Online Coaching for UGC NET HRM/Labour Welfare

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1 SYLLABUS: PAPER-CODE 55(HRM/LABOUR WELARE) UNIT-I (Sample Study Material) Schools of Management thought Scientific Management School, Human Relations School, Behaviour School, System Approach. Function of Management Planning, Organising,Direction, Control,Coordination. Communication. One of the Topics SCHOOLS OF MANAGEMENT THOUGHT: After world war-i the concept started growing and gained impetus after world war-ii because of growing competition, complexity of managing large business, technological innovation, increase in capital market, high degree of division of labour and specialization. The various approaches to the study of management as propounded by specialists from different disciplines have come to be called the Schools of Management Thought. The Major Schools of Management Theory are: I.Classical management theory II.Neoclassical management theory III. Modern management theory I. CLASSICAL MANAGEMENT THEORY (l880s-1920s): Classical management theory consists of a group of similar ideas on the management of organizations that evolved in the late 19th century and early 20th century. The Classical school Info@hrpreparation.com Page 1

2 is sometimes called the traditional school of management among practitioners. This school, evolved as a result of the industrial revolution, in response to the growth of large organizations. It contains three branches, namely, scientific management, administrative principles and bureaucratic organization. The predominant and common characteristic to all three branches is the emphasis on the economic rationality of management and organization. The economic rationality of the individual employee at work assumes that people choose the course of action that maximizes their economic reward. In other words, economic rationality assumes that people are motivated by economic incentives and that they make choices that yield the greatest monetary benefit. Thus, to get employees to work hard, managers should appeal to their monetary desires. 1.1 Scientific Management Frederick Winslow Taylor ( ): Is considered he is the father of scientific management. Henry Gantt, Frank and Lillian Gilberth and Harrington Emerson supported Taylor in his efforts. All these disciples of Taylor became famous in their own right. Together with Taylor they revolutionized management thinking. Scientific management is the name given to the principles and practices that grew out of the work of Frederick Taylor and his followers and that are characterized by concern for efficiency and systematization in management. Four basic parts of a series of ideas developed by Taylor are as follows: i) Each person s job should be broken down into elements and a scientific way to perform each clement should be determined. ii) Workers should be scientifically selected and trained to do the work in the designed and trained manneriii) There should be good cooperation between management and workers so that tasks are performed in the designed manner. iv) There should be a division of labour between managers and workers. Managers should take over the work of supervising and setting up instructions and designing the work, and the workers should be free to perform the work himself. Thus, the scientific method provides a logical framework for the analysis of problems. It basically consists of defining the problem, gathering data, analyzing the data, developing alternatives, and selecting the best alternative. Among the other significant contributors to scientific management was Henry L Gantt. Gantt was a contemporary and an associate of Taylor. He emphasized the psychology of the worker and the importance of morale in production. Gantt insisted that willingness to use correct methods and skills in performing a task was as important as knowing the methods and having the skills. Thus he saw the importance of the human element in productivity and propounded the concept of motivation as we understand today. Gantt devised a wagepayment system and developed a charting system or control chart for scheduling production operation which became the basis for modern scheduling techniques like CPM and PERT. Frank and Lillian Gilbert concentrated on time-and-motion study to develop more efficient ways of Info@hrpreparation.com Page 2

3 performing repetitive tasks. Time-and-motion study is a process of analyzing jobs to determine the best movements for performing each task. Time-and-motion study and piece-rate incentives are two major managerial practices developed by scientific management theorists and widely used even today. The piece-rate incentive system envisages, that the largest amount of income goes to workers who produce the maximum output. In addition, scientific selection and training of workers, importance of work design amid encouraging managers to seek the best way of doing a job, development of a rational approach to solving organization problems. Harrington Emerson in his classic book Twelve principles of efficiency (1913) set forth principles, which state that a manager should carefully define objectives, use the scientific method of analysis, develop and use standardized procedures, and reward employees for good work.taylor experimented in three companies:midualesteel,semorids Rolling Machine and Bethlehem Steel and on the basis of his observation and findings he has propounded this principle. Principles of Scientific Management: Principles of scientific management propounded by Taylor are: 1. Science, Not Rule of Thumb 2. Harmony, Not Discord 3.Mental Revolution 4.Cooperation, Not Individualism 5.Development of each and every person to his or her greatest efficiency and prosperity. 1. Science, Not Rule of Thumb:Taylor has suggested the management as a science.every decision to be taken or activities to be preformed must be based on facts.he told that we should not stick with old techniques, but strive to form new techniques. The best technique could be found after proper discussion between mangager and workers. 2. Harmony, Not Discord:Taylor emphasized that there should be complete harmony between the workers and the management since if there is any conflict between the two, it will not be beneficial either for the workers or the management.both the management and the workers should realize the importance of each other. In order to achieve this state, Taylor suggested complete mental revolution on the part of both management and workers. It becomes possible by (a) sharing a part of surplus with workers (b) training of employees, (c) division of work (d) team spirit (e) positive attitude (f) sense of discipline (g) sincerity etc. 3. Mental Revolution:The technique of Mental Revolution involves a change in the attitude of workers and management towards each other. For this the workers should Info@hrpreparation.com Page 3

