Time and Motion Study: Essential Readings on a Key Business Technique

ESSENTIAL READINGS 2
TIME AND MOTION STUDY
A time and motion study (or time-motion study) is a business efficiency technique combining
the Time Study work of Frederick Winslow Taylor with the Motion Study work of Frank and
Lillian Gilbreth. It is a major part of scientific management (Taylorism). After its first
introduction, time study developed in the direction of establishing standard times, while
motion study evolved into a technique for improving work methods. The two techniques
became integrated and refined into a widely accepted method applicable to the improvement
and upgrading of work systems. This integrated approach to work system improvement is
known as methods engineering and it is applied today to industrial as well as service
organizations, including banks, schools and hospitals.
Time study is a direct and continuous observation of a task, using a timekeeping device (e.g.,
decimal minute stopwatch, computer-assisted electronic stopwatch, and videotape camera) to
record the time taken to accomplish a task and it is often used when:
• There are repetitive work cycles of short to long duration,

• Wide variety of dissimilar work is performed,
• Process control elements constitute a part of the cycle.
The Industrial Engineering Terminology Standard, defines time study as "a work
measurement technique consisting of careful time measurement of the task with a time
measuring instrument, adjusted for any observed variance from normal effort or pace and to
allow adequate time for such items as foreign elements, unavoidable or machine delays, rest to
overcome fatigue, and personal needs."
Motion Study
Motion study is a systematic way of determining the best method of doing the work by
scrutinizing the motions made by the worker or the machine. As per Gilbreath it is the science
of eliminating the wastefulness due to unnecessary motions. He was interested in finding the
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Course-: MSL-723 (Telecom Systems Management)
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one best way to do the job. He analyzed the motions of bricklayers and was successful in
reducing the number of motions of a bricklayer from 18 to 5. The Gilbreths made use of
scientific insights to develop a study method based upon the analysis of "work motions",
consisting in part of filming the details of a worker’s activities and their body posture while
recording the time. The films served two main purposes. One was the visual record of how
work had been done, emphasizing areas for improvement. Secondly, the films also served the
purpose of training workers about the best way to perform their work. This method allowed the
Gilbreths to build on the best elements of these work flows and to create a standardized best
practice. Gilbreth served in the U.S. Army during World War I. His assignment was to find
quicker and more efficient means of assembling and disassembling small arms. According to
Claude George (1968), Gilbreth reduced all motions of the hand into some combination of 17
basic motions. These included grasps, transport loaded, and hold. Gilbreth named the motions
therbligs — "Gilbreth" spelled backwards with letters the transposed to their original order. He
used a motion picture camera that was calibrated in fractions of minutes to time the smallest of
motions in workers.
Their emphasis on the "one best way" and therbligs predates the development of continuous
quality improvement (CQI), and the late 20th century understanding that repeated motions
can lead to workers experiencing repetitive motion injuries.
Gilbreth was the first to propose the position of "caddy" (Gilbreth's term) to a surgeon, who
handed surgical instruments to the surgeon as needed. Gilbreth also devised the standard
techniques used by armies around the world to teach recruits how to rapidly disassemble and
reassemble their weapons even when blindfolded or in total darkness.
Motion study can be divided into three components or types:
1. Therblig analysis: a therblig is a small part of a job. Gilbreath gave 17 basic motions
of a worker each motion is known as therblig.
2. Micro motion study: it is the study of elements of an operation with the help of high-
speed movie camera in order to eliminate the unnecessary motions involved in the
operation and balancing the necessary motions.
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3. Principles of micro economy: this motion study find out the correct application of
theories behind motion elements to achieve synchronization of human body
movements, best layout of work places and optimum design of equipment’s.
The five basic principles of micro economy are;
i. Principle of minimum movement

