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Edit Comment Close Premium member Presentation Transcript Principles of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Principles of Management Unit- I “Management is the process involving planning, organizing, staffing, directing and controlling human efforts to achieve stated objectives in an organization” : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut “Management is the process involving planning, organizing, staffing, directing and controlling human efforts to achieve stated objectives in an organization” “Management is the art of knowing what you want to do and then seeing that it is done in the best and the cheapest way” Features of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Features of Management Organized Activities Existence of Objectives Relationships among Resources Working with and through people Decision Making Nature of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Nature of Management Management is a Process Multidisciplinary Dynamic nature of Principles Group Effort Management: As Profession Universality of Management Importance of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Importance of Management Effective Utilization of Resources Reduces Costs Help in Achieving Group Goals Establish a sound Organization Maintain Equilibrium Management: Science or An Art : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management: Science or An Art Management as Science- Systematized body of knowledge Contains principles & Theories Universal Applicability Can be Taught and Learned in classroom Management as an Art : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management as an Art Art is a practical application of knowledge & skill Result oriented Creativity & originality Perfection based on practicing Management as Profession : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management as Profession Existence of knowledge Acquisition of Knowledge Professional Association Ethical codes Service Motive “Management” & “Administration” : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut “Management” & “Administration” Various views expressed in this regard have led to the emergence of three approaches Administration is above Management Administration is a part of Management Administration and Management are the same Administration is above Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Administration is above Management Administration relates to the policy formulation and Management relates to policy execution. Administration is a top level function & Management is middle or lower level function. Administration determines the objectives and formulates the policy & Management executes it. Administration is a part of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Administration is a part of Management Administration is concerned with day to day function and is a part of management. Brech divides management into three levels: Top Level (responsible for policy formulation) Middle or Functional Level ( responsible for planning, organizing, directing & controlling). Lower Level (responsible for supervision) Administration is a part of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Administration is a part of Management Top Middle Lower Administration and Management are the same : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Administration and Management are the same Henry Fayol, Koontz and O’Donnell, Newman makes no distinction b/w management and administration and use these two terms interchangeably. Management Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management Skills Managers need certain skills to perform their roles in effective manner. Manager should posses three major skills: Conceptual Skills Technical Skills Human Skills Management Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management Skills Top Management Middle Management Supervisory Level Conceptual Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Conceptual Skills Are concerned with why a thing is done. Refers to the ability of a manager to take a broad and farsighted view of the organization and its future, his ability to see the whole picture, to recognize significant elements in a situation, and to understand the relationship among these elements. Such skills are necessary to deal with set models and to formulate plans. Technical Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Technical Skills Concerned with what is done Includes knowledge of Specialized field such as engineering, accounting or manufacturing. These skills are more important at lower levels of management . Human Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Human Skills Refers to the ability to interact effectively with people at all levels. It involves the ability to work well with people both individually and in group. Such skills are required to motivate and lead people in the organization in such a way that not only the personal satisfaction is achieved but organizational objectives are also achied. Taylor and Scientific Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Taylor and Scientific Management Introduced by Frederik Winslow Taylor in USA “Scientific Management is concerned with knowing Exactly What you want men to do and then seeing that they do it in the best and cheapest way”. Emphasis is on solving the managerial problem in a scientific way. He carried various experiments about how to increase the efficiency of people. Slide 20: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Taylor’s principles can be described into two parts: Elements and Tools of scientific Management Principles of Scientific Management. Elements and Tools of scientific Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Elements and Tools of scientific Management 1. Separation of planning and doing: He emphasized on the separation of planning aspect from actual doing of the work Previously, workers used to plan for the work to be done where put under the supervision of a supervisor. Emphasize that planning should be done by the supervisor and worker should emphasize on operational work only Slide 22: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 2. Functional Foremanship: Separation resulted in development of Supervision. In this system, eight persons are involved to direct the activities of workers. Four persons are concerned with planning Other four are concerned with production. 