Chapter Two

Management Thought and their Application

in Modern Industrial Environment

Daniel Ab.
Bahir Dar Institute of Technology (BiT)
Faculty of Mechanical and Industrial Engineering
 Introduction

▪ In 1950 world population

▪ In 2000 world population
▪ Basic needs
✓ Food
✓ Clothing
✓ Shelter
✓ Security
✓ Health and essential services
▪ The need to quality of life increases, but the resources are
limited
▪ Thus, the only way to resolve these problem is productivity
improvement.
2
Examples
• Building construction
• Constructing high ways or bridges
• Designing a software
• Manufacturing
• Agriculture
• Clothing
• Communications
• Transportation

3
The input factors in an enterprise:
▪ Capital
▪ Land and building
▪ Materials Non-Human
▪ Energy
▪ Machines and equipment
▪ Human resources

4
• Management is the way to produce a large quantity
and/or better quality or high value, products or
services with the same input, or it may achieve a
better result by changing the nature of the input such
as:
✓ Investing in advanced technology,
✓ Information systems and computers or by
✓ Using an alternative source of raw material or energy.

5
• In the early time management did not get adequate
recognition and attention as a subject of study or
learnable set of skills, the reasons are:
▪ There was low esteem /emphasis/ to business.
▪ The conception or treatment of management as an
art, but not as a science.
▪ The attitude of successful management is born not
made i.e., we cannot get through experience.

6
• Since the close of the 19th century:
▪ Earlier stage of capitalist development,
▪ The emergence of industry,
▪ The dynamic & complex business situation had great
contribution to the development of management.
• Thus, the theory & practice of management found
their way after the set of industrial revolution.
• There are different scholars from different
disciplines redounded/ contributed to the
development of management theories (Frederick
Taylor, Henri Fayol, Max Weber, Elton Mayo etc.)
7
• The basic work content is the irreducible
minimum time theoretically required to produce
one unit of output.
Excess work content may be:
✓Work content added by poor design or
specification of product or its parts, or improper
utilization of materials;
– Poor design and frequent design changes
– Waste of materials
– Incorrect quality standard

8
✓Work content added by inefficient methods of
manufacture or operation;
– Poor layout and utilization of space
– Inadequate materials handling
– Frequent stoppages as production changes from one
product to another
– Ineffective method of work
– Poor planning of inventory
– Frequent breakdown of machines and equipment

9
✓Work content resulting mainly from the
contribution of human resources
– Absenteeism and lateness
– Poor workmanship
– Accidents and occupational hazards

10
 School of Management Thought
The school of management can be classified as:
1. Classical school
❖Scientific management theory
❖Classical Organization theory
❖Bureaucratic organization theory
2. Behavioral school
3. Quantitative management approach

11
 The Classical or Traditional School

• Originated during England’s Industrial Revolution.

• Manufacturers began mass-producing goods in factories.
• Textile industry was among the first .
• Allowed production of standardized goods
• Depended on a constant flow of labor and materials
• Thus, owners needed to plan, organize, lead, control
• A theory that focused on finding the “one best way” to
perform and manage tasks.

12
 …….Cont’d

• The Classical or Traditional School first focused on

scientific principles of management.

• Using the principles of scientific management, traditional

managers stress the ‘methodology of performing tasks’ in

order to enhance worker:

✓Efficiency and
✓Productivity.
13
 …….Cont’d

• The classical management process was analyzed in terms

of the methods used by the workers at the lower levels of
the organization.
• Later, when the importance of management at all
organizational levels became apparent, the school’s
theories expanded to consider what managers do and the
forces that shape what they do, focusing on management
functions as well as principles of scientific management in
order to understand the practice of management.

14
 The Classical or Traditional School

Early Management Theorists

❖ Robert Owen(1771 – 1858)
– best be described as a social reformer.
❖ He credited his business success to his understanding of human nature and
to his “habit of exactness”.
❖ He paid particular attention to plant layout and machine maintenance, but
his overriding concern was for the workers.
❖ He tried to set minimum-age law to protect children against the abuses of
employers.
❖ He chided/ blamed other employers for failing to improve conditions for
workers and for refusing to eliminate human misery/ sadness.
❖ In his later years, he worked to help the poor to solve employment
problems. Unfortunately, he was unable to apply what he had learned in
his factories to society as a whole.
15
Charles Babbage (1792 - 1871)
❖ He developed:
• The first mechanical calculator and
• Formulated the basic computer concepts
that were incorporated in IBM’s first large scale electronic
computer.
❖ When developing his computer, Babbage became interested
in management. Faced with the problem of getting workers
to perform their task more efficiently, he visited many
British factories to observe their operations.
❖ During these visits, he examined manufacturing processes,
tools, skills and machinery.

