Friday, November 29, 2019

SCIENTIFIC MANAGEMENT AND ADMINISTRATIVE MANAGEMENT



  • REVISION SERIES FOR NET MANAGEMENT /NET COMMERCE/NET LABOUR WELFARE
  • SCIENTIFIC MANAGEMENT AND ADMINISTRATIVE MANAGEMENT 
·         MANAGEMENT AND ORGANIZATION BEHAVIOUR LECTURE 1
S
  • DR. SHASHI AGGARWAL
  • INTRODUCTION
  1. HE  WAS AN AMERICAN MECHANICAL ENGINEER WHO WAS BORN ON MARCH 20,1856,PHILADELPHIA IN U.S
  2. HE DIED ON MARCH 21,1915 AGED 59 IN PHILADELPHIA
  3. HE IS KNOWN AS FATHER OF SCIENTIFIC MANAGEMENT
  4. FIRST MANAGEMENT CONSULTANT AND HE WAS ALSO EFFICIENCY EXPERT
  • HE IS KNOWN AS:-
  1. FATHER OF SCIENTIFIC MANAGEMENT AND EFFICIENCY MOVEMENT
  2. FATHER OF INDUSTRIAL ENGINEERING
F.W TAYLOR
  1. FIRST MAN IN RECORDED HISTORY WHO DEEMED WORK DESERVING OF SYSTEMATIC OBSERVATION.
  2. HE NOTICED THAT RESOURCES IN THE ORGANIZATION AT THE TIME WERE WASTED AS THE WORK DONE ACCORDING TO HIT AND TRIAL METHODS RATHER SCIENTIFIC WAY
  3. HE CONDUCTED VARIOUS EXPERIMENTS IN DIFFERENT ORGANIZATION FOCUSING ON WORK SCHEDULES,SEQUENCE OF ACTIVITIES AND ELIMINATION OF UNNECESSARY OPERATIONS AND ON SCIENTIFIC METHODS TO DO THE WORK

  • CONTRIBUTION
  1. 1911 : HE SUMMED UP HIS EFFICIENCY TECHNIQUES IN THE BOOK.” THE PRINCIPLES OF SCIENTIFIC MANAGEMENT
  2. SHOP MANAGEMENT ( 1903)
  3. A TREATISE ON CONCRETE,PLAIN AND REINFORCE MATERIALS,CONSTRUCTION AND DESIGN OF CONCRETE AND REINFORCED CONCRETE
  4. A TREATISE ON CONCRETE,PLAIN AND REINFORCED
  5. SCIENTIFIC MANAGEMENT COMPRISING SHOP MANAGEMENT

