Principles of Management and  Taylor’s Four (4) Principles of Scientific

Management:
Organizations 1. Eliminate the guesswork of rule-of-thumb
approach in deciding how each worker is
Introduction doing his job by adopting scientific
 Construction of the Pyramid in Egypt measurements of breaking the job into a
 100,000 men series of small, related tasks;
 20 years to complete 2. Use more scientific and systematic
 Equivalent to administering an method for selecting workers and training
organization three times the size of the them for specific jobs;
Shell Oil Company. 3. Establish the concept that there is a clear
 Chinese are known to have had highly division of responsibility between
systematic, large scale management management and workers. Management
systems. is doing the goal setting, planning, and
 Great Wall of China – constructed at about supervising, while workers are executing
the same time as the Pyramids were built. the required tasks;
 The administrative system of the Roman 4. Establish the discipline whereby
Catholic Church, a far-flung organization at management sets the objectives and the
one point numbering nearly a half-million workers cooperate in achieving them.
Cardinals, Archbishops, Bishops and Parish  Taylor’s Principles of Scientific
Priests, is being studied for its remarkably Management – aimed primarily at lowering
centralized administrative system and is the unit cost of factory production.
compared with the vastly more complex  Henri Fayol
administrative system of modern-day General  French industrialist, working out some
Motors and other transnational corporations. powerful ideas of his own.
 Great military leaders from Alexander the  A topnotch management executive.
Great to Caesar, to Napoleon the Great, to  Focused his attention on the manager
General Douglas McArthur have long been rather than the worker.
studied for what they can teach us about  In his most notable work, General and
planning, organizing, directing, controlling, Industrial Management, Fayol established
and motivating. himself as the first modern
 Two (2) key notions provided the essential organizational theorist.
rationale for the establishment of these  It was Fayol who defined administration in
services: terms of 14 functions:
1. The idea that administration is an activity 1. Planning
that can be studied and taught separately 2. Organizing
from the context of what is being 3. Commanding
administered. 4. Coordinating
2. The belief that decisions about the 5. Unity of direction
policies and purposes of government 6. Subordination of individual interest to
belong to the realm of political action. general interest
7. Administration of personnel
Impact of the Industrial Revolution 8. Centralization
 Henry Ford 9. Scalar chain
10. Order
 Frederick W. Taylor
11. Equity
 Name well known to many students of
12. Stability of teams personnel
administration
13. Initiatives
 Engineer at the Midvale and the
14. Esprit de corps
Bethlehem steel companies at the close
of the 1800s.  Fayol went further by identifying a list of four
 In the early 1900s became one of the top “principles” among which were:
engineering consultants in American 1. Unity of command
industry. 2. Authority and responsibility
3. Initiative
 4. Morale
 Fayol emphasized that flexibility and a
sense of proportion were essential to
managers who adopted principles and
definitions to particular situations.
 Max Weber
 German sociologist
 Formulated an administrative system;
which seemed promising at that time and
has since proved indispensable:
bureaucracy.
 Weber envisioned certain characteristics that
are, in a sense, principles of administration,
such as:
1. A division of labor based on functional
specialization;
2. A well-defined hierarchy of authority;
3. A system of rules covering the rights and
duties of employees;
4. A system procedures for dealing with
work situations;
5. Impersonality of personal relations;
6. Selection and promotion based only on
technical competence.
The Rise of Classical Organizational
Theory, 1910-1935
 Taylor, Fayol, and Weber – giants in the pre-
World War I years.
 Era of Scientific Management – period from
1910 to 1935.
 Raymond E. Callahan – vividly portrays how
administrators in the US quickly adopted the
values and practices of business and
industrial managers of that time.
 Ellwood Cubberley – one of the leading
scholars in American education.
 Luther Gulick and Lyndall Urwick – stood
out among the scholars who attempted to
synthesize what is now known as the
“classical” formulation of principles, which
would be useful in developing good,
functional organizations.
Organizational Concepts of Classical Theory
 Scalar principle – jargon of classical
theorists. In practice it is usually referred to as
“line and staff”.
 Unity of command – no one in an
organization should receive orders from more
than one superior.
 Functional foremanship – permitted a
worker to receive orders from as many as
eight bosses with each being a specialist.
 Exception principle – holds that when the
need for a decision recurs frequently, the
decision should be established as a routine
that can be delegated to subordinates.
 Span of control – another principle whose
main idea is to limit the number of people
reporting to a supervisor.
 Six essential qualities are the key to success:
sincerity, personal integrity, humility,
courtesy, wisdom and charity.
– Dr. William Menninger
The Idea of Mary Parker Follett
 Mary Parker Follett
 Her work was unique in the development
of management thought.
 She started as a Boston social worker
and then became active in the field of
management.
The Human Relations Movement, 1935-
1950
 Western Electric Company – one of the
more enlightened industrial employers of the
time had cooperated with the National
Research Council in a simple experiment.
 Western Electric’s Hawthorne plant near
Chicago was selected for the experiment.
 Elton Mayo – best member among the team
of researchers known to educators.
 The investigators sought to answer six
questions which they hoped would explain
their findings:
1. Do employees actually become tired?
2. Are pauses for rest desirable?
3. Is a shorter working day desirable?
4. What is the attitude of employees toward
their work and toward the company?
5. What is the effect of changing the type of
working equipment?
6. Why does production decrease in that
afternoon?
 New concepts for the administrators to
use in practice
1. Morale
2. Group dynamics
3. Democratic supervision
4. Personnel relations
5. Behavioral concepts of motivation