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Principles of Management and Total Quality Management Unit I – Planning.

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1 Principles of Management and Total Quality Management Unit I – Planning

2 Objectives Understand managerial functions such as Planning, Organizing, Staffing, Leading and Controlling Understand TQM concepts and Tools

3 Management - Definition Art of getting things done by others - Mary Parker Follett To 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 Terry

5 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 ( )

6 Henry Foyal French Industrialist Principles of Administration to be applied in any field of organized activity Focus provided on top management 14 principles of management Referred as father of Modern Management ( )

7 Mary Parker Follett American Social Worker and Management consultant Focused on psychology behind group actions Referred as Mother of Scientific Management ( )

8 George Elton Mayo Australian psychologist, sociologist and organization theorist Focused on workers attitude Raising productivity level ( )

9 Management - Qualities Dynamic and life giving element Coordinates current activities and plan future ones Arbitrates disputes and provides leadership

10 Management - Importance Accomplishment of Group Goals Efficient running of an organization Sound organizational structure

11 Management - Functions Planning Organizing Staffing Directing Leading Controlling

12 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

13 Functions - Organizing Require humans and materials Create organization Staffing Success of organization depends on how well it can coordinate the various resources

14 Functions - Directing Can also be referred as leading, motivating, actuating Involves communication, leadership and motivation

15 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

16 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  Workersperformtheir jobs sincerely and enthusiastically  Management 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 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

18 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

19 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

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 method Taylor 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

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 Business Reduction in Costs Production Planning and Controlling Standardisation Rise in Profits For Workers Improved working conditions Improvement in Standard of living Free training For Society Increased Production Industrial peace Greater Economic Prosperity

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