4 put in their best efforts so that the company makes profit and on the other hand management should share part of profits with the workers. Thus, mental revolution requires a complete change in the outlook of both management and workers 4. Cooperation, Not Individualism:This principle is an extension of principle of Harmony, not discord and lays stress on mutual cooperation between workers and the management. Cooperation, mutual confidence, sense of goodwill should prevail among both, managers as well as workers. The intention is to replace internal competition with cooperation. 5. Development of each and every person to his or her greatest efficiency and prosperity:efficiency of any organisation also depends on the skills and capabilities of its employees to a great extent. Thus, providing training to the workers was considered essential in order to learn the best method developed through the use of scientific approach. To attain the efficiency, steps should be taken right from the process of selection of employees. Employees should be scientifically selected. Techniques of Scientific Management: Some of the major techniques of scientific management are as follows: 1. Work Study 2. Standardization of Tools and Equipment s 3.Scientific Task Setting 4.Scientific Setting of Wage Rates 5.Scientific Selection and Training 6.Functional Foremanship 7.Differential Piece-Rate Plan. 1.WorkStudy:Work study implies an organized, objective, systematic, analytical and critical assessment of the efficiency of various operations in an enterprise. Work-Study includes the following techniques: (а) Method/Netted Study:This is the study o f finding the best meshed of performing a specific job.while conducting the method study all the responsible factors must be duly considerd. (b) Motion Study: Motion study is a technique which involves close observations of the movement of body and limbs of an individual required to perform a job. It is the study of the movement of Info@hrpreparation.com Page 4

5 an operator or a machine to eliminate useless motions and find out the best method of doing a particular job. By undertaking motion study, an attempt is made to know whether some elements of a job can be eliminated, combined or their sequence changed to achieve the necessary rhythm. The purpose of motion study is (i) to find and eliminate wasteful motions among the workers, and (a) to design the best methods of doing various operations. It leads to increase the efficiency of workers by reducing fatigue and manual labour. It results in higher production and productivity. (c) Time Study or Work Measurement: Time study is the technique of observing and recording the time required by a workman of reasonable skills and ability to perform each element of the tasks in a job. Through time study, the precise time required for each element of a man s work is determined. It helps in fixing the standard time required to do a particular job. The purpose of time study is to scientifically determine the standard time for doing a job under given condition. It helps to measure the efficiency of workers. It creates time consciousness among workers. Saving in time leads to cost reduction and increased efficiency. (d) Fatigue Study: Fatigue, physical or mental, has an adverse effect on the worker s health and efficiency. Fatigue study helps in reducing fatigue among the workers. Fatigue is generally caused by long working hours without rest pauses, repetitive operations, excessive specialization, and poor working conditions. The purpose of fatigue study is to maintain the operational efficiency of the workers. Info@hrpreparation.com Page 5

6 2. Standardisation of Tools and Equipments: Taylor advocated standardisation of tools and couplings, cost system and several other items. Efforts should be made to provide standardised working environment and methods of production to the workers. Standardisation would help to reduce spoilage and wastage of materials, improve quality of work, reduce cost of production and reduce fatigue among the workers. 3. Scientific Task Setting: It is essential to set a standard task which an average worker source does during a working day. Taylor called it a fair day s work. He emphasized the need for fixing a fair day s work because it will prevent the workers from doing work much below their capacity. The standard task will act as a norm before the workers. If no standard is set, the workers will work below his capacity. 4. Scientific Setting of Wage Rates: Wage rates should be fixed in such a way that he average worker is induced to attain a standard output. Taylor suggested the differential piece- wage system. Under this system, higher rates are offered to those workers who produce more than the standard quantity. Taylor was of the view that the efficient workers should be paid, from 30% to 100% more than the average workers. 5. Scientific Selection and Training: The management should design scientific selection procedure so that right men are selected for the right jobs. The first step in scientific selection is determining the jobs for which workers are required. After that the most appropriate qualification, training, experience and the level of efficiency for the requisite post are determined. Employees are selected according to predetermined standards in an impartial way. Info@hrpreparation.com Page 6

7 6. Functional Foremanship: Taylor advocated that specialization must be introduced in a factory. He advocated functional foremanship for this purpose. Functional foremanship is a form, of organisation which involves supervision of a worker by several specialist foremen. For instance, matters relating to speed of work and repairs of machinery will be supervised by the speed boss and the repair boss respectively. The purpose of functional foremanship is to improve the quality of supervision of workers by employing specialist foremen. Taylor believed that a single foreman is not competent to supervise all functional matters. In Taylor s functional foremanship, planning is separated from execution. He recommended eight foremen in all to control the various aspects of production. He suggested four foremen m the planning department, namely, route clerk, instruction card clerk time and cost dark and shop disciplinarian. The four foremen recommended for getting the required performance from the workers include gang boss, speed boss, repair boss and inspector. 7. Differential Piece-Rate Plan: This plan was suggested by Taylor to attract highly efficient workers. Under this plan, there are two piece work rates, one is lower and another is higher. The standard of efficiency is determined in terms of number of units during a day or standard same. The worker who produces more than standard output within the standard time.he will be given higher piece rate. On the other hand, if a worker is below the standard, he shall be given lower rate of wages. The slow worker is thus penalised as he gets wages at a lower piece rate. Thus Taylor s scheme of wage payment encourages the workers to attain higher standard of performance and earn wages at higher rate. Info@hrpreparation.com Page 7

