Management Gurus & Quality

Topic 1 Scientific Management

The Objectives
to enable learners to understand the lives,

philosophies, ideas and contributions of Scientific Management Gurus and Thinkers. to enable learners to assess and evaluate the importance and impact of those ideas in organizations and society. to enable learners to relate the ideas to other management gurus from other disciplines of knowledge. to enable learners to apply the best and the most relevant concepts formulated by management gurus and thinkers in behaviors and practices in daily lives.
2

Historical Foundations
1911: Scientific Management

Frederick W. Taylor 1919: Toward a Theory of Administration Henri Fayol 1922: Bureaucracy Max Weber 1925: Observations on Organizations and Management Mary Parker Follett
3

Historical Foundations (Cont.)

1934: The Functions of the Executive

Chester Barnard 1939: The Hawthorne Studies Elton Mayo 1960: Theory X and Theory Y Douglas McGregor 1995: The Twentieth Century's Management Guru Peter F. Drucker
4

Classical School
The Classical school of thought began around 1900 and continued into the 1920s. Traditional or classical management focuses on efficiency and includes bureaucratic, scientific and administrative management. Bureaucratic management relies on a rational set of structuring guidelines, such as rules and procedures, hierarchy, and a clear division of labor. Scientific management focuses on the "one best way" to do a job. Administrative management emphasizes the flow of information in the operation of the organization.
5

?????

What did Industrial Revolution do for management, production & business?

SHB2034

Industrial Revolution
Machine power replaced human power
More economical to manufacture goods Moved manufacturing from homes to

factories

Lead to..

Industrial Revolution
Mass production
Reduced transportation costs (rapid

expansion of the railroad) This lead to

Big corporations

Rockefeller & Standard Oil monopoly Carnegie Steele

The IR Lead to phases of management theory..

1. Classic Management (Scientific, Bureaucratic & Administrative) 2. 3. 4. 5.
9

Human Relations Quantitative Management Organizational Behavior Emerging/contemporary theories

SHB2034

Classic Theories
Created to establish rational principles that

would make organization more efficient

Focused on technical efficiency

2 approaches

10

Classic Theories
2 approaches 1. Scientific Management
One best way Efficiency is key Individual focus

2. General Administrative Management

Perspective of the entire organization What are good management practices
11

Classic theories
Scientific Theorists Taylor Henri Gantt Frank & Lilian Gilbreth

Administrative Theorists Fayol Weber

12

SHB2034

Scientific Management
Scientific Management Theory (1890-1940) At the turn of the century, the most notable organizations were large and industrialized. Often they included ongoing, routine tasks that manufactured a variety of products. The United States highly prized scientific and technical matters, including careful measurement and specification of activities and results.

13

Scientific Management
Management tended to be the same. Frederick

Taylor developed the :scientific management theory which espoused this careful specification and measurement of all organizational tasks.
Tasks were standardized as much as possible.

Workers were rewarded and punished.

This approach appeared to work well for

organizations with assembly lines and other mechanistic, routinized activities.

14

Scientific Management: Frederick W. Taylor (1911)

Quotation from the opening paragraph of Frederick W. Taylors The Principles of Scientific Management:

The principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee. Sets the underlying tone and philosophy of Scientific Management

15

Scientific Management (cont.)

Management and labor of that period had an aggressive relationship Management wanted as much output as possible from labor at the lowest possible cost Workers tried to protect their interests by not working too hard Neither side felt cooperation could lead to maximum prosperity for both groups
16

Scientific Management (cont.)

Management and labor viewed their goals as mutually exclusive
Management: maximize profits Labor: maximize wages

Taylor felt his system of Scientific Management could maximize both goals Four principles underlie the approach

17

Scientific Management (cont.)

Scientific Managements principles Carefully study jobs to develop standard work practices. Standardize workers tools Scientifically select each worker Cooperation of management and workers to ensure work is done according to standard procedures Management plans and makes task assignments; workers carry out assigned task
18

Scientific Management (cont.)

Frank (1868-1924)

Lilian (1878-1972) Gilbreth

19
SHB2034

Scientific Management (cont.)

Frank & Lilian Gilbreth Disciples of Taylor
Studied work arrangements to eliminate wasteful hand & body motions
Bricklaying from 18 to 4.5 motions

Experimented with the design & use of proper tools & equipment to optimize work performance First to use motion picture film to study hand & body motions
20

Scientific Management (cont.)

Frank and Lillian Gilbreth emphasized method by focusing on identifying the elemental motions in work, the way these motions were combined to form methods of operation, and the basic time each motion took.

They believed it was possible to design work methods whose times could be estimated in advance, rather than relying upon observationbased time studies.
Frank Gilbreth, known as the Father of Time and Motion Studies, filmed individual physical labor movements.
21

Scientific Management (cont.)

This enabled the manager to break down a job into

its component parts and streamline the process. His wife, Lillian Gilbreth, was a psychologist and author of The Psychology of Work. In 1911 Frank Gilbreth wrote Motion Study and in 1919 the couple wrote Applied Motion Study. Frank and Lillian had 12 children. Two of their children, Frank B. Gilbreth, Jr. and Ernestine Gilbreth Careyone, wrote their story, Cheaper by the Dozen.

22

Scientific Management (cont.)

One of Frank Gilbreth's first studies concerned bricklaying. (He had worked as an apprentice bricklayer.) He designed and patented special scaffolding to reduce the bending and reaching which increased output over 100 per cent. However, unions resisted his improvements, and most workers persisted in using the old, fatiguing methods.

23

Scientific Management (cont.)

The Gilbreths believed that there was one best way to perform an operation. However, this "one best way" could be replaced when a better way was discovered. The Gilbreths defined motion study as dividing work into the most fundamental elements possible, studying those elements separately and in relation to one another; and from these studied elements, when timed, building methods of least waste.

24

Scientific Management (cont.)

They defined time study as a searching scientific

analysis of methods and equipment used or planned in doing a piece of work, development in practical detail of the best way of doing it, and determination of the time required.

The Gilbreths drew symbols on operator charts to

represent various elements of a task such as search, select, grasp, transport, hold, delay, and others.

They called these graphical symbols "therbligs"

(Gilbreths spelled backwards).

25

Scientific Management (cont.)

Henri Gantt
(1861-1919)

26

SHB2034

Scientific Management (cont.)

Henri Gantt
Production efficiency most important concern of

management.

Production goals & quotas set (piece-work)

Task and bonus wage system

Bonuses set for exceeding quota employee side of the theory

Gantt Chart
27

Scientific Management (cont.)

Gantt chart example

28

Scientific Management (cont.) Henri Ganttcontd

Henry Gantt developed the Gantt chart, which is used for scheduling multiple overlapping tasks over a time period.

He focused on motivational schemes, emphasizing the greater effectiveness of rewards for good work (rather than penalties for poor work).

29

Scientific Management (cont.)

He developed a pay incentive system with a

guaranteed minimum wage and bonus systems for people on fixed wages.
Also, Gantt focused on the importance of the

qualities of leadership and management skills in building effective industrial organizations.

30