16
❖Babbage believed that a manager could:
• study the operations of a factory
• systematically and
• find ways to improve its efficiency.
❖He was keen supporter of:
➢ division of labor,

➢ economies of scale,
➢ incentive pay and
➢ profit sharing.
17
 Scientific Management Theorists
❖ Scientific Management is a systematic, analytical study of
work which of the relationships between people and tasks
for the purpose of redesigning the work process to increase
efficiency.
❖ It is originated in the US around 1900.
❖ Bottom- up approach
❖ Focus on efficiency, primarily in industrial settings

❖ Aimed to find the most efficient method of performing any

task and to train workers in that method.
❖ The most important contributors to scientific management
were Frederick W. Taylor, Henry L. Gantt, Frank and Lillian
Gilbreth and Harrington Emerson. 18
 Frederick. W. Taylor (1856-
1915)
(Called Father of Scientific Management.)

❖ Is an important contributor to the classical school of

management theory.
❖ Scientific Management theory arose in part from the
need to increase productivity.
❖ In the United States especially, skilled labor was in short
supply at the beginning of the twentieth century.
❖ The only way to expand productivity was to raise the
efficiency of workers.
19
❖ Taylor wanted to find the most effective way to use
people and resources in the workplace.
❖ He believed that there was one best way of performing
every process and task in industry.
❖ To find that best way, workers’ performance should be
examined scientifically, objectively and in great detail,
using empirical and experimental approach. Only then
could a more productive way of doing the job be found.
❖ After finding the “one best way” of performing a job, the
manager should then teach it to the workers.
❖ Taylor believed that incentive system rewarding fast
workers and penalizing slow workers would encourage
them to adopt the new system quicker.
20
 Four Taylor’s Principle of Scientific Management
1. Develop a science for each element of an individual’s
work; this replaces the old rule of thumb method.
2. Scientifically select and then train, teach, and
develop the worker. In the past workers choose their
own work and trained themselves as best they could.
3. Heartily cooperate with workers to ensure that the
work is being done in accordance with the new
methods.
4. Work is divided almost equally between management
and workers.
21
 Limitations of Scientific Management
Taylor's Scientific Management is criticized on the
following main grounds :-
1. Exploitation of Workers
Taylor's Scientific Management put unnecessary
pressures on the employees to perform the work
faster. Importance was given to productivity and
profitability. This resulted in exploitation of the
employees. Therefore, many employees joined trade
unions. This also resulted in mistrust between
management and employees.
22
2. Problem of Unity of Command
▪ Taylor used functional foremanship. So, the
workers have to report to eight bosses.
▪ This breaks the principle of unity of
command, where the workers have to report
to only one boss.
▪ Lack of unity of command can create
confusion and chaos in the organization.

23
3. Mechanical Approach
Taylor's approach was a mechanical approach. He gave
too much importance to efficiency. He did not
consider the human element. Taylor considered
workers as robots, which could speed up the work at
any cost.
4. Problem of Separation of Planning from Doing
Taylor said to separate planning from doing. In reality,
we cannot separate planning from doing. The planners
should also be engaged in doing, then only they will
be able to make realistic plans for the organization.
24
5. Individualistic Approach
▪ Taylor's scientific management gives too
much importance to individual performance
and not to group performance.
▪ However, the success of an organization
depends not only on individual performance
of workers, but also on group performance of
workers.

25
6. Wrong Assumptions
▪ Taylor assumed that workers are motivated only by
financial gains.
▪ However, in reality, workers are motivated not only
with financial incentives but also by social needs and
personal egos.
7. Narrow Application
▪ Taylor's scientific management has narrow application.
▪ It can only be applied only when the performance of
the workers can be measured quantitatively.

26
 Henry L. Gantt (1861 – 1919)

❖Developed task-and-bonus plan, which paid a

bonus besides their regular pay if workers
completed their assigned tasks in the time
allowed.
❖Unlike Taylor’s plan, Gantt’s system didn’t
penalize workers who failed to complete their
work with in the allowed time.