ii. Principle of natural movement
iii. Principle of habitual movement
iv. Principle of rhythmic movement
v. Principle of symmetrical movement
Bibliography
Barnes, R. M., & Barnes, R. M. (1958). Motion and time study (Vol. 84). New York, New
York: Wiley.
FAYOLS 14 PRINCIPLES
The Administrative Theory was proposed by Henry Fayol, who studied the organizational
problems from the manager’s viewpoint and found organization’s activities can be classified
as Technical, Financial, Commercial, Security, Accounting and managerial.
Henry Fayol’s 14 Principles of Management
1. Division of Work: The work should be divided among the individuals on the basis of
their specializations, so as to ensure their full focus on the effective completion of the
task assigned to them.
2. Authority and Responsibility: The authority and responsibility are related to each
other. Authority means the right to give orders while the responsibility means being
accountable. Thus, to whomsoever the authority is given to exact obedience must be
held accountable for anything that goes wrong.
3. Discipline: The individuals working in the organization must be well-disciplined. The
discipline refers to the obedience, behaviour, respect shown by the employees towards
others.
4. Unity of Command: According to this principle, an individual in the organization must
receive orders from only one supervisor. In case an individual has the reporting
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relationship with more than one supervisor then there may be more conflicts with
respect to whose instructions to be followed.
5. Unity of Direction: Unity of direction means, all the individual or groups performing
different kinds of a task must be directed towards the common objective of the
organization.
6. Subordination of Individual to General Interest: According to this principle, the
individual and organizational interest must coincide to get the task accomplished. The
individual must not place his personal interest over the common interest, in case there
a conflict.
7. Remuneration of Personnel: The payment methods should be fair enough such that
both the employees and the employers are satisfied.
8. Centralization: Fayol defines centralization as the means of reducing the importance
of subordinate’s role in the organization, and the extent to which the authority is
centralized or decentralized depends on the organization type in which the manager is
working.
9. Scalar Chain: This means there should be a proper hierarchy in the organization that
facilitates the proper flow of authority and communication. It suggests that each
individual must know from whom he shall get instructions and to whom he is
accountable to. Also, the communication either going up or down must pass through
each level of authority. In certain circumstances where the quick flow of
communication is required, the rigidity of a scalar chain can pose problems. Thus,
Henry Fayol has suggested “gang plank” which means anybody in the hierarchy can
interact with each other irrespective of their authority levels.
10. Order: This principle is related to the systematic arrangement of things and people in
the organization. This means every material should be in its place, and there should be
a place for every material. Likewise, in the case of people, a right man should be in the
right job.
11. Equity: All the employees in the organization must be treated equally with respect to
the justice and kindliness.
12. Stability of Tenure: The employees should be retained in the organization, as new
appointments may incur huge selection and training cost.
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13. Initiative: The manager must motivate his subordinates to think and take actions to
execute the plan. They must be encouraged to take initiatives as this increases the zeal
and energy among the individuals.
14. Esprit de Corps: This means “unity is strength”. Thus, every individual must work
together to gain synergy and establish cordial relations with each other.
AUTHORITY, RESPONSIBILITY AND POWER
Authority manifests when a command of definite content elicits obedience on the part of
specific individuals. For Weber, ‘authority’ was identical with ‘authoritarian power of
command’ (Prasad, et.al.p.77). Authority is state of reality where a person willingly complies
with legitimate commands or orders because he considers that a person by virtue of his
position could issue orders to him. Unlike in ‘power’ there is willing obedience on the part of
clientele to legitimise authority. Weber identified five essential components of authority. They
are:
1. An individual or a body of individuals who rule,

2. An individual or a body of individuals who are ruled
3. The will of the rulers to influence conduct of the ruled,
4. Evidence of the influence of the rulers in terms of the objective degree of command,
5. Direct or indirect evidence of that influence in terms of subjective acceptance with
which the ruled obey the command.
“Responsibility is the obligation to carry out assigned activities to the best of his abilities.” —
George Terry Responsibility is thus the result of superior-subordinate relationship. In other
words, a subordinate’s obligations in any business unit will arise basically from his relationship
with his superior who is given the authority to get something done.
A superior/ manager/executive get the rights of compliance of orders when he assigns duties
and debates authority, while accepting a job a subordinate incurs an obligation to perform the
job successfully.
“The essence of responsibility is then obligation. Responsibility has no meaning except as

applied to a person; a building, a machine or an animal cannot be held responsible.”
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Responsibility is a concomitant of authority. A person who has authority has a corresponding
responsibility for the proper exercise of authority given to him. Authority flows from a superior
to subordinate while responsibility flows from a subordinate to a superior. Power is the ability
to influence other people. It refers to the capacity to affect the behaviour of the subordinate
with the control of resources. It is an exchange relationship that occurs in transactions between
an agent and a target. The agent is the person who uses the power and target is the receipt of
the attempt to use power. Power is the ability to influence someone else. Influence is the process
of affecting the thoughts, behaviour and feelings of another person. Authority is the right to
influence another person. Authority is a legitimate right to influence others.
1. Authority is right to influence others but power is ability to influence people.

