Classical School

The Classical school of thought began around 1900 and continued into the 1920s. Traditional or classical management focuses on efficiency and includes bureaucratic, scientific and administrative management. Bureaucratic management relies on a rational set of structuring guidelines, such as rules and procedures, hierarchy, and a clear division of labor. Scientific management focuses on the “one best way” to do a job. Administrative management emphasizes the flow of information in the operation of the organization.

Bureaucracy  

Max Weber (1864-1920), known as the Father of Modern Sociology, analyzed bureaucracy as the most logical and rational structure for large organziations. Bureaucracies are founded on legal or rational authority which is based on law, procedures, rules, and so on. Positional authority of a superior over a subordinate stems from legal authority. Charismatic authority stems from the personal qualities of an individual. Efficiency in bureaucracies comes from: (1.) clearly defined and specialized functions; (2.) use of legal authority; (3.) hierarchical form; (4.) written rules and procedures; (5.) technically trained bureaucrats; (6.) appointment to positions based on technical expertise; (7.) promotions based on competence; (8.) clearly defined career paths.

Scientific Management

Scientific management focuses on worker and machine relationships. Organizational productivity can be increased by increasing the efficiency of production processes. The efficiency perspective is concerned with creating jobs that economize on time, human energy, and other productive resources. Jobs are designed so that each worker has a specified, well controlled task that can be performed as instructed. Specific procedures and methods for each job must be followed with no exceptions.

Frederick Taylor (1856-1915)

Many of Frederick Taylor’s definitive studies were performed at Bethlehem Steel Company in Pittsburgh. To improve productivity, Taylor examined the time and motion details of a job, developed a better method for performing that job, and trained the worker. Furthermore, Taylor offered a piece rate that increased as workers produced more.

In 1911, Frederick Taylor, known as the Father of Scientific Management, published Principles of Scientific Management in which he proposed work methods designed to increase worker productivity. One of  his famous experiments had to do with increasing the output of a worker loading pig iron to a rail car. Taylor broke the job down into its smallest constituent movements, timing each one with a stopwatch.  The job was redesigned with a reduced number of motions as well as effort and the risk of error. Rest periods of specific interval and duration and a differential pay scale were used to improve the output. With scientific management, Taylor increased the worker’s output from 12 to 47 tons per day! The Taylor model gave rise to dramatic productivity increases.

Frank (1868-1924) and Lillian (1878-1972) Gilbreth

Frank and Lillian Gilbreth emphasized method by focusing on identifying the elemental motions in work, the way these motions were combined to form methods of operation, and the basic time each motion took. They believed it was possible to design work methods whose times could be estimated in advance, rather than relying upon observation-based time studies. Frank Gilbreth, known as the Father of Time and Motion Studies, filmed individual physical labor movements.  This enabled the manager to break down a job into its component parts and streamline the process. His wife, Lillian Gilbreth, was a psychologist and author of The Psychology of Work. In 1911 Frank Gilbreth wrote Motion Study and in 1919 the couple wrote Applied Motion Study. Frank and Lillian had 12 children. Two of their children, Frank B. Gilbreth, Jr. and Ernestine Gilbreth Careyone, wrote their story, Cheaper by the Dozen.

One of Frank Gilbreth’s first studies concerned bricklaying. (He had worked as an apprentice bricklayer.) He designed and patented special scaffolding to reduce the bending and reaching which increased output over 100 per cent. However, unions resisted his improvements, and most workers persisted in using the old, fatiguing methods.

The Gilbreths believed that there was one best way to perform an operation. However, this “one best way” could be replaced when a better way was discovered. The Gilbreths defined motion study as dividing work into the most fundamental elements possible, studying those elements separately and in relation to one another; and from these studied elements, when timed, building methods of least waste. They defined time study as a searching scientific analysis of methods and equipment used or planned in doing a piece of work, development in practical detail of the best way of doing it, and determination of the time required. The Gilbreths drew symbols on operator charts to represent various elements of a task such as search, select, grasp, transport, hold, delay, and others. They called these graphical symbols “therbligs” (Gilbreths spelled backwards).

Henry Gantt (1861-1919)

Henry Gantt developed the Gantt chart, which is used for scheduling multiple overlapping tasks over a time period. He focused on motivational schemes, emphasizing the greater effectiveness of rewards for good work (rather than penalties for poor work). He developed a pay incentive system with a guaranteed minimum wage and bonus systems for people on fixed wages. Also, Gantt focused on the importance of the qualities of leadership and management skills in building effective industrial organizations.