3. Job analysis: Job analysis is undertaken to find out the one best way of doing the things. The best way of doing a job is one which requires the least movements, consequently less time and cost. Slide 23: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut It can be done by Time –Motion-Fatigue studies. Time study involves the determination of time a movement takes to complete. The movement which takes minimum time is best one. Motion study involves the study of movements in parts which are involved in doing a job and thereby eliminating the wasteful movements and performing only necessary movements. fatigue study shows the amount and frequency of rest required in completing the work. Slide 24: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 4. Standardization Standards should de maintained in respect of instruments and tools, period of work, working condition, cost of production etc. 5. Scientific Selection and training of workers: he says that workers should be selected on scientific basic taking into account their education, work experience, physical strength etc. Physically and technically sound worker. Training for workers to make them more efficient and effective. Slide 25: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 6.Financial incentives: Motivate the workers to put their maximum efforts. He applied the concept of differential piece rate system:- The worker who completes the normal work gets higher rate. one who does not complete the normal work gets the lower rate. He said wages should be based on individual performance and not on the position which he occupies. Slide 26: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 7. Economy: Adequate consideration should be given to Economy and profit. For this technique of cost and control should be adopted:- Making resources more productive as well as by eliminating the wastages. 8.Mental revolution: Mutual co-operation between management and workers. For this mental change in both parties from conflicts to co-operation. Principles of scientific Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Principles of scientific Management Replacing rule of thumb with Science:- He says that , the exactness of various aspects of work like day’s fair work, standardization of work. Differential piece rate etc. is the basic core of scientific management. It is essential that all these are measured precisely and not on mere estimates. Harmony in Group Action:- There should be mutual give and take situation and proper understanding so that group as a whole contributes to the maximum. Slide 28: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Co-operation:- it is based on mutual confidence, co-operation and goodwill. co-operation between management and workers can be developed through mutual understanding and a change in thinking. Maximum output:- it involves continuous increase in production and productivity instead of restricted production either by management or by worker. Development of workers:- Required Scientific selection of workers and providing them training at the work place. Characteristics of quality Managers : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Characteristics of quality Managers Knowledge Decisiveness:- A manager must act fast to be decisive. A good Manager should be able to make decision, even when only partial data is available, so that his decision may be based on analytical and intuitional judgment. Ability to handle conflict Emotional stability Faylo’s Administrative Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Faylo’s Administrative Management Fayol presented 14 principles of general guides to the management process and practice. These are as under:- Division of Work:- Produces more and better work with same effort. Various functions like planning, organizing, directing and controlling cannot be performed by a single person. Authority and Responsibility:- Management: Gating work done through others. Manager should have the right to give orders and power to get obedience. Slide 31: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Discipline:- It means obedience of authority, rules & regulations. Respect for superiors. They can be maintained by:- Good supervisors at all levels. Clear & fair agreements b/w both. Judicious application. Unity of Command:- A person should get instructions and orders from only one superior. Unity of Direction:- According to this, each group of activities with the same objective must have one head and one plan. Slide 32: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Subordination of individual to general interest:- Common interest is above the individual interest. The agreement between the employers and the employees should be fair. Remuneration of Personnel:- Fair and provide maximum satisfaction to employee. It increases worker’s efficiency and morale and maintain good relationship between them and Management. Centralization:- Increase importance of subordinate’s role is decentralization. Reduce its importance is centralization. Decided by management on the basis of nature of circumstances, size of the undertaking etc. Slide 33: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Scalar Chain:- There should be scalar chain of authority and of communication ranging from the highest to the lowest. Communication must follow through each position in the line of authority (upward and downward both). A B L C G D H E Gang Plank I Slide 34: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Order:- Proper place for everything and everything at its proper place. Similarly, Right man at the Right place. Exact knowledge of human requirement and resources and constant balance between them is required. Equity:- Equal Treatment to all. Brings loyalty It requires good sense, experience and manager to be free from personal likes or dislikes. Slide 35: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Stability of tenure:- No employee should be removed within short of time. Job security in order to motivate the workers. Sense of Attachment. Initiative:- Within the limits of authority and discipline, managers should encourage their employees for taking initiative. Esprit-de-corps:- Team spirit among the employees. The motto of divide and rule should be avoided. Bureaucracy : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Bureaucracy In 1910 Max weber made the study of different types of business and govt. organizations and distinguished 3 basic type of administration in them:- Leader oriented: No delegation of management functions. Tradition oriented: Managerial positions are handed down from generation to generation. ‘Who you are’ is more important then ‘what you can do’ Bureaucratic Administration: Delegation of Management responsibilities is based on person’s demonstrated ability to hold the position. People earn positions because they are presumed to be best capable of filling them. Slide 37: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Weber has given a number of features bureaucracy:- Administrative class: Administrative class responsible for maintaining coordinative activities of the members. Main features of this class are: People are paid as whole time employees They receive salary and other perquisites normally based on their positions. There tenure in the organization is determined by rules and regulations of the organization. They are selected on the basis of their competence. Slide 38: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Hierarchy: Each lower office is subject to control and supervision by a higher office. Thus no office is left uncontrolled. This hierarchy serves as lines of communication & delegation of authority. Slide 39: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Division of work This increases production by improving efficiency and saving time in changing over from one job to another. Work is divided on the basis of specialization . It ensures that each office has a clearly defined area of competence within the organization and each official knows the areas in which he operates. Rules & regulations the rules and regulations that are to be followed by employees are well defined to instill discipline in them and to ensure that they they work in a coordinated manner to achieve the goals of the organization. Slide 40: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Impersonal Relationships: Relationships among the individuals are governed through the system of official authority and rules. Official positions are free from personal involvement, emotions and sentiments. Official Record: This emphasizes on the maintenance of proper official records. The decision and activities are formally recorded and preserved for future reference HAWTHRONE EXPERIMENT ANDHUMAN RELATIONS : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut HAWTHRONE EXPERIMENT ANDHUMAN RELATIONS The Hawthrone plant of the General Electric Company was manufacturing Telephone System Bell. Employed about 30,000 employees at time of experiments. In spite of providing various benefits to employees there was dissatisfaction among the workers and productivity was not up to the mark. In order to investigate the real causes, a team was formed to study the relationship between productivity and physical working conditions. They conducted various researches into four phases: 1. Illumination Experiment: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 1. Illumination Experiment: To find out how varying levels of illuminations (light at place of work) affected the productivity. Hypothesis was that with higher illumination productivity would increase Firstly a group of workers was chosen and placed into two separate groups One Group (Experimental Group) exposed to varying intensities of illumination. Another Group (Control Group) continued to work under constant conditions Slide 43: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut When illumination was increased in the experimental group, productivity increased in both the groups. When illumination was decreased the productivity still increased. it decreased only when it was decreased to level of moon light. Conclusion- It did not have any effect on productivity. 2. Relay Assembly Test Room Experiments: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 2. Relay Assembly Test Room Experiments: To determine the effect of changes in hours and other working conditions on productivity} For this test two girls were chosen. These girls were asked to choose four more girls as their co-workers. The work was related to the assembly of telephone relays. Each relay consisted of a number of parts which girls assembled into finished products. Output depended on speed and continuity. Experiments started with introducing changes in sequence with duration of each change ranging from 4-12 weeks. Before each change they were consulted and their views were invited. In some cases they were also allowed to take decisions. Slide 45: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Changes: Incentive system was changed: Each girl’s extra pay was based on other five rather than output of larger group. (Productivity Increased) two 5 mins rest- 1 morning & 1 evening later increased to 10 mins. ( Productivity Increased) Rest periods was reduced to 5 mins but frequency was increased .(Decreased because rhythm got affected) No. of rest reduced to 2 of 10 mins each but coffee or soup in morning and snack in evening.( Productivity increased) Changes in working hours and workday were introduced.- Saturday off. Girls were allowed to leave early. (Productivity Increased) Slide 46: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut As a result of these changes: Absenteeism Decreased Less Supervision was required. Researchers decided to revert back to original position, but productivity still increased. Due to change in girl’s attitude towards work and friendly attitude of the supervisor. 3. Mass Interviewing: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 3. Mass Interviewing: About 20,000 workers were interviewed. In this phase, they wanted to know as to what were the basic factors responsible for human behaviour at work. Firstly, direct questions were asked but much information could not be extracted. Later, technique was changed to non-directive type of interviewing, in which workers were free to talk. It was found that social relations inside organization had influence in their attitudes and behaviors. Workers behaviour was being influenced by group behaviour. 