2. Authority is legitimate while power is not.
3. Authority confers legitimacy to power but power itself need not be legitimate
DECENTRALIZATION IN SCIENTIFIC MANAGEMENT
Decentralization is a systematic delegation of authority at all levels of management and in

all of the organization. In a decentralization concern, authority in retained by the top
management for taking major decisions and framing policies concerning the whole concern.
Rest of the authority may be delegated to the middle level and lo wer level of management.
Decentralization is not the same as delegation. In fact, decentralization is all extension of
delegation. Decentralization pattern is wider is scope and the authorities are diffused to the
lowest most level of management. Delegation of authority is a complete process and takes
place from one person to another. While decentralization is complete only when fullest
possible delegation has taken place. Decentralization is wider in scope and the subordinate’s
responsibility increase in this case. On the other hand, in delegation the managers remain
answerable even for the acts of subordinates to their superiors.
Implications of Decentralization
1. There is less burden on the Chief Executive as in the case of centralization.

2. In decentralization, the subordinates get a chance to decide and act independently
which develops skills and capabilities. This way the organization is able to process
reserve of talents in it.
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3. In decentralization, diversification and horizontal can be easily implanted.
4. In decentralization, concern diversification of activities can place effectively since
there is more scope for creating new departments. Therefore, diversification growth is
of a degree.
5. In decentralization structure, operations can be coordinated at divisional level which is
not possible in the centralization set up.
6. In the case of decentralization structure, there is greater motivation and morale of the
employees since they get more independence to act and decide.
7. In a decentralization structure, co-ordination to some extent is difficult to maintain as
there are lot many department divisions and authority is delegated to maximum possible
extent, i.e., to the bottom most level delegation reaches. Centralization and
decentralization are the categories by which the pattern of authority relationships
became clear. The degree of centralization and de-centralization can be affected by
many factors like nature of operation, volume of profits, number of departments, size
of a concern, etc. The larger the size of a concern, a decentralization set up is suitable
in it.
Source: https://www.managementstudyguide.com/centralization_decentralization.htm
PODC – PLANNING, ORGANISING, DIRECTING & CONTROLLING
PODC is the DNA of management. Planning is the starting point and Controlling is the end
point. The system is based on closed feedback. There are four main functions of
management:
Planning
• Look ahead and chart out future course of operation• Formulation of Objectives,
Policies, Procedure, Rules, Programmes and Budget
Organising
• Bringing people together and tying them together in the pursuit of common
objectives.
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• Enumeration of activities, classification of activities, fitting individuals into
functions, assignment of authority for action.
Directing
• Act of guiding, overseeing and leading people

• Motivation, leadership, decision making
Controlling
• Laying standards, comparing actuals and correcting deviation-achieve objectives

according to plans. Co-ordination
• Synchronizing and unifying the actions of a group of people.
Bibliography: de Verlaine, E. An Investigation on Management as Social Practice: Theoretical

and Empirical Findings.
https://2012books.lardbucket.org/books/an-introduction-to-business-v2.0/s10-01-what-do-
managers-do.html
ELABORATING THE CONCEPT OF PLANNING

Planning is the process of thinking about the activities required to achieve a desired goal. It is
the first and foremost activity to achieve desired results. It involves the creation and
maintenance of a plan, such as psychological aspects that require conceptual skills. Also,
planning has a specific process and is necessary for multiple occupations (particularly in
fields such as management, business, etc.). In each field there are different types of plans that
help companies achieve efficiency and effectiveness. An important, albeit often ignored
aspect of planning, is the relationship it holds to forecasting. Forecasting can be described as
predicting what the future will look like, whereas planning predicts what the future should
look like for multiple scenarios. Planning combines forecasting with preparation of scenarios
and how to react to them. Planning is one of the most important project management and time
management techniques. Planning is preparing a sequence of action steps to achieve some
specific goal. If a person does it effectively, they can reduce much the necessary time and
effort of achieving the goal. A plan is like a map. When following a plan, a person can see
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how much they have progressed towards their project goal and how far they are from their
destination.
Patrick Montana and Bruce Charnov outline a three-step result-oriented process for planning:
i. Choosing a destination
ii. Evaluating alternative routes
iii. Deciding the specific course of the plan
In organizations, planning can become a management process, concerned with defining goals
for a future direction and determining on the missions and resources to achieve those targets.
To meet the goals, managers may develop plans such as a business plan or a marketing plan.
Planning always has a purpose. The purpose may involve the achievement of certain goals or
targets.
Major characteristics of planning in organizations include:
i. Planning increases the efficiency of an organization.

