Presentation on theme: "Principles of Management and Total Quality Management"— Presentation transcript:
1 Principles of Management and Total Quality Management Unit I – PlanningPrabhu KrishnamurthyAssistant ProfessorKCT Business School
2 ObjectivesUnderstand managerial functions such as Planning, Organizing, Staffing, Leading and ControllingUnderstand TQM concepts and Tools
3 Management - Definition Art of getting things done by others- Mary Parker FollettTo forecast, plan, organise, command, coordinate and control- Henry Foyal(Father of Modern Management)
4 Management - Definition Process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources- George R TerryPlanning – thinking in advance on the actions to be performedOrganizing – coordinating human and material resources of the organizationActuating – motivating and directing the subordinates to perform the tasks efficiently and effectivelyControlling – ensuring there is no deviation from the planFinally, this definition states that the management involves the act of achieving the organization’s objectives.
5 Frederick Winslow Taylor American Mechanical EngineerFocused on industrial efficiency through scientific techniques (7)Referred as Father of Scientific ManagementOne of the first few Management Consultants1. Work StudyTime study – recording the time of commencement and completion of the several elements of a job.Motion Study – studying the motions / actions performed by the worker when performing the job.2. Application of scientific methods:Observation and recording of the facts of a problem – situation with a view to determine the best method to perform a job.3. Incentive method:Differential piece wage rate – One for the worker achieved or exceeded the standard output. The other for the standard worker.4. Principles of Management:Developed theory on functional authority.5. Experiments:Shovelling – different sizes of shovels for different types of materialsMetal cutting – most effective way of cutting metals while keeping them cool6. StandardizationCost and time for each piece of work – optimum processes of production for different products7. Mental revolutionWorkers and managers had to work in harmony for mutual progress and prosperity.( )
6 Henry Foyal French Industrialist Principles of Administration to be applied in any field of organized activityFocus provided on top management14 principles of managementReferred as father of Modern Management14 Principles of Management1. Division of Work2. Authority and Responsibility3. Discipline4. Unity of Command5. Unity of Direction6. Sub-ordination of individual interest to group interest7. Remuneration of personnel8. Centralization9. Scalar Chain10. Order11. Equity12. Stability of tenure of personnel13. Initiative14. Esprit de corps (Loyalty and Devotion)( )
7 Mary Parker Follett American Social Worker and Management consultant Focused on psychology behind group actionsReferred as Mother of Scientific ManagementShe admonished overmanaging employees, a process now known as micromanaging, as “bossism”.She felt that business ought to promote unity of society .She believed that the principle executive of an undertaking should be less of an autocrat and more of a coordinator and organiser of the skills of other men– a skill which would give him authority in the matters in which he was an expert.( )
8 George Elton MayoAustralian psychologist, sociologist and organization theoristFocused on workers attitudeRaising productivity level( )
9 Management - Qualities Dynamic and life giving elementCoordinates current activities and plan future onesArbitrates disputes and provides leadershipDynamic and life giving element – No business runs on its own, even on momentum. Every business needs repeated stimulus or encouragement and support from the management. Hence, management is dynamic and life giving element without which resources will remain as mere resources and there will be no production.Ex: Breathing in different environment; Watering a plant; Refueling the vehicle; Sleeping (to manage one’s system in shape) etc
10 Management - Importance Accomplishment of Group GoalsEfficient running of an organizationSound organizational structureAccomplishment of Group Goals- Sound resource planning- Changing needs- Consistent direction and controlEfficient running of an organization- Management involves its employees mentally and emotionally- Involvement creates motivation- Motivation results in quality output, increase in productivity and reduction in wastageSound Organizational Structure- Creates organization structure- Defines authority and responsibility- Staffing with appropriate skills- Environment
12 Functions - Planning Looking ahead and preparing for future Process of deciding business objectives and identifying methods to accomplishWhat 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
13 Functions - Organizing Require humans and materialsCreate organizationStaffingSuccess of organization depends on how well it can coordinate the various resources
14 Functions - DirectingCan also be referred as leading, motivating, actuatingInvolves communication, leadership and motivationCommunication – process of passing information and understanding from one person to the otherLeadership – process by which manager guides and influences his team members to accomplish certain tasksMotivation – Act of stimulating or inspiring workersFinancial – salary hike, bonus, profit – sharing etcNon – financial – job security, promotions, recognition, praise etc
15 Functions - Controlling Establishing standards of performanceMeasuring current performance and comparing it against the established standardsTaking action to correct any performance that does not meet standards
16 Concept of Scientific Management 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 workersWorkers perform their jobs sincerely and enthusiasticallyManagement will gain increased productivity.
17 3. Cooperation, not Individualism: The Management should promote cooperation between workers and management and between workers.Adopt an enlightened attitude towards workersAcknowledging their importance in raising productivity levels.Provide them Standard Materials, Tools, Working conditions and Training4. Maximum Output, Not restricted OutputFor the management, maximum output leads to increased profits.For the workers , it leads to increase in wages and bonus
18 5. Development of each man to his greatest efficiency and prosperity. Taylor emphasized onScientific observation of each element of a workers job.Job specializationProper selection, training and developmentPlanning and Scheduling of workStandardization in operations , working conditionsRewards for efficiency , wage incentives
19 Elements or Techniques of Scientific Management 1.Work StudyMethod StudySelection of job to be studiedRecording of details of the job and methods employed to perform it.Critical analysis of the jobDevelopment of the new methodInstallation of the new methodMaintenance of the new method
20 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.
21 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 ManagementTaylor developed a theory on Functional Authority (Functional Foremanship).Everything in the organization had to be done by a planPlanning and Execution to be done separately.Profitability and Efficiency is improved through specialised knowledge and skill
22 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 Revolution For Effective management workers and managers had to work in harmony , not as two hostile groups but as partners in mutual progress and prosperity.
23 Merits of Scientific Management For BusinessReduction in CostsProduction Planning and ControllingStandardisationRise in ProfitsFor WorkersImproved working conditionsImprovement in Standard of livingFree trainingFor SocietyIncreased ProductionIndustrial peaceGreater Economic Prosperity