FANORPI Northern Pioneer College

BUSINESS MANAGEMENT (1 YEAR)

INTRODUCTION CLASSICAL THEORY AND SCIENTIFIC MANAGEMENT
Course: THEORIES OF ADMINISTRATION
Theories of Administration - 1 bimestre/2003 1st January 2003 Bimonthly - TAYLOR
AND THE MOVEMENT OF ADMINISTRATION SCIENTIFIC Frederick Taylor was the founder
and most prominent participant in the movement of Scientific Management. Born in
1856 in Pennsylvania. Became a handyman, although it has been approved for Harv
ard Law School. According to his biographers, Taylor took this decision because
the studies have damaged his vision. He worked for a manufacturer of hydraulic p
umps where he began to observe what he thought maladministration. In 1878, he re
sumed his studies, this time in engineering. He began to develop also the first
in a series of many technical improvements. It was in Midvale who noted the prob
lems of manufacturing operations that can be found in some companies today. For
example: The administration had no clear notion of the division of their respons
ibilities to the worker. • There was no incentive to improve performance of the
employee. • Many workers did not meet their responsibilities. Any decision of th
e directors were based on intuition and hunch. • There was no integration betwee
n the departments. The workers were placed in jobs for which they had no aptit
ude. The managers seemed unaware that rewards excellence in performance meant
both for themselves and for the manpower. There was conflict between foremen a
nd workers about the amount of production. Taylor sought to resolve these and ot
her issues that were and remain common in enterprises. Developed through his obs
ervations and experiences, your system administration tasks or also as a system
of Taylor, Taylorism and, finally, scientific management. Scientific management
is a system that saves labor by producing more in less time. In 1893, Taylor was
hired to work exclusively at Bethlehem Steel (one of the major steelmakers, wit
h 400 employees in 1900), in which he developed his ideas about scientific manag
ement. In this company, invented, with J. M. White, who became known as the Tayl
or-White process for heat treatment of steel used in the production of tools, wh
ich brought improvements of 200 to 300% in cutting ability. In 1901, he returned
to Philadelphia, dedicated to the dissemination of his ideas. In 1910, they cre
ated the Society for the Promotion of Scientific Management, which became in 191
5, the year of his death, Taylor Society. 2 - START THE MOVEMENT OF ADMINISTRATI
ON SCIENTIFIC Scientific management is divided into three phases: 2.1. STAGE 1:
Are the issues of wages, study time, definition of standard time administration
tasks. The workers believed that their efforts benefited only his boss, thus the
y are not engaged at work, the payment method made them believe it. To address t
his possibility arose, employees begin to have bonuses, win bonuses and the comp
any's salary increase. Taylor felt that if Times maximum working time and space
that spanned the man needs to perform a task efficiently, save more time and so
would increase the yield and profit of the company. This system was the basis fo
r the beginning of the administration of tasks, was with him that started select
ing workers, providing incentive payments. With the selection of workers, these
jobs were in sectors appropriate to their profiles, thus allowing the administra
tion controlled the production, featuring a standard work, which was essential f
or efficiency. 2.2. - STAGE 2: application of scores of the task for the admin
istration. Principles of labor management. 1
Theories of Administration - 1 bimestre/2003
It studies shop management (administration of factory operators). Man needs moti
vation to do good work, both the man 1st class, as middle-class man, it becomes
inefficient, if it lacks incentive. The shop management advocated the following
principles: • A good management should pay high wages and have low production
costs. The administration should apply research methods to determine the best wa
y to perform tasks. Employees should be selected and trained, a qualified manner
, and that the tasks were compatible.
There should be a more informal relationship between worker and employer to ensu
re a more cordial and conducive to implementation of these principles, producing
cycles of qualities.€Taylor also addressed another aspect, such as standardizat
ion of tools and equipment, and programming sequence of operations and study of
the movements. All this to save time, obtaining increased production and profits
in the company. 2.3. 3rd and final phase Consolidation principles. Propos
ition division of authority and responsibilities within the company. Distinction
between techniques and principles.