27
❖ The Gantt’s plan also provided bonuses for
supervisors. Each supervisor was given a bonus for
every worker who met the standard, plus an extra
bonus if all workers did so. This plan was the first
financial reward for supervisors who taught workers
proper work methods
❖ He is well known for developing a bar chart (Gantt
Chart) for planning and controlling work activities.
❖ The Chart also known ‘daily balance chart’ helps to
schedule work on the basis of time rather than on
quantities.
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 Frank B. and Lillian M.
Gilbreth
(1868-1924 and 1878-1972)

❖ They made their greatest contribution in the area of time

and motion study.
❖ Their work led to today’s job simplification, meaningful
work standards, and incentive pay plans.
❖ Lillian and Frank collaborated on fatigue and motion studies
and focused on ways of promoting the individual worker's
welfare.
❖ To them, the ultimate aim of scientific management was to
29
help workers reach their full potential as human beings.
❖ In their conception, motion and fatigue were
intertwined—every motion that was eliminated
reduced fatigue.
❖ Using motion picture cameras, they tried to find
the most economical motions for each task in
order to upgrade performance & reduce fatigue.
❖ The Gilbreths argued that motion study would
raise worker morale because of its obvious
physical benefits and because it demonstrated
management's concern for the worker.
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Gilbreth’s Observations & Conclusions

His observations
❖ Workers develop their
own peculiar ways of
working

❖ Individuals do not always

use the same motions in
the course of their work.

31
 Gilbreth’s Observations & Conclusions
His conclusions
❖ He seek one best way to perform
tasks and standardized it
❖ He developed a method which
reduced the number of motion
needed to lay a brick from 18 to 5
❖ He also found a better method for
stacking bricks, eliminating
unnecessary body movements, and
he developed an adjustable stand to
eliminate the bending normally
required to pick up a brick. 32
The Gilbreths Techniques
Founders of modern motion study techniques
▪ Study of body motions used in performing tasks
▪ Simplifying motions
▪ Establishing most favourable motion sequences
▪ As they were in brick laying trade, increased performance
from 120 bricks/hr to 350
►Photographed and filmed motions to study them
▪ Cyclographic analysis: put light on workers’ finger, and
photograph the path.
▪ Chrono-cyclographic analysis: Put strobe on finger – get
dotted lines on photo; Spacing indicates speed
▪ Divide motion into elements “therbligs” 33
 Basic Motion Elements (Therbligs)
❖ The Gilbreths were particularly concerned with minimizing
hand movements in physical tasks. For Example, they broke
down hand motions into seventeen separate movements
(called therbligs-Gilbreth spelled backwards).
❖ As part of motion analysis, the Gilbreths concluded that all
work, whether productive or non productive, is done by
using combinations of 17 basic motions that they call
therbligs (Gilbreth spelled backward).
❖ Each of these movements was analyzed on film to determine
if effort was wasted.
❖ The therbligs can be either effective or ineffective. 34
 Classification of Therbligs
Effective therbligs: Ineffective therbligs:
▪ Transport empty ▪ Hold
▪ Grasp ▪ Pre-position
▪ Transport loaded ▪ Position
▪ Release load
▪ Search
▪ Use
▪ Select
▪ Assemble
▪ Plan
▪ Disassemble
▪ Unavoidable delay
▪ Inspect
▪ Avoidable delay
▪ Rest
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▪ In areas other than time and motion study, the
Gilbreths also tried to simplify the English alphabet,
the typewriter keyboard and spelling.

▪ Their investigation into worker fatigue and its effect

on productivity was the start of today’s research on
ergonomics.

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 Harrington Emerson (1853-1931)
He applied Efficiency Engineering in rail road industry.
Emerson’s Twelve principles of Efficiencies are:
• Dispatching: Plan work
• Clearly defined ideal (Objectives):
scientifically. Work must be
• Common Sense: scheduled.
• Competent counsel • Standards and schedules: Develop
• Disciple: Adhere to rules. methods & time for performing
tasks.
• Standardized Conditions: create a
• Fair deal: mange with justice &
uniform environment.
fairness
• Standardized operations: Establish
uniform work methods
• Reliable, immediate, adequate, • Written standard-practice
permanent records. instructions:
• Efficiency reward: 37
Generally, Techniques of Scientific Management :

1. Work study
2. Scientific task planning.
3. Scientific selection & training of workers
4. Standardization
5. Mental revolution

38
 Limitations of Scientific Management
1. It is based upon one best way, so it is applicable for
simple Orgns. than for today’s dynamics and complex
organization.
2. It is focused on specialization and repetitive of jobs to
increase productivity w/c reduce innovation & creativity.

