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Management Principles Part 2

By Edited Jul 5, 2014 0 0

Henry Laurence Gantt also contributed to Scientific Management; his main influence in Scientific Management was the contribution of Charts. Henry named the chart the Gantt Chart and this is known and used world wide. Henry Gantt's work is still used to this day and the Gantt chart is still accepted as an important management tool, it provides a graphic schedule for the planning and controlling of work and recording progress towards stages of a project. However the Gantt chart has a modern variation called Program Evaluation and Review Technique (PERT).

PERT uses the same sort of system as the Gantt chart, showing the progression of the project however the PERT system look more like a flow chart with a bit more detail inside the bubbles than what can be used in the Gantt chart.

Henry Ford was the founder of Ford Motor Company and also the creator of the assembly line technique which was and is still used for mass production in manufacturing.

Henry Ford's management style was the mass production of inexpensive goods coupled with high wages for workers. The Model T Ford was made with inexpensive parts so that works would be able to afford to buy the car with there wages.

Henry Ford's management style was called 'Fordism'. Fordism had three major principles:

  • The Standardisation of the product
  • The use of Special purpose tools and equipment via the assembly line
  • The Elimination of skilled labour in direct production, while paying the worker higher wages

Henry Ford's minimised the skilled labour and replaced it with equipment which could make the cars faster, although workers needed to assemble the car on the assembly line. This minimised skilled labour enhanced quickness and helped standardise the cars.

Unfortunately the standardisation of the cars lead to his downfall, Henry Ford never thought of customer needs and there desire to have something different, better than others. Henry Ford's Model T Ford was so standardised that you couldn't even choose the colour you wanted. This lead to him becoming bank-rupt at some point during his life.

Motivation is extremely important in management and Henry Ford motivated his workers by paying them high wages however Abraham Maslow's theory was mainly focused on the psychological needs of employees. Maslow structured a theory that had five levels of human needs which employees need to have fulfilled at work.

All of the needs are structured into a hierarchy and only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied.

Therefore businesses should offer different incentives to its employees in order to help them fulfil each need in turn and help them progress up the hierarchy. Managers should also recognise that workers are not all motivated in the same way and do not move up the hierarchy at the same pace. Therefore the managers may have to offer slightly different incentives from worker to worker

Douglas McGregor was another pioneer of motivational management techniques. McGregor invented the theory of 'Theory X and Theory Y'.

Douglas McGregor's theory was based on Maslow's technique, McGregor converted Maslow's hierarchy into a lower tier and a higher tier, The lower tier being (Theory X) and the higher tier being (Theory Y).

The lower tier, this has been effective in most modern practice. Management assume employees are lazy and will avoid work if they can and that they dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed

The higher tier, management assume employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties.

Sir Michael Latham wrote a report in 1994 about the construction industry and aimed to tackle controversial issues facing the industry during a period of lapse in growth as a whole.

Latham identified industry inefficiencies, and condemned existing industry practices as 'ineffective', 'adversarial', 'fragmented', 'incapable of delivering for its customers' and 'lacking respect for its employees'.

Sir Michael Latham urged reform and advocated partnering and collaboration by construction companies. A key concept was that through teamwork the construction industry could deliver work and delight its customers. Sir Michael Latham made 53 recommendations to change industry practices, to increase efficiency and to replace the wasteful atmosphere in most construction projects with openness, co-operation, trust, honesty, commitment and mutual understanding among team members. For example:

"Partnering includes the concepts of teamwork between supplier and client, and of total continuous improvement. It requires openness between the parties, ready acceptance of new ideas, trust and perceived mutual benefit…. We are confident that partnering can bring significant benefits by improving quality and timeliness of completion whilst reducing costs." (Quote 1) (See Bibliography)

Sir John Egan also wrote a report in 1998 about the construction industry and his report did drive efficiency improvements in UK construction industry during the early years of the 21st century.

Sir John Egan's aim was to improve the efficiency and quality of the UK construction industry's service and products, to reinforce the reason for change, and to make the industry more responsive to the needs of its customers.

In the report Sir John Egan identified five key areas that needed change:

  • Committed leadership
  • A focus on the customer
  • Integrated processes and teams
  • A quality driven agenda
  • Commitment to people

Also in the report Sir John Egan did focus on the clients needs therefore came up with an integrated project process based around four key elements:

  • Product development
  • Project implementation
  • Partnering the supply chain
  • Production of components


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