At this stage Taylor summarizes the goals of scientific management: developing a
science to replace the old rule of thumb, select an employee to train him, educ
ate him, since in the past they chose their own work, cooperate with the workers
, so that work is done according to the science developed. In the past, at work,
almost all the responsibility fell on manpower in this new phase, the administr
ation has to be better prepared than the worker, for no error again. Taylor also
believed in encouraging the individual worker which means material gain and per
sonal encouragement. In this last phase, the main change was the creation of a p
lanning department. The techniques of this principle were: Studies
of time and motion. Standardization of tools and instruments. Standardization o
f movement. Desirability of a planning area. Cards and instructions. Payment Sys
tem in accordance with the trowel. Costing.
Scientific management was considered a mental revolution and a way for people to
view their work in a more cordial. The productivity is generated through effici
ency, not the enslavement of the worker but of intelligence as it works. There w
as also criticism of scientific management: • With the mechanism, were not conce
rned with the human element. • With the super specialization of labor, and the d
ivision of tasks, the implementation has become quite standardized. • With a mic
roscopic view of man, considered himself the individual employee, forgetting tha
t it is a social being.
2
Theories of Administration - 1 bimestre/2003 3 - Members of the Movement
The ideas of scientific management meant that many people promote the movement.
People who were collaborators of Frederick Taylor and others independently of hi
m. The main participants were: Taylor, Frank and Lillian Gilbreth and Henry Gant
t. 3.1. The couple Frank and Lillian Gilbreth and the Motion Study of Frank Bunk
er Gilbreth was born in 1868. He began making observations on movements with 27
years of age, while working as a superintendent in a construction company. Alway
s interested, Frank invented devices such as mobile scaffolds, concrete mixers,
conveyor belts, reinforcing bars, all with the goal of avoiding the waste of mot
ion. Molle Lillian was born in 1878 and married Frank in 1904. Overcoming the pr
ejudices against women that were prevalent at the time, Lillian received a BS an
d Master. After her marriage to Frank Gilbreth, decided to dedicate himself to p
sychology, helping her husband on studies of fatigue. In 1912, the couple Gilbre
th emphasized the study of movements at the expense of time study, which was the
focus of Taylor. Then, techniques were developed to avoid wasting time and moti
on. We have created standards, streamlining production tasks and, consequently,
increasing productivity. Concerned also to minimize fatigue, the proposed redesi
gn of the workplace, reducing hours of work and the establishment or increase of
days of paid rest. The efficiency and minimize movements were examples of what
Gilbreth chasing. 3.2. Henry Gantt Henry Gantt was born in 1861. In 1884 he grad
uated in mechanical engineering. In 1887 he went to work at Midvale Steel and be
came assistant in the engineering department, where Taylor was the chief enginee
r of production. In 1888 he became assistant direct of Taylor. Gantt was also a
practical inventor, and along with Taylor recorded six patents. Gantt was in Mid
vale until 1893. In 1889 he went to Bethlehem to work again with Taylor. In 1903
ASME presented a paper, "A graphical daily balance in manufacturing" (Control d
aily chart of production), which described a graphical method for monitoring the
production flows. This method would become the Gantt chart, with technical plan
ning and control. Gantt noted that human beings resist change and group norms, w
hich directly affects productivity. In 1917, when it began, the United States, t
he First World War, Gantt worked for the government in coordinating the producti
on of ammunition and military arsenals. In 1918 has demonstrated an impressive i
ndustrial capacity in the organ where she worked€it coordinated the construction
of 533 ships and at the end of the war, Americans had 341 yards with 350,000 wo
rkers who had built 1300 ships in 18 months. During this period, developed the G
antt chart that bears his name. Gantt was a humanist, concerned with the welfare
