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# ethics Morality as it pertains to the business management world is commonly known as ma nagement ethics.

Principles of Scientific Management Techniques / Contributions / Principles of Scientific Management Theory :1. Performance Standards F.W. Taylor found out that there were no scientific performance standards. No on e knew exactly how much work a worker should do in one hour or in one day. The w ork was fixed assuming rule of thumb or the amount of work done by an average wo rker. Taylor introduced Time and Motion Studies to fix performance standards. He fixed performance standards for time, cost, and quality of work, which lead to

uniformity of work. As a result, the efficiency of the workers could be compared with each other. 2. Differential Piece Rate System Taylor observed that workers did as little work as possible. He felt that under existing wage system, an efficient worker gained nothing extra. So, Taylor used the differential piece (unit) rate system. Under differential piece rate system, a standard output was first fixed. Then tw o wage rates were fixed as follows :Low wage rate was fixed for those workers who did not produce the standard o utput. Higher wage rate was fixed for those workers who produced the standard outpu t or who produced more than the standard output. Differential piece-rate system can be explained with following example :The standard output for a day is 10 units. The wage rate for producing less than 10 units is \$ 5 per unit, and for producing 10 or more units is \$ 8 per unit. I f Mr. X produces 7 units, and Mr. Y produces 12 units, then their wages will be as follows :Mr. X's wage is 7 x 5 = \$ 35 Mr. Y's wage is 12 x 8 = \$ 96 Because of this system, the inefficient workers will try to improve their effici ency, and the efficient workers will be motivated to maintain or improve their p roduction capacity. 3. Functional Foremanship Taylor started "Functional Foremanship". Here, 8 foremen (lower level manager or supervisor) are required to supervise the workers. This is because one foremen cannot be an expert in all the functions. Taylor's functional foremanship consists of two groups of supervisors :At the Planning Level or Office Level. At the Doing Level or Factory Level. (a) At the Planning Level :Taylor separated planning from doing. At the planning level there were four supe rvisors. They are :Time and Cost Clerk : This boss prepares the standard time for completing th e work and cost of doing that work. Route Clerk : This boss makes the exact route (way) through which each produ ct has to travel from a raw-material to a finished product. Discipline Clerk : This boss looks after the discipline and absenteeism prob lems in the organisation. Instruction Card Clerk : The boss gives instructions about how to do a parti cular work. (b) At the Doing Level :At the doing level there were also four supervisors. They are :-

Gang Boss : He is responsible for setting up the machines and tools and for direct supervision of workers. Speed Boss : He is responsible for maintaining a proper speed of work. Repair Boss : He is responsible for the repairs and maintenance of machines. Inspector Boss : He is responsible for maintaining the quality of production . 4. Mental Revolution Taylor introduced the concept of "Mental Revolution". He said that the managemen t and workers should have a positive attitude towards each other. This will resu lt in close cooperation between them. This will increase productivity and profit s. 5. Time Study Time study means to record the time taken for doing each part of a job. The full job is first observed and analysed. Then it is divided into different elements (parts). Later the time taken for doing each part of the job is recorded. This i s done by using a stop clock. Time study helps the management to know exactly ho w much time it will take to do a particular job. This helps the management to fi x the amount of work to be done by each worker in one hour or in one day. That i s, management can fix a standard output of work for a certain period of time. Taylor advised all managers to do time study. This will prevent the workers from passing time, working slowly and doing less work. Time study helps to increase the productivity of the organisation. 6. Fatigue and Motion Study Frank and Lillian Gilbreth (Husband and Wife) introduced fatigue and motion stud ies. Fatigue and motion studies find out and remove unnecessary and wasteful mov ements while doing the job. According to the Gilbreths, fatigue (tiredness) and motion (movements or actions ) are interlinked. Every motion that is removed will reduce fatigue. Using camer as, they studied workers (masons) doing common jobs like bricklaying. They found that the workers do many wasted motions while doing their work. This resulted i n fatigue. So, the Gilbreths asked the workers to stop all unnecessary motions a nd to do only the motions which were necessary for doing the job. They reduced t he bricklayers' motions from 18 to 5. This also reduced the fatigue of the brick layers. Therefore, productivity of workers increased. 7. Gantt Charts Henry Gantt invented the Gantt chart. This chart shows the planned work and the completed work at each stage of production. It also shows the time taken to do t he work. Gantt chart is the basis for following two concepts :The Critical Path Method (CPM), and The Program Evaluation Review Technique (PERT).

