Evolution Of Management Theories

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Welcome to our presentation about the evolution of management theories:

Welcome to our presentation about the evolution of management theories

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Few workmen Very Skilled and qualified Customized cars Workman : Director Manufacturer Salesman - - Artisanal era 18th 19th century

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Disadvantages Manufacturing costs extremely high Maintenance and repair costs very high No Research and Development - - Artisanal era 18th 19th century

Henri Fayol (1841-1925):

Henri Fayol (1841-1925) One of the most influential contributors to modern concepts of management Father of modern operational management theory General and Industrial Management (1916) - - Fayol era 1860-1880


Biography Educated at “Ecole des Mines” in St. Etienne Almost 60 years of experience as an engineer and Director at “Houilleres de Commentry” 1916: Publication of “General and Industrial Management” - - Fayol era 1860-1880


Theory Fayol’s theory holds that there are five primary functions of management: (1) Planning: (2) Organizing: (3) Commanding: (4) Coordinating: (5) Controlling: - - Fayol era 1860-1880


Theory Modern management theories (e.g. Richard Daft) have reduced the five functions to four: (1) Planning (2) Organizing (3) Leading (4) Controlling - - Fayol era 1860-1880

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The Classical School of Management - - Fayol era 1860-1880


Taylorism Taylor : a Quaker! Principles 1: Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. «  the natural instinct and tendency of men is to take it easy » F.W.TAYLOR Principle 2 Scientifically select, train, and develop each employee rather than passively leaving them to train themselves. «  they sould ...do what they are told to do promptly and without asking questions or making suggestions » F.W. TAYLOR - - Taylor era 1905


Taylorism Principle 3 Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task". Principle 4 Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. « The Work of every workman is fully planned out by the management , each man receive complete written instructions ,... This task specifies not only what is to be done but also how it is to be done and the exact time allowed for doing it » F.W. TAYLOR - - Taylor era 1905

Henry Ford (1863-1947):

Henry Ford (1863-1947) Father of modern assembly lines Mass production Model T automobile Prolific inventor (161 U.S. patents) - - Ford era 1903-1913- today

Philosophy of Fordism:

Philosophy of Fordism Widespread prosperity and rise corporate profits How ? High wages allow the workers to purchase the output they produce. The idea : Convert workers into customers - - Ford era 1903-1913- today

Division of labor :

Division of labor Distinctive division of labor allows complex tasks to be divided into several simple and repetitive one. Skilled labor is no more needed in the production. - - Ford era 1903-1913- today


Standardisation -Major issue of custom made cars : Each producers have their own parts and components. (even not the same metric system) -Ford invented a process to directly shape parts out of a quenched steel block. - Hand-made steel parts have to be recalibrate after beeing quenched. - - Ford era 1903-1913- today

Optimize the working space:

Optimize the working space Typically similar machinery are installed one next to another. Ford rearrange them into the correct sequence to follow the production patern. Various parts of the production process are linked together by a moving conveyor belt : "Bring the work to the workers." - - Ford era 1903-1913- today

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Disadvantages Advantages - - Ford era 1903-1913- today

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A pure product of the MIT… Graduated in electrical engineering in 1895, at 20 Member of ΔΥ fraternity Founded in 1950 the School of Industrial Management - - GM era 1908-1923-2008? Alfred P. Sloan (1875-1966)

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… & A selfmade man, 1937-1956 1923-1946 1918 1916 1899 1895 - - GM era 1908-1923-2008?

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Use of financial statistics (R.O.I.) Decentralisation of production, freedom of initiative Centralisation of administration, financial backbone - - GM era 1908-1923-2008? Sloan’s Management approach

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Establishing annual styling changes Impeding alternative transports to car Pricing discrimination Market segmentation - - GM era 1908-1923-2008? Sloan’s Marketing approach planned obsolescence monopolysing

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- - GM era 1908-1923-2008? Sloan’s pricing discrimination Quantity Price / Quality Supplyer Consumer Mkt $!

15 Brands:

15 Brands #1 Manufacturer for 76 Years 1930-2006 - - GM era 1908-1923-2008? The 25 M illionth car in 1945 The 50 M illionth car in 1955 The 75 M illionth car in 1962 The 100 M illionth car in 1967 #2 Manufacturer in 2007 after

Toyota Production System:

Toyota Production System A production system was developed between 1948 and 1975 for Toyota Motor company by: Taiichi Ohno, Shigeo Shingo Eiji Toyoda - - Toyota era 1934 – 1970 - Today

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Difficulties for the company : Small market with high competition Poor consumers - - Toyota era 1934 – 1970 - Today


Aim Eliminate all muni, mura, muda (overburden, inconsistency , waste) from the operation to stay competitive. - - Toyota era 1934 – 1970 - Today

Toyota Production System House:

Toyota Production System House - - Toyota era 1934 – 1970 - Today

Just in time production:

Just in time production Created by the founder of Toyota : Sakichi Toyoda, his son Kiichiro Toyoda and the engineer Taiichi Ohno. Based on the 7 wastes: over-production motion (of operator or machine) waiting (of operator or machine) conveyance processing itself inventory (raw material) correction (rework and scrap) - - Toyota era 1934 – 1970 - Today


Jidoka TPS emphasizes the participation of all employees . Toyota organized their workers by forming teams Each team has a leader who also works on the line Teams are responsible for : Training to do many specialized tasks. Housekeeping and minor equipment repair. - - Toyota era 1934 – 1970 - Today

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Product defects must be discovered as soon as possible. Workers are responsible for the discover of defects. Workers are able to stop the entire line by pulling a cord (Jidoka). Workers are controlling machine’s work. - - Toyota era 1934 – 1970 - Today Jidoka

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