Taylor and Fayol Theories

8/12/2019 Taylor and Fayol Theories

1/35


2/35

Chapter Outline

The Evolution of Management Classical Management Perspective

Scientific Management Administrative Theory

The Behavioral Management Perspective Human Relations and Human Resources Management

The Quantitative Management Perspective The Systems Perspective The Contingency Perspective

1 2


3/35

Development of Major ManagementTheories

3

HistoricalBackground

Scientific

Management

General

AdministrativeTheorists

Quantitative

Approach

Management Theories

IndustrialRevolution

Adam Smith

Early Advocates

Hawthorne Studies

OrganizationalBehavior

Early Examplesof Management


4/35

History of Management Through the Ages

1 4

3000B.C. 2500B.C.

A Sumerians F Chinese

B Egyptians

C Babylonians

D Greeks

G Venetians

E Romans

2000B.C. 1500B.C. 1000B.C. 500B.C. A.D.1500A.D.500 A.D.1000A Used written rules and regulations for governance

B Used management practices to construct pyramids

C Used extensive set of laws and policies for governance

D Used different governing systems for cities and state

E Used organized structure for communication and control

F Used extensive organization structure for governmentagencies and the arts

G Used organization design and planning concepts tocontrol the seas


5/35

Historical background

Egypt (pyramids) China (Great Wall)

Wisdom in Bible (Moses) Adam Smith,1776 The

Wealth of Nations (example

of pin an exercise for you to think ) Industrial Revolution

5
http://images.google.com/imgres?imgurl=http://www7.tamu-commerce.edu/counseling/faculty/leddick/Great%20Wall.jpg&imgrefurl=http://www7.tamu-commerce.edu/counseling/faculty/leddick/mainframe.htm&h=1710&w=1155&sz=676&tbnid=u_3K5nGG58oJ:&tbnh=150&tbnw=101&hl=en&start=1&prev=/images?q=great+wall&hl=en&lr=&client=REAL-tb&rls=RNWA,RNWA:2003-36,RNWA:en&sa=Ghttp://www.aegypten-online.de/images/giza/pyramid.jpg


6/35

Ancient management

100,000workers for20years for a singlepyramid who told

each workers what todo and make sure theydo it right?

compared to building theGreat Wall, buildingthe Pyramids wasnothing!

(p. 58)

6


7/35

Moses and Management (maybe 4000 BC?)17 Moses' father-in-law replied, "What

you are doing is not good. 18 You andthese people who come to you will onlywear yourselves out. The work is tooheavy for you; you cannot handle italone. 19 Listen now to me and I willgive you some advice, and may God bewith you. You must be the people'srepresentative before God and bringtheir disputes to him. 20 Teach themthe decrees and laws, and show themthe way to live and the duties they areto perform. 21 But select capable menfrom all the people men who fear God,trustworthy men who hate dishonestgain and appoint them as officials overthousands, hundreds, fifties and tens.22 Have them serve as judges for thepeople at all times, but have them bringevery difficult case to you; the simplecases they can decide themselves. Thatwill make your load lighter, becausethey will share it with you. 23 If you dothis and God so commands, you will beable to stand the strain, and all thesepeople will go home satisfied."

BIBLE (NIV) Exodus 18:13-26

7


8/35


9/35

Wealth of NationsAdam Smith, 1776

a workman not educated to this business [pin making]could scarce, perhaps, with his utmost industry, makeone pin in a day, and certainly could not make twenty.Now this business is divided One man draws outthe wire, another straights it, a third cuts it, a fourthpoints it, a fifth grinds it at the top for receiving, thehead; to make the head requires two or three distinctoperations; to put it on is a peculiar business, to whiten

the pins is another; it is even a trade by itself to putthem into the paper (p.7)

9


10/35

2-10

The Evolution of Management Theory

Fig ur e 2.1


11/35

Major Approaches toManagement

Scientific Management

General Administrative Theory Quantitative Management Organizational Behavior

Systems Approach Contingency Approach

11


12/35

The Importance of Theory

Most managers develop theories about how to run the organizationManagement Models represents the real world and how it functions Provides a framework for organizing knowledge & a blueprint for action

Helps us organize our knowledge Tells us what to pay attention to and what to ignore

Helps us to understand why events occur (causal relationships) Summarizes diverse findings and highlights relationships Gives guidance about how to bring about positive change

Three Types of Management Theories DESCRIPTIVE 80% + PREDICTIVE ~ 15% PRESCRIPTIVE < 5%

1 12


13/35


14/35

Classical Management Perspective

Scientific Management Concerned with improving the performance

of individual workers (i.e., efficiency). Grew out of the industrial revolutions labor

shortage at the beginning of the twentiethcentury.

