Piece rate system & shop management, principles of Scientific management theory
- 1. PIECE RATE SYSTEM & SHOP MANAGEMENT PRINCIPLES of SCIENTIFIC MANAGEMENT Presented By TARUN KASHNI
- 2. INDEX 2 1. INTRODUCTION TO PIECE RATE SYSTEM 2. IMPLEMENTATION OF PIECE RATE SYSTEM 3. ADVANTAGES & DISADVANTAGES OF PIECE RATE SYSTEM 4. INTRODUTION TO SHOP MANAGEMENT 5. IMPLEMENTATION OF SHOP MANAGEMENT 6. PRINCIPLES OF SCIENTIFIC MANAGEMENT THEORY 7. ADVANTAGES & DISADVANTAGES OF SCIENTIFIC MANAGEMENT THEORY
- 3. PIECE RATE SYSTEM 3 INTRODUCTION Piece rate system is the method of remunerating the workers according to the number of unit produced or job completed. It is also known as payment by result or output. Piece rate system pays wages at a fixed piece rate for each unit of output produced.
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- 5. 5 Garments industries Foil manufacturing Telecom duct manufacturing Tea manufacturing Fgfd WHERE THE PIECE RATE SYSTEM IS IMPLEMENTED
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- 7. 7 SHOP MANAGEMENT INTRODUCTION Shop Management is a manual that goes into the nuts and bolts of efficiency and improvement. Like every good consultant, Taylor sums up big ideas with concise points and principles. In shop management there is a particular task for each section in the industry and their specialization increase over the period of time
- 8. 8 WHERE THE SHOP MANAGEMENT IS IMPLEMENTED AUTO MANUFACTURING PLANT
- 9. 9 WHERE THE SHOP MANAGEMENT IS IMPLEMENTED E COMMERCE
- 10. 10 WHERE THE SHOP MANAGEMENT IS IMPLEMENTED GOOD DISTRIBUTION
- 11. 11 WHERE THE SHOP MANAGEMENT IS IMPLEMENTED DEPARTMENTAL STORES
- 12. 12 PRINCIPLES OF SCIENTIFIC MANAGEMENT 1. Science, Not Rule of Thumb: In order to increase organizational efficiency, the ‘Rule of Thumb’ method should be substituted by the methods developed through scientific analysis of work. Rule of Thumb means decisions taken by manager as per their personal judgments. According to Taylor, even a small production activity like loading iron sheets into box cars can be scientifically planned. This will help in saving time as well as human energy. Decisions should be based on scientific enquiry with cause and effect relationships. This principle is concerned with selecting the best way of performing a job through the application of scientific analysis and not by intuition or hit and trial methods.
- 13. 13 PRINCIPLES OF SCIENTIFIC MANAGEMENT 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.
- 14. 14 PRINCIPLES OF SCIENTIFIC MANAGEMENT 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 Management should always welcome suggestions of workers and should also reward them if their suggestions prove to be beneficial for the organization viz. reduction of costs or increase in production etc
- 15. 15 PRINCIPLES OF SCIENTIFIC MANAGEMENT 4. DEVELOPMENT OF EACH PERSON BY ITS GREATEST EFFICIENCY • SCIENTIFIC SELECTION RIGHT PERSON AT RIGHT TIME MENTAL PHYSICAL INTELLECTUAL • TRAINED EMPLOYEES FIRST PREFERENCE IS TO SELECT EXPERIENCE CANDIDATE TARINING IF NEEDED (BY CONFERENCE, SEMINARS etc. SO THAT WORKERS CAN WORK BY ITS HIGHEST EFFICENCY
- 16. 16 PRINCIPLES OF SCIENTIFIC MANAGEMENT 5. MAXIMUM NOT RESTRICTED OUTPUT 6. EQUAL DIVISION OF RESPONSIBILITY B/W MANAGEMENT AND WORKERS
- 17. 17 ADVANTAGES OF SCIENTIFIC MANAGEMENT 1. ENHANCED PRODUCTION MANAGEMENT & WORKERS COOPERATION HARMONY 2. ABILITY TO CONTROL SPECIALIST EMPLOYEES BY REPEAT TASK EASY FOR MANAGER TO CONTROL WORKER 3. DECREASES INACCURACY BETTER PLANNING AND DECISION MAKING ACCURACY IS ACHIEVED 4. DECREASES AUTOCRACY COOPERATION AMONG EMPLOYEES & MANAGERS ENHANCES DEMOCRACY IN THE WORKPLACE 5. COST OF PRUDCTION IS REDUCED 6. PIECE PAY WORK SYSTEM 7. QUICK DESCION MAKING 8. BENEFITS TO CUSTOMER 9. EFFICENCY INCREASED 10. BEST USE OF RESOURCES AND DEVELOPMENT
- 18. 18 DISADVANTAGES OF SCIENTIFIC MANAGEMENT 1. REQUIRES HUGE CAPITAL 2. MANAGEMENT TAKES CONTROL 3. REPEAT TASK – LACK OF CREATIVITY (REDUCES EMPLOYEES MOTIVATION 4. MECHANISTIC- WORKER FEEL LIKE MACHINE
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