OCM 5 Marks Each

• Definition:

  • F. W. Taylor defined scientific management as “Knowing exactly what you want your man to do, and then see to it that they do it in the best and the cheapest „way.”
  • Scientific Management is a mental revolution favouring employees of a factory. It focuses on tasks and duties of the employees, their colleagues and owners.
  • Frederick Taylor himself was an engineer and so he knew the problems faced by the workers.
  • He found that until the workers are given wage rate that keeps them motivated, they will not work efficiently.
  • He believed that principles of scientific management will have to be put in practice in order to increase the productivity of workers with lower production costs.

  He suggested to adopt scientific approach of management so that the managers do not decrease the wages and the workers remain loyal and productive towards the work.

  He challenged the traditional approach and presented scientific management as a revolutionary thought. For this he stated that the following matters should be considered.

  • Each worker should be assigned work as per his mental and physical ability.
  • Each worker should be instructed to perform maximum work as per category.
  • A worker working efficiently and rapidly should be paid 30% to 100% more wages.

• Frederick Winslow Taylor was an American mechanical engineer and an important contributor to classical thoughts.
• He started his career as an apprentice in a factory. After contributing in various companies, he became a manager in Bethlehem Steel Company.
• It was F. W. Taylor who first gave the principle of scientific management.
• Hence he is known as a father of scientific management.

The need of scientific method of management:

• Mostly a business unit is divided in two parts, i.e. the owners and the workers.
• Owner means managers. Their main objective is optimization of profit and wealth at minimal costs. On the other hand, the main aim of workers or say employees is to earn higher wages and job satisfaction.
• These two contrasting aims create a bi-polar conflicting situation between the owners and the workers. In such situation it is difficult to maintain harmony between these two groups of people.
• As per the traditional methods, the workers were asked to work maximum without any major benefits. Workers had no voice of their own. They had to simply follow what was told to do in whatever manner.
• So, under the traditional management, the owners dominated the workers. Dominance of the owners was the rule of thumb to be followed by the workers without any arguments.
• Frederick Taylor challenged this traditional method. He presented a new concept with scientific approach instead of rule of thumb. The concept of management that Taylor gave was known as the scientific management.

• Thoughts of Neo-Classical Theory:

  • By the end of 19th century, formats and size of industries started growing due to industrial revolution. The classical theory proved to be less effective , on these large industries and so there rose a need for changes in these principles.
  • So, to remove some limitations of classical theory, some management experts made changes to the existing principles and established new approaches. These new approaches or principles were called thoughts of Neo-Classical Theory.
  • In the start of 201h century, Australian Industrial psychologist Elton Mayo gave the concept called the ‘Hawthorne Effect’ based on the study that he did in Hawthorne Works, America.
  • This theory gave a new birth to behaviour oriented thought. Hence, Elton Mayo is called promoter of Thoughts of Neo-Classical Theory’:
  • Thoughts of neo-classical theory emphasizes on behavioural approach and group behaviour.
  • Later, certain additions were made to the thoughts of neo-classical theory.
    Keeping in mind the concepts of classical theory, certain additions were made in the neo-classical theory which included informal organization, human behaviour, human relations, inspiration, etc.
  • Elton Mayo, Herzberg, Rensis Likert, Chris Argyris, McGregor and Maslow are main contributors to these thoughts.
  • The thoughts of neo-classical theory especially focus on human relations or human behaviour thoughts, thoughts of social mechanism and social arrangement.

• Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.
• Fayol emphasized that each information in the organization must flow according to this chain to facilitate clear communication of orders of the superiors and feelings of the subordinates.
• This chain must be strictly followed in the organization.
• This principle emphasizes on creating chain from top level management to bottom level employees.
• Chain of power from higher administrative officers to bottom level employees should not be broken. .
• There should be proper delegation of powers and responsibility at respective level. Moreover, the employees of the unit should be aware of , who is responsible to whom.

• The return or reward given to the employees against the service they render is called remuneration.
• Fayol says that employees of company should be paid suitable and ideal wages. This makes owner-employee relation stronger.
• In a unit, all employees do not work with the same efficiency. Some employees show higher efficiency,than other. Such employees should be given more wages or rewards compared to other. This will keep the employees loyal towards the unit and stop them from leaving the job.
• The unit should also put into practice promotional schemes like bonus, profit sharing, representation in management committee, etc.