3. It neglect human factor b/c it motivates workers to work

for monetary benefits rather than human resource
dev’t.

4. It focuses on individual performance than effort and

divides the workers into efficient and inefficient. 39
 Classical Administrative and Organizational
Theorists
▪ Scientific management was aimed at improving the
efficiency and productivity of workers; consequently, it
provided little guidance for managers above the supervisory
level.
▪ But, realizing the importance of efficient operations at all
organizational levels, theorists began to focus on
organizations as a whole. The theory focus on organization
as a whole.
▪ It is the study of how to create an organizational structure
that leads to high efficiency and effectiveness. 40
 Classical Administrative and Org’nal Theorists
Henri Fayol (1841-1925) – the greatest contributor to
the field of classical administrative theory
The French industrialist considered as
“Father of modern management theory”.
Fayol classified business activities into six functional groups:
1. Technical (production, manufacture and adaptation)
2. Commercial (buying, selling, exchange)
3. Financial (finding the best use of capital)
4. Security (protection of people and property)
5. Accounting
6. Managerial
Fayol considered managerial activities the least understood but
often the most crucial of the six functions 41
Henri Fayol

“ Management is neither an exclusive privilege nor a

particular responsibility of the head or senior members of
the business; it is an activity spread, like all other activities,
between head and members of the body corporate”

He identified five major management functions:

• Planning (to foresee and provide means examining the future and
drawing up the plan of action)
• Organizing ( building up the dual structure, material and human of
the undertaking)
• Commanding (maintaining activity among the personnel)
• Coordinating (binding together, unifying and harmonizing all the
activity and effort)
• Controlling (seeing that everything occurs in conformity with
established rule & expressed command) 42
Henri Fayol: Managerial activities require special Qualities
1. Physical
2. Mental
3. Moral
4. General education
5. Specialized knowledge
6. Experience
▪ The most important of each ability depends on the manager’s
position in the organization and its size. In large organizations,
for example Fayol regarded technical ability as the single most
important ability at the worker level. At the highest level in a
large organization, managerial ability is the most important.43
 Fayol’s Fourteen Principles of Management
Fayol considered principles to be flexible and adaptable- not
rigid rules. Moreover, he pointed out that there is no limit to
the number of management principles that can improve an
organization’s operation.

1. Division of work : encompasses three basic concepts:

breaking down a task into its components, training workers
to become specialists in specific duties and putting activities
in sequence so one person’s efforts build another’s.
Specialization is the key to the division of work because it
assures greater efficiency and productivity.
44
2. Authority & Responsibility: Authority is the right to
give directives or to command action. Responsibility, on the
other hand, is a sense of obligation that goes with authority.
Authority should be delegated only to subordinates who are
willing to assume commensurate responsibility.
3. Discipline: Fayol defined discipline as “obedience,
application, energy, behavior, and outward marks of
respect” observed in accordance with agreements between
the firm and its employees. In other words, discipline means
adhering to all plans that govern business operations. These
agreements are enforced through judiciously applied
penalties.
45
4. Unity of Command: All employee should receive
directives from only one supervisor. Violating undermines
authority and risks discipline and stability.
5.Unity of direction: All activities geared towards achieving
the same objective should be directed and controlled by
one person. This improves coordination and ensures that
energies are channeled in the proper direction.

6.Subordination of individuals to general interest: the

over all interest of the firm is more important than the
interest of any person or group of people who work for
it.
46
7. Remuneration of personnel: Wages should be fair and
equitable to both the workers and the company.
8. Centralization: Centralization and its counterpart,
decentralization, mean how much authority is
concentrated at the top of an organization or dispersed
throughout the management hierarchy. The question of
centralization or decentralization is a question of
proportion. It is important to find the optimal degree of
each in an organization.