4. Bank Wiring Observation Room Experiments: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 4. Bank Wiring Observation Room Experiments: in this a group of 14 male workers was employed in the bank wiring room. The work involved attaching wire to switches for certain equipments used in telephone exchange. Hourly wage rate for workers was based on average output of each worker while bonus was given on the basis of average group output. It was assumed that workers would work more efficiently and would help each other in order to produce more and earn more. This hypothesis did not hold valid. Workers decided the targets for them, lower than the company’s target because: • Fear of Unemployment • Fear of Raising Standards • Protection of Slower workers. • Satisfaction on the part of Management. DECISION THEORY APPROACH : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut DECISION THEORY APPROACH Decision theory approach looks at the basic problem of management around decision making—the selection of a suitable course of action out of the given alternatives. Major contributions in this approach have come from Simon. Other contributors are March, Cyert Forrester, etc. The major emphasis of this approach is that decision making is the job of every manager. The manager is a decision maker and organization is a decision-making unit. Therefore, the basic problem in managing is to make rational decision. From this point of view, decision theory approach has the following features: Slide 50: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 1. Management is essentially decision making. 2. The members of the organization are decision makers and problem solvers. 3. Organization can be treated as a combination of various decision canters. The level and Importance of organizational members are determined on the basis of importance of decisions which they make. 4. Quality of decision affects the organizational effectiveness. 5. All factors affecting decision making are the subject-matter of study of management. Besides processes and the techniques involved in decision making, other factors Affecting the decisions are information systems, and social and psychological aspects of decision-makers. SOCIAL SYSTEMS APPROACH : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut SOCIAL SYSTEMS APPROACH This approach was introduced by Vilfredo Pareto, a sociologist. His Ideas were later developed by Chester Barnard who synthesized the concept of social systems approach. According to this approach, an organization is essentially a cultural system composed of people who work In cooperation. As such, for achieving organizational goals, a cooperative system can be developed by understanding the behavior of people in groups. The major features of this approach are as follows: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut The major features of this approach are as follows: 1. Organization is a social system, a system of cultural relationships. 2. Relationships exist among the external as well as internal environment of the organization. 3. Cooperation among group members is necessary for the achievement organizational objectives. 4. For effective management, efforts should be made for establishing harmony between the goals of the organization and the various groups therein. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
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Edit Comment Close Premium member Presentation Transcript Principles of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Principles of Management Unit- I “Management is the process involving planning, organizing, staffing, directing and controlling human efforts to achieve stated objectives in an organization” : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut “Management is the process involving planning, organizing, staffing, directing and controlling human efforts to achieve stated objectives in an organization” “Management is the art of knowing what you want to do and then seeing that it is done in the best and the cheapest way” Features of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Features of Management Organized Activities Existence of Objectives Relationships among Resources Working with and through people Decision Making Nature of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Nature of Management Management is a Process Multidisciplinary Dynamic nature of Principles Group Effort Management: As Profession Universality of Management Importance of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Importance of Management Effective Utilization of Resources Reduces Costs Help in Achieving Group Goals Establish a sound Organization Maintain Equilibrium Management: Science or An Art : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management: Science or An Art Management as Science- Systematized body of knowledge Contains principles & Theories Universal Applicability Can be Taught and Learned in classroom Management as an Art : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management as an Art Art is a practical application of knowledge & skill Result oriented Creativity & originality Perfection based on practicing Management as Profession : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management as Profession Existence of knowledge Acquisition of Knowledge Professional Association Ethical codes Service Motive “Management” & “Administration” : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut “Management” & “Administration” Various views expressed in this regard have led to the emergence of three approaches Administration is above Management Administration is a part of Management Administration and Management are the same Administration is above Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Administration is above Management Administration relates to the policy formulation and Management relates to policy execution. Administration is a top level function & Management is middle or lower level function. Administration determines the objectives and formulates the policy & Management executes it. Administration is a part of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Administration is a part of Management Administration is concerned with day to day function and is a part of management. Brech divides management into three levels: Top Level (responsible for policy formulation) Middle or Functional Level ( responsible for planning, organizing, directing & controlling). Lower Level (responsible for supervision) Administration is a