• This principle states that ‘general interest’ is superior to ‘individual interest’.
• This principle tells that interest of whole unit should be kept in focus rather than interest of individual or group of employees.
• The manager must try to integrate the individual goal with the organizational goal in such a manner that both the objectives are accomplished with efficiency and effectiveness.

• Planning shapes the future of business. However, if activities do not go as planned, then they are re-directed and brought on the planned track.
• The directions fo’r these things should be given by superior authority. By doing so activities can be well co-ordinated and all the tasks can be done easily.
• According to this principle there should be only one superior employee leading a particular group of employees. This group should be focused on one specific objective at a time.

• A proper discipline should be maintained for successfully attaining business objectives.
• Discipline creates harmonious environment at work place.
• In order to maintain discipline in the industry it is very important to make optimum use of equipment and to see that activities are done consistently.
• Industrial discipline can be established by setting specific rules and code of conduct. This then leads to proper administration of the unit.
• It becomes easy to manage and control the unit having more employees if proper code of conduct is established.
• It also increases work interest of employee and makes the work easy for the managers.
• Supervision, clear and appropriate contracts between workers and owners and appropriate implementation of punishments at every level are important aspects of discipline.

• The scientific study of time required for completion of a task is called time study.
• The time decided on the basis of the study to finish this work under normal circumstances is called standard time for that time i.e. whenever a task will be done in that unit, it will be done within this standard time.
• As per Taylor, a task should be finished within the standardized time.
• Time study is very important for making optimum use of production equipment and achieving objectives on stipulated time.

• As per the scientific management, the workers should be selected through appropriate and scientific methods.
• Under scientific selection, the business unit sets standards or benchmarks / for education of employees, skill, guts, physical strength, training, etc. before selecting them.
• The unit also conducts a variety of scientific tests to know the work interest of employees. .
• Adopting a scientific method of selection assures the unit that the selected candidates are well-suited for the organization.
• Managers have scientific evidence about the qualification, test-scores, data regarding interviews, etc. They analyse the data and then they select the best candidate for the organization. This assures consistent performance and higher productivity to the organization.

• Analysis of the job to be done should be done before starting it. This is the best way to get work done speedily that too with lower cost.
• Under job analysis, time and motion study as well as fatigue study should be done. This will decrease the cost of production and increase productivity.

• F. W. Taylor defined scientific management as “Knowing exactly what you want your man to do, and then see to it that they do it in the best and the cheapest way.”
• Scientific Management is a mental revolution favoring employees of a factory. It focuses on tasks and duties of the employees, their colleagues and owners.

Taylor suggested the following things to be adopted for scientific management:

1. Each worker should be assigned work as per his mental and physical ability.
2. Each worker should be instructed to perform maximum work as per category.
3. A worker working efficiently and rapidly should be paid 30% to 100% more wages.

• F. W. Taylor defined scientific management as “Knowing exactly what you want your man to do, and then see to it that they do it in the best and the cheapest „way.”
• Scientific Management is a mental revolution favouring employees of a factory. It focuses on tasks and duties of the employees, their colleagues and owners.
• Frederick Taylor himself was an engineer and so he knew the problems faced by the workers.
• He found that until the workers are given wage rate that keeps them motivated, they will not work efficiently.
• He believed that principles of scientific management will have to be put in practice in order to increase the productivity of workers with lower production costs.

He suggested to adopt scientific approach of management so that the managers do not decrease the wages and the workers remain loyal and productive towards the work.

He challenged the traditional approach and presented scientific management as a revolutionary thought. For this he stated that the following matters should be considered.

• Each worker should be assigned work as per his mental and physical ability.
• Each worker should be instructed to perform maximum work as per category.
• A worker working efficiently and rapidly should be paid 30% to 100% more wages.

• Frederick Winslow Taylor was an American mechanical engineer and an important contributor to classical thoughts.
• He started his career as an apprentice in a factory. After contributing in various companies, he became a manager in Bethlehem Steel Company.
• It was F. W. Taylor who first gave the principle of scientific management.
• Hence he is known as a father of scientific management.