The Contribution of Maslow and Ouchi in the Development of Management Theory Abraham Maslow and William Ouchi produced a significant impact on the developmen t of the management theory. Maslow developed the hierarchy of needs which contri buted to the better understanding of human nature and needs that helped improve the management , while Ouchi developed his Theory Z and approaches to control, w hich were also based on Maslow s hierarchy of needs. As a result, Ouchi s theory con tributed to the improvement of the effectiveness of management. article review The development of management theory heavily depends on the scientific findings in other fields of science. In this respect, psychology plays a particularly imp ortant role since it contributes to the understanding of norms and principles of human behavior. In such a context, works of outstanding psychologists may be ap plied to the management theory and, what is more, many specialists that succeede d in psychology are often viewed as contributors to the development of the manag ement theory. Among such theorists, it is possible to name Abraham Maslow, whose contribution to both psychology and management theory can hardly be underestima ted. At the same time, the work of management theorists is not less significant since they help adapt findings in other fields, such as psychology, to the manag ement theory. For instance, William Ouchi is one of the most successful theorist s of the present epoch. At this point it should be said that the work of William Ouchi and Abraham Maslow is closely interrelated since their finding perfectly complement each other and provide larger opportunities for the development of th e management theory and formation of effective managerial approaches. Thus, taking into account all above mentioned, it is possible to conclude that A braham Maslow and William Ouchi have made a significant contribution in the deve lopment of the management theory. Maslow has proved that psychology may be very useful for the management theory, though his theory was basically focused on hum an psychology. At the same time, William Ouchi has shown that the management the ory should be deprived of limits imposed by either theoretical or cultural biase s. Instead, he insisted on the necessity to research the experience of different cultures, their management style and naturally such diversity in his approach t o the management theory stimulates the interaction between management and other sciences. Ouchi apparently has taken into consideration human needs, but he main ly focused on the management theory and he used psychological developments only as tools to accomplish his management theory. Decision Theory There are four types of criteria that we will look at. Expected Value (Realist) Compute the expected value under each action and then pick the action with t he largest expected value. This is the only method of the four that incorporates the probabilities of the states of nature. The expected value criterion is also called the Bayesian principle. Maximax (Optimist) The maximax looks at the best that could happen under each action and then c hooses the action with the largest value. They assume that they will get the mos t possible and then they take the action with the best best case scenario. The m aximum of the maximums or the "best of the best". This is the lotto player; they see large payoffs and ignore the probabilities. Maximin (Pessimist) The maximin person looks at the worst that could happen under each action an d then choose the action with the largest payoff. They assume that the worst tha

t can happen will, and then they take the action with the best worst case scenar io. The maximum of the minimums or the "best of the worst". This is the person w ho puts their money into a savings account because they could lose money at the stock market. Minimax (Opportunist) Minimax decision making is based on opportunistic loss. They are the kind th at look back after the state of nature has occurred and say "Now that I know wha t happened, if I had only picked this other action instead of the one I actually did, I could have done better". So, to make their decision (before the event oc curs), they create an opportunistic loss (or regret) table. Then they take the m inimum of the maximum. That sounds backwards, but remember, this is a loss table . This similar to the maximin principle in theory; they want the best of the wor st losses.