ii. Planning reduces risks.
iii. Planning utilizes with maximum efficiency the available time and resource
Bibliography:
Faludi, Andreas (2013) [1987]. A Decision-centred View of Environmental Planning. Urban
and Regional Planning Series. 38. Oxford: Elsevier. p. 208
ORGANISING CONCEPT IN PODC
Fayol gave the concept of organizing. Organising is a systematic process of structuring,

integrating, co-ordinating task goals, and activities to resources in order to attain objectives.
Example is Unity of command.
The following are the important characteristics of organization.
Specialization and division of work: The entire philosophy of organization is centered on the
concepts of specialization and division of work. The division of work is assigning
responsibility for each organizational component to a specific individual or group thereof. It
becomes specialization when the responsibility for a specific task lies with a designated
expert in that field. The efforts of the operatives are coordinated to allow the process at hand
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to function correctly. Certain operatives occupy positions of management at various points in
the process to ensure coordination.
Orientation towards goals: Every organization has its own purposes and objectives.
Organizing is the function employed to achieve the overall goals of the organization.
Organization harmonizes the individual goals of the employees with overall objectives of the
firm.
Composition of individuals and groups: Individuals form a group and the groups form an
organization. Thus, organization is the composition of individual and groups. Individuals are
grouped into departments and their work is coordinated and directed towards organizational
goals.
Continuity: An organization is a group of people with a defined relationship in which they
work together to achieve the goals of that organization. This relationship does not come to
end after completing each task. Organization is a never-ending process.
Flexibility: The organising process should be flexible so that any change can be incorporated
easily. It ensures the ability to adapt and adjust the activities in response to the change taking
place in the external environment. The programmes, policies and strategies can be changed as
and when required if the provision for flexibility is made in the organising process.
DIRECTING CONCEPT IN PODC
Directing is the heart of management function. Leadership, motivation, supervision,

communication are various aspects of directing.
Directing refers to a process or technique of instructing, guiding, inspiring, counselling,