part of Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Administration is a part of Management Top Middle Lower Administration and Management are the same : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Administration and Management are the same Henry Fayol, Koontz and O’Donnell, Newman makes no distinction b/w management and administration and use these two terms interchangeably. Management Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management Skills Managers need certain skills to perform their roles in effective manner. Manager should posses three major skills: Conceptual Skills Technical Skills Human Skills Management Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Management Skills Top Management Middle Management Supervisory Level Conceptual Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Conceptual Skills Are concerned with why a thing is done. Refers to the ability of a manager to take a broad and farsighted view of the organization and its future, his ability to see the whole picture, to recognize significant elements in a situation, and to understand the relationship among these elements. Such skills are necessary to deal with set models and to formulate plans. Technical Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Technical Skills Concerned with what is done Includes knowledge of Specialized field such as engineering, accounting or manufacturing. These skills are more important at lower levels of management . Human Skills : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Human Skills Refers to the ability to interact effectively with people at all levels. It involves the ability to work well with people both individually and in group. Such skills are required to motivate and lead people in the organization in such a way that not only the personal satisfaction is achieved but organizational objectives are also achied. Taylor and Scientific Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Taylor and Scientific Management Introduced by Frederik Winslow Taylor in USA “Scientific Management is concerned with knowing Exactly What you want men to do and then seeing that they do it in the best and cheapest way”. Emphasis is on solving the managerial problem in a scientific way. He carried various experiments about how to increase the efficiency of people. Slide 20: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Taylor’s principles can be described into two parts: Elements and Tools of scientific Management Principles of Scientific Management. Elements and Tools of scientific Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Elements and Tools of scientific Management 1. Separation of planning and doing: He emphasized on the separation of planning aspect from actual doing of the work Previously, workers used to plan for the work to be done where put under the supervision of a supervisor. Emphasize that planning should be done by the supervisor and worker should emphasize on operational work only Slide 22: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 2. Functional Foremanship: Separation resulted in development of Supervision. In this system, eight persons are involved to direct the activities of workers. Four persons are concerned with planning Other four are concerned with production. 3. Job analysis: Job analysis is undertaken to find out the one best way of doing the things. The best way of doing a job is one which requires the least movements, consequently less time and cost. Slide 23: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut It can be done by Time –Motion-Fatigue studies. Time study involves the determination of time a movement takes to complete. The movement which takes minimum time is best one. Motion study involves the study of movements in parts which are involved in doing a job and thereby eliminating the wasteful movements and performing only necessary movements. fatigue study shows the amount and frequency of rest required in completing the work. Slide 24: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 4. Standardization Standards should de maintained in respect of instruments and tools, period of work, working condition, cost of production etc. 5. Scientific Selection and training of workers: he says that workers should be selected on scientific basic taking into account their education, work experience, physical strength etc. Physically and technically sound worker. Training for workers to make them more efficient and effective. Slide 25: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 6.Financial incentives: Motivate the workers to put their maximum efforts. He applied the concept of differential piece rate system:- The worker who completes the normal work gets higher rate. one who does not complete the normal work gets the lower rate. He said wages should be based on individual performance and not on the position which he occupies. Slide 26: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 7. Economy: Adequate consideration should be given to Economy and profit. For this technique of cost and control should be adopted:- Making resources more productive as well as by eliminating the wastages. 8.Mental revolution: Mutual co-operation between management and workers. For this mental change in both parties from conflicts to co-operation. Principles of scientific Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Principles of scientific Management Replacing rule of thumb with Science:- He says that , the exactness of various aspects of work like day’s fair work, standardization of work. Differential piece rate etc. is the basic core of scientific management. It is essential that all these are measured precisely and not on mere estimates. Harmony in Group Action:- There should be mutual give and take situation and proper understanding so that group as a whole contributes to the maximum. Slide 28: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Co-operation:- it is based on mutual confidence, co-operation and goodwill. co-operation between management and workers can be developed through mutual understanding and a change in thinking. Maximum output:- it involves continuous increase in production and productivity instead of restricted production either by management or by worker. Development of workers:- Required Scientific selection of workers and providing them training at the work