AMTE 313 Aircraft Maintenance Organization and Management PDF

AMTE 313 AIRCRAFT MAINTENANCE ORGANIZATION AND MANAGEMENT ENGR. JABES A. ISOLI INSTRUCTOR  LESSON 1 INTRODUCTION TO MANAGEMENT (PART 1)  OBJECTIVES ➔ To recognize the following: 1.1. Definition of Managem...

AMTE 313 AIRCRAFT MAINTENANCE ORGANIZATION AND MANAGEMENT ENGR. JABES A. ISOLI INSTRUCTOR  LESSON 1 INTRODUCTION TO MANAGEMENT (PART 1)  OBJECTIVES ➔ To recognize the following: 1.1. Definition of Management 1.2. Evolution of Management Theory  1.1. MANAGEMENT ➔ Is the PERFORMANCE of conceiving and achieving DESIRED RESULTS by means of GROUP EFFORT consisting of utilizing RESOURCES, that will determine the SUCCESS and FAILURE of an ORGANIZATION. ➔ Getting things done through PEOPLE. ➔ “IF you are planning for ONE YEAR - plant rice IF you are planning for TEN YEARS - plant a tree but IF you are planning for 100 YEARS - PLANT PEOPLE.” - CHINESE PROVERB  1.2. THE EVOLUTION OF MANAGEMENT THEORY ➔ Begun in the industrial revolution in the late 19th century as: - Managers of organization began seeking ways to better satisfy customer needs. - Large-scale mechanized manufacturing began to adopt small-scale craft production in which goods were produced. - Social problems were developed in the large groups of workers employed under the factory system. - Managers began to focus on increasing the efficiency of the worker – task mix.  1.2. THE EVOLUTION OF MANAGEMENT THEORY ➔ ADAM SMITH (18th Century Economist) ❖ Observed that firms manufactured pins in one of two (2) different ways: a. Craft - Style - each worker did all steps. b. Production - each worker specialized in one step. ❖ Realized that job specialization resulted in much higher efficiency and productivity. - Breaking down the total job allowed for the division of labor in which workers became very skilled at there specific tasks.  1.2. THE EVOLUTION OF MANAGEMENT THEORY ➔ FRANK and LILLIAN GILBRETH ❖ Frank (1868-1924) and Lillian Gilbreth (1878-1972) refined Taylor’s work and made many improvements to methodologies of time and motion studies. ❖ TIME AND MOTION STUDIES - Breaking up each job action into its components - Finding better ways to perform the action. Reorganizing each job action to be more efficient.  1.2. THE EVOLUTION OF MANAGEMENT THEORY ➔ MAX WEBER (1864-1920) ❖ Developed the concept of BUREAUCRACY as a formal system of organization and administration designed to ensure efficiency and effectiveness.  1.2. THE EVOLUTION OF MANAGEMENT THEORY ➔ MAX WEBER PRINCIPLE OF BUREAUCRACY  1.2. THE EVOLUTION OF MANAGEMENT THEORY ➔ WEBER’S FIVE PRINCIPLES OF BUREAUCRACY 1. AUTHORITY is the POWER to HOLD people ACCOUNTABLE for their ACTIONS. 1. POSITIONS in the firm should be held based on PERFORMANCE, not SOCIAL contacts. 1. POSITION DUTIES are clearly IDENTIFIED so people know what is EXPECTED of them. 1. LINES OF AUTHORITY should be clearly IDENTIFIED such that workers know who reports who. 1. Rules, standard operating procedures (SOPs), and norms GUIDES the firm’s OPERATION. 1.2. THE EVOLUTION OF MANAGEMENT THEORY  SCIENTIFIC MANAGEMENT THEORY (1890 - 1945) ➔ Is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes to management.  SCIENTIFIC MANAGEMENT THEORY (1890 - 1945) ❖ FREDERICK WINSLOW TAYLOR ➔ “Father” of Scientific Management (Systematic Study of the relationships between people and tasks for the purpose of redesigning the work process for higher efficiency) in the late 1800's to replace informal rule of thumb knowledge. ➔ Taylor sought to reduce the time a worker spent on each tasks by optimizing the way the task was done.  SCIENTIFIC MANAGEMENT THEORY (1890 - 1945) ❖ TAYLOR'S FOUR (4) 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  SCIENTIFIC MANAGEMENT THEORY (1890 - 1945) 1st Principle: SCIENCE , NOT RULE OF THUMB ➔ This principle says that we should not get stuck in a set routine with the old techniques of doing work, rather we should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker.  SCIENTIFIC MANAGEMENT THEORY (1890 - 1945) 2nd Principle: HARMONY, NOT DISCORD ➔ As per this principle, such an atmosphere should be created in the organisation that labour (the major factor of production) and management consider each other indispensable. ➔ Taylor has referred to such a situation as a ‘Mental Revolution’. Taylor firmly believed that the occurrence of a mental revolution would end all conflicts between the two parties and would be beneficial to both of them.  SCIENTIFIC MANAGEMENT THEORY (1890 - 1945) 3rd Principle: COOPERATION, NOT INDIVIDUALISM ➔ According to this principle, all the activities done by different people must be carried on with a spirit of mutual cooperation. ➔ Taylor has suggested that the manager and the workers should jointly determine standards. This increases involvement and thus, in turn, increases responsibility. In this way we can expect miraculous results.  SCIENTIFIC MANAGEMENT THEORY (1890 - 1945) 4th Principle: DEVELOPMENT OF EACH AND EVERY PERSON TO HIS / HER GREATEST EFFICIENCY AND PROSPERITY ➔ According to this principle, the efficiency of each and every person should be taken care of right from his selection. A proper arrangement of everybody’s training should be made. ➔ It should also be taken care that each individual should be allotted work according to his ability and interest. Such a caring attitude would create a sense of enthusiasm among the employees and a feeling of belongingness too.  