overseeing and leading people towards the accomplishment of organizational goals. It is a
continuous managerial process that goes on throughout the life of the organization. Main
characteristics of Directing are as follows:
1. Initiates Action A directing function is performed by the managers along with planning,
staffing, organizing and controlling in order to discharge their duties in the organization.
While other functions prepare a platform for action, directing initiates action.
2. Pervasive Function
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Directing takes place at every level of the organization. Wherever there is a superior
subordinate relationship, directing exists as every manager provides guidance and
inspiration to his subordinates.
3. Continuous
Activity It is a continuous function as it continues throughout the life of organization
irrespective of the changes in the managers or employees.
4. Descending Order of Hierarchy
Directing flows from a top level of management to the bottom level. Every manager
exercises this function on his immediate subordinate.
5. Human Factor
Since all employees are different and behave differently in different situations, it
becomes important for the managers to tackle the situations appropriately. Thus,
directing is a significant function that gets the work done by the employees and
increases the growth of the organization.
Principles of Directing
1. Maximum Individual Contribution
One of the main principles of directing is the contribution of individuals.
Management should adopt such directing policies that motivate the employees to
contribute their maximum potential for the attainment of organizational goals.
2. Harmony of Objectives
Sometimes there is a conflict between the organizational objectives and individual
objectives. For example, the organization wants profits to increase and to retain its
major share, whereas, the employees may perceive that they should get a major
share as a bonus as they have worked really hard for it. Here, directing has an
important role to play in establishing harmony and coordination between the
objectives of both the parties.
3. Unity of Command
This principle states that a subordinate should receive instructions from only one
superior at a time. If he receives instructions from more than one superiors at the
same time, it will create confusion, conflict, and disorder in the organization and
also he will not be able to prioritize his work.
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4. Appropriate Direction Technique
Among the principles of directing, this one state that appropriate direction
techniques should be used to supervise, lead, communicate and motivate the
employees based on their needs, capabilities, attitudes and other situational
variables.
5. Managerial Communication
According to this principle, it should be seen that the instructions are clearly
conveyed to the employees and it should be ensured that they have understood the
same meaning as was intended to be communicated.
6. Use of Informal Organization
Within every formal organization, there exists an informal group or organization.
The manager should identify those groups and use them to communicate
information. There should be a free flow of information among the seniors and the
subordinates as an effective exchange of information are really important for the
growth of an organization.
7. Leadership
Managers should possess a good leadership quality to influence the subordinates
and make them work according to their wish. It is one of the important principles
of directing.
8. Follow Through
As per this principle, managers are required to monitor the extent to which the
policies, procedures, and instructions are followed by the subordinates. If there is
any problem in implementation, then the suitable modifications can be made.
Source:https://www.toppr.com/guides/business-studies/directing/introduction-meaningimportance-
and-principles-of-directing
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CONTROLLING CONCEPT IN PODC
Control, is an important function of management because it helps to check the errors and to
take the corrective action so that deviation from standards are minimized and stated goals of
the organization are achieved in a desired manner.
According to modern concepts, control is a foreseeing action whereas earlier concept of
control was used only when errors were detected. Control in management means setting
standards, measuring actual performance and taking corrective action.
The four basic elements in a control system:
• the characteristic or condition to be controlled
• the sensor
• the comparator
• the activator
occur in the same sequence and maintain a consistent relationship to each other in every
system.
The first element is the characteristic or condition of the operating system which is to be
measured. We select a specific characteristic because a correlation exists between it and how
the system is performing. The characteristic can be the output of the system during any stage
of processing or it may be a condition that is the result of the system. For example, it may be
the heat energy produced by the furnace or the temperature in the room which has changed
because of the heat generated by the furnace. In an elementary school system, the hours a
teacher works or the gain in knowledge demonstrated by the students on a national
examination are examples of characteristics that may be selected for measurement, or control.
The second element of control, the sensor, is a means for measuring the characteristic or
condition. For example, in a home heating system this device would be the thermostat, and in
a quality-control system this measurement might be performed by a visual inspection of the
product.
The third element of control, the comparator, determines the need for correction by
comparing what is occurring with what has been planned. Some deviation from the plan is
usual and expected, but when variations are beyond those considered acceptable, corrective
action is required. It involves a sort of preventative action which indicates that good control is
being achieved.
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The fourth element of control, the activator, is the corrective action taken to return the system
to its expected output. The actual person, device, or method used to direct corrective inputs
into the operating system may take a variety of forms. It may be a hydraulic controller
positioned by a solenoid or electric motor in response to an electronic error signal, an
employee directed to rework the parts that failed to pass quality inspection, or a school
principal who decides to buy additional books to provide for an increased number of students.
As long as a plan is performed within allowable limits, corrective action is not necessary;
however, this seldom occurs in practice.
Information is the medium of control, because the flow of sensory data and later the flow of
corrective information allow a characteristic or condition of the system to be controlled. To
illustrate how information flow facilitates control, let us review the elements of control in the
context of information.
Process of Control
Step 1. Establishment of Standard.
Standards are the criteria against which actual performance will be measured. Standards are
set in both quantitative and qualitative terms.
Step 2. Measurement of actual performance
Performance is measured in an objective and reliable manner. It should be checked in the