of workers. Preached cooperation between employers and employees in place of au
thoritarianism. Almost defended socialism, believing that mutualism was the path
to economic prosperity. It was also one of the creators of professional trainin
g. 4th - CRITICAL TO ADMINISTRATION SCIENTIFIC welcome the ideas of Taylor had u
ps and downs. In industry and government generate enthusiasm. Among the workers,
the press and politicians, caused adverse reactions that were based on two fear
s: Increase the efficiency cause unemployment. • The scientific management was n
othing more than a technique to make the workers work harder and earn less. In 1
911, Taylor had to testify in Congress on scientific management. One of the lawm
akers showed that the technique of Taylor Gilbreth had increased the efficiency
of Mason at 300%, but their income had grown only 30%. Taylor agreed with this d
isparity between production and earnings, 3
Theories of Administration - 1 bimestre/2003 but argued that in return, Mason wa
s spending only one third of the energy it did before. Conclusion, there was a b
an on timers and incentive payments, but the other techniques of scientific mana
gement were approved. In the years that followed that investigation, the scienti
fic management has experienced ups and downs. Many self - titled "efficiency exp
erts" who besides charlatans without qualification, we proposed to offer advice
geared exclusively to the physical aspects of the workers. This shift helped to
publicize the image of scientific administration proposal as cool and calculatin
g, who saw human beings as mere pieces of the production process.
5 - EXPANSION OF MOVEMENT Despite the criticism and the deviations of quacks, th
e scientific management has rapidly gained popularity in the United States and t
hen around the world, expanding by methodically following decades. In 1917, the
French were heavily applying the principles of Taylor in the war effort. In many
other countries, the ideas of Taylor aroused great interest and led to the crea
tion of organizations to study and disseminate it, and similar initiatives. In B
razil, the Institute for Rational Organization of Workers (Idort) was founded in
Sao Paulo for this purpose in the 30s. In Soviet Russia, Lenin was among the gr
eatest advocates of Taylorism, which considered one of the "greatest scientific
achievements in the field of analysis of the mechanical motions during work, the
elimination of superfluous and awkward motions of planning and the correct meth
ods of work." According to Lenin, Taylorism at any cost should be adopted in ord
er to increase the productivity of Soviet workers. In the 50s, the Japanese took
over the ideas of Taylor to renew their industry and created the concept of Kai
zen (continuous improvement means) an application of Taylorism. The results achi
eved through the application of this technique, would the principles of Scientif
ic Management continue to enjoy great interest at the turn of the millennium. Ju
ne - MASS PRODUCTION AND ASSEMBLY LINE Probably Taylorism had been successful, r
egardless of the stage of industry development and context of ideology. Tayloris
m has joined with industry and the assembly line by Henry Ford. The principle of
Ford was known even before the birth of Scientific Management. Bicycles, weapon
s, items, etc., had its mass production since the Industrial Revolution, ie the
mass production of certain products already exist, one example was the Venezuela
ns, who dominated the mounting number of ships. Thomas Jefferson in 1785, he vis
ited a factory in Versailles that used the concept of interchangeable parts, whi
ch was to make similar parts that could be used across muskets existing warehous
e. 6.1-PRINCIPLES OF MASS PRODUCTION Henry Ford created many advances, leaving t
heir mark on the Theory and Practice of Management. Vented the two principles of
mass production to very high levels. The figure Ford is more associated with mo
ving assembly line. 6.1.1-STANDARD PARTS AND COMPONENTS, interchangeable Each pa
rt or component can be mounted on any system or product. To standardize, Ford us
ed the same calibration system for all parts. He also sought, simplicity,€reduci
ng the number of pieces of their products. 6.1.2-specialization of work The prod
uct was divided into pieces and divided into their manufacturing steps. Each wor
ker has a job fixed within a pre-defined. This causes the specialization of the
worker.