Administrative Management A theory that focuses on

managing the total organizationrather than individuals.

1 14


15/35


Frederick Taylor (1856 1915) Replaced old methods of how to do work with

scientifically-based work methods.

Eliminated soldiering, where employeesdeliberately worked at a pace slower thantheir capabilities.

Believed in selecting, training, teaching, anddeveloping workers.

Used time studies of jobs, standards planning,

exception rule of management, slide-rules,instruction cards and iece-work a 1 15


16/35

Steps in Scientific Management

1 16


17/35

Summary of Scientific Management

Assumptions Productivity is a primary workplace problem Managers should plan and direct the work Individuals are economically motivated

Contributions Scientific or systematic study of work (time and motion) Division of laborManagers vs workers Setting of work standards (and job descriptions) Careful selection and training of workers Use of Incentives

Limitations Social needs of workers overlooked Many studies werent very scientific Loss of self-control alienated workers Group dynamics were ignored

1 17


18/35

2 18

The ClassicalManagement Perspective

Consists of two different viewpoints:


Concerned with improving the performance of individual workers (i.e., efficiency).

Grew out of the industrial revolutions labor shortage at the beginning of thetwentieth century.

Administrative ManagementA theory that focuses on managing the total organization. Other Scientific Management Pioneers Frank and Lillian GilbrethReduced the number of movements in bricklaying, resulting in increased output of

200%. Henry GanttWas an early associate of Fredrick Taylor.Developed other techniques, including the Gantt chart, to improve working efficiency

through planning/scheduling. Harrington Emerson

Advocated job specialization in both managerial and operating jobs.


19/35

2 19

The Classical ManagementPerspective (contd)

Administrative Management Theory Focuses on managing the total organization rather

than individuals.

Henri Fayol Wrote General and Industrial Management. Helped to systematize the practice of management. Was first to identify the specific management

functions of planning, organizing, leading, andcontrolling.


20/35

2 20

Classical Management Proponents

Lyndall Urwick Integrated the work of previous management

theorists.

Max Weber His theory of bureaucracy is based on a rational set of

guidelines for structuring organizations.

Chester Barnard Wrote The Functions of the Executive. Proposed a theory of the acceptance of authority (by

subordinates) as the source of power and influencefor managers.


21/35

2 21

The Classical Management PerspectiveToday

Contributions Laid the foundation for later theoreticaldevelopments.

Identified management processes, functions, andskills.

Focused attention on management as a valid subjectof scientific inquiry.

Limitations More appropriate approach for use in traditional,

stable, simple organizations. Prescribed universal procedures that are not

appropriate in some settings. Employees viewed as tools rather than as resources.


22/35

2 22

Table 2.1: The Classical ManagementPerspective


23/35

Scientific Management Theory (1890-1940)

At the turn of the century, the most notableorganizations were large and industrialized. Often theyincluded ongoing, routine tasks that manufactured avariety of products. The United States highly prized

scientific and technical matters, including carefulmeasurement and specification of activities and results. Management tended to be the same. Frederick Taylor

developed the :scientific management theory whichespoused this careful specification and measurement of

all organizational tasks. Tasks were standardized asmuch as possible. Workers were rewarded andpunished. This approach appeared to work well fororganizations with assembly lines and othermechanistic, routinized activities.

23


24/35

2

24


Frederick Taylor (1856 1915) Father of Scientific Management. Replaced rule-of-thumb methods with scientifically-

based work methods to eliminate soldiering. Believed in selecting, training, teaching, anddeveloping workers.

Used time studies, standards planning, exceptionrule, slide-rules, instruction cards, and piece-workpay systems to control and motivate employees.