same unit in which the standards are set.
Step 3. Comparing actual performance with standards.
Step 4. Analysis the cause of deviations.
Step 5. Taking corrective action.
Bibliography
Henri Fayol (1949). General and Industrial Management. New York: Pitman Publishing. pp.
107–109.
Richard Arvid Johnson (1976). Management, systems, and society : an introduction. Pacific
Palisades, Calif.: Goodyear Pub. Co. pp. 241–244.
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GROUP
We define "group" as more than two employees who have an ongoing relationship in which
they interact and influence one another behaviour and performance. The behavior of
individuals in groups is something more than the sum total of each acting in his or her own
way. In other words, when individuals are in groups, they act differently than they do when
they are alone. Groups can be either formal or informal.
1. Formal Groups: A formal group is set up by the organization to carry out work in
support of the organization's goals. In formal groups, the behaviours that one should
engage in are stipulated by and directed toward organizational goals. Examples include
a book keeping department, an executive committee, and a product development team.
Formal group may be command groups or task groups.
i. Command Group: A command group consists of a manager and the employees
who report to him or her. Thus, it is defined in terms of the organization's
hierarchy. Membership in the group arises from each employee's position on the
organizational chart.
ii. Task Group: A task group is made up of employees who work together to
complete a particular task or project. A task group's boundaries are not limited to
its immediate hierarchical superior. It can cross command relationships. A
employee's membership in the group arises from the responsibilities delegated to
the employee - that is, the employee's responsibility to carry out particular
activities. Task group may be temporary with an established life span, or they may
be open ended.
2. Informal Groups: An organization's informal groups are groups that evolve to meet
social or affiliation needs by bringing people together based on shared interests or
friendship. Thus, informal groups are alliances that are neither formally structured nor
organizationally determined. These groups are natural formations in the work
environment that appear in response to the need for social contact. Many factors explain
why people are attracted to one another. One explanation is simply proximity; when
people work near one another every day, they are likely to form friendships.
That likelihood is even greater when people also share similar attitudes, personalities,
or economic status.
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i. Friendship Groups: Groups often develop because the individual members
have one or more common characteristics. We call these formations friendship
groups. Social alliances, which frequently extend outside the work situation, can
be based on similar age, hold same political view, attended the same college etc.
ii. Interest Groups: People who may or may not be aligned into common
command or task groups may affiliate to attain a specific objective with which
each is concerned. This is an interest group.
iii. Reference Groups: Some times, people use a group as a basis for comparison
in making decisions or forming opinions. When a group is used in this way, itis
a reference group. Employees have reference groups inside or outside the
organization where they work. For most people, the family is the most important
reference groups. Other important reference groups typically include
coworkers, friends, and members of the person's religious organization. The
employee need not admire a group for it to serve as a reference group. Some
reference groups serve as a negative reference; the employee tries to be unlike
members of these groups.
iv. Membership Groups: When a person does belong to a group (formal and
informal groups to which employees actually belong) the group is called a
membership group (or affiliation group) for that person. Members of a group
have some collection of benefits and responsibilities that go beyond the groups
erving as a reference point. In a membership group, each member would be
expected to contribute to the group's well-being and would enjoy the benefit
arising from the group member's friendship.
TEAM
A group of people with different skills and different tasks, who work together on a common
project, service, or goal, with a meshing of functions and mutual support.
Characteristics of Effective Team:
1. The purpose, mission, or main objective is known and understood by all team members.
2. Communication in the team is open, direct and honest.
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3. Sufficient leadership is available in the team.
4. There is regular review of how well the team is performing toward achieving its
purpose.
5. There is an agreed organizational structure to the team.
6. Adequate resources are available to permit the team to perform it’s function, including
skills, tools, facilities, and budgets.
7. Synergy exists, so the team performs in a way that is greater than the sum of its parts.
Team Development Stages.
1. Forming.
2. Storming
3. Norming
4. Performing
1. Forming
i. People are cautious, guarded, wondering.
ii. Little visible disagreement.
iii. Lack of identity.
iv. Little investment in the group.
v. Watching to see what is expected of team members and what is acceptable from
team members.
2. Storming
i. Conflict occurs.
ii. Work is in fits and starts and not very productive.
iii. High level of frustration and/or confusion.
iv. Pairing and cliques develop.
v. Beginning development of identity, purpose, and interest. 6. People take risks
and get to know one another.
3. Norming
i. Developing goals, roles, and relationships.
ii. Learning to appreciate differences in people.
iii. Conflict is about issues, not egos or people.
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iv. Communication is open and clear.
v. Sense of belonging develops.
vi. Progress is beginning to be made.
vii. Work becomes enjoyable.
4. Performing
i. Team acts on common goals, with synergy, high morale, and high productivity.
ii. Easy shifting of roles from one to another.
iii. Differences are valued.
iv. Team members look out for one another’s interests.
v. Spontaneous, collaborative efforts.
vi. Sharing of all relevant information.
vii. Conflict is frequent, but leads to problem solving.
SPAN OF CONTROL
Span of control is a commonly used term in business management, particularly human

resource management. Span of control refers to the number of subordinates a supervisor has.
In simple words, span of control means the manageable number of subordinates of a superior.
In the hierarchical business organization of sometime in the past it was not uncommon to see
average spans of 1-to-4 or even less. That is, one manager supervised four employees on
average. In the 1980s corporate leaders flattened many organizational structures causing
average spans to move closer to 1-to-10. That was made possible primarily by the
development of inexpensive information technology. As information technology was
developed capable of easing many middle manager tasks – tasks like collecting, manipulating
and presenting operational information – upper managers found they could hire fewer middle
managers to do more work managing more subordinates for less money.
Bibliography: Ouchi, W. G., & Dowling, J. B. (1974). Defining the span of control. Administrative Science
Quarterly, 357-365.
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CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility is a management concept whereby companies integrate social