The need of scientific method of management:

• Mostly a business unit is divided in two parts, i.e. the owners and the workers.
• Owner means managers. Their main objective is optimization of profit and wealth at minimal costs. On the other hand, the main aim of workers or say employees is to earn higher wages and job satisfaction.
• These two contrasting aims create a bi-polar conflicting situation between the owners and the workers. In such situation it is difficult to maintain harmony between these two groups of people.
• As per the traditional methods, the workers were asked to work maximum without any major benefits. Workers had no voice of their own. They had to simply follow what was told to do in whatever manner.
• So, under the traditional management, the owners dominated the workers. Dominance of the owners was the rule of thumb to be followed by the workers without any arguments.
• Frederick Taylor challenged this traditional method. He presented a new concept with scientific approach instead of rule of thumb. The concept of management that Taylor gave was known as the scientific management.

• Management is an art of getting work from others i.e. humans. Keeping this in mind thoughts related to human behaviour came into being.
• A business unit is managed by people. Hence, it is utmost important to study inter-relationship between humans at work place.
• Since, management of people is done on a constant basis the thoughts related to human behaviour emphasizes on studying aspects that affect behaviour of humans in the work place and their approach towards the work. Owing to these facts, Prof. Urvik said, “You manage your men, your men will manage rest of all”.

• These thoughts focuses on psychological aspects only and do not consider ecohomic parameters of the business unit.
• Hence, some believe that the human relations cannot be maintained at the cost of productivity of the unit.

• Contribution of Henri Fayol in thoughts of classical theory is also quite significant.
• He gave certain general principles of management.
• He decided levels of different tasks in business unit and tried to set limits for each task.
• He also provided universal principles of management as guidelines for performing managerial duty at different levels.

• The principles, opinions and thoughts given by several management gurus are together known as management thoughts.
• These thoughts are the outcome of several researches, studies and applications. These thoughts have led to the development of so many branches and sub-branches.

The major thoughts of management are:

• Thoughts of Classical Theory
• Thoughts of Neo-Classical Theory
• Thoughts related to Human Behaviour
• Thoughts of Modern Management

• Management principles are the main elements of management thoughts.
• Training, education and development are possible only through proper implementation of management principles.
• For example, in modern time, aptitude tests are conducted for appointing employees in various business units. These aptitude tests are prepared through research and by implementing and using management principles.

• Principles of management are developed on the basis of experiences gained by different experts in different situations.
• While managing the unit there arise several different types of simple and complex problems. These issues may differ from unit to unit. So, in these regards, the principles of management may work fine for one unit but might not work for the other.
• Hence, it should be noted that the principles of management are general guidelines. They cannot be observed strictly that too in the same manner by every business unit.

• Principles of management are not rigid and are quite practical.
• These principles are the. guidelines to perform a task.
• For example, the principles guide the managers to take various decisions at the time of implementation of different tasks of management such as planning, organization and direction.
• Experts believe that although the management principles are mostly true they are not absolute truth because there are also exceptions to these principles.

• Management principles and management techniques are two different things.
• Methods or techniques are the set of steps taken to achieve the target whereas principles are the guidelines for the decisions which have been taken during implementation of. the techniques.
• Similarly, principles are not values. Values are acceptable or preferable since they are related with the morality whereas the principles are the universal truth and guidelines for the human behaviour.

• Rules and principles formed in business unit with respect to human behaviour for achieving of goal easily are called principles of management.
• The principles of management work as a guide for the managers.
• It should be well noted that the principles of the management are not the rules. They are only the sum and substance of the assumptions, traditions and experiences.
• These principles lay a strong foundation for the success of a business unit.

Concept:

• Management is the combination of art and science.
• Every science is based on some underlying principles, so is management. However, the principles of management are not as rigid as the pure science, but are quite flexible.
• The principles of management have direct relationship with the human behaviour. Since they are related to human behaviour there is a scope of improvement as and when human behaviour evolves.
• Human behaviour and the technology keep on changing. As a result, the principles of management must also be changed to adapt with the new changes.
• Principles of management are the detailed and perfect guideline for making decisions and their implementation.
• For example, through these principles the unit can increase the enthusiasm of the employees by giving them transfers, promotions etc.

