1. Principles of Management and Total Quality Management
Unit I – Planning
Prabhu Krishnamurthy
Assistant Professor
KCT Business School

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
Planning – thinking in advance on the actions to be performed
Organizing – coordinating human and material resources of the organization
Actuating – motivating and directing the subordinates to perform the tasks efficiently and effectively
Controlling – ensuring there is no deviation from the plan
Finally, this definition states that the management involves the act of achieving the organization’s objectives.

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
1. Work Study
Time 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 materials
Metal cutting – most effective way of cutting metals while keeping them cool
6. Standardization
Cost and time for each piece of work – optimum processes of production for different products
7. Mental revolution
Workers 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 activity
Focus provided on top management
14 principles of management
Referred as father of Modern Management
14 Principles of Management
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Sub-ordination of individual interest to group interest
7. Remuneration of personnel
8. Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps (Loyalty and Devotion)
( )

7. Mary Parker Follett American Social Worker and Management consultant
Focused on psychology behind group actions
Referred as Mother of Scientific Management
She 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 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
Dynamic 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 Goals
Efficient running of an organization
Sound organizational structure
Accomplishment of Group Goals
- Sound resource planning
- Changing needs
- Consistent direction and control
Efficient 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 wastage
Sound Organizational Structure
- Creates organization structure
- Defines authority and responsibility
- Staffing with appropriate skills
- Environment

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
Communication – process of passing information and understanding from one person to the other
Leadership – process by which manager guides and influences his team members to accomplish certain tasks
Motivation – Act of stimulating or inspiring workers
Financial – salary hike, bonus, profit – sharing etc
Non – financial – job security, promotions, recognition, praise etc

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
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.

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