11

Management and Management and OrganizationOrganization

Management philosophies and Management philosophies and organization forms change over time organization forms change over time to meet new needsto meet new needs

Some ideas and practices from the Some ideas and practices from the past are still relevant and applicable past are still relevant and applicable to management todayto management today

22

SCIENTIFIC MANAGEMENTSCIENTIFIC MANAGEMENT

F. W. Taylor—Father of scientific F. W. Taylor—Father of scientific managementmanagement

Did most of his work at Midvale & Did most of his work at Midvale & Bethlehem Steel Companies in Bethlehem Steel Companies in PennsylvaniaPennsylvania

Studied on workers employed to load pig Studied on workers employed to load pig iron freight carsiron freight cars

33

Key Concepts of Scientific Management

Scientific task planning

Time and motion studies

Standardisation

Differential piece rate system

Functional foremanship

General Administrative General Administrative Theory/The management Theory/The management

process schoolprocess school

Henri FayolHenri Fayol

2-2-55

66

Started in 1895Started in 1895 Four experimental & three control groupsFour experimental & three control groups Five different testsFive different tests Test pointed to factors other than Test pointed to factors other than

illumination for productivityillumination for productivity 1st Relay Assembly Test Room experiment, 1st Relay Assembly Test Room experiment,

was controversial, test lasted 6 yearswas controversial, test lasted 6 years Interpretation, money not cause of Interpretation, money not cause of

increased outputincreased output Factor that increased output, Factor that increased output, Human Human

RelationsRelations

Hawthorne Hawthorne StudiesStudies

Human relations SchoolHuman relations SchoolAlso called neo-classical

By Elton Mayo revealed the importance of social norms revealed the importance of social norms

as determinants of individual work as determinants of individual work behaviorbehavior

changed the dominant view that changed the dominant view that employees were no different from any employees were no different from any other machinesother machines

88

known as the ‘Hawthorne Studies’ because were conducted at Western Electric’s Hawthorne plant near Chicago.

Following experiments were conductedFollowing experiments were conducted

Illumination experimentIllumination experiment

Relay assembly test room experimentRelay assembly test room experiment

99

Bank wiring experimentsBank wiring experiments

Also conductedAlso conducted

Mass interviewMass interview

Personnel counselingPersonnel counseling

Psychological testingPsychological testing

1010

The most important findings of the Hawthorne studies : Organisation is a social system.

The human factor is the most important element in organisations.

Behavior and sentiments are closely related and the group influences affect individual behavior in a significant way.

1111

Group standards are highly effective in establishing individual worker output.

Money is not so important in determining output when compared to group standards, group sentiments and security.

Happy employees are productive workers.

1212

Peter F. Drucker

His chief contributions include:Nature of Management

Management is a dynamic, life-giving element in an organisation.

Management is a distinct, discipline and a social function.

Managers should be creative and innovative in order to produce results. He opined that management is a great profession full of challenges.

1313

Manager’s job-to set meaningful objectives in eight key areas of businessMarket standingInnovationProductivityPhysical & financial resourcesProfitabilityManager performance & developmentWorker performance & social responsibility

1414

MBO Decentralization Structure Decision-making Executive development

1515

Recent TrendsRecent Trends

Systems TheorySystems Theory

Contingency ViewContingency View

Total Quality Management Total Quality Management

(TQM)(TQM)

Learning organizationLearning organization

1616

Systems View of OrganizationsSystems View of Organizations

1717

Elements of a Learning Elements of a Learning OrganizationOrganization

Learning Organizatio

n Open Informatio

n

Empowered

Employees

Team-Based Structure

Exhibit 2.7

Learning Organizations and Knowledge Learning Organizations and Knowledge ManagementManagement learning organizationlearning organization - one that has - one that has

developed the capacity to continuously learn, developed the capacity to continuously learn, adapt, and changeadapt, and change

create learning capabilities throughout the create learning capabilities throughout the organizationorganization

understanding that knowledge is an important understanding that knowledge is an important resourceresource

1919

ReferencesReferences

Management-Robbins & CoulterManagement-Robbins & Coulter

Management-Stoner & FreemenManagement-Stoner & Freemen

Management-V. S. P. RaoManagement-V. S. P. Rao

Management-DaftManagement-Daft