  • SCIENTIFIC MANAGEMENT
  • SCIENTIFIC MANAGEMENT IMPLIES THE ART OF KNOWING EXACTLY WHAT IS TO BE DONE AND HOW IT IS TO BE DONE. SCIENTIFIC TECHNIQUES ARE APPLIED IN THE RECRUITMENT,SELECTION AND TRAINING OF WORKERS AND ALSO USED IN SOLVING VARIOUS INDUSTRIAL PROBLEMS
  • F,W TAYLOR:- SCIENTIFIC MANAGEMENT IS KNOWING EXACTLY WHAT YOU WANT MEN TO DO AND SEEING THAT THEY DO IN THE BEST AND CHEAPEST WAY
  • SCIENTIFIC MANAGEMENT IMPLIES THE APPLICATION OF TWO FOLD TECHNIQUES:-
  1. THE DISCOVERY OF THE BEST METHOD OF PERFORMING A PARTICULAR WORK
  2. THE BEST METHOD OR THE FRUITFUL METHOD FOR MEETING A GIVEN SITUATION
  • FOUR PRINCIPLES OF SCIENTIFIC MANAGEMENT
  1. REPLACE RULE OF THUMB WORK METHODS WITH METHODS BASED ON SCIENTIFIC STUDY OF THE TASKS
  2. SCIENTIFICALLY SELECT,TRAIN AND DEVELOP EACH EMPLOYEE RATHER THAN PASSIVELY LEAVING THEM TO TRAIN THEMSELVES
  3. PROVIDE DETAILED INSTRUCTION AND SUPERVISION OF EACH WORKER IN THE PERFORMANCE OF THAT WORKER’S DISCRETE WORK
  4. DIVIDE WORK NEARLY EQUALLY BETWEEN MANGERS AND WORKERS SO THAT THE MANAGERS APPLY SCIENTIFIC MANAGEMENT PRINCIPLES TO PLANNING AND WORKERS ACTUALLY DOING THE TASK
  • TECHNIQUES OF SCIENTIFIC MANAGEMENT
  • SEPARATION OF PLANNING AND DOING: PLANNING SHOULD BE THE TASK OF SUPERVISORS AND WORKERS SHOULD PERFORM THE WORK
  • FUNCTIONAL FORMANSHIP:-ACTIVITIES OF WORKERS SHOULD BE SUPERVISED THE TWO SETS OF SUPERVISORS : ONE SUPERVISOR DEAL WITH PLANNING FUNCTION AND OTHER SET OF SUPERVISORS DEALS WITH DOING FUNCTION
  • JOB ANALYSIS:
  1. TIME STUDY :-STUDIES THE TIME TO PERFORM EACH OPERATION OF THE TASK AND BASIC OBJECTIVE WAS TO ELIMINATES WASTEFUL TIME IN PERFORMING AN OPERATION. AND IT DETERMINE THE FAIR DAY’S WORK
  2. MOTION STUDY:- MOTION OF WORKERS TO PERFORM THAT OPERATION AND ELIMINATES WASTEFUL MOTIONS IN PERFORMING AND BEST WAY OF DOING THAT WORK
  3. JOB ANALYSIS
  4. FATIGUE STUDY:-EFFICIENCY AND CAPACITY OF WORKERS INCREASED IF THEY ARE GIVEN REST INTERVAL DURING THAT WORK. THE FREQUENCY OF REST INTERVAL HELP IN REMOVING THE FATIGUE AND ENHANCE THEIR WORK POTENTIAL.ACCORDING TO GALBRETH THERE IS DIRECT RELATION BETWEEN MOTION AND FATIGUE
  5. METHOD STUDY:-BEST METHOD OF DOING THE WORK. OPTIMUM UTILIZATION OF PHYSICAL,FINANCIAL,HUMAN AND OTHER ORGANIZATIONAL RESOURCES. THE AIM OF METHOD STUDY IS TO DESIGN THE OPERATING SYSTEM .
  6. SO UNDER JOB ANALYSIS” TIME STUDY,MOTION STUDY,FATIGUE STUDY AND METHOD STUDY
  7. TECHNIQUES OF SCIENTIFIC MANAGEMENT
  • STANDARDIZATION OF WORK:-STANDARD IS A UNIT OF MEASUREMENT ESTABLISHED TO SERVE AS A CRITERION AGAINST WHICH COMPARISON CAN BE MADE. STANDARDIZATION HELPS IN UNIFORMITY THROUGHOUT THE ORGANIZATION
  • FINANCIAL INCENTIVES :-ADVOCATED A REMUNERATION SYSTEM THAT EMPLOYEE SHOULD BE COMPENSATED ON THE BASIS OF THEIR PREFERENCE. AND NOT ON POSITION.
  • DIFFERENTIAL RATE SYSTEM:- SUGGESTED DIFFERNETIAL RATE SYSTEM. WAGES SHOULD VARY WITH THE PERFORMANCE LEVEL OF WORKERS
  • SCIENTIFIC SELECTION AND TRAINING: APPLICATION OF SCIENTIFIC PROCEDURES FOR SELECTION SO THAT RIGHT PERSON IS AT THE RIGHT JOB.
  • MENTAL REVOLUTION:-ATTITUDE CHANGE BETWEEN WORKERS AND MANAGEMENT,COOPERATION BETWEEN WORKER AND MANAGEMENT
  • TASK PLANNING:-
  1. DETERMINING THE SET OF SKILLS REQUIRED TO PERFORM A JOB
  2. DETERMINING THE IDENTITY OF TASK
  3. DETERMINING THE TASK SIGNIFICANCE
  4. DETERMINING THE EXTENT OF AUTONOMY
  5. PROVIDING FEED BACK
  6. SCIENTIFIC PLANNING:-
1.    ROUTING
2.    LOADING
3.    SCHEDULING
4.    DISPATCHING
5.    EXPEDITING
6.    SHORTER HOURS,REST PAUSES
  • FUNCTIONAL FORMANSHIP
  • PLANNING SUPERVISORS:
  1. ROUTE CLERK:SPECIFY THE PATH
  2. INSTRUCTION CARD CLERK : LAYING DOWN THE INSTRUCTION FOR THE WORKER
  3. TIME AND COST CLERK : SETTING THE TIME TABLE AND COST BUDGET FOR THE JOB
  4. DISCIPLINARIAN: ADHERENCE TO FACTORY RULES AND REGULATIONS
  • PRODUCTION SUPERVISORS:-
  • GANG BOSS: PRELIMINARY ARRANGEMENT AND PRELIMINARY OPERATIONS AND ALSO DECIDES ABOUT THE PHYSICAL RESOURCES
  • SPEED BOSS: OPTIMUM SPEED
  • REPAIR BOSS
  • INSPECTOR:-OPERATIONS ARE CARRIED OUT AS PER STANDARD

