Business Studies

3. Method Study

Conducted to know the best way of doing a task

Harmony,Not Discord

1. Both the managers and the workers should realise that each one is important 2. Management should share their gains with the workers if any and the workers should work hard and accept any changes for the good of the company. 3. Prosperity for the employer cannot exist for long unless it is accompanied by prosperity for the employees and vice versa

Role of the 4 personnels under planning in-charge

1. Card Clerk- Drafts the exact plan as to what the workers are supposed to do and drafts the instructions for the workers. 2. Route Clerk- Specify the route of production i.e. specifying the sequence of the job to be done 3. Time and Cost Clerk-.Prepares the timetable for doing the various jobs and maintain records of the cost of work 4. Disciplinarian-Ensures discipline at work

Development of each & every individual to his /her greatest efficiency and prosperity.

1. Hiring the right staff for the job 2. Ensure that the work assigned to them suits their physical, mental and intellectual capabilities. 3. Provide them training to increase their efficiency 4.Through this the workers will produce more and earn more and furthermore, this ensures greater efficiency and prosperity for both the company and the workers

5. Time Study

1. Determines the standard time taken to complete a well-defined job 2. Depends on the volume and frequency of the task, the cycle time of the operation and measurement costs 3. Determine the minimum time required for each task

7. Differential piece wage system

1. Differentiates efficient and inefficient workers 2. Those who work more than the standard level get paid higher and those working below the standard level get paid lower

Co-operation,Not Individualism

1. Extension of the principle Harmony, Not Discord 2. Management should involve workers in the decision-making process and listen to them and appreciate them if any good suggestion is provided by them 3. Management should work all day alongside the workers, motivate them and smoothen the way for them.

Techniques of Scientific Management

1. Functional Foremanship 2.Standardisation & Simplification of Work 3. Method Study 4. Motion Study 5.Time Study 6.Fatigue Study 7. Differential piece wage system

Science,Not Rule of Thumb

1. Maximising efficiency through study and analysis method 2. Investigating traditional methods through work-study, unifying the best practices of the traditional method and developing a standard method to be followed throughout the organisation 3. Results in a tremendous saving of human energy and wastage of time and materials

Scientific Management

1. Proposed by F.W.Taylor 2. Knowing exactly what you want men to do and seeing that they do it the best and cheapest way. 3. Involves: 1. Defining a problem 2. Developing alternative solutions to the problem 3. Anticipating the consequences 4. Measuring the progress 5. Drawing conclusions

8. Centralisation and decentralisation

1. Refers to the degree to which authority is delegated within an organisation. 2. A centralised structure has a greater degree of central control, while a decentralised structure involves a greater degree of delegated authority to the regions or to subordinates.

2.Authority and Responsibility

1. Right to give orders and obtain obedience 2. Responsibility is the corollary of authority 3. 2 Types of authority: 1. Official Authority-Right to command 2. Personal Authority-Right of an individual manager 4. A manager should have necessary authority to carry out his/her responsibility

Principles of Scientific Management

1. Science, Not Rule of Thumb 2. Harmony, Not Discord 3. Cooperation, Not Individualism 4. Development of each and every person to his/her greatest efficiency and prosperity.

6. Fatigue Study

1. Seeks to determine the amount and frequency of rest intervals taken by an individual worker in completing a task 2. Rest intervals are crucial for every individual at every level and for every shift so that she/he can regain their stamina to increase their productivity

Role of the 4 personnels under the production In-charge

1. Speed Boss-Ensure the timely & accurate completion of the work 2. Gang Boss-Keeping the required tools and machinery, etc ready for the workers 3. Repair Boss-Ensure that the tools and the machinery are under proper condition 4. Inspector-Checking the quality of the work being done

Main Objectives of standards:

1. To reduce the given line of products to fixed types, sizes and characteristics 2. To establish standards of excellence and standards in the quality of the products 3. To establish standards of performance of men and machines 4. To establish interchange ability of the manufactured parts and products

Production In-Charge

1.Speed boss 2.Gang boss 3. Repair Boss 4. Inspector

9. Scalar Chain

A chain of authority extends from the top to the bottom of the organization and should include every employee An employee cannot contact another employee of the top management or an employee of the same level directly on the other side of the chain rather he/she has to contact them through the help of the intermediate authorities that is the other authorities above them. But in cases of an emergency it is possible for the worker to contact the top authority or an employee of his/her same level directly.

1. Functional Foremanship

A division of labor that assigned eight foremen to each work area: Planning In-charge Production in-charge

4. Unity of command

A management principle that workers should report to just one boss or else when workers work for two bosses ideas conflict leading to complete chaos in the organisation.

12. Stability of tenure of personnel

Employee turnover should be minimised to maintain organisational efficiency Personnel should be selected after due and rigorous procedure. Once selected they should be held at that post for at least a minimum fixed tenure and should be given reasonable time to show results.

Fayol's Principles of Management

Fayol laid down 14 principles of management based on his experience

4. Motion Study

For eliminating unnecessary movements of men and machine to complete the task in less time efficiently

6. Subordination of individual interest to general interest

In all the situations the general interest of the organisation supersedes the personal interest of anyone individual, as interests of various stakeholders in an organisation and society at large cannot be sacrificed for any one individual's interest.

Planning In-charge

Includes: 1. Card Clerk 2. Route Clerk 3.Time and Cost Clerk 4. Disciplinarian

11. Equity

Managers should be kind and fair to their subordinates

3. Discipline

Obedience of organisational rules and employment agreement which are necessary for the working of the organisation.

10. Order

People and materials should be in the right place at the right time Principle of order states that: " A place for everything(Everyone) and everything(everyone) in its(his/her) place" which means there is a fixed place for everything and everything is present in its place. By which there will be no hindrance in the performance of any business/factory activities & efficiency and effectiveness is gained.

7. Remuneration of employees

Remuneration should be just and equitable i.e. the workers should get a fair pay and and the amount being paid to the workers should be within the paying capacity of the company.

5. Unity of direction

Similar activities in an organization should be grouped together under one manager.This ensures unity of action & coordination It prevents overlapping of activities

2. Standardisation & Simplification of work

The best practices of rule of thumb are taken and developed into a standard method that is to be followed throughout the organisation. Standardisation refers to setting standards for every business activity

1. Division Of Work

Work is divided into small tasks/jobs and a specialist is to do each job. Thus this leads to specialisation and results in more efficient and effective output.

13. Initiative

Workers should be encouraged to develop and carry out their plans for improving the company. Organisations should bring up employee suggestion system whereby suggestions/initiative which result in substantial cost/time reduction should be rewarded.

14. Esprit de corps

promoting team spirit will build harmony and unity within the organization Teamwork is required in large organisations so that there is coordination which is crucial in the functioning of the organisation.