ADMINISTRATIVE MANAGEMENT THEORY (1892 - 1993) ➔ Attempts to find a rational way to design an organization as a whole. The theory generally calls for a formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators relevant to their areas of responsibilities.  ADMINISTRATIVE MANAGEMENT THEORY (1892 - 1993) ❖ HENRI FAYOL ➔ A third classical management theorist, a mining executive and engineer. HE created a book titled Administration Industrielle et Generale (Industrial and General Administration) published in the U.S. In 1911 after observing a work stoppage that he judged to be a management failure. ➔ Fayol proposed the 14 Principles of Management.  ADMINISTRATIVE MANAGEMENT THEORY (1892 - 1993) ❖ FAYOL'S 14 PRINCIPLES OF MANAGEMENT 1. DIVISION OF WORK – when employees are SPECIALIZED, output can increase because they become increasingly SKILLED and EFFICIENT. 2. AUTHORITY – Managers must have the authority to give orders, but they must also keep in mind that WITH AUTHORITY COMES RESPONSIBILITY.  ADMINISTRATIVE MANAGEMENT THEORY (1892 - 1993) ❖ FAYOL'S 14 PRINCIPLES OF MANAGEMENT (continuation) 3. DISCIPLINE – Must be upheld in organizations, but methods for doing so can vary. 4. UNITY OF COMMAND – Employees should have only one direct supervisor. 5. UNITY OF DIRECTION – Teams with THE SAME OBJECTIVE should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated.  ADMINISTRATIVE MANAGEMENT THEORY (1892 - 1993) ❖ FAYOL'S 14 PRINCIPLES OF MANAGEMENT (continuation) 6. SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTEREST – The interests of ONE EMPLOYEE should NOT BE ALLOWED to become MORE IMPORTANT than those of the group. This includes managers. 7. REMUNERATION – Employees satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation.  ADMINISTRATIVE MANAGEMENT THEORY (1892 - 1993) ❖ FAYOL'S 14 PRINCIPLES OF MANAGEMENT (continuation) 8. CENTRALIZATION – This principle refers to how close employees are to the decision – making process. It is important to AIM an appropriate balance. 9. SCALAR CHAIN – Employees should be aware of where they stand in the organization hierarchy, or chain of command. 10. ORDER – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.  ADMINISTRATIVE MANAGEMENT THEORY (1892 - 1993) ❖ FAYOL'S 14 PRINCIPLES OF MANAGEMENT (continuation) 11. EQUITY – Managers should be fair to staff at all times, both maintaining the discipline as necessary and acting with kindness where appropriate. 12. STABILITY OF TENURE OF PERSONNEL – Managers should strive to minimize employee turnover. Personnel planning should be a priority.  ADMINISTRATIVE MANAGEMENT THEORY (1892 - 1993) ❖ FAYOL'S 14 PRINCIPLES OF MANAGEMENT (continuation) 13. INITIATIVE – Employees should be given the necessary level of freedom to create and carry out plans. 14. ESPRIT DE CORPS – Organizations should strive to promote team spirit and unity.  BEHAVIORAL MANAGEMENT THEORY (1911 - 1990) ➔ Often called the Human Relations Movement because it addresses the human dimension of work. Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity.  BEHAVIORAL MANAGEMENT THEORY (1911 - 1990) ❖ Theorist that contribute to behavioral management are: 1. MARY PARKER FOLLET (1868 – 1933) – considered as the “Mother of Modern Management”. She states that true leaders create group power than expressing personal power. 2. ELTON MAYO (1880 – 1949) – states that employees are motivated far more by relational factors such as attention and camaraderie than by monetary rewards.  BEHAVIORAL MANAGEMENT THEORY (1911 - 1990) ❖ Theorist that contribute to behavioral management are: 3. ABRAHAM MASLOW (1908 – 1970) – created the “Maslow's Hierarchy of Needs”, stated that people are motivated by five (5) categories of needs: A. Physiological B. Safety (Security) C. Love (Social) D. Esteem E. Self – Actualization  BEHAVIORAL MANAGEMENT THEORY (1911 - 1990) ➔ In Maslow's Hierarchy of Needs, it can be represented as a pyramid, with basic physiological needs until it reaches self actualization on the top.  MANAGEMENT SCIENCE THEORY (1940 – 1990's) ➔ Management that focuses on the use of techniques to maximize the use of organizational resources to produce goods and services. It is a contemporary approach to management that is an extension of Scientific Management that measures the worker to task mix and ratio to raise efficiency. ➔ Its importance is it can reduce the overall efficiency of the organization and make decision-making easier and more defined. The broad advantage of the approach is its ability to design measures that can be used to identify and evaluate the effectiveness of the processes currently in use.  ORGANIZATIONAL ENVIRONMENT THEORY (1950 – 2000) ➔ Also known as Contingency Theory which is a class of behavioral theory that claims that there is no best way to organize a corporation, to lead a company or to make decision, instead, the optimal course of action is contingent (dependent) upon the internal and external situation