  • PRINCIPLES OF SCIENTIFIC MANAGEMENT
  1. SCIENCE NOT RULE OF THUMB : SCIENTIFIC INVESTIGATION SHOULD BE APPLIED IN THE SCIENTIFIC MANAGEMENT.STUDY OF EVERY JOB AND FIXED THE METHOD AND TIMING OF PERFORMANCE OF THE JOB SO THAT THE WORKER SHOULD KNOW THAT WHAT,WHEN AND HOW HE IS REQUIRED TO PERFORM THE JOB. DEVELOPED METHOD STUDY,TIME STUDY AND MOTION STUDY
  2. HARMONY NOT DISCORD IN GROUP ACTION :-COOPERATION BETWEEN THE MANAGEMENT AND THE WORKERS. ATTEMPT SHOULD BE MADE TO OBTAIN  THE HARMONY IN THE GROUP ACTION RATHER THAN DISCORD. WORKERS SHOULD HAVE SENSE OF BELONGINGS TO THE ORGANIZATION.
  3. MENTAL REVOLUTION :-REQUIRES A COMPLETE CHANGE IN THE OUTLOOK OF BOTH MANAGEMENT AND WORKERS. BOTH REALIZE THE IMPORTANCE OF EACH OTHER AND THERE SHOULD BE A SPIRIT OF TOGETHERNESS. DIVISION OF LABOUR BETWEEN MANAGERS AND WORKERS