place. Characteristics of quality Managers : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Characteristics of quality Managers Knowledge Decisiveness:- A manager must act fast to be decisive. A good Manager should be able to make decision, even when only partial data is available, so that his decision may be based on analytical and intuitional judgment. Ability to handle conflict Emotional stability Faylo’s Administrative Management : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Faylo’s Administrative Management Fayol presented 14 principles of general guides to the management process and practice. These are as under:- Division of Work:- Produces more and better work with same effort. Various functions like planning, organizing, directing and controlling cannot be performed by a single person. Authority and Responsibility:- Management: Gating work done through others. Manager should have the right to give orders and power to get obedience. Slide 31: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Discipline:- It means obedience of authority, rules & regulations. Respect for superiors. They can be maintained by:- Good supervisors at all levels. Clear & fair agreements b/w both. Judicious application. Unity of Command:- A person should get instructions and orders from only one superior. Unity of Direction:- According to this, each group of activities with the same objective must have one head and one plan. Slide 32: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Subordination of individual to general interest:- Common interest is above the individual interest. The agreement between the employers and the employees should be fair. Remuneration of Personnel:- Fair and provide maximum satisfaction to employee. It increases worker’s efficiency and morale and maintain good relationship between them and Management. Centralization:- Increase importance of subordinate’s role is decentralization. Reduce its importance is centralization. Decided by management on the basis of nature of circumstances, size of the undertaking etc. Slide 33: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Scalar Chain:- There should be scalar chain of authority and of communication ranging from the highest to the lowest. Communication must follow through each position in the line of authority (upward and downward both). A B L C G D H E Gang Plank I Slide 34: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Order:- Proper place for everything and everything at its proper place. Similarly, Right man at the Right place. Exact knowledge of human requirement and resources and constant balance between them is required. Equity:- Equal Treatment to all. Brings loyalty It requires good sense, experience and manager to be free from personal likes or dislikes. Slide 35: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Stability of tenure:- No employee should be removed within short of time. Job security in order to motivate the workers. Sense of Attachment. Initiative:- Within the limits of authority and discipline, managers should encourage their employees for taking initiative. Esprit-de-corps:- Team spirit among the employees. The motto of divide and rule should be avoided. Bureaucracy : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Bureaucracy In 1910 Max weber made the study of different types of business and govt. organizations and distinguished 3 basic type of administration in them:- Leader oriented: No delegation of management functions. Tradition oriented: Managerial positions are handed down from generation to generation. ‘Who you are’ is more important then ‘what you can do’ Bureaucratic Administration: Delegation of Management responsibilities is based on person’s demonstrated ability to hold the position. People earn positions because they are presumed to be best capable of filling them. Slide 37: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Weber has given a number of features bureaucracy:- Administrative class: Administrative class responsible for maintaining coordinative activities of the members. Main features of this class are: People are paid as whole time employees They receive salary and other perquisites normally based on their positions. There tenure in the organization is determined by rules and regulations of the organization. They are selected on the basis of their competence. Slide 38: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Hierarchy: Each lower office is subject to control and supervision by a higher office. Thus no office is left uncontrolled. This hierarchy serves as lines of communication & delegation of authority. Slide 39: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Division of work This increases production by improving efficiency and saving time in changing over from one job to another. Work is divided on the basis of specialization . It ensures that each office has a clearly defined area of competence within the organization and each official knows the areas in which he operates. Rules & regulations the rules and regulations that are to be followed by employees are well defined to instill discipline in them and to ensure that they they work in a coordinated manner to achieve the goals of the organization. Slide 40: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Impersonal Relationships: Relationships among the individuals are governed through the system of official authority and rules. Official positions are free from personal involvement, emotions and sentiments. Official Record: This emphasizes on the maintenance of proper official records. The decision and activities are formally recorded and preserved for future reference HAWTHRONE EXPERIMENT ANDHUMAN RELATIONS : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut HAWTHRONE EXPERIMENT ANDHUMAN RELATIONS The Hawthrone plant of the General Electric Company was manufacturing Telephone System Bell. Employed about 30,000 employees at time of experiments. In spite of providing various benefits to employees there was dissatisfaction among the workers and productivity was not up to the mark. In order to investigate the real causes, a team was formed to study the relationship between productivity and physical working conditions. They conducted various researches into four phases: 1. Illumination Experiment: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 1. Illumination Experiment: To find out how varying levels of illuminations (light at place of work) affected the productivity. Hypothesis was that with higher illumination productivity would increase Firstly a group of workers was chosen and placed into two separate groups One Group (Experimental Group) exposed to varying intensities of illumination. Another Group (Control Group) continued to work under constant conditions Slide 43: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut When illumination was increased in the experimental group, productivity increased in both the groups. When illumination was decreased the productivity still increased. it decreased only when it was decreased to level of moon light. Conclusion- It did not have any effect on productivity. 