and environmental concerns in their business operations and interactions with their
stakeholders. CSR is generally understood as being the way through which a company achieves
a balance of economic, environmental and social imperatives (“Triple-Bottom-Line-
Approach”), while at the same time addressing the expectations of shareholders and
stakeholders. In this sense it is important to draw a distinction between CSR, which can be a
strategic business management concept, and charity, sponsorships or philanthropy. Even
though the latter can also make a valuable contribution to poverty reduction, will directly
enhance the reputation of a company and strengthen its brand, the concept of CSR clearly goes
beyond that.
Promoting the uptake of CSR amongst SMEs requires approaches that fit the respective needs
and capacities of these businesses, and do not adversely affect their economic viability. UNIDO
based its CSR programme on the Triple Bottom Line (TBL) Approach, which has proven to be
a successful tool for SMEs in the developing countries to assist them in meeting social and
environmental standards without compromising their competitiveness. The TBL approach is
used as a framework for measuring and reporting corporate performance against economic,
social and environmental performance. It is an attempt to align private enterprises to the goal
of sustainable global development by providing them with a more comprehensive set of
working objectives than just profit alone. The perspective taken is that for an organization to
be sustainable, it must be financially secure, minimize (or ideally eliminate) its negative
environmental impacts and act in conformity with societal expectations.
Key CSR issues: environmental management, eco-efficiency, responsible sourcing,

stakeholder engagement, labour standards and working conditions, employee and community
relations, social equity, gender balance, human rights, good governance, and anti-corruption
measures.
A properly implemented CSR concept can bring along a variety of competitive advantages,
such as enhanced access to capital and markets, increased sales and profits, operational cost
savings, improved productivity and quality, efficient human resource base, improved brand
image and reputation, enhanced customer loyalty, better decision making and risk management
processes.
19
Source: https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-
trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-
integration/what-csr.
Lindgreen, A., & Swaen, V. (2010). Corporate social responsibility. International journal of management
reviews, 12(1), 1-7.
ELTON MAYO EXPERIMENT:
The Hawthorne experiments were a series of studies on worker productivity and job satisfaction
conducted at the Western Electric Company's Hawthorne Works in Cicero, Illinois. The
experiments were led by Elton Mayo, a professor of industrial management at Harvard
Business School, and his colleagues from the Harvard Business School and the Massachusetts
Institute of Technology. The experiments were conducted between 1933-1945 and were
designed to study the effects of lighting and other working conditions on worker productivity.
The first phase of the experiments, known as the "Illumination Studies," aimed to determine
the relationship between lighting and worker productivity. The researchers found that
productivity increased when the lighting was increased, but this effect was not due to the
lighting itself, but rather to the fact that the workers felt they were being observed and taken
care of.
The second phase of the experiments, known as the "Relay Assembly Test Room Studies,"
aimed to study the effects of different working conditions, such as rest breaks and work hours,
on worker productivity. The researchers found that productivity increased when the workers
were given more autonomy and control over their work.
The most famous phase of the experiments, the Hawthorne effect, discovered that simply being
observed had an effect on worker productivity, regardless of the specific working conditions
that were being studied. The study would later inform the Human relations movement which
emphasis on the importance of social and psychological factors in the workplace.
Bibliography: "The Human Problems of an Industrialized Civilization" (1933)
"The Social Problems of an Industrial Civilization" (1945)
"The Mayo Papers: The Hawthorne Studies, Selected Writings of Elton Mayo" (1949)
20
Organisational Culture:
Organizational culture refers to the shared values, beliefs, customs, practices, and social
behavior of an organization. It is the unique personality of an organization, and it shapes the
way that people within the organization behave, interact, and make decisions.
Organizational culture can be influenced by many factors such as the organization's history,
mission and vision, industry, size, structure, and leadership style. It can be seen in the
organization's physical environment, symbols, and language, as well as in the behaviour’s and
attitudes of its members.
A strong organizational culture can have many benefits such as increased employee
engagement, better communication, and collaboration, improved decision-making, and higher
levels of productivity and job satisfaction. A positive culture can also help to attract and retain
employees and can make it easier to implement change within an organization.
On the other hand, a negative culture can lead to high turnover, low morale, and poor
performance. Therefore, organizations should strive to create a culture that aligns with their
goals and values and promotes the well-being of its members. This can be done through
effective communication, leadership, and by providing opportunities for employee
involvement in decision-making and problem-solving.
Bibliography: Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John
Wiley & Sons.
Iron Log Experiment by F. W. Taylor:
The "Iron Log" experiment, also known as the "Chronocyclegraph" experiment, was conducted
by Frederick Winslow Taylor, an American mechanical engineer and father of scientific
management. The experiment was done in the late 19th century, around the same time as Taylor
published his influential book "Principles of Scientific Management" in 1911.
The experiment was designed to measure the efficiency of workers in a steel mill by timing
how long it took them to perform specific tasks. Taylor used a device called a
chronocyclegraph, which was a clock that recorded the exact time it took a worker to complete
a task. By measuring the time it took to perform a task, Taylor was able to identify areas where
21
work could be made more efficient by reducing unnecessary motion and optimizing the use of
tools.
The Iron Log experiment is considered an early example of time and motion study, a technique
that Taylor developed to analyze and improve the efficiency of industrial processes. The
experiment was done to identify the best way to cut the iron logs and then to break the task into
smaller parts, so that the work could be performed more efficiently. The experiment was a
success and the results were applied in the steel mills.
The results of Taylor's experiments and time-and-motion studies had a significant impact on
industrial efficiency and management practices, and continue to be studied and applied today.
Bibliography: Wren, D. A. (2011). The Centennial of Frederick W. Taylor's The Principles of

