unit1 - contributions - taylor & fayol
TRANSCRIPT
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Contributions contd
Contributions by Tailor and Fayol
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Frederick Winslow Taylor
Father of Modern Management In 1895- proposed a Piece Rate System:
Observe & Analyze set the standard for job
(use Time and Motion studies)
Pay workers for meeting/exceeding standard
Pay individual worker not everyone, or group/department,or the job = pay according to individual value to business
What Adam Smith had done for markets, Taylor does
for the firm place wealth creation squarely on the
individual worker who is managed, rewarded for
effort.
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Frederick Taylor Cont. Biography: Wealthy Philadelphia Quaker family
Worked in hydraulics factory as laborer/foreman/chief
engineer
At 25 earned college degree in engineering
At 35- consultant: introduced functional foreman,
production planning, differential pay= cut costs/increasedproduction)
1905 wrote Shop Management 1909-14: Lecturer at Harvard
Management consultant US Navy and Army
1911- Wrote Scientific Management
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Frederick Taylor Cont. Soldiering people dont
always
try/work hard. WHY?
If we work hard and complete thejob no more work next day; fewerworkers needed!
SO what is the amount of time
needed to do the job? How should it be performed
One Best Way
What is the standard?
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Taylors 4 Principles of Scientific
ManagementTaylors four principles of scientific management:
Work methods should be based on scientific
observation not rules of thumb. Scientifically select, train, and develop each worker
Cooperate with workers to ensure that scientificallydeveloped methods are being followed.
Managers analyze and plan work; workers actuallyperform the tasks.
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Henri Fayols Principles of
Management Division of Labor: allows for job specialization. Authority and Responsibility: both formal and informal
authority result from special expertise.
Unity of Command:workers have only one boss. Line of Authority: clear chain of command, top to
bottom of the firm. Centralization: degree to which authority rests at the top
of the organization. Unity of Direction: single plan of action to guide the
organization. Equity - The provision of justice and the fair and impartial
treatment of all employees.
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Fayol - Continue Order: place workers where most useful and have
career opportunities.
Initiative: encourage employees to act on their own.
Discipline:workers need to obey
Remuneration of Personnel: pay what is fair.
Stability of Tenure of Personnel: Long-termemployment is important
Subordination of Individual Interest to the
Common Interest: interest of organization priority
Esprit de corps: Have enthusiasm, do team work