Administrative Management

Administrative management emphasizes the manager and the functions of management. Henri Fayol (1841–1925), known as the Father of Modern Management, was a French industrialist who developed a framework for studying management. He wrote General and Industrial Management. His five functions of managers were plan, organize, command, coordinate, and control. His fourteen principles of management included division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interests to general interests, renumeration of personnel, centralization, scalar chain, order, equity, stability of tenure of personnel, initiative, and esprit de corps (union is strength).

Mary Parker Follett’s concepts included the universal goal, the universal principle, and the Law of the Situation. The universal goal of organizations is an integration of individual effort into a synergistic whole. The universal principle is a circular or reciprocal response emphasizing feedback to the sender (the concept of two-way communications). Law of the Situation emphasizes that there is no one best way to do anything, but that it all depends on the situation.

Human Relations School

Behavioral or human relations management emerged in the 1920s and dealt with the human aspects of organizations. It has been referred to as the neoclassical school because it was initially a reaction to the shortcomings of the classical approaches to management. The human relations movement began with the Hawthorne Studies which were conducted from 1924 to 1933 at the Hawthorne Plant of the Western Electric Company in Cicero, Illinois.

The Hawthorne Studies

Harvard Business School researchers, T.N. Whitehead, Elton Mayo, and George Homans, were led by Fritz Roethlisberger. Elton Mayo, known as the Father of the Hawthorne Studies, identified the Hawthorne Effect or the bias that occurs when people know that they are being studied. The Hawthorne Studies are significant because they demonstrated the important influence of human factors on worker productivity.

There were four major phases to the Hawthorne Studies: the illumination experiments, the relay assembly group experiments, the interviewing program, and the bank wiring group studies. The intent of these studies was to determine the effect of working conditions on productivity. The illumination experiments tried to determine whether better lighting would lead to increased productivity. Both the control group and the experimental group of female employees produced more whether the lights were turned up or down. It was discovered that this increased productivity was a result of the attention received by the group. In the relay assembly group experiments, six female employees worked in a special, separate area; were given breaks and had the freedom to talk; and were continuously observed by a researcher who served as the supervisor.  The supervisor consulted the employees prior to any change. The bank wiring group studies were analyzed thoroughly by Homans and were included in his now classic book, The Human Group. The bank wiring groups involved fourteen male employees and were similar to the relay assembly group experiments, except that there was no change of supervision. Again, in the relay and bank wiring phases, productivity increased and was attributed to group dynamics. The conclusion was that there was no cause-and-effect relationship between working conditions and productivity. Worker attitude was found to be important. An extensive employee interviewing program of 21,000 interviews was conducted to determine employee attitudes toward the company and their jobs. As a major outcome of these interviews, supervisors learned that an employee’s complaint frequently is a symptom of some underlying problem on the job, at home, or in the person’s past.

Chester Barnard (1886-1961)

When Chester Barnard retired as the CEO of New Jersey Bell Telephone, he recorded his insights about management in his book, Functions of the Executive. It outlined the legitimacy of the supervisor’s directives and the extent of the subordinates’ acceptance. He developed the concepts of strategic planning and the acceptance theory of authority. Strategic planning is the formulation of major plans or strategies, which guide the organization in pursuit of major objectives. Barnard taught that the three top functions of the executive were to (l) establish and maintain an effective communication system, (2) hire and retain effective personnel, and (3) motivate those personnel.  His Acceptance Theory of Authority states that managers only have as much authority as employees allow them to have. The acceptance theory of authority suggests that authority flows downward but depends on acceptance by the subordinate. The acceptance of authority depends on four conditions. (1.) Employees must understand what the manager wants them to do. (2.) Employees must be able to comply with the directive. (3.) Employees must think that the directive is in keeping with organizational objectives. (4.) Employees must think that the directive is not contrary to their personal goals. Barnard believed that each person has a zone of indifference or a range within each individual in which he or she would willingly accept orders without consciously questioning authority. It was up to the organization to provide sufficient inducements to broaden each employee’s zone of indifference so that the manager’s orders would be obeyed.

Human Resources School

Beginning in the early 1950s, the human resources school represented a substantial progression from human relations. The behavioral approach did not always increase productivity. Thus, motivation and leadership techniques became a topic of great interest. The human resources school understands that employees are very creative and competent, and that much of their talent is largely untapped by their employers. Employees want meaningful work; they want to contribute; they want to participate in decision making and leadership functions.

Integrating the Management Theories

Systems theory and a contingency view can help integrate the theories of management. Appropriate managerial techniques can be applied as required by environmental conditions. A broad perspective is valuable to managers when overseeing one unit or the total integration of all subunits.