47
9. Scalar Chain: Often called the chain of command, this is the
line of managers from highest to lowest in an organization.
All organizational requests and directives must follow this.
10. Order: is a place for everything( everyone) and everything
in its place.
11. Equity: In dealing with employees, equity and kindness are
most important.
12. Stability of tenure of personnel: Experienced, well-trained
managers and workers are crucial to the success of a
business, so a stable work force should be maintained. Some
turnover, however, is expected and desirable. Retirement,
deaths, illness, and job promotions lead to turnover. 48
13. Initiative: Fayol defined initiative as the ability to think
through and develop a plan of action. He believed that the
most capable managers instill this attribute in their
subordinates.
14. Esprit de corps: In union/unity, there is strength. All
members of an organization should work together
harmoniously to achieve a common goal. The job of the
manager is to “coordinate effort, encourage keenness, use
each worker’s abilities and reward each one’s merit
without arousing possible jealousies and disturbing
harmonious relations.
49
 Chester I. Barnard, (1886-1961) Called originator of the
Mgt system concepts.
• Best known for his analysis of how formal and informal
Orgn, operate and his “ acceptance of theory of
authority”.
• He rejected the idea that authority is inherent in an
organizational position. It depends on subordinates
acceptance of orders

50
 Mary Parker Follett (1868-1933) bridged the gap b/n
the classical and behavioral school of Mgt.
• Concerned that Taylor ignored the human side of the
organization and suggested workers help in analyzing
their jobs.
• She stressing the importance of harmony and
cooperation among group members. She opposed the
use of authority to dominate others.
• She believed business objectives shouldn’t achieved at
the expense of the worker.
• Worker shouldn’t feel that they work for someone,
instead, they should feel that they work to satisfy some
common goals.
• If workers have relevant knowledge of the task, then
they should control the task.
51
 Bureaucratic Management Theory

• Bureaucracy
✓An ideal, intentionally rational, and very efficient
form of organization.
✓Based on principles of logic, order, and legitimate
authority.

(Max Weber)
• Developed the principles of bureaucracy as a formal
system of organization and administration designed
to ensure efficiency and effectiveness.
52
Bureaucratic Management Theory

53
 The Behavioral School
It is originated from industrial psychology and sociology.
Thus, behavioral mgt. theory:
▪ Emphasizes on the interaction of people in the
organization in order to understand the practice of
management.
▪ Points out the role of psychology & sociology
understanding the individual as well as group behavior
in the organization.
▪ Advocated the human values in an organization.
▪ The theorist believed that a better understanding of
human behavior at work (motivation, conflict,
54
expectations, etc.) improved productivity.
There are two approaches in the behavioral mgt. theory.
▪ Human relation approach / movement.
▪ Behavioral science approach.
1.The Human Relation Movement

❖ George Elton Mayo (1880-1949) was the founder of this

approach. He was known of conducting an experiment/a
research at the “Hawtorn Plant” at the Western Electric Co. in
USA.
❖ The primary task of these experiments was to know the effects
of physical factors such as illumination, rest periods, length of
working days, & payment schemes upon productivity.
❖ They discovered that worker productivity increased as the
lighting levels decreased, that is until the employees were
unable to see what they were doing.
55
• The 2nd experiments began. Select workers and they gave
them special privileges, such as the right to leave their
workstations without permission, take rest periods, free
lunches and incentives, etc.
• This resulted in significant increased rates of productivity.
• They conclude that the increased productivity resulted
from supervisory Mgt rather than changes in lighting/ other
worker benefits.
• The general conclusion from the Hawthorne studies was
that human r/ns & the social needs of workers are crucial
aspects of business Mgt.
• Further, workers’ attitudes toward their managers affect
the level of workers’ performance.

56
 2. Behavioral Science Approach
❖ This approach gave emphasis on individual behavior &
motivation.
❖ The prominent follower of this approach was Abraham
Maslow (1908-1970). He was a psychologist.
❖ According to Maslow, the needs that people are
motivated to satisfy fall into a hierarchy.
❖ According to Maslow:
i. Unsatisfied needs motivate behavior, but satisfied
needs do not motivate behavior
ii. The needs of human being are arranged in hierarchy
according to the order of importance.

