Thursday, August 21, 2008

The Principles of Scientific Management

The Principles of Scientific Management is a monograph published by Frederick Winslow Taylor in 1911. This influential monograph is the basis of modern organization and decision theory and has motivated administrators and students of managerial technique. Taylor was an American mechanical engineer and a management consultant in his later years. He is often called "The Father of Scientific Management." His approach is also often referred to, as Taylor's Principles, or Taylorism.

Summary of the monograph
The monograph consisted of three sections:
Introduction,
Chapter 1: Fundamentals of Scientific Management, and
Chapter 2 : The Principles of Scientific Management.

Introduction
Taylor started this paper by quoting then President of the United States, Theodore Roosevelt. The President, in his address to the Governors at the White House, prophetically remarked that "The conservation of our national resources is only preliminary to the larger question of national efficiency." Taylor pointed out that the whole country (USA) is suffering through inefficiency in almost all of daily acts of Americans. He pointed this out through a series of simple illustrations. He tried to convince the reader that the remedy for this inefficiency lies in systematic management, rather than in searching for extraordinary person. He also tried to prove that the best management is a true science, resting upon clearly defined laws, rules, and principles, as a foundation. He also showed that the fundamental principles of scientific management are applicable to all kinds of human activities, from the simplest individual acts to the work of the great corporations, which call for the most elaborate cooperation. And, through a series of illustrations, Taylor also tried to convince the reader that whenever these principles are correctly applied, the results are truly astounding. The paper was originally prepared for presentation to The American Society of Mechanical Engineers and the illustrations in the paper was such that it would appeal to engineers and to managers of industrial and manufacturing establishments, and also to all of the people who were working in these establishments. Taylor also hoped that other readers will understand that the same principle can be applied with equal force to all social activities such as, the management of homes, farms, small and large businesses, churches, philanthropic institutions, universities, and governmental departments.

Chapter 1: Fundamentals of Scientific Management
Taylor argued that the principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee. He also showed that maximum prosperity can exist only as the result of maximum productivity. He argued that the most important object of both the employee and the management should be the training and development of each individual in the establishment, so that he can do the highest class of work for which his natural abilities fit him.
Taylor was writing at a time when factories were creating big problems for the management. Workmen were quite inefficient. According to Taylor, there were three reasons for the ineffiency. They were:
1. The deceptive belief that a material increase in the output of each man or each machine in the trade would result in the end in throwing a large number of men out of work. This belief has from time immemorial been