ORGANIZATIONAL THEORY & DESIGN

THEORY OF SCIENTIFIC MANAGEMENT

Frederick Winslow Taylor
Frederick Winslow Taylor is a controversial figure in management history. Frederick Winslow Taylor (March 20, 1856 March 21, 1915) was an American mechanical engineer who sought to improve industrial efficiency.]He is regarded as the father of scientific management and was one of the first management consultants. Taylor was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era. His innovations in industrial engineering, particularly in time and motion studies, paid off in dramatic improvements in productivity. At the same time, he has been credited with destroying the soul of work, of dehumanizing factories, making men into automatons.

Introduction to Scientific Management

Taylor published the book The Principles of Scientific Management in which he explained his techniques that were adopted to improve the productivity of employees at Bethlehem Steel. Its main objective was improving economic efficiency, especially labor productivity 1. In this, he proposed that by optimizing and simplifying jobs, productivity would increase. 2. He also advanced the idea that workers and managers needed to cooperate with one another. This was very different from the way work was typically done in businesses beforehand. A factory manager at that time had very little contact with the workers, and he left them on their own to produce the necessary product. There was no standardization, and a worker's main motivation was often continued employment, so there was no incentive to work as quickly or as efficiently as possible. 3. Taylor believed that all workers were motivated by money, so he promoted the idea of "a fair day's pay for a fair day's work." In other words, if a worker didn't achieve enough in a day, he didn't deserve to be paid as much as another worker who was highly productive.

Frederick Taylors Scientific Method

Taylors methodical approach to determine the one best way to perform a job consisted of the following steps: 1. Select a sample of skilled workers and carefully study the job being done. 2. Carefully list each operation including extensive detail on each task being performed.

ORGANIZATIONAL THEORY & DESIGN 3. Utilize a stopwatch to time each task being performed. Repeat this step over a period of time to obtain an average of the time it takes to perform each task. 4. Identify and eliminate any unnecessary tasks that are performed to finalize the job. 5. Identify any improvements, tools or techniques that can be adopted to reduce the time in performing the job. 6. Establish new and informed times and pay-rates for the job. 7. Lastly, all workers are trained to perform the job in the one best way identified.

Origin of Scientific Management:

The nineteenth-century factory system was characterized by ad hoc organization, decentralized management, informal relations between employers and employees, and casually defined jobs and job assignments. By the end of the nineteenth century, however, increased competition, novel technologies, pressures from government and labor, and a growing consciousness of the potential of the factory had inspired a wide-ranging effort to improve organization and management. The focus of this activity was the introduction of carefully defined procedures and tasks. These innovations have labeled as "systematic Management. Frederick Taylor started to work on the Scientific Management movement, and he and his associates were the first people to study the work process scientifically. They studied how work was performed, and they looked at how this affected worker productivity. Taylor's philosophy focused on the belief that making people work as hard as they could was not as efficient as optimizing the way the work was done.

Principles of Scientific Management

1. Development of Science for each part of mens job (replacement of rule of thumb) a. This principle suggests that work assigned to any employee should be observed, analyzed with respect to each and every element and part and time involved in it. b. This means replacement of odd rule of thumb by the use of method of inquiry, investigation, data collection, analysis and framing of rules. c. Under scientific management, decisions are made on the basis of facts and by the application of scientific decisions. 2. Scientific Selection, Training & Development of Workers a. There should be scientifically designed procedure for the selection of workers. b. Physical, mental & other requirement should be specified for each and every job. c. Workers should be selected & trained to make them fit for the job. d. The management has to provide opportunities for development of workers having better capabilities. e. According to Taylor efforts should be made to develop each employee to his greatest level and efficiency & prosperity. 3. Co-operation between Management & workers or Harmony not discord

ORGANIZATIONAL THEORY & DESIGN a. Taylor believed in co-operation and not individualism. b. It is only through co-operation that the goals of the enterprise can be achieved efficiently. c. There should be no conflict between managers & workers. d. Taylor believed that interest of employer & employees should be fully harmonized so as to secure mutually understanding relations between them. 4. Division of Responsibility a. This principle determines the concrete nature of roles to be played by different level of managers & workers. b. The management should assume the responsibility of planning the work whereas workers should be concerned with execution of task. c. Thus planning is to be separated from execution. 5. Mental Revolution a. The workers and managers should have a complete change of outlook towards their mutual relation and work effort. b. It requires that management should create suitable working condition and solve all problems scientifically. c. Similarly workers should attend their jobs with utmost attention, devotion and carefulness. They should not waste the resources of enterprise. d. Handsome remuneration should be provided to workers to boost up their moral. e. It will create a sense of belongingness among worker. f. They will be disciplined, loyal and sincere in fulfilling the task assigned to them. g. There will be more production and economical growth at a faster rate. 6. Maximum Prosperity for Employer & Employees a. The aim of scientific management is to see maximum prosperity for employer and employees. b. It is important only when there is opportunity for each worker to attain his highest efficiency. c. Maximum output & optimum utilization of resources will bring higher profits for the employer & better wages for the workers. d. There should be maximum output in place of restricted output. e. Both managers & workers should be paid handsomely.

Elements of Scientific Management

The techniques which Taylor regarded as its essential elements or features may be classified as under: 1. Scientific Task and Rate-setting, work improvement, etc. 2. Planning the Task. 3. Vocational Selection and Training 4. Standardization (of working conditions, material equipment etc.) 5. Specialization 6. Mental Revolution.