Systems Theory

During the 1940s and World War II, systems analysis emerged. This viewpoint uses systems concepts and quantitative approaches from mathematics, statistics, engineering, and other related fields to solve problems. Managers find optimal solutions to management problems by using scientific analysis which is closely associated with the systems approach to management. A system is an interrelated and interdependent set of elements functioning as a whole. It is an open system that interacts with its environment. It is composed of inputs from the environment (material or human resources), transformation processes of inputs to finished goods (technological and managerial processes), outputs of those finished goods into the environment (products or services), and feedback (reactions from the environment). Subsystems are systems within a broader system. Interdependent subsystems (such as production, finance, and human resources) work toward synergy in an attempt to accomplish an organizational goal that could not otherwise be accomplished by a single subsystem. Systems develop synergy. This is a condition in which the combined and coordinated actions of the parts of a system achieve more than all the parts could have achieved acting independently. Entropy is the process that leads to decline.

Contingency View

In the mid-1960s, the contingency view of management or situational approach emerged. This view emphasizes the fit between organization processes and the characteristics of the situation. It calls for fitting the structure of the organization to various possible or chance events. It questions the use of universal management practices and advocates using traditional, behavioral, and systems viewpoints independently or in combination to deal with various circumstances. The contingency approach assumes that managerial behavior is dependent on a wide variety of elements. Thus, it provides a framework for integrating the knowledge of management thought.

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( By: Kabuhayang Swak na Swak)

Christmas, Birthdays or just even if you want to be sweet there is always a reason to send greeting cards. Who in the world won’t like to accept a greeting card from someone who thinks of you? Not every one has an email address and not everyone have access to a computer to receive electronic greeting cards so it’s never out of season to make a traditional greeting card sent via post office. And if you know how to make one you can profit or earn from it.

You only need a small capital for a home based business opportunity making greeting cards. Aside from paper you can use different kinds of materials to decorate your cards. Be creative and resourceful to make beautiful and unique cards. The return of investment is very easy if you are just industrious enough on selling. Below are the materials needed to make a simple greeting card:

How to Make a Greeting Card:

1. Make a Sketch. Make a sketch on a piece of white paper preferably a bond paper using an ordinary pencil. Make the design small and should not exceed 3? x 3? area. Make the design as simple as possible for it to be looking neat.

2. Transfer the Design. Trace the design you made using the tracing paper and an ordinary pencil. Then flip the tracing paper and trace again the design at the back using an 8B pencil. This is for making a carbon effect to transfer the design again to the hand made paper. Then get the 3? x 3? hand made paper and superimpose the tracing paper then trace the drawing using a ball pen with no ink (that’s that carbon effect). Be careful not to puncture the tracing paper which you can use again for tracing. I think if you have a computer it’s easier to make the pattern and print directly on the handmade paper.

3. Paint the Background. You can use water color, poster paint, oil pastel or colored pencil for coloring the background. Wait for it to dry. Choose colors that will blend on the design you just made.

4. Paint or color the Subject or Focal Point of the Drawing. Its good to use oil pastel for large areas and the colored pencil so the lines will be defined. Trace the outline with a sign pen to enhance the design. You can also use different mediums for coloring and will be more attractive if you use various coloring medium.

5. Put Life in Your Design. Be creative! use bamboo shavings, pieces of cloth, dried flowers and leaves, glitters and other things you can imagine to make it more realistic. Use bamboo stick on applying glue to make it cleaner and precise. Put a plastic sheet on the design and wipe with a piece of cotton cloth to remove the excess glue.

6. Put Borders. Apply glue on pieces or coconut fibers. Twist and roll it to make a small twine or rope. Cut and glue the rope-like coconut fibers to the sides of the handmade paper. This will serve as borders of the greeting card design.

7. Assemble the Card. Fold the 5? x 10? thick handmade paper in two, like a greeting card. Then glue the 3? x 3? handmade paper design which you have made previously on front of the card. Let it dry and put in the envelope. You can now sell it as a home based business or give it to your love ones.

Courtesy of: Batang Atikha Savers Club and Globe Masigasig

greeting cards

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(by: Kabuhayang Swak na Swak )

Because every year we celebrate many occasions like birthday, graduation, Valentines and specially this coming Holiday Season like Christmas and New year, giving gifts is always there. So there are lots of
home based business opportunity to earn on making unique gift baskets. You can even have a gift basket business and sell your gift baskets online.

To make it unique and became a hit you should think of a theme for your gift baskets specially if you are planning to have a have a gift basket business. For example, if your target market is people who love to cook, make a gift basket with pasta, canned tomatoes, olive oil, cheese and italian cookbook then put it in a cooking pot. To those who loves craft put a craft scissors, glue, art papers with assorted colors, stickers and scrapbook in a box.

Below is a sample of how to make a gift basket for gardeners. Call it what ever you want, Gift Baskets for Gardeners Etc.