  1. CO-OPERATION NOT INDIVIDUALISM : EXTENSION OF THE PRINCIPLE OF HARMONY NOT DISCORD AND LAY STRESS ON MUTUAL COOPERATION BETWEEN WORKERS AND MANAGEMENT, THE CO-OPERATION,MUTUAL CONFIDENCE AND SENSE OF GOODWILL AMONG WORKERS AND MANAGEMENT. THE INTENTION IS TO REPLACE INTERNAL COMPETITION WITH COOPERATION.
  2. MAXIMUM OUTPUT NOT RESTRICTED OUTPUT
  3. DEVELOPMENT OF WORKERS TO THEIR FULLEST CAPACITY :
  1. RIGHT MEN IS PLACED ON THE RIGHT JOB
  2. SCIENTIFIC SELECTION OF WORKERS: BASED ON QUALIFICATION AND TRAINING
  • ADMINISTRATIVE MGMT
    ( 14 PRINCIPLES OF FAYOL    )
  1. HENRI FAYOL( 1841-1925) IS CONSIDERED THE FATHER OF ADMINISTRATIVE MGMT.HE EMPHASIZED ON DEVELOPMENT OF BROAD ADMINISTRATIVE PRINCIPLES TO GENERAL AND HIGHER MANAGERIAL LEVEL. HE WAS A FRENCH MINING ENGINEER TURNED A LEADING INDUSTRIALIST AND SUCCESSFUL MANAGER.
  2. HE WROTE A BOOK IN FRENCH IN 1916 ON “ GENERAL AND INDUSTRIAL ADMINISTRATION.”
  • HIS CONTRIBUTION
  • DIVISION OF INDUSTRIAL ACTIVITIES :-
  • OBSERVES ORGANIZATION FUNCTION FROM MANGER’S POINT OF VIEW
  • DIVIDED ALL THE ACTIVITIES OF THE INDUSTRIAL ENTERPRISE INTO SIX GROUPS:
  1. TECHNICAL ( RELATING TO PRODUCTION)
  2. COMMERCIAL  ( BUYING AND SELLING)
  3. FINANCIAL ( SEARCH FOR CAPITAL AND ITS OPTIMUM USE)
  4. SECURITY ( PROTECTION OF PROPERTY AND PERSON)
  5. ACCOUNTING ( PREPARATION OF VARIOUS STATEMENTS,COORDINATION AND CONTROL)
  6. MANAGERIAL ( PLANNING,ORGANIZATION,COMMAND,COORDINATION AND CONTROL)
  • QUALITIES OF AN EFFECTIVE MANAGER : HENRY FAYOL WAS THE FIRST PERSON TO RECOGNIZE THE DIFFERENT QUALITIES FOR MANAGERS :
  1. PHYSICAL : ( HEALTH,VIGOUR AND ADDRESS)
  2. MENTAL ( ABILITY TO UNDERSTAND AND LEARN JUDGMENT,MENTAL VIGOUR AND ADAPTABILITY)
  3. MORAL ( ENERGY,FIRMNESS,WILLINGNESS TO ACCEPT RESPONSIBILITY)
  4. EDUCATIONAL (ACQUAINTANCE WITH MATTERS RELATED TO GENERAL FUNCTIONING)
  5. TECHNICAL ( PECULIAR TO FUNCTIONS BEING PERFORMED)
  6. EXPERIENCE ( ARSING OUT OF THE WORK)
  • FUNCTIONS OF MANAGEMENT :-
·         CLASSIFIED THE ELEMENTS OF MANAGEMENT INTO FIVE AND ALL SUCH ELEMENTS WERE CONSIDERED BY HIM AS THE FUNCTIONS OF MANAGEMENT.
  1. PLANNING
  2. ORGANIZING
  3. COMMANDING
  4. CO-ORDINATING
  5. CONTROLLING
  • 14 PRINCIPLES ( PRINCIPLES OF MANAGEMENT)
  • DIVISION OF WORK :
  • AUTHORITY AND RESPONSIBILITY: AS THE MGMT CONSISTS OF GETTING THE WORK DONE THROUGH OTHERS AND MANAGERS SHOULD HAVE THE RIGHT TO GIVE ORDERS AND POWER TO EXACT OBEDIENCE. A MANAGER MAY EXERCISE FORMAL AUTHORITY AND ALSO PERSONAL POWER. RESPONSIBILITY IS CLOSELY RELATED TO AUTHORITY AND IT ARISES WHERE AUTHORITY IS EXERCISED . RESPONSIBILITY IS FEARED AND AUTHORITY IS SOUGHT.
  • DISCIPLINE : ESSENTIAL FOR THE SMOOTH RUNNING OF BUSINESS, DISCIPLINE MEAN THE OBEDIENCE TO AUTHORITY AND OBSERVANCE OF RULES AND NORMS OF PERFORMANCE AND RESPECT FOR AGREEMENTS.
  • UNITY OF COMMAND :-EACH EMPLOYEE SHOULD RECEIVE INSTRUCTION ABOUT A PARTICULAR WORK FROM ONE SUPERIOR
  • UNITY OF DIRECTION :-COMPLETE IDENTITY BETWEEN INDIVIDUAL AND ORGANIZATIONAL GOAL ON ONE HAND AND BETWEEN DEPARTMENTAL GOALS ON THE OTHER.

  • SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST :
  • REMUNERATION : SHOULD BE FAIR . SHOULD BE BASED ON GENERAL BUSINESS CONDITIONS
  • CENTRALIZATION :IF SUBORDINATES ARE GIVEN MORE ROLES AND IMPORTANCE THEN IT IS DECENTRALIZATION, MGMT MUST DECIDE THE DEGREE OF CENTRALIZATION AND DECENTRALIZATION

  • SCALAR CHAIN MEANS THE HIERARCHY OF AUTHORITY FROM THE HIGHEST EXECUTIVE TO LOWEST ONE FOR THE PURPOSE OF COMMUNICATION. ORDERS OF COMMUNICATION WILL PASS THROUGH PROPER CHANNELS OF AUTHORITY. NEED FOR QUICK ACTION THE PROPER CHANNELS OF AUTHORITY MAY BE SHORT CIRCUITED BY MAKING DIRECT CONTACT ( GANG PLANK) WITH THE CONCERNED AUTHORITY.
  • GANK PLANK

  • ORDER : RIGHT PLACE FOR EVERYTHING AND FOR EVERY MEN
  • EQUITY : EQUALITY OF FAIR TREATMENT AND ENSURES HEALTHY INDUSTRIAL RELATIONS
  • STABILITY OF TENURE OF PERSONNEL :- SECURITY OF THE JOB. MORAL WILL BE HIGH
  • INITIATIVE : FREEDOM TO THING AND EXECUTE A PLAN
  • ESPRIT DE CORPS
  • CRITICISM
  1. FAYOL’S PRINCIPLES OF SPECIALIZATION IS CRITICIZED ON THE FOLLOWING GROUNDS:-
  2. GROUP MEMBERS CARE ONLY ABOUT GROUP NORMS AND TARGETS
  3. DISSATISFACTION OF WORKERS
  4. INCREASE IN OVERHEAD COST
  5. PRINCIPLES HAVE NOT BEEN TESTED EMPIRICALLY
  6. BASE ON THE ASSUMPTION THAT ORGANIZATION ARE CLOSED SYSTEM
  7. FORMATION OF MECHANISTIC ORGANIZATION
  • SIMILARITY BETWEEN TAYLOR AND FAYOL
  1. WANTED TO IMPROVE THE EFFICIENCY OF WORK THROUGH THE SYSTEMATIC APPROACH AND ATTEMPTED TO SOLVE THE MGMT PROBLEM
  2. PRINCIPLES OF BOTH CAN BE USED TO SOLVE THE MANAGEMENT PROBLEMS
  3. BOTH HAVE CONCLUDED THAT SOUND PRINCIPLE ARE REQUIRED FOR EFFECTIVE MANAGERIAL DECISIONS
  4. TRAINING IS NECESSARY FOR DEVELOPING THE MANAGERIAL QUALITIES
  5. BOTH EMPHASIZED THE COOPERATION AND MUTUAL TRUST
  • DISSIMILARITIES
  1. HENRY FAYOL
  2. 1841-1925
  3. FRANCE
  4. HIGH MGMT LEVEL
  5. OVERALL EFFICIENCY CAN BE ACHIEVED BY OBSERVING PRINCIPLES
  6. PERSONAL EXPERIENCE INTO UNIVERSAL TRUTH
  7. CONCERN TO EFFICIENCY OF MANAGERS
  8. ADMINISTRATIVE MANAGEMENT
  9. FATHER OF ADMINISTRATIVE MGMT

  • F.W TAYLOR
1.    1856-1915
2.    AMERICA
3.    SHOP MANAGEMENT LEVEL
4.    EFFICIENCY THROUGH WORK SIMPLIFICATION AND STANDARDIZATION
5.    SCIENTIFIC OBSERVATION AND MEASUREMENT
6.    CONCERN FOR WORKERS AND SUPERVISORS
7.    SCIENTIFIC MANAGEMENT
8.    FATHER OF SCIENTIFIC MANAGEMENT
9.    PRODUCTION AND ENGINEERING




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