ORGANIZATIONAL THEORY & DESIGN 1. Scientific Task and Rate-Setting (work study): Work study may be defined as the systematic, objective and critical examination of all the factors governing the operational efficiency of any specified activity in order to effect improvement. Work study includes.

Methods Study: The management should try to ensure that the plant is laid out in the best manner and is equipped with the best tools and machinery. The possibilities of eliminating or combining certain operations may be studied. Motion Study: It is a study of the movement, of an operator (or even of a machine) in performing an operation with the purpose of eliminating useless motions. Time Study (work measurement): The basic purpose of time study is to determine the proper time for performing the operation. Such study may be conducted after the motion study. Both time study and motion study help in determining the best method of doing a job and the standard time allowed for it. Fatigue Study: If, a standard task is set without providing for measures to eliminate fatigue, it may either be beyond the workers or the workers may over strain themselves to attain it. It is necessary, therefore, to regulate the working hours and provide for rest pauses at scientifically determined intervals. Rate-setting: Taylor recommended the differential piece wage system, under which workers performing the standard task within prescribed time are paid a much higher rate per unit than inefficient workers who are not able to come up to the standard set.

2. Planning the Task: Having set the task which an average worker must strive to perform to get wages at the higher piece-rate, necessary steps have to be taken to plan the production thoroughly so that there is no bottlenecks and the work goes on systematically. 3. Selection and Training: Scientific Management requires a radical change in the methods and procedures of selecting workers. It is therefore necessary to entrust the task of selection to a central personnel department. The procedure of selection will also have to be systematized. Proper attention has also to be devoted to the training of the workers in the correct methods of work. 4. Standardization: Standardization may be introduced in respect of the following.

Tools and equipment: By standardization is meant the process of bringing about uniformity. The management must select and store standard tools and implements which will be nearly the best or the best of their kind. Speed: There is usually an optimum speed for every machine. If it is exceeded, it is likely to result in damage to machinery. Conditions of Work: To attain standard performance, the maintenance of standard conditions of ventilation, heating, cooling, humidity, floor space, safety etc., is very essential. Materials: The efficiency of a worker depends on the quality of materials and the method of handling materials.

5. Specialization: Scientific management will not be complete without the introduction of specialization. Under this plan, the two functions of planning and doing are separated in the

ORGANIZATIONAL THEORY & DESIGN organization of the plant. The `functional foremen are specialists who join their heads to give thought to the planning of the performance of operations in the workshop. Taylor suggested eight functional foremen under his scheme of functional foremanship.

The Route Clerk: To lay down the sequence of operations and instruct the workers concerned about it. The Instruction Card Clerk: To prepare detailed instructions regarding different aspects of work. The Time and Cost Clerk: To send all information relating to their pay to the workers and to secure proper returns of work from them. The Shop Disciplinarian: To deal with cases of breach of discipline and absenteeism. The Gang Boss: To assemble and set up tools and machines and to teach the workers to make all their personal motions in the quickest and best way. The Speed Boss: To ensure that machines are run at their best speeds and proper tools are used by the workers. The Repair Boss: To ensure that each worker keeps his machine in good order and maintains cleanliness around him and his machines. The Inspector: To show to the worker how to do the work.

6. Mental Revolution: At present, industry is divided into two groups management and labor. The major problem between these two groups is the division of surplus. The management wants the maximum possible share of the surplus as profit; the workers want, as large share in the form of wages. Taylor has in mind the enormous gain that arises from higher productivity. Such gains can be shared both by the management and workers in the form of increased profits and increased wages.

Benefits of Scientific Management

Taylors ideas, research and recommendations brought into focus technological, human and organizational issues in industrial management. Benefits of Taylors scientific management included wider scope for specialization, accurate planning, timely delivery, standardized methods, better quality, lesser costs, minimum wastage of materials, time and energy and cordial relations between management and workers. According to Gilbreths, the main benefits of scientific management are conservation and savings, making an adequate use of every ones energy of any type that is expended. The benefits of scientific management are:1. 2. 3. 4. 5. 6. 7. 8. 9. Replacement of traditional rule of thumb method by scientific techniques. Proper selection and training of workers. Incentive wages to the workers for higher production. Elimination of wastes and rationalization of system of control. Standardization of tools, equipment, materials and work methods. Detailed instructions and constant guidance of the workers. Establishment of harmonious relationship between the workers. Better utilization of various resources. Satisfaction of the needs of the customers by providing higher quality products at lower prices.

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Criticism on Scientific Management

Management theorist Henry Mintzberg is highly critical of Taylors methods. Mintzberg states that an obsession with efficiency allows measureable benefits to overshadow less quantifiable social benefits completely, and social values get left behind. Harry Braver mans work, Labor and Monopoly Capital: The Degradation of Work in the Twentieth Century, published in 1974 was critical of scientific management. This work pioneered the field of Labor Process Theory. James W. Rinehart argued that Taylor's methods of transferring control over production from workers to management, and the division of labor into simple tasks, intensified the alienation of workers that had begun with the factory system of production around 18701890. Taylor's Scientific Management Theory has been criticized by the workers, trade unions and even employers. 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. 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. 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, and then only they will be able to make realistic plans for the organization. 5. Individualistic Approach

ORGANIZATIONAL THEORY & DESIGN 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. 6. Wrong Assumptions Taylor assumed that workers are motivated only by financial gains. However, in reality, workers are motivated not financial incentives but also by social needs and personal egos. 7. Narrow Application Taylor's scientific management has narrow application. It can be applied only when the performance of the workers can be measured quantitatively. It can be applied only for factories where the performance can be measured quantitatively. It cannot be used in the service sector because in this sector the performance of a person cannot be measured quantitatively.