• Activities of management have been carried out since centuries. The Kings and rulers have been using several elements of management in managing their reigns.
• Even during those times strategies were made for wars, building forts, training soldiers, managing the kingdom, water management, agriculture, etc.
• One can see systematic use of management policies and war strategies during the rule of Chandragupta Maurya and Chhatrapati Shivaji.
• As, the world evolved, various management gurus came into picture. These management gurus, thinkers, ideologists and authors have time and again given new principles through evaluation and reconsideration of the concept of management.
• Thus, the history of concept of management is very ancient and has been- changed periodically.
• These people have contributed to the modern day management. Frederik Taylor to Henri Fayol, Gilbreath, Max Weber, Chester Barnard, Peter F. Drucker and C. K. Prahalad played an important role in rendering various management principles to make it as per the era.
• Thus, management is not a modern day term. It existed even during the most ancient periods however, it has ever-evolved with time.

• Human is in the centre of the management.
• Top executives have to take work from the employees working under them. This is not an easy task because the behaviour and nature of every employee is not a like.
• Prof. Urvik also said, “you manage your men, your men will manage rest of all.
• Thoughts of behaviour related :
• Behaviour related thought emphasize on the job satisfaction and increasing efficiency of employees working under them.
• This is not an easy task because the behaviour related thoughts.
• Since the management is being done by a person, management study become a study of inter person relations.
• Main limitations of this thoughts :
• Since this approach some. What more psychological, it seems that economic parameter has been neglected.
• Some writers logically stated that human relations cannot be maintained on the part of productivity.

• In industrial units, to make workers work enthusiastically and co-operatively, it is necessary to assign work to every worker according to his physical capacity.
• In addition, the power should also been given to complete the work. For this, principles of management plays keys role for a unit.

• Importance of principles of Management :

• Gain in managerial efficiency :
• Principle of management provides guideline to the managers to perform task in different situations.
• Due to which method of working and managerial efficiency gets improved.
• Optimum use of resources :
• Production cost can be minimized by minimized by maximum use of resources through principle of management.
• Effective administration :
• With the implementation of principles of management, new standards of performance can be established. As a result, time material and labour wastage can be reduced.
• Thus, administration becomes effective.
• Scientific and logical decisions :
• Management decisions should always based on facts and thoughtful.
• Using managerial principles, appropriate decision can be made which is timely unbiased and without partiality.
• Require for changing business environment :
• Principle of management are the result of an experience earned by different experts from different situations.
• Thus, this principle are useful to meet changing circumstances of business atmosphere.
• Useful for research, training and development :
• The principle of management has proven to be useful in present time for the task of training, education and development of employees.
• Different skills can also be development by application of this principles.
• To perform social responsibility :
• The aim of management is not only to earn profits but also the social development and progress.
• By effective implementation of management principles, business unit can easily achieve its aim of social responsibility.

• Conclusion :

• The Principles of Management are not only gives benefit to the business unit but also to the workers working in it will get economic and physical benefits.
• Industrial fatigue and accidents also can be reduced by the application of Principles of Management.

• • Fredrick Taylor emphasized on adoption of scientific methods to the problems of management.
  • He thinks that a worker should be paid wages on the basis of his efficiency.
  • So, he suggested three techniques for scientific management as
  • Time study,
  • Motion study,
  • Different wage system.
  • Time study :
  • The scientific study to get idea about how much time a work will take to complete is called time study.
  • Whatever the time is decided to finish this work in normal circumstance is equipment’s and achieving aims in time.
• Motion Study :
  • Motion study means a method of removing waste generated unnecessarily or produced in wrong direction by an ineffective movement.
  • If we carefully study the movement of worker when he is performing his work, then industrial fatigue of worker can be removed by removing wrong process of movement and productivity can be increased.
  • Motion study is mainly used to find out minimum wastage method of labor and its implementation.
• Differential Wage Rate Study :
  • Differential wage study means wage given to workers based on time spent on work through wage related motivation. Frederick Taylor favored this motivation wage method.
  • He emphasis on the fact that each worker working in factory has different work efficiency.
  • So, the efficient workers should be given more wages in terms of more production and less efficient worker should be given fewer wages.
  • Considering this facts, Frederick Taylor has given different wage rates. It is known as differentiate wage system.
• Conclusion :
  • Taylor has specially concentrated on workers and managers in his principles.
  • In is scientific approach time study, motion study and differentiate wage rate system are at the center.
  • By these three techniques harmony between owners and workers can be raised and as a result, productivity and profitability increase.