57
The five levels of human needs are:

1.Physiological needs
2.Safety needs
3.Social needs
4.Esteem needs &
5.Self actualization

58
Theory X and Theory Y
• Douglas McGregor proposed the two different sets of
assumptions about workers.

▪ Theory X assumes the average worker is lazy, dislikes

work and will do as little as possible.
• Workers have little ambition and wish to avoid
responsibility
• Managers must closely supervise and control
through reward and punishment

▪ Theory Y assumes workers are not lazy, want to do a

good job and the job itself will determine if the
worker likes the work.
• Managers should allow workers greater latitude/
freedom and create an organization to stimulate
the workers. 59
 The Quantitative School
❖ During WW II – many new quantitative tools were developed to aid
the military. Because of the success of these techniques, businesses
began using them in planning and decision making.
❖ Use Mathematical Models to simulate business problems. Simulation
lets managers thoroughly analyze existing and potential problems
and make decisions based on predictable outcomes. Examples:
Linear Programming, Network Analysis and Queuing Theory.
❖ Quantitative Techniques had benefited from the development of
computers and help to manipulate vast amounts of data quickly and
accurately.
❖ Managers have found computer-augmented quantitative methods
particularly useful in planning, scheduling, work assignments and
controlling inventory. 60
The Quantitative management approach in Decision Making
consists of seven basic steps:
Develop Generate Analyze Implement
Define
Mathematical Input Data Solution Results Solution
Problem
Model

Input new
or
additional data

1. Defining problem precisely is often the most difficult step,

but it is most important aspect, since the outcome depends
on a clearly and accurately stated problem.

2. The second step is developing a real-life situation.

Mathematical models typically show the mathematical
relationships of the variables that affect the problem 61
3. Since the model represents a real-life situation, the data
must be accurate to obtain correct results. Data can be
complied from records, company reports, industry
publications, individuals who are familiar with the problem,
and many other sources.

4. With these data, the model can be manipulated to arrive at

the most satisfactory solution. Certain steps must be
repeated with new or additional data to arrive at the best
solution.

5. Once the solution has been generated, implementing it is

the final step.
62
 Table: Summary of Quantitative techniques
Tool Developed By Applications

Game Theory J. Von’Neumann Timing and pricing in a competitive market;

O.Morgwnstern military strategy
M.Shubik
Information C. Shannon Data processing system design; organization
Theory S.Goldman analysis; advertising effectiveness in market
W.Weaver research
Inventory Control F.W.Harris; J.F.Magee Economic lot size and economic order point
T.W.Whitin; K. Arrow
T. Harris; J.Marschak
Linear L.V. Kantorovich; W. Leontieff Assignment of equipment and personnel;
programming T.C.Koopmans; G.B.Dantzig scheduling; product mix; scheduling
R.Dorfman; P.A.Samuelson transportation routing; allocation of processes

Probability Theory R.A. Fisher; T.C.Fry; W.Feller; Application in all areas

H. Cramer
Queuing Theory A.K.Erlang; L.C.Edie; P.M. Morse; Inventory Control; traffic control; scheduling
M.G.Kendall
Replacement G.Terborgh; J.Dean Replacement of equipment through failure and
Theory deterioration
Sampling Theory W.E.Deming; H.F.Dodge; Quality control; marketing research 63
R.G. Romig
 More Recent Theories
Three more prominent recent management theories:
1. Contingency Theory
▪ It is based on the premise that situations dictate
managerial action (different situations call for different
approaches).
▪ No single way of solving problems is best for all situations
▪ Contingency theory focuses on identifying and
understanding the forces that shape an organization's
environment and on applying the management approach
known to work best under individual situations.
▪ This type of thinking challenges the concept of universality
proposed by Fayol and other classical writers who believed
that managerial principles and practice should be applied
consistently in all situations. 64
2. Systems Theory
▪ A manager must be able to see the interrelationship of the
different parts of the organization and must understand
how the organization fits into larger environment.
▪ Today’s organizations are generally considered open
systems; that is they are affected by environmental
factors.
▪ A manager must be aware of those forces and must adapt
the organization to them.
▪ By viewing a firm as a single unit and as part of a larger
system, managers will have better perspective when it
comes to planning, organizing, staffing, leading and
controlling.
65
3. Theory Z
▪ Theory Z is the term coined by William G. Ouchi to
characterize the Japanese approach to managing a
business.
▪ This philosophy, based on several ideas that are uniquely
Japanese, emphasizes the workers as a key to increase
productivity and economic growth.
▪ For instance; worker have the security of employment
without the threat of being fired until retirement.
▪ Workers are trained to perform a variety of task and are
rotated from job to job to reduce excessive boredom.
▪ Promotions are from within the company, and progression
through the ranks is slow and deliberate. 66