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Theories of Administration - 1 6.2-bimestre/2003 LINE ASSEMBLY OF HENRY FORD Ear
lier, Ford worked by hand. Each worker was always in the same assembly area. Thi
s had the responsibility to pick up the pieces in stock and take them to your de
sktop. That took a big time, and the worker had to go after work. To make this w
ork more efficiently, began delivering parts in each post. Then decided that the
assembler perform a single task, going from one car to another. However, the dr
ive took time, and as the builders had different speeds, the slowest hindered th
e fastest, which lost its effectiveness when it found them ahead. 6.3-The moving
assembly line in 1910, Ford has developed a dedicated plant for final assembly
of parts, which contained different plants of each, which were part of a common
production process. The moving assembly line, where workers are stopped and the
product moves along a route, came soon after. This concept, without mechanizatio
n, was applied to the manufacture of motors, radiators, and electrical component
s. In 1914, Ford took the moving assembly line, mechanized, assembly of the chas
sis. With the immobility of workers, the assembly cycle time decreased. 6.4-INNO
VATIONS FOR FORD Ford has also innovated in other ways. Doubled the salary for f
ive dollars a day and adopted the working day of eight hours. And who bought the
Ford Model T, was given a handbook with questions and answers that explain how
to use simple tools to solve problems that could occur. The Model Ford became th
e pattern of organization in American manufacturing companies. 6.5-EXPANSION OF
THE MODEL FORD In contrast to what happened in the manual system, the worker had
only one task. He did not command components, preparing or equipment repaired o
r inspected the quality. For this purpose, plan and track tasks, appeared the fi
gure of the industrial engineer. Principles of Scientific Management and the mov
ing assembly line, had great acceptance, this was responsible for the expansion
of industrial activity around the world. 7 - Alfred Sloan Alfred Sloan and Gener
al Motors entered into history in order to fix some flaws in the administration
left by his predecessors, as Ford did not bother with the organizational structu
re necessary to manage the factories, engineering and marketing activities. Tayl
or did not organize the company as a whole. So, Alfred Sloan finished the model
of large corporation. Alfred Sloan was born in 1875 and graduated as an engineer
in 1895. In 1909 he took control of a company auto parts manufacturer whose fat
her was a shareholder. In 1916 it was bought by United Motors, William C. Durant
, founder and president of General Motors. United Motors was formed by several c
ompanies that supplied components to General Motors. GM already has been created
in the early twentieth century through the purchase of a company after another,
thus forming a constellation of independent businesses. After purchase, Sloan b
ecame president of United Motors and a major shareholder. In 1918 United Motors
was absorbed by GM. Sloan came to occupy, besides the president of United, the v
ice president of GM. In 1920 GM went through a crisis due to drastic reduction i
n sales of cars, causing serious cash flow problems. William Durant resigned. Th
e Dupont Company, which had interests in GM, has considerably increased its inve
stment, saving it from bankruptcy. In 1923 Pierre Dupont Sloan named president o
f GM. Thereafter, Sloan was able to practice their Sudy Organization (Organizati
onal Study) which was prepared in 1919. In this study, he argues for decentraliz
ation and delegation of authority. 5
Theories of Administration - 1 bimestre/2003 For Sloan, two critical problems sh
ould be solved to overcome Ford and succeed in mass production: professionalize
the administration and modify the basic product of Ford, to serve "any pocket an
d purpose" . To solve the problem of management, Sloan created divisions decentr
alized and turned them into profit centers. Each produced a component such as ba
tteries, steering boxes, carburetors, etc.. These centers were managed by the he
adquarters who received at regular intervals of time, detailed reports on sales,
market share, inventory, profits and losses and capital budgets. Thus,€Sloan so
lved the problems that hindered the expansion of mass production. Emerged specia
lists in financial management and marketing, further dividing the work at the ex
ecutive level. The solution to the organizational structure and diversifying the
product line was introduced around 1925 but only released in the 60s, when Sloa
n, aged 90, wrote his memoirs. The organizational structure of GM, Ford producti
on system and the principles of scientific management of Taylor form the pillars