Scientific Management: A Retrospective Commentary. Journal of Business &
Management, 17(1).
Examples Discussed in The Class
• TATA acquired Air India – reports talk about TATA Goodwill

• Mission Statement used by Reliance is “Growth is life”
• Gandhi Ji – Father of Nation – Authority
• Martin Luther King, John F Kennedy – Authority
Suggested Book
• Tipping Point by Malcolm Gladwell
22

Time and Motion Study: Essential Readings on a Key Business Technique

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ESSENTIAL READINGS 2

TIME AND MOTION STUDY

• There are repetitive work cycles of short to long duration,

Motion study can be divided into three components or types:

The five basic principles of micro economy are;

i. Principle of minimum movement

Henry Fayol’s 14 Principles of Management

AUTHORITY, RESPONSIBILITY AND POWER

1. An individual or a body of individuals who rule,

“The essence of responsibility is then obligation. Responsibility has no meaning except as

1. Authority is right to influence others but power is ability to influence people.

DECENTRALIZATION IN SCIENTIFIC MANAGEMENT

Decentralization is a systematic delegation of authority at all levels of management and in

1. There is less burden on the Chief Executive as in the case of centralization.

PODC – PLANNING, ORGANISING, DIRECTING & CONTROLLING

• Act of guiding, overseeing and leading people

• Laying standards, comparing actuals and correcting deviation-achieve objectives

Bibliography: de Verlaine, E. An Investigation on Management as Social Practice: Theoretical

ELABORATING THE CONCEPT OF PLANNING

Major characteristics of planning in organizations include:

i. Planning increases the efficiency of an organization.

ORGANISING CONCEPT IN PODC

Fayol gave the concept of organizing. Organising is a systematic process of structuring,

Example is Unity of command.

The following are the important characteristics of organization.

DIRECTING CONCEPT IN PODC

Directing is the heart of management function. Leadership, motivation, supervision,

Directing refers to a process or technique of instructing, guiding, inspiring, counselling,

Step 2. Measurement of actual performance

Performance is measured in an objective and reliable manner. It should be checked in the

Step 3. Comparing actual performance with standards.

Step 4. Analysis the cause of deviations.

Step 5. Taking corrective action.

Characteristics of Effective Team:

Team Development Stages.

Span of control is a commonly used term in business management, particularly human

Corporate Social Responsibility is a management concept whereby companies integrate social

Key CSR issues: environmental management, eco-efficiency, responsible sourcing,

ELTON MAYO EXPERIMENT:

Bibliography: "The Human Problems of an Industrialized Civilization" (1933)

"The Social Problems of an Industrial Civilization" (1945)

Iron Log Experiment by F. W. Taylor:

Bibliography: Wren, D. A. (2011). The Centennial of Frederick W. Taylor's The Principles of

Examples Discussed in The Class

• TATA acquired Air India – reports talk about TATA Goodwill

• Tipping Point by Malcolm Gladwell

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