Engineering Management

Spring 2020

Department of Electrical Engineering

INSTITUTE OF SPACE TECHNOLOY
Management Approaches
 Classical Theory
The Classical Theory is the traditional theory,
wherein more emphasis is on the organization
rather than the employees working therein.
According to the classical theory, the
organization is considered as a machine and the
human beings as different components/parts of
that machine
•  
 Scientific Management
Management called for optimizing the way that tasks were performed and
simplifying the jobs enough so that workers could be trained to perform their
specialized sequence of motion in the one “best” way
 Suggests that workers should be selected according to how well they
are suited for a particular job (heavy lifters = strong workers needed)
 Science of Shoveling (Taylor)The optimal weight workers should lift in
a shovel is 21 pounds - resulted in increased productivity and pay
increases
 Bricklaying (Gilbreth)Focused on specific motions - resulting in
dramatic decrease in the motions required to lay brick
 Experiment with Pig Iron
 selected a certain amount of physically fit, enduring men who had strength
enough to work more. In fact, he found out that only about 12,5% of men
already employed were really fit to work in the steel industry.
 Second of all, he ordered these men to follow instructions of their
supervisors precisely, have short rest during the day, sit down for a while,
distract from work, etc.
 Next, Taylor divided the work into several operations and tracked exact time
needed to perform them.
 Also, Taylor found out that if the workers were left to decide how they could
organize their work on their own they failed to perform better. On the
contrary, if supervisors kept an eye on the work / rest ratio laborers could lift
47 tons a day instead 12 1/2without tiring.
 Such system proved that what was previously done by 500 workers could
instead be done by 140.
 Time and motion Study
Science of Shoveling (Taylor)
 The optimal weight workers should lift in a shovel is 21 pounds -
resulted in increased productivity and pay increases 
 Taylor observed in steel mill laborers shoveling varying weights
and concluded that the shovel load with which “a first class man
would do his biggest day’s work” was about 21 pounds.
 Taylor gave out shovels specifically designed to hold 21 pounds
—small ones for shoveling iron ore, big ones for shoveling ash—
and made “thousands of stop-watch observations” to calculate
the most efficient shoveling method.
 was able to increase the daily weight shoveled by each laborer
from 16 to 59 tons
 Frank Gilbreth bricklaying improvement

Frank Gilbreth is best known for his experiments in bricklaying.

 By carefully analyzing the bricklayer's job, he reduced the number of
motions in laying exterior brick from 18 to about 5, and on laying interior
brick the motions were reduced from 18 to 2.
 Using the Gilbreth's techniques, bricklayer productivity increased from
120 bricks per hour to 350 bricks per hour with less fatigued at the end
of the day
Principles of Scientific Management(Taylor)

 Replace working by "rule of thumb," or simple habit and common

sense, and instead use the scientific method to study work and
determine the most efficient way to perform specific tasks.
 Rather than simply assign workers to just any job, match workers
to their jobs based on capability and motivation, and train them
to work at maximum efficiency.
 Monitor worker performance, and provide instructions and
supervision to ensure that they're using the most efficient ways
of working.
 Allocate the work between managers and workers so that the
managers spend their time planning and training, allowing the
workers to perform their tasks efficiently.
 Scientific Management

 Three feet per seconds

 Stores must handle 1,124 packages per hour
 Load packages at the rate of 500 per hour
Criticism on Scientific Management
 Exploitation of Workers
  Problem of Unity of Command
  Mechanical Approach
 Problem of Separation of Planning from Doing
  Individualistic Approach
 Wrong Assumptions

T
 Administrative Management
The theory assumes that there are certain fundamental principles on the basis
of which an organization can be established to achieve a specific objective
 14 Principles of Foyal’s Administrtive
Management
Fayol's principles are listed below:
1.Division of Work – When employees are specialized, output can increase
because they become increasingly skilled and efficient.
2.Authority – Managers must have the authority to give orders, but they must
also keep in mind that with authority comes responsibility.
3.Discipline – Discipline must be upheld in organizations, but methods for doing
so can vary.
4.Unity of Command – Employees should have only one direct supervisor.
5.Unity of Direction – Teams with the same objective should be working under
the direction of one manager, using one plan. This will ensure that action is
properly coordinated.
6.Subordination of Individual Interests to the General Interest – The interests of
one employee should not be allowed to become more important than those of
the group. This includes managers.
7.Remuneration – Employee satisfaction depends on fair remuneration for
everyone. This includes financial and non-financial compensation.
8.Centralization – This principle refers to how close employees are to the
decision-making process. It is important to aim for an appropriate balance.
9.Scalar Chain – Employees should be aware of where they stand in the
organization's hierarchy, or chain of command.
10.Order – The workplace facilities must be clean, tidy and safe for employees.
Everything should have its place.
11.Equity – Managers should be fair to staff at all times, both maintaining
discipline as necessary and acting with kindness where appropriate.
12.Stability of Tenure of Personnel – Managers should strive to minimize
employee turnover. Personnel planning should be a priority.
13.Initiative – Employees should be given the necessary level of freedom to
create and carry out plans.
14Esprit de Corps – Organizations should strive to promote team spirit and
unity.
Fayol's six primary functions of management,