-IntroductionThe 7S model is a strategic model that can be used for any of the following purp oses: Organizational alignment or performance improvement Understanding the core and most influential factors in an organization s strat egy Determining how best to realign an organization to a new strategy or other o rganization design Examining the current workings and relations an organization exhibits

The model, made famous by the McKinsey consulting company, is good for a thoroug h discussion around an organizations activities, infrastructure, and interaction s. -The model and its usageHere is the 7S model that portrays seven elements of an organization.

I define the elements as follows: Strategy This is the organization s alignment of resources and capabilities to n its market. Structure This describes how the organization is organized. This includes roles , responsibilities and accountability relationships. Systems This is the business and technical infrastructure that employees use on a day to day basis to accomplish their aims and goals. Shared Values This is a set of traits, behaviors, and characteristics that the o rganization believes in. This would include the organization s mission and vision . Style This is the behavioral elements the organizational leadership uses and cul ture of interaction. Staff This is the employee base, staffing plans and talent management. win i

Skills This is the ability to do the organization s work. It reflects in the perf ormance of the organization.

Skills What skills are used to deliver the core products and/or services? Are these skills sufficiently present and available? Are there any skill gaps? What is the organization known for doing well? Do the employees have the right capabilities to do their jobs? How are skills monitored, assessed, and improved?

Once the questions are answered, the data should be examined. The analysis shou ld look for the following aspects: Consistency Alignment Conflicts Gaps Support Strengths Weaknesses The uses of the model can be as a static picture to determine how effectively th e organization is implementing its strategy. Also, it can be used two-fold with a current state and an intended future state. By comparing the current and fut ure states, gaps can be assessed, which lead to improvement and action plans. T hat latter case makes enables the model to be used for large scale change. -SummaryLike any model, there are good fits and poor fits. This is a handy model for ta king a snapshot and comparing that to the desired state or improvement. It visu ally shows how everything is linked and understanding the larger implications of change can be very revealing. It is much like how a general doctor can help di agnose a patient s situation, but the fine-tuned skill of a surgeon can be used to make the specific, desired changed.

The management science school provides managers with a scientific basis for solv ing problems and making decisions. This approach arose out of a need to improve manufacturing productivity through more efficient use of physical and human reso urces. It grew from the pioneering work of five people: Frederick W. Taylor, Fra nk and Lillian Gilbreth, Henry Gantt, and Harrington Emerson.

Frederick W. Taylor (1856-1915) ?Frederick Winslow Taylor, become known as "the father of scientific management. " He insisted that management itself would have to change and, further, Taylor s uggested that decisions based on rules of thumb be replaced with precise procedu res developed after careful study of individual situations.?The essence of Taylo r's scientific management can be summarized in the following principles: Develop a science for each element of a worker's job to replace rules of thu mb. Job specialization should be a part of each job. Ensure the proper selection, training, and development of workers. Planning and scheduling of the work are essential. Standards with respect to methods and time for each task should be establish ed. Wage incentives should be an integral part of each job. ?These four principles became the basic guidelines for managing the work of indi viduals. Taylor's approach had a significant impact on American society; it led to increases in productivity. His ideas also stimulated others to continue the f ormulation of management thought. Frank Gilbreth (1868- 1924), Lillian Gilbreth (1878-1972) Frank and Lillian Gilbreth were a husband-wife team if industrial engineers. The y produced significant contributions in motion study and work simplification. ?W ith the use of motion picture cameras, the Gilbreth's found the most efficient a nd economical motions for each task, thus reducing and upgrading production. Wor king individually and together, Frank and Lillian Gilbreth developed numerous te chniques and strategies for eliminating inefficiency. Henry L. Gantt (1861-1919) Contributions toward work scheduling and control were made by Harry L. Gannt. ?H e tried to improve systems or organizations through task scheduling and reward i nnovation. Essentially, Gantt's most famous contribution was the Gannt chart, a system of control and scheduling we still use today. Harrington Emerson (1853-1931) The principles of efficiency were further developed by Harrington Emerson. ?He w as also a strong advocate of making a strict distinction between line and staff roles in organizations. Moreover, Emerson urged on the use of statements of goal s and objectives for the total organization.