evolution of management theories

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2. Few workmen Very Skilled and qualified Customized cars Workman : Director Manufacturer Salesman 3. Disadvantages Manufacturing costs extremely high Maintenance and repair costs very high No Research and Development 4. Henri Fayol (1841-1925) One of the most influential contributors to modern concepts of management Father of modern operational management theory General and Industrial Management (1916) 5. Biography Educated at Ecole des Mines in St. Etienne Almost 60 years of experience as an engineerand Director at Houilleres de Commentry 1916: Publication of General and IndustrialManagement 6. Theory Fayols theory holds that there are fiveprimary functions of management: (1) Planning: (2) Organizing: (3) Commanding: (4) Coordinating: (5) Controlling: 7. Theory Modern management theories (e.g. RichardDaft) have reduced the five functions to four: (1) Planning (2) Organizing (3) Leading (4) Controlling 8. The Classical School of Management 9. TaylorismTaylor : a Quaker! Principles 1: Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. thenaturalinstinctandtendencyofmenistotakeiteasyF.W.TAYLOR Principle 2 Scientifically select, train, and develop each employee rather thanpassively leaving them to train themselves. theysould...dowhattheyaretoldtodopromptlyandwithoutaskingquestionsormakingsuggestionsF.W.TAYLOR 10. Taylorism Principle 3 Provide "Detailed instruction and supervision of each worker inthe performance of that workers discrete task". Principle 4 Divide work nearly equally between managers and workers, sothat the managers apply scientific management principles toplanning the work and the workers actually perform the tasks. TheWorkofeveryworkmanisfullyplannedoutbythemanagement,eachmanreceivecompletewritteninstructions,...ThistaskspecifiesnotonlywhatistobedonebutalsohowitistobedoneandtheexacttimeallowedfordoingitF.W.TAYLOR 11. Henry Ford (1863-1947) Father of modern assembly lines Mass production Model T automobile Prolific inventor (161 U.S. patents) 12. Philosophy of Fordism Widespread prosperity and rise corporate profitsHow ? High wages allow the workers to purchase the output they produce.The idea : Convert workers into customers 13. Division of labor Distinctive division of labor allows complex tasks to be divided into several simple and repetitive one. Skilled labor is no more needed in the production. 14. Standardisation -Major issue of custom madecars : Each producers have -Hand-made steel parts have to their own parts and be recalibrate after beeingcomponents. (even not the quenched.same metric system) -Ford invented a process to directly shape parts out of a quenched steel block. 15. Optimize the working space Typically similar machinery are installed one next to another. Ford rearrange them into the correct sequence to follow the production patern. Various parts of the production process are linked together by a moving conveyor belt : "Bring the work to the workers." 16. DisadvantagesAdvantages 17. Alfred P. Sloan (1875-1966) A pure product of the MIT Graduated in electrical engineering in 1895, at 20 Member of fraternity Founded in 1950 the Schoolof Industrial Management 18. & A selfmade man, 1937-1956 1923-19461918191618991895 19. Sloans Management approach 20. Sloans Marketing approach Establishing annual styling changesplanned obsolescence Impeding alternative transports to car monopolysing Pricing discrimination Market segmentation 21. Sloans pricing discrimination Price / Qualityrpl yep SuMkt $!Consumer Quantity 22. #1 #2 The 2515 Brands car in after Manufacturer forin 2007 1967The 100 Millionth Years 1930-2006Manufacturer 767550 1962 1955 1945 23. Toyota Production System A production system was developed between 1948 and 1975 for Toyota Motor company by: Taiichi Ohno, Shigeo Shingo Eiji Toyoda 24. Difficulties for the company : Small market with high competition Poor consumers 25. Aim Eliminate all muni, mura, muda (overburden,inconsistency, waste) from the operation tostay competitive. 26. Toyota Production System House 27. Just in time production Created by the founder of Toyota : SakichiToyoda, his son Kiichiro Toyoda and the engineerTaiichi Ohno. Based on the 7 wastes: over-production motion (of operator or machine) waiting (of operator or machine) conveyance processing itself inventory (raw material) correction (rework and scrap) 28. Jidoka TPS emphasizes the participation of allemployees. Toyota organized their workers by formingteams Each team has a leader who also works on theline Teams are responsible for : Training to do many specialized tasks. Housekeeping and minor equipment repair. 29. Jidoka Product defects must be discovered as soon aspossible. Workers are responsible for the discover ofdefects. Workers are able to stop the entire line bypulling a cord (Jidoka). Workers are controlling machines work. 30. Global Warming Financial crisis Energy crisis Unemployment