 Forecasting.
 Planning.
 Organizing.
 Commanding.
 Coordinating.
 Controlling.
 Criticism of Administrative Management
1.Management Oriented Theory: The administrative management theory is
not for the workers.
2.Lack of Importance to Informal Organisation: The administrative
management theory does not give any importance to informal organisation or
groups. It gives importance only to the formal organisation structure.
3.Concepts Borrowed from Military Science: Some of the concepts of
administrative management theory were borrowed from military science. They
tried to apply these concepts to the social and business organisations. For e.g.
Henri Fayol gave importance to "commanding" and not "directing" the workers.
4.Mechanical Approach: The administrative management theory has a
mechanical approach. It does not deal with some of the important aspects of
management such as motivation, communication and leading.
 Advantages of Fayol's theories and contributions

 Fayol was the first person to actually give a definition of management which
is generally familiar today namely ‘forecast and plan, to organise, to
command, to co-ordinate and to control'.
 Fayol also gave much of the basic terminology and concepts, which would
be elaborated upon by future researchers, such as division of labour, scalar
chain, unity of command and centralization.
 Bureaucratic management theory
• Bureaucratic management theory developed by Max Weber, contained
two essential elements, including structuring an organization into a
hierarchy and having clearly defined rules to help govern an
organization and its members.
• Bureaucratic management approach developed by Max Weber is not
suitable for business organizations but may be suitable for government
organizations.
 6 Principles of Bureaucratic Management Approach

Proper Division of Labor

Division of labor specialization should be fixed and there should be a
balance between power and responsibilities.
Chain of Command
The chain of command or 
organizational hierarchy should be constructed in a way that information related
to decisions and works can flow effectively from top to bottom
.
Separation of personal and official property
Owners and organization’s assets are separate and can to be treated as same by
the owner or the organization
 6 Principles of Bureaucratic Management Approach

Application of Consistent and Complete Rules

There should be proper rules and regulations in the organization for
running the organization.
These rules should be followed in every step of the organization and they
are equally applicable to every member of the organization.
Selection and Promotion Based on Qualifications
The 
selection and promotion of workers should be based on equalization
 like; skills, experience, age. It should not be influenced by personal
relations and benefits.
Training in job requirements and skills.
There is a difference between management and other parts of organization
and training and improving skills of management is important.
 Features of Bureaucratic Organization
 The high degree of Division of Labor and Specialization.
 There is a well-defined chain of command.
 It follows the principle of Rationality, Objectively and Consistency.
 The relationship among the member of the organization is Formal and
Impersonal relations. And it’s based on positions and not on personalities.
 Rules and Regulations are well defined and it indicates the duties and rights
of the employees. These rules apply to everyone from to bottom of the
organization and must be strictly followed.
 Selection and Promotion are based on Technical qualifications.
 Only Bureaucratic or legal power is given importance.
 Criticism of Bureaucratic Organization
 The emphasis only on rules and regulations.
 There will be unnecessary delays in decision-making due to formalities and
rules of Bureaucratic Organization.
 Coordination and communication hampered because of too much formality
and rules.
 Bureaucracy involves a lot of paperwork and has just too much level of
authority which results in a lot of wastage of time, effort and money. Not
ideal for efficiency.
 Because of its too much formality, a Bureaucratic approach is not suitable
for business organizations. The bureaucratic model may be suitable for
government organizations.
 Criticism of Bureaucratic Organization
 Too much importance is given to the technical qualifications of the
employees for promotion and transfers. Dedication and commitment of
the employee are not considered.
 Limited scope for Human Resource (HR).
 The bureaucratic structure gives all the importance and power to top-
level management.
 And the rules and levels of authority are just too much. It gives a greater
sense of security to the employees. But bureaucratic management
gives a window for “red-tapism”.