Discipline: obedient, applied, respectful
employees needed.
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11. Remuneration of Personnel: Thepayment system contributes to success.
12. Stability of Tenure: Long-termemployment is important.
13. General interest over individualinterest: The organization takesprecedence over the individual.
14. Esprit de corps: Share enthusiasm ordevotion to the organization.
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WEBER
- Ideal Type
- Hierarchy of authority
- Division of Labor- Career Orientation
- Rules and Regulations
FAYOL
- One Best Way
- Top Down
Management- Specialization
- Stability of Tenure
-
Discipline
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WEBER- Organization as a
Social Systemdependent on
environment- Rationality
- ImpersonalOrientation
- AdministrativeEfficiency
FAYOL- No parallel
- Personal experienceand observation
- Esprit and Initiative
- Future Planning
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Defined Administrative
Roles
Supervision of work
rather than people
Work specializations
Span of controlCost accounting
Homogeneity of
Positions
Engineering for
Efficiency
Assembly Line
ProductionEmphasis on Quality
Control
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Teaching Objectives
Vocational CurriculumDesign
Division of Labor
Subjects Departmentalized
Improvements by Analysis Data-driven decisions
Outcomes for Instruction Standardized assessments
Teacher Merit-pay
Staff Development Programs
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Scientific Management- The most efficient
manner to perform a taskis determined andeveryone does it that way
- Task Analysis
- Personnel Selection andTraining
- Bureaucratic Organization
Structure- Span of Control and Top
Down Management
Humanistic Approach- Concern for people not
the task
- Participatory decision-
making
- Emphasis on Individual
Contributions and
Personal Awareness
- Flexibility
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Scientific Management- The most efficient way to
perform a task isestablished and everyonedoes it that way
- Task Analysis- Personnel Selection and
Training
- Bureaucratic OrganizationStructure
- Span of Control and TopDown Management
Situational Leadership- No one style is appropriate
for all situations
- Increased involvement indecision making
- Collaborative Planning
- Flexible Change Strategies
- Unique OrganizationalPersonality must be
accounted for in structure,leadership, and decision-making
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Scientific Management- The most efficient
manner to complete atask is determined andeveryone does it that way
- Task Analysis- Personnel Selection and
Training
- Bureaucratic OrganizationStructure
- Span of Control and TopDown Management
Futuristic Approach- Focus on an improved,
decentralized system of management
- “Learning organizations”able to predict for andrespond to a changingenvironment
- Organizational Change
Models that helporganizations prepare forfuture challenges
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Taylors belief that economic incentives arestrong enough to motivate workers for increased
promotion proved wrong. His time n motion study is not accepted as
entirely scientific as time recorded with twoseparate individuals at two different times maybe entirely different. Thus no best way of doing
a work manually be predicted. Separation of planning & doing & the greater
specialization inherent in the system tended toreduce the need for skill & produce greatermonotony of work. A man receiving orders from7-8 bosses simply added to confusion and theincreased overhead cost.
Advancement in methods n better toolseliminated some workers, who could not findother job and hence resentment among them.
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Fayol‟s principle of specialization had
dysfunctional consequences like increasing of
overhead cost
Based on case study not on experiments Builds' up an organization which is insensitive
towards employees social psychological
needs .
These princ. are based on assumptions thatorganization are closed system, but in reality
its not so.
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Conducted by Elton Mayo and associates
at Western Electric (1927±1932)
Illumination study. Elton Mayo's studies
grew out of preliminary experiments atthe Hawthorne plant from 1924 to 1927on the effect of light on productivity.
Those experiments showed no clear
connection between productivity and theamount of illumination but researchersbegan to wonder what kind of changeswould influence output.
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Relay Assembly Test room.Mass Interview Program.
The major finding of the study was thatregardless of the experimental manipulation,worker production seemed to continuallyimprove.
One reasonable conclusion is that the workerswere happy to receive attention from theresearchers who expressed an interest in them.
Originally, the study was expected to last oneyear, but since the findings were inexplicable
when the researchers tried to relate the worker'sefficiency to manipulated physical conditions,the project was incrementally extended to fiveyears.
