Principles of Management and  Taylor’s Four (4) Principles of Scientific

Management:
Organizations 1. Eliminate the guesswork of rule-of-thumb
approach in deciding how each worker is
Introduction doing his job by adopting scientific
 Construction of the Pyramid in Egypt measurements of breaking the job into a
 100,000 men series of small, related tasks;
 20 years to complete 2. Use more scientific and systematic
 Equivalent to administering an method for selecting workers and training
organization three times the size of the them for specific jobs;
Shell Oil Company. 3. Establish the concept that there is a clear
 Chinese are known to have had highly division of responsibility between
systematic, large scale management systems. management and workers. Management
 Great Wall of China – constructed at about is doing the goal setting, planning, and
the same time as the Pyramids were built. supervising, while workers are executing
 The administrative system of the Roman the required tasks;
Catholic Church, a far-flung organization at 4. Establish the discipline whereby
one point numbering nearly a half-million management sets the objectives and the
Cardinals, Archbishops, Bishops and Parish workers cooperate in achieving them.
Priests, is being studied for its remarkably  Taylor’s Principles of Scientific
centralized administrative system and is Management – aimed primarily at lowering the
compared with the vastly more complex unit cost of factory production.
administrative system of modern-day General  Henri Fayol
Motors and other transnational corporations.  French industrialist, working out some
 Great military leaders from Alexander the powerful ideas of his own.
Great to Caesar, to Napoleon the Great, to  A topnotch management executive.
General Douglas McArthur have long been  Focused his attention on the manager
studied for what they can teach us about rather than the worker.
planning, organizing, directing, controlling, and  In his most notable work, General and
motivating. Industrial Management, Fayol established
 Two (2) key notions provided the essential himself as the first modern
rationale for the establishment of these organizational theorist.
services:  It was Fayol who defined administration in
1. The idea that administration is an activity terms of 14 functions:
that can be studied and taught separately 1. Planning
from the context of what is being 2. Organizing
administered. 3. Commanding
2. The belief that decisions about the policies 4. Coordinating
and purposes of government belong to the 5. Unity of direction
realm of political action. 6. Subordination of individual interest to
general interest
Impact of the Industrial Revolution 7. Administration of personnel
 Henry Ford – widely recognized in connection 8. Centralization
with such technological breakthroughs. One of 9. Scalar chain
the pioneering giants. 10. Order
 Frederick W. Taylor 11. Equity
 Name well known to many students of 12. Stability of teams personnel
administration 13. Initiatives
 Engineer at the Midvale and the 14. Esprit de corps
Bethlehem steel companies at the close of  Fayol went further by identifying a list of four
the 1800s. “principles” among which were:
 In the early 1900s became one of the top 1. Unity of command
engineering consultants in American 2. Authority and responsibility
industry. 3. Initiative
 4. Morale
 Fayol emphasized that flexibility and a sense
of proportion were essential to managers
who adopted principles and definitions to
particular situations.
 Max Weber
 German sociologist
 Formulated an administrative system;
which seemed promising at that time and
has since proved indispensable:
bureaucracy.
 Weber envisioned certain characteristics that
are, in a sense, principles of administration,
such as:
1. A division of labor based on functional
specialization;
2. A well-defined hierarchy of authority;
3. A system of rules covering the rights and
duties of employees;
4. A system procedures for dealing with work
situations;
5. Impersonality of personal relations;
6. Selection and promotion based only on
technical competence.
The Rise of Classical Organizational
Theory, 1910-1935
 Taylor, Fayol, and Weber – giants in the pre-
World War I years.
 Era of Scientific Management – period from
1910 to 1935.
 Raymond E. Callahan – vividly portrays how
administrators in the US quickly adopted the
values and practices of business and industrial
managers of that time.
 Ellwood Cubberley – one of the leading
scholars in American education.
 Luther Gulick and Lyndall Urwick – stood
out among the scholars who attempted to
synthesize what is now known as the “classical”
formulation of principles, which would be
useful in developing good, functional
organizations.
Organizational Concepts of Classical Theory
 Scalar principle – jargon of classical theorists.
In practice it is usually referred to as “line and
staff”.
 Unity of command – no one in an
organization should receive orders from more
than one superior.
 Functional foremanship – permitted a worker
to receive orders from as many as eight
bosses with each being a specialist.
 Exception principle – holds that when the
need for a decision recurs frequently, the
decision should be established as a routine
that can be delegated to subordinates.
 Span of control – another principle whose
main idea is to limit the number of people
reporting to a supervisor.
 Six essential qualities are the key to success:
sincerity, personal integrity, humility,
courtesy, wisdom and charity.
– Dr. William Menninger
The Idea of Mary Parker Follett
 Mary Parker Follett
 Her work was unique in the development
of management thought.
 She started as a Boston social worker and
then became active in the field of
management.
The Human Relations Movement, 1935-
1950
 Western Electric Company – one of the more
enlightened industrial employers of the time
had cooperated with the National Research
Council in a simple experiment.
 Western Electric’s Hawthorne plant near
Chicago was selected for the experiment.
 Elton Mayo – best member among the team
of researchers known to educators.
 The investigators sought to answer six
questions which they hoped would explain
their findings:
1. Do employees actually become tired?
2. Are pauses for rest desirable?
3. Is a shorter working day desirable?
4. What is the attitude of employees toward
their work and toward the company?
5. What is the effect of changing the type of
working equipment?
6. Why does production decrease in that
afternoon?
 New concepts for the administrators to use
in practice
1. Morale
2. Group dynamics
3. Democratic supervision
4. Personnel relations
5. Behavioral concepts of motivation
 Sociograms – portrayed the dynamics of the
informal social structure of human groups.
 Jacob Moreno – developed and refined the
techniques of sociometric analysis.
 Robert Bales – developed a systematic
technique for analyzing the patterns of
interaction between the members of a group.
He was the first to document that successful
groups tend to have people in them who play
two key roles.
 Two Dimensions of Group Behavior
1. Task orientation
2. Maintenance orientation
 Benjamin Wolman – found that members of
groups tend to elect to leadership positions
individuals who are perceived to have ability to
satisfy the needs of the group, and who are
also ready to accept the responsibility.
 Helen Jennings – found that dominant,
aggressive people are not likely to be
perceived by group members as leaders.
 Kurt Lewin – contributed much to the study of
organizational behavior, especially in the area
of group decision making.
 George Homan – The Human Group, 1950
 Felix Roethlisberger – Management and
Morale, 1950
 William Foote Whyte – Human Relations in
the Restaurant Industry, 1948
 Fristz Redl – Group Emotion and Leadership,
1942
 Philip Selznick – The Leaders as the Agent of
the Led, 1951
 Alvin W. Gouldner – Studies in Leadership,
1950