OB lecture 30 development of management thoughts

Frederick Taylor’s Scientific Management The Term ‘Scientific Management’ was coined by Louis D. Brandeis, later a supreme court justice to get attention for Taylor’s work. Henry Fayol’s Classical Administration Elton Mayo’s Human Relations School

Lecture 30

Development of Management Thoughts

Development of Management Thoughts

1 Frederick Taylor’s Scientific Management

2 Henry Fayol’s Classical Administration

3 Elton Mayo’s Human Relations School

1 Scientific Management

Frederic Taylor

Scientific Management

Frederic Winslow Taylor

1856 - 1915

The Term ‘Scientific Management’

was coined by Louis D Brandeis, later

a supreme court justice to

get attention for Taylor’s work.

Time and Motion Study

Taylor thought that by analyzing work, the

"One Best Way" to do it would be found He

is most remembered for developing the

Time and Motion Study He would break

a job into its component parts and measure

each to the hundredth of a minute.

Study at Bethlehem Steel

Shovel of pig iron.

75 men, averaged 12.5 ton per days per man

Increased to 47.5 ton per day.

By using the correct method in pick up,

walk, sit, and rest.

Rational Economic Needs of

Motivation

More work, more pay.

60% more pay for workers who moved 47.5

tons a day.

What’s Wrong

What’s Wrong

1 ‘Deterministic’ vs ‘probabilistic’

Not ‘deterministic’

The best way of doing things can not be

determined in advance

Therefore, we need Continuous

Improvement, or Kaizen in Japanese

Continuous Improvement

William Edward Deming

Keep improving

PDCA

What’s Wrong

1 ‘Deterministic’ vs ‘probabilistic’

2 Mangers know the best way to do things?

What’s Wrong

1 ‘Deterministic’ vs ‘probabilistic’

2 Only mangers know the best way to do things?

3 Workers are motivated by ‘rational’ rewards only ,

e.g pay?

Assembly Line

Taylor thinking influenced Henry Ford.

Ford pioneered the modern assembly line production

Mass production

2.Classical Administration

Henri Fayol

Henri Fayol

His book

"Administration Industrielle et Générale",

1915

French Mining Engineer

And later director of a mine

Principles of Henri Fayol

Principles of Henri Fayol

1 Division of work This principle is the same as Adam Smith's 'division of labour' Specialisation increases output by making employees more efficient.

2 Authority Managers must be able to give orders Authority gives them this right Note that responsibility arises wherever authority is exercised.

3 Discipline Employees must obey and respect the rules that govern the organisation Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organisation's rules, and the judicious use of penalties for infractions of the rules.

4 Unity of command Every employee should receive orders from only one superior.

5 Unity of direction Each group of organisational 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 organisation as a whole.

7 Remuneration Workers must be paid a fair wage for their services.

8 Centralisation Centralisation refers to the degree to which subordinates are involved in decision making Whether decision making is centralised (to management) or decentralised (to subordinates) is a question

of proper proportion The task is to find the optimum degree of centralisation for each situation.

9 Scalar chain The line of authority from top management to the lowest ranks represents the scalar chain Communications should follow this chain However, if following the chain creates delays, cross-

communications can be allowed if agreed to by all parties and superiors are kept informed.

10 Order People and materials should be in the right place at the right time.

11 Equity Managers should be kind and fair to their subordinates.

12 Stability of tenure of personnel High employee turnover is inefficient Management should provide

orderly personnel planning and ensure that replacements are available to fill vacancies.

13 Initiative Employees who are allowed to originate and carry out plans will exert high levels of effort.

14 Esprit de corps Promoting team spirit will build harmony and unity within the organisation

Division of Work

It leads to higher productivity

Authority

Parity of responsibility and authority.

You have authority provided that you take responsibility

Unity of Command

One person should have only one boss

Unity of Command

It looks obvious, but not so:

e.g PLA – Commander and Political Commissioner ‘Kaufman’ system in Germany

Scalar Chain

Initiative

Employees who are allowed to originate and carry out plans will exert high levels of

effort.

Problems/Missapplication

with Classical Administration

e.g Scalar Chain of Command

Controlling ?

Controlling

Measuring and correcting or adjusting Steering wheel

What’s Wrong ?

1 Motivating

Assume workers will do what are told

What are missing

3 Human Relations School

Elton Mayo

Human Relations School

Elton Mayo, 1880 – 1949 Australian

He taught at Harvard Business School

Human Relations School

This school of thought emphasized the

important of human attitudes, values,

and relationships for efficient and effective

Functioning of work organization

Early work focused on people’s needs for

companionship, belonging and satisfaction

In the social relationship they formed at

work

Hawthorne Experiment

4 Phases

1 Experiment in illumination

2 Ready Assembly Test Room Study

3 Experiment in Interview Workers

4 The Bank Wiring Room

Hawthorne I

Not conducted at Hawthorne but by Elton

Mayo at a textile factory.

No effect until light reduce to 0.06 foot night moon light)

(full-Science can not explain

The emergence of ‘management”

Hawthorne II

Relay Room Assembly Test Room Study

Vary temperature, humidity, work schedule, rest break, and food

Still no visible effect on productivity

Hawthorne III

Conducted in 1928,

20,000 workers interviewed

Hawthorne IV

Behavior set by work group has the most

powerful influence

The higher the norm, the higher the productivity

=> The principle of social proof.

Post - Elton Mayo

After Elton Mayo’s Human Relations School There are:

Maslow – Hierarchy of needs

McGregor – Theory X and Y

Simmons Laboratories

• References

• Use of Vincent’s Slides

• Too long an introduction

• Re-submit, but unfiled

• No plastic bag

2 pages

Simplified Styles

Elaborate on just one idea

Style

• Simplified style

• Don’t underline Title

• Title for a figure