2. Relay Assembly Test Room Experiments: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 2. Relay Assembly Test Room Experiments: To determine the effect of changes in hours and other working conditions on productivity} For this test two girls were chosen. These girls were asked to choose four more girls as their co-workers. The work was related to the assembly of telephone relays. Each relay consisted of a number of parts which girls assembled into finished products. Output depended on speed and continuity. Experiments started with introducing changes in sequence with duration of each change ranging from 4-12 weeks. Before each change they were consulted and their views were invited. In some cases they were also allowed to take decisions. Slide 45: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut Changes: Incentive system was changed: Each girl’s extra pay was based on other five rather than output of larger group. (Productivity Increased) two 5 mins rest- 1 morning & 1 evening later increased to 10 mins. ( Productivity Increased) Rest periods was reduced to 5 mins but frequency was increased .(Decreased because rhythm got affected) No. of rest reduced to 2 of 10 mins each but coffee or soup in morning and snack in evening.( Productivity increased) Changes in working hours and workday were introduced.- Saturday off. Girls were allowed to leave early. (Productivity Increased) Slide 46: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut As a result of these changes: Absenteeism Decreased Less Supervision was required. Researchers decided to revert back to original position, but productivity still increased. Due to change in girl’s attitude towards work and friendly attitude of the supervisor. 3. Mass Interviewing: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 3. Mass Interviewing: About 20,000 workers were interviewed. In this phase, they wanted to know as to what were the basic factors responsible for human behaviour at work. Firstly, direct questions were asked but much information could not be extracted. Later, technique was changed to non-directive type of interviewing, in which workers were free to talk. It was found that social relations inside organization had influence in their attitudes and behaviors. Workers behaviour was being influenced by group behaviour. 4. Bank Wiring Observation Room Experiments: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 4. Bank Wiring Observation Room Experiments: in this a group of 14 male workers was employed in the bank wiring room. The work involved attaching wire to switches for certain equipments used in telephone exchange. Hourly wage rate for workers was based on average output of each worker while bonus was given on the basis of average group output. It was assumed that workers would work more efficiently and would help each other in order to produce more and earn more. This hypothesis did not hold valid. Workers decided the targets for them, lower than the company’s target because: • Fear of Unemployment • Fear of Raising Standards • Protection of Slower workers. • Satisfaction on the part of Management. DECISION THEORY APPROACH : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut DECISION THEORY APPROACH Decision theory approach looks at the basic problem of management around decision making—the selection of a suitable course of action out of the given alternatives. Major contributions in this approach have come from Simon. Other contributors are March, Cyert Forrester, etc. The major emphasis of this approach is that decision making is the job of every manager. The manager is a decision maker and organization is a decision-making unit. Therefore, the basic problem in managing is to make rational decision. From this point of view, decision theory approach has the following features: Slide 50: Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut 1. Management is essentially decision making. 2. The members of the organization are decision makers and problem solvers. 3. Organization can be treated as a combination of various decision canters. The level and Importance of organizational members are determined on the basis of importance of decisions which they make. 4. Quality of decision affects the organizational effectiveness. 5. All factors affecting decision making are the subject-matter of study of management. Besides processes and the techniques involved in decision making, other factors Affecting the decisions are information systems, and social and psychological aspects of decision-makers. SOCIAL SYSTEMS APPROACH : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut SOCIAL SYSTEMS APPROACH This approach was introduced by Vilfredo Pareto, a sociologist. His Ideas were later developed by Chester Barnard who synthesized the concept of social systems approach. According to this approach, an organization is essentially a cultural system composed of people who work In cooperation. As such, for achieving organizational goals, a cooperative system can be developed by understanding the behavior of people in groups. The major features of this approach are as follows: : Prof. Aasim Siddiqui Dept. of Management Studies F.I.T Meerut The major features of this approach are as follows: 1. Organization is a social system, a system of cultural relationships. 2. Relationships exist among the external as well as internal environment of the organization. 3. Cooperation among group members is necessary for the achievement organizational objectives. 4. For effective management, efforts should be made for establishing harmony between the goals of the organization and the various groups therein.