Materials Needed:

- Gardening Tools set
- Gardering gloves
- Gardening book
- Different kinds of plant seeds
- Plant markers
- Liquid fertilizer
- Hand lotion

How to make the gift basket:

1. If the pot you have chosen is deep, put filler first. You can use crumpled Japanese paper. Blend the color of the container to the color of the filler. You can also use dried moss.

2. Arrange the contents inside the pot or the container. Tape the small things to avoid dropping out. You can also tape all the contents to make it unmovable. Add filler to make the pot or container look full.

3. Put ribbon or any decoration fit to the theme of your gift basket. Experiment which type is suitable. You can also put leaves to make it more attractive

4. Wrap the whole thing in cellophane and tape it nicely so the contents can be seen. You can use colored or transparent cellophane depending on your taste.

5. And finally put ribbon and gift tag. Perfect for a home based business.

Courtesy of: e-kain.com and Globe Masigasig

gift baskets

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By: Keren C .VirayII-BSBM

A lot of people now a days own and manage a business neither small nor big and in every business SECURITY is one of the big aspect entrepreneurs and managers must consider. And because of this, they always make sure that they have the most effective, most advanced and most hi-tech security system that the computer age offers.

Video recorders and surveillance camera are now a big help for many businesses and industries.

One of those hi-tech security system is the newly develop digital video recorder and surveillance camera that can give you the ability for remote surveillance.

How could it be possible?

The digital video recorders includes remote surveillance software enabling users to log on from a distant PC (personal computer) by this, the business is connected and can monitor the surveillance camera that is connected to the DVR ( digital video recorder) with out a sweat. The business can also be notified of the motion activated alarm recordings by using e-mails as well keeping the business informed.

Aside from that, you could also have remote surveillance and monitor by using your own PC.

By How?

The DVR cards or PCI cards installed on your PC include software, which can turn anyone’s PC into their very own digital recorder and surveillance camera system. Network surveillance has built in web servers that are connected to the internet and can be monitored through remote surveillance from any PC. This kind of surveillance camera is built for PC based software that provides PTZ (pan, tilt and zoom) function via the remote surveillance and monitor that is included and preloaded.

Another example is the development of digital security system. A digital security system can make retrieval of data more consistent and faster because of faster processors that allow faster frame rates. The frame rates of the digital security system is the number of frames or pictures, a unit can record per second and shared by the number of cameras. A digital security system uses a hard drive to store video and it feature a more advance resolution. Example of this system is the hit reality show -Pinoy Big Brother over which the show uses a lot of surveillance camera to be able to monitor every move of the housemates.

Pinoy Big Brother a reality show that uses surveillance cameras

Other than this, there are other types of hi-tech security system, such as the Multi Camera Viewing and Auto Rotation that allows you to choose any combination of surveillance cameras to be viewed on the screen at any one time and then rotate to a new screen with another set of specifically chosen surveillance cameras, Multi Camera Playback-that can play back simultaneously, Web Browser Access-that uses a standard web browser you can access the system through the internet and many more.

By this advance security system, your business will surely be secured even during your vacations or social parties, thanks for this technology that have erase you’re worries and printed you’re third-eye in business.

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   (A clay animation scene from a Television commercial)

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Advantage of Having a Home-Based Business

Home-based businesses are not only great for giving you the freedom to work from your own home and choose your own hours, a home-based business can also offer many tax advantages.

What Can You Claim
There are many things that you are legally allowed to claim for your home-based business and its operation costs. For example, if you have your office set up in your own home and that area alone is used for the sole purpose of your business, you may claim deductions for that space through your business. Further details on how to claim for your own space in your home can be obtained from the IRS.To figure out the deduction of your home office in relation to your home, you will need to work out the amount of space that your home office takes up. For example, this may be 10% of the total space of your home. Then deduct this amount from your current payments on your home, for example, interest on your mortgage or rental costs.These deductions also include property tax and, if you already own the home, you may be eligible for depreciation costs. Insurance costs for your home can also be claimed at the same rate as the rental or mortgage deductions.Other things that can be deducted from your home-based business include remodeling or office furniture that relate directly to your business. These must be only for your business and for no other purpose.In addition to all of the common things you can claim, including supplies and equipment, there are also other deductions that are often overlooked by those in home based businesses. These include transport costs that are directly related to your home-based business, entertainment of your clients in your business and your taxation preparation costs.

Keep Good Records
Home-based businesses are just the same as any regular business in the terms of record keeping. Keep records of anything that you may want to claim on taxes and make sure you understand what you are within your rights to claim. Keep your records in a safe, organized filing system or archive, that way, if you do get audited, you will have no problem finding relevant documentation of your business.To find out exactly what you are able to claim and the applicable rates, visit the IRS for further information. Don’t spend another year missing out on important deductions for your home-based business.

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