of the organization's business model of large size. 8 - Taylor solves a problem
In 1898 Bethlehem Steel sold 80 thousand tons of iron and had to manually load
the wagons. Workers hired for this mammoth task began moving 12.5 tons per man p
er day. Called to study the efficiency of the process, Frederick Taylor applied
scientific management. Decided to pay more, proportional to the amount moved, pi
cked the best employees and directed to accomplish the task. But Taylor noted th
at workers earn enough to start running, but soon tired and have to stop working
long before finishing it. Taylor discovered that men be able to increase the ap
propriate physical amount of tonnage handled, in total security, since it rested
at frequent intervals. With that, Taylor found that "science" was first in choo
sing the right man for the job, and second, to compel him to rest at intervals t
hat had been discovered to be the most effective, after careful investigation. 9
- CONCLUSIONS Taylor began his study by observing the work of the worker. His t
heory has followed a path from the bottom up, and the parts to the whole, with e
mphasis on the task. For him, the administration had to be treated as science. R
ational Organization of Work: • Analysis of work and study of time and motion: t
he exemption of movements aimed useless, so that the worker executed in a simple
r and faster to its function, setting an average time. • Study of human fatigue:
fatigue predisposes the worker to decreased productivity and quality loss, acci
dents, diseases and increased staff turnover. Division of labor and specializa
tion of labor Design of jobs and tasks: draw positions is to specify the conte
nts of tasks of a function, such as running and relations with other existing po
sitions. Incentives and Awards wage production Conditions of work Standard
ization: application of scientific methods to achieve uniformity and reduce cost
s Supervision functional: the workers are supervised by skilled supervisors, n
ot by a centralized authority. . Economic man: man is motivável pay for rewards,
economic and material. The organization was seen as a closed system, ie, subjec
ts received no external influences. The closed system is mechanical, predictable
deterministic.
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Theories of Administration - 1 bimestre/2003 Fordism: Improvement and Mechaniz
ation (mobile conveyor) system created by Taylor. 1913 - prohibiting the use o
f the timer (by U.S. state) 1914 - Ford creates the production line Characteri
stics of Fordism: Crediário: to attract the consumer (even w / the workers the
mselves) Introduce marketing as never before increased wage standards unknown
Reduce the workday to 8 hours created the Mass Production, the Verticalization
(extraction of raw materials to marketing the product) and "just in time" (no s
tock, you produce what sells ). Created the Ford worker (under surveillance: h
abits inside and outside the company) Principles: Intensification: top speed =
assembly line Economics: the shortest time possible without stalled productio
n ("just in time"). Products: maximum production in the shortest time
7
Theories of Administration - 1 bimestre/2003 Henri Fayol (1841-1925) The founder
of the Classical Theory was born in Constantinople and died in Paris, living th
e consequences of the Industrial Revolution and, later, the First World War. He
graduated in mining engineering at 19 and joined a company where metallurgical c
oal and spent his entire career. At 25 he was appointed manager of mines for 47
years and assumed the general management of Compagnie Commantry Fourchambault et
Decazeville "which then was in a difficult situation. His administration was ve
ry successful. In 1918 the company passed to his successor, in a situation of re
markable stability. Fayol laid out his theory of Directors in his famous book Ad
ministration Industrielle et Generale, published in Paris in 1916,€translated in
1926 for English and German at the initiative of the International Management I
nstitute in Geneva, and for the Portuguese in 1950. The work of Fayol, before it
s translation into English, were highly publicized by Gulick and Urwick, two cla
ssical authors. Fayol always said his success was due not only to his personal q
ualities, but the methods it employed. Just like Taylor, Fayol employed his late
r years to the task of showing that, with foresight and appropriate methods of s
cientific management, satisfactory results were inevitable. Just as in the Unite
d States Taylor Society was founded to develop and disseminate the work of Taylo
r, in France the teaching and development of the work of Fayol gave reason to th
e founding of the Center for Administrative Studies. Somehow, Henri Fayol was th
e first management thinker. While others have studied human labor and its mechan