Taylor demonstrated the benefits of increasedproductivity and earnings through an experiment atBethlehem Steel Works.


25/35

Scientific ManagementThe father of scientific management

Fredrick Winslow TaylorPrinciples of Scientific Management (1911)

The systematic study of the relationshipsbetween people and tasks for the purpose of redesigning the work processto increase efficiency .

25


26/35

2-26

Four Principles of Scientific Management

1. Develop a science for each element of an individuals work, whichwill replace the old rule-of-thumb method.

2. Scientifically select and then train, teach, and develop the worker.3. Heartily cooperate with the workers so as to ensure that all work

is done in accordance with the principles of the science that hasbeen developed.

4. Divide work and responsibility almost equally betweenmanagement and workers. Management takes over all work forwhich it is better fitted than the workers.

1) Study the way workers perform their tasks, gather all theinformal job knowledge that workers possess andexperiment with ways of improving how tasks areperformed

Time-and-motion study


27/35

2-27

Four Principles of Scientific Management

2) Codify the new methods ofperforming tasks into written rulesand standard operating procedures

3) Carefully select workers who possessskills and abilities that match theneeds of the task, and train them toperform the task according to theestablished rules and procedures

4) Establish a fair or acceptable level ofperformance for a task, and thendevelop a pay system that provides areward for performance above the

acceptable level


28/35

2-28

Problems with Scientific Management

Managers frequently implemented only theincreased output side of Taylors plan. Workers did not share in the increased output.

Specialized jobs became very boring, dull. Workers ended up distrusting the Scientific

Management method.

Workers could purposely under -perform. Management responded with increased use ofmachines and conveyors belts.


29/35

2-29

The Gilbreths

1. Break up and analyze every individualaction necessary to perform a particulartask into each of its component actions

2. Find better ways to perform eachcomponent action

3. Reorganize each of the componentactions so that the action as a wholecould be performed more efficiently-atless cost in time and effort


30/35

2-30

Administrative Management Theory

AdministrativeManagement The study of how to

create an organizationalstructure that leads tohigh efficiency andeffectiveness.


31/35


32/35

Fayols 14 Principles of Management

32

1. Division of work.

2. Authority.

3. Discipline.

4. Unity of command.

5. Unity of direction.

6. Subordination ofindividual interestto the interests ofthe organization.

7. Remuneration.8. Centralization.

9. Scalar chain.

10. Order.11. Equity.

12. Stability of tenureof personnel.

13. Initiative.

14. Esprit de corps.


33/35

2-33

Fayols Principles of Management

Division of Labor : allows for job specialization. jobs can have too much specialization leading to poor quality and workerdissatisfaction.

Authority and Responsibility : both formal and informal authority resultingfrom special expertise.

Unity of Command: Employees should have only one boss. Line of Authority : A clear chain of command from top to bottom of the firm. Centralization : The degree to which authority rests at the top of the

organization. Unity of Direction : A single plan of action to guide the organization. Equity - The provision of justice and the fair and impartial treatment of all

employees. Order - The arrangement of employees where they will be of the most value to

the organization and to provide career opportunities. Initiative - The fostering of creativity and innovation by encouraging employees

to act on their own. Discipline : Obedient, applied, respectful employees are necessary for the

organization to function.


34/35

2-34

Fayols Principles of Management

Remuneration of Personnel : An equitable uniformpayment system that motivates contributes toorganizational success.

Stability of Tenure of Personnel : Long-termemployment is important for the development of skillsthat improve the organizations performance.

Subordination of Individual Interest to the CommonInterest : The interest of the organization takes

precedence over that of the individual employee. Esprit de corps : Comradeship, shared enthusiasm foster

devotion to the common cause (organization).


35/35

Summary of Administrative Theory

Assumptions

There is an ideal way to structure the organization andadminister the management processes necessary fororganizational success

Management skills are generalizable Contributions

Functions and Principles of management Ideal Bureaucracy Raised awareness of basic management problems likely to be found

in any organization

Limitations Stressed a one -best- way of organizing and managing Theories were based on intuition and observation rather than

empirical investigation Principles are not applicable to organizations which exist in

turbulent environments

Documents

Taylor and Fayol Theories