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Bank Wiring observation Room Theaptitudes of individuals are imperfectpredictors of job performance. Althoughthey give some indication of the physicaland mental potential of the individual,the amount produced is strongly
influenced by social factors. Informal organization affects
productivity. The researchersdiscovered a group life among theworkers. The studies also showed that
the relations that supervisors developwith workers tend to influence themanner in which the workers carry outdirectives.
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Work-group norms affect productivity. The Hawthorne researchers were not thefirst to recognize that work groups tendto arrive at norms of what is "a fair day's
work." However, they provided the bestsystematic description and interpretationof this phenomenon.
The need for recognition, security andsense of belonging is more important in
determining workers' morale andproductivity than the physical conditionsunder which he works.
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The workplace is a social system. The
researchers came to view the workplace
as a social system made up of
interdependent parts. The worker is aperson whose attitudes and effectiveness
are conditioned by social demands from
both inside and outside the work plant.
Informal group within the work plantexercise strong social controls over the
work habits and attitudes of the
individual worker.
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Behavioral Science Approach
Abraham Maslow :
Advanced a theory that employees aremotivated by a hierarchy of needs that they
seek to satisfy.
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He Proposed Theory X and Theory Y concepts
of managerial beliefs about people and work
Theory X :
It assumes that workers have little ambition,
dislike work, want to avoid responsibility,
andneed to be closely controlled
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It assumes that workers can exercise self-
direction, accept and actually
seek out responsibility, and consider work to
be a natural activity
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In his youth, Barnard worked in a farm, then
studied economics at Harvard University,
earning money tuning pianos and operating a
dance band. Harvard denied him a BA
because of a technicality, but a number of
universities later granted him honorary
doctorates.
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Barnard joined the American Telephone and
Telegraph Company (now AT&T) in 1909. In
1927, he became president of the New
Jersey Bell Telephone Company.
During the Great Depression, he directed the
New Jersey state relief system .He was
president of the United Service Organizations
(USO), 1942-45
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Upon retiring from business, he served as
president of the Rockefeller Foundation,
1948-52, and as chairman of the National
Science Foundation, 1952-54.
End 1950s he was among the first members
of the Society for General Systems Research
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Barnard looked at organizations as systems of
cooperation of human activity, and noted
that they are typically short-lived.
It is rare for a firm to last more than a
century. Similarly most nations last for less
than a century.
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The only organization that can claim a
substantial age is the Roman Catholic
Church.
According to Barnard, organizations are not
long-lived because they do not meet the two
criteria necessary for survival: effectiveness
and efficiency.
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Effectiveness, is defined as being able to
accomplish stated goals.
It is the ultimate objective of cooperative
action .
It Cannot be achieved without cooperation
from employees .
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He defined efficiency of an organization as
the degree to which that organization is able
to satisfy the motives of the individuals
If an organization satisfies the motives of its
members while attaining its explicit goals,
cooperation among its members will last.
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Barnard's classic 1938 book Functions of the
Executive discusses, as the title suggests, the
functions of the executive, but not from a
merely intuitive point of view, but instead
deriving them from his conception of cooperative systems.
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Barnard summarized the functions of theexecutive as follows:
Barnard formulated two interesting theories:
(a) authority
(b) incentives.
Both are seen in the context of acommunication system grounded in sevenessential rules:
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The channels of communication should be
definite;
Everyone should know of the channels of
communication;
Everyone should have access to the formal
channels of communication;
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Lines of communication should be as short
and as direct as possible;
Competence of persons serving as
communication centers should beadequate;
The line of communication should not be
interrupted when the organization is
functioning;
Every communication should be
authenticated.
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Thus, what makes a communicationauthoritative rests with the subordinaterather than with his superior. Barnard'sperspective had affinities to that of Mary
Parker Follett and was very unusual for histime, and that has remained the case downto the present day. He seemed to argue thatmanagers should obtain authority by treatingsubordinates with respect and competence.
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As for incentives, he proposed two ways of
convincing subordinates to cooperate:
tangible incentives and persuasion. He gives
great importance to persuasion, much more
than to economic incentives.
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He described general and as well asspecific incentives such as :
Money and other material inducements;
Personal non-material opportunities fordistinction;
Desirable physical conditions of work;
Ideal benefactions, such as pride of
workmanship etc
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