Principles of Management and Total Quality Management

Unit I – Planning

Objectives

• Understand managerial functions such as Planning, Organizing, Staffing, Leading and Controlling

• Understand TQM concepts and Tools

Management - Definition

Management - Definition

Frederick Winslow Taylor

American Mechanical Engineer

Focused on industrial efficiency through scientific techniques (7)

Referred as Father of Scientific Management

One of the first few Management Consultants

(1856 -1915)

Henry Foyal

French Industrialist Principles of Administration

to be applied in any field of organized activity

Focus provided on top management

14 principles of managementReferred as father of Modern

Management

(1841-1925)

Mary Parker Follett

• American Social Worker and Management consultant

• Focused on psychology behind group actions

• Referred as Mother of Scientific Management (1865-

1933)

George Elton Mayo

• Australian psychologist, sociologist and organization theorist

• Focused on workers attitude • Raising productivity level

(1880 - 1949)

Management - Qualities

• Dynamic and life giving element• Coordinates current activities and plan

future ones• Arbitrates disputes and provides

leadership

Management - Importance

• Accomplishment of Group Goals• Efficient running of an organization • Sound organizational structure

Management - Functions

• Planning • Organizing • Staffing• Directing • Leading• Controlling

Functions - Planning

• Looking ahead and preparing for future• Process of deciding business objectives and

identifying methods to accomplish – What is to be done?– How and where is it to be done? – Who is to do it?– How results are to be evaluated?

• Is a function performed by managers at all levels – Top, Middle and Supervisory

Functions - Organizing

• Require humans and materials • Create organization• Staffing• Success of organization depends on how well

it can coordinate the various resources

Functions - Directing

• Can also be referred as leading, motivating, actuating

• Involves communication, leadership and motivation

Functions - Controlling

• Establishing standards of performance• Measuring current performance and

comparing it against the established standards• Taking action to correct any performance that

does not meet standards

Concept of Scientific Management

1. Science, not Rule of Thumb : The time and methods of doing any part of

the work are fixed objectively. Tools and working conditions arranged

scientifically.

2. Harmony, not Discord: Provide adequate remuneration to workers Workers perform their jobs sincerely

and enthusiastically Management will gain increased

productivity.

3. Cooperation, not Individualism:The Management should promote cooperation

between workers and management and between workers.

Adopt an enlightened attitude towards workers Acknowledging their importance in raising

productivity levels. Provide them Standard Materials, Tools, Working

conditions and Training

4. Maximum Output, Not restricted Output For the management, maximum output leads to

increased profits. For the workers , it leads to increase in wages and

bonus

5. Development of each man to his greatest efficiency and prosperity.

Taylor emphasized on Scientific observation of each element of a

workers job. Job specialization Proper selection, training and development Planning and Scheduling of work Standardization in operations , working conditions Rewards for efficiency , wage incentives

Elements or Techniques of Scientific Management

1.Work Study Method Study Selection of job to be studied Recording of details of the job and methods

employed to perform it. Critical analysis of the job Development of the new method Installation of the new method Maintenance of the new method

Time Study - Using a special watch to note the time of commencement and completion of each of the elements of a job.

It necessitates splitting up of a job into number of parts to know how long it takes each of the different workers engaged therein to perform it.

Motion Study - Studying the motions performed by a worker while executing a job.

Fatigue study - Study of levels of physical and mental exhaustion .Taylor introduced suitable rest intervals as also the optimum size of tools to be used while performing any job.

2.Application of Scientific methods Consists of recording the facts of a problem – situation to determine the best method to perform a job.

3.Incentive methodTaylor evolved Differential Piece Wage Rate System One for the worker who achieved the standard output and the other for the standard worker.

4. Principles of Management Taylor developed a theory on Functional Authority

(Functional Foremanship). Everything in the organization had to be done by a plan Planning and Execution to be done separately. Profitability and Efficiency is improved through

specialised knowledge and skill

5. Experiments Shovelling - Designed different types of shovels

for different types of materials.Metal cutting – Designed most effective way of

cutting metals while keeping them cool.6. Standardisation - There are predetermined

standards such as task , methods, material , quality and time.

7. Mental RevolutionFor Effective management workers and managers had to work in harmony , not as two hostile groups but as partners in mutual progress and prosperity.