Scientific Management

 F W Taylor is the first management thinker

to introduce scientific methods of
management.
 He a launched a new movement in 1990.
 He is regarded as father of scientific
management.
Meaning of Scientific Management
 Scientific management is the substitution of
exact scientific investigations and knowledge
for the old individual judgment or opinion in
all matters relating to work done in the shop.
 It implies the application of science to
management of a business concern.
 SM is a thoughtful,organised human
approach to the job of management.
Meaning of Scientific Management
In short SM involves:
 Scientific study and analysis of work.
 Scientific selection and training of employees.
 Standardization of raw materials, working
conditions and equipment.
 Aims of Scientific Management
 Increased Production
 Quality Control
 Cost Reduction
 Elimination of wates
 Right men for right work
 Incentive wages
 Techniques of Scientific Management
 Scientific Task setting
 Work Study
Method Study
Motion Study
Time Study
Fatigue Study
 Planning the task
 Setting of wage rate
 Standardization of tools and equipment
 Scientific selection of training of workers.
 Principles of Scientific Management
 Replacement of old thumb rule method
 Sceintific selection and training of workers
 Cooperation between labour and
management
 Equal division of responsibility
 Maximum output
Criticism of Scientific Management
 Speeding up of workers
 Boredom
 No scope for initiative
 Unemployment
 Exploitation of workers
 Fayol’s Principles
• Henri Fayol, developed a set of 14 principles:
1. Division of Labor: allows for job specialization.
• Fayol noted firms can have too much specialization leading
to poor quality and worker involvement.
2. Authority and Responsibility: Fayol included both formal
and informal authority resulting from special expertise.
3. Unity of Command: Employees should have only one boss.
4. Scalar chain or hierarchy : a clear chain from top to
bottom of the firm.
5. Centralization: the degree to which authority rests at the
very top.
 Fayol’s Principles
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.
 Fayol’s Principles
11. Remuneration of Personnel: The payment system
contributes to success.
12. Stability of Tenure: Long-term employment is
important.
13. General interest over individual interest: The
organization takes precedence over the individual.
14. Esprit de corps: Share enthusiasm or devotion to the
organization.
Administrative Management Approach
• Management is a distinct activity.
• It involves functions of
planning,organising,commanding,coordinatio
n and control.
• Manaegement practice shuld be based on
certain principles.
• The principles of management have universal
applicability.
• It can be taught in school, skills can be learnt.
 Human Relations approach
Focusses on :
• Interpersonal Relationships
• Emphasis on motivation,job satisfaction,
morale.
• Emphasis on individual,his needs & behaviour.
• Based on Hawthorne experiments.
 Human Relations approach
Contributions :
• Social System
• Social environment
• Group Dynamics
• Leadership
• Communication
• Role of Money
• Conflict
 The Hawthorne Studies
• Between 1927 and 1932 some significant
experiments in the fields of industrial
psycology were carried out by George Elton
Mayo and F J Roethlisbergerprofessors of
reasearch at Harvard Graduate school of
Business administration at Hawthorne
workers of Western electric company Chicago.
 The Hawthorne Studies
• The IIlumination experiment: Worker productivity
was measured at various levels of light
illumination. Researchers found that regardless of
whether the light levels were raised or lowered,
productivity rose.
• Relay Assembly test room experiment: Socio
Phsychological factors eg special
attention,recognition and sense of group belonging
exercise a greater influence on productivity than
working conditions.
 The Hawthorne Studies
• Bank Wiring Observation Study: Pay of every
member made dependent on group’s
performance
• Mass Interview Programme : Large no. of
workers interviewed to understand their
attitudes and opinions on factors affecting
productivity.
Findings of The Hawthorne Studies
• An organisation is a phsychological system.
• Human factor most important element.
• Individual behaviour dominated by informed
group of which he is a member.
• Money not the sole factor.
• Wokers react as members of group rather as
an individual.
• They respond to total work situation.
 Decision Theory
• Concentrates on rational decision making.
Selection of suitable course of action from
various alternatives.
• Manager is a decision maker and organisation
is result making unit
• Decision making is job of every manager
majorily.
 Decision Theory
• Management is essentially DM
• Members of organisation are decision makers
& problem solvers.
• Organisation can be treated as combination of
various decision centers.
• Quality of DM affects organizational
effectiveness.
 Social System
This approach looks upon organisation as a
social system composed of people of work in
cooperation.
• Organisation is treated as social system.
• Relationships exist among external & internal
environment.
• Cooperation among members is necessary.
• Alignment of group goals and organisation
goals.
 Max Weber’s Bureaucracy
Stated that there are 3 types of Legitimate
authority:
• Rational Legal authority
• Traditional Authority
• Charismatic Authority
 Max Weber’s Bureaucracy
Characterstics
• Division of work
• Hierarchy of positions
• Rules and regulations
• Impersonal Conduct
• Staffing
• Technical competence
• Official records
 Max Weber’s Bureaucracy
Merits
• Competence
• Rules And Regulations
• Rationality
• Efficiency
• Impartiality
 Max Weber’s Bureaucracy
Demerits
• Rigidity of operations
• Ineffective Communication
• Lack of Personal Touch