8 Criticism of scientific Management: Although it is accepted that the scientific management enables the management to put resources to its best possible use and manner, yet it has not been spared of severe criticism. Workers Viewpoint 1. Unemployment - Workers feel that management reduces employment opportunities from them through replacement of men by machines and by increasing human productivity less workers are needed to do work leading to chucking out from their jobs. 2. Exploitation - Workers feel they are exploited as they are not given due share in increasing profits which is due to their increased productivity. Wages do not rise in proportion as rise in production. Wage payment creates uncertainty & insecurity (beyond a standard output, there is no increase in wage rate). 3. Monotony - Due to excessive specialization the workers are not able to take initiative on their own. Their status is reduced to being mere cogs in wheel. Jobs become dull. Workers loose interest in jobs and derive little pleasure from work. 4. Weakening of Trade Union - To everything is fixed & predetermined by management. So it leaves no room for trade unions to bargain as everything is standardized, standard output, standard working conditions, standard time etc. This further weakens trade unions, creates a rift between efficient & in efficient workers according to their wages. 5. Over speeding - the scientific management lays standard output, time so they have to rush up and finish the work in time. These have adverse effect on health of workers. The workers speed up to that standard output, so scientific management drives the workers to rush towards output and finish work in standard time. Employer s Viewpoint 1. Expensive - Scientific management is a costly system and a huge investment is required in establishment of planning dept., standardization, work study, training of workers. It may be beyond reach of small firms. Heavy food investment leads to increase in overhead costs. 2. Time Consuming - Scientific management requires mental revision and complete reorganizing of organization. A lot of time is required for work, study, standardization & specialization. During this overhauling of organization, the work suffers. 3. Deterioration of Quality Additional Info: Info@hrpreparation.com Page 8

9 Father of Scientific Management-Frederick Winslow Taylor as an American mechanical engineer who sought to improve industrial efficiency. He was one of the first management consultants Taylor experimented in Three companies: i)midual Steel ii)semorids Rolling Machine iii) BethlehemsStell Scientific Management Assumptions: o Application of method of science to org problems leads higher industrial efficiency o The incentive of high wage will promote the mutuality of interest between workers and managers o Each worker is interested in maximizing his monetary rewards Taylor recommends functional management/organization The main drawback of functional orgranisation is Principle of unity of command Main objectives of scientific management : Standardization of work methods, Planning of large daily tasks and Maximization of employment Managers did not like the scientific management because they felt that the rigid scientific methods will take away their managerial freedom in decision-making Main objectives of SM are Standardization of work methods, Planning of large daily tasks and Maximization of employment Info@hrpreparation.com Page 9

10 SM addressed itself to the problems of Top, middle and bottom part of org Tylorism:Viewed man as an adjunction of man,did not emphasize on human motivation,emphasized only a limited number of physiological variable and ignored the psychological aspects SM is known as Mechanistic theory The overall goal of SM is High industrial efficiency SM theory is criticised-itignores social environment,it dehumanizes the workers and only the money is major motivator for workers SM approach:increase output per unit of human effort through the use of right method,right tool and right procedure SM is the first coherent theory of organization The term scientific management was used for the first time-lousi Brandeis & used in 1910 The military type of foreman is unity of command SM movement popularized the search for universal generalization on administrative procedure Functional Foremanship: Gang boss-arrangement and setting up of machines and tools in performed Info@hrpreparation.com Page 10

11 Speed boss-maintaining the speed of production and ensures that whether the work performed by the worker with proper speed or not. Repair boss-responsible for maintain all machines and tools in proper working conditions Inspector-Check the quality of produced goods if the product is not upto the mark Instruction card clerk-task to be performed by the workers along with necessary instructions to carry out the task Route clerk-instruct about the procedure and timing of doing a given task Time and Cost clerk-standard time to complete a given task and the cost involved there in Disciplinarian-Responsible for the over all planning function and ensures that all work is done properly Note: As UGC NET exam is not just competitive exam, its all India entrance test. All questions in this exam are indirect mode and its ocean of HRM/Labour Laws/Industrial Relations, we have to have conceptual knowledge on each topic to get more scoring. Here we are trying to give valuable and quality material to enhance your conceptual knowledge by giving required information prepared by experts and under guidance of experienced UGC NET personnel. Info@hrpreparation.com Page 11

Since the conclusion of World War II, many approaches reflect the increasing interest of social scientists in industrial problems.

Since the conclusion of World War II, many approaches reflect the increasing interest of social scientists in industrial problems. THE EVOLUTION OF MANAGEMENT When one reflects upon the major developments in technology and industrialism in the twentieth century, it is not surprising to find that there have been many different approaches