ics, he focused attention on the role of management and skills of managers. Of F
rench origin, Fayol graduated in Mining Engineering in St. Etienne and went to w
ork for a mining company, where he stayed from 1888 to 1918. Fayol developed a p
arallel career as a theorist of management. His work was important for two reaso
ns: he introduced the concept of scientific management of work the topic of the
role of managers and supervisors of the work of subordinates and examined how a
company could organize themselves more effectively. Fayol was the father of the
idea of structural organization of enterprises by functions. It is a model that
still remains valid. The six key areas or tasks were: manufacturing, commercial,
financial, accounting, management and administrative and security. KEY CONCEPT:
- Functional structure - Principles of Management BOOK KEY - General and Indust
rial Management. 1. SIX BASIC COMPANY Fayol part of the proposition that every c
ompany can be divided into six groups, namely: 1. 2. 3. 4. 5. 6. Technical Funct
ions related to the production of goods or services of the company. Business Fun
ctions related to the purchase, sale permutation. Financial Functions related to
the demand and capital management. Security Functions related to the protection
and preservation of properties of individuals. Accounting functions related to
inventories, records, reports, costs and statistics. Administrative functions re
lated to the integration of the dome of the other five functions. Administrative
functions coordinate and synchronize the other functions of the company, always
hovering above them.
Fayol argues that "none of the five key functions above has the burden of formul
ating the program of action overall company, constitute the social body, to coor
dinate efforts and harmonize actions. These assignments are not part of the tech
nical function, or the commercial or financial, or security, or accounting. They
constitute another function, usually called by the name of Directors ".
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Theories of Administration - 1 bimestre/2003 1. CONCEPT OF DIRECTORS To clarify
what are administrative functions, Fayol defines the act of administering as: pr
edicting, organizing, commanding, coordinating and controlling. Administrative f
unctions include the elements of the Administration, that is, the administrator
roles, namely: 1. 2. 3. 4. 5. Plan: envision the future and outline the program
of action. Organize: provide the dual body of material and social enterprise. Co
ntrol: direct and guide the staff. Coordinate: connect, unite, harmonize all act
s and all collective efforts. Control: Verify that everything occurs in accordan
ce with the rules and orders given.
These are the elements that constitute the Administration called administrative
procedure and are discoverable in any manager's job at any level or area of comp
any activity. In other words, both the director, manager, boss, supervisor, as t
he incumbent - each at his level - play forecasting activities, organization, co
mmand, coordination and control as essential administrative activities. For Fayo
l, administrative functions clearly differ from the other five core functions. W
e must not confuse them with direction. Driving is driving the company, with a v
iew to the aims and seeking the greatest possible advantage of all resources ava
ilable to it, is to ensure the progress of the six core functions. The administr
ation is only one of six functions, whose pace is provided by management. Size b
ut takes place in the functions of senior leaders that sometimes it may appear t
hat administrative functions are concentrated exclusively in the top of the orga
nization, which is not true.€UNIVERSAL FUNCTIONS OF DIRECTORS 1. Planning: invol
ve the assessment of future supply and according to him. Unity, continuity, flex
ibility and discretion are the key to a good plan of action. 2. Organization: pr
ovides all things useful to run the company and organization can be divided into
material and social organization. 3. Command: Leads the organization to functio
n. Your goal is to achieve the maximum return of all employees in the interest o
f global aspects. 4. Coordination: harmonizes all business activities, facilitat
ing their work and their success. It synchronizes and shares things in their rig
ht proportions and adjusting means to ends. 5. Control: is to check to make sure
that all things happen in accordance with the plan adopted, the instructions gi
ven and the principles. The goal is to find the weaknesses and mistakes in order
to rectify them and prevent recurrence.
Bibliography MAXIMIANO, Antonio Cesar Amaru. School's scientific competitiveness
in the globalized economy. 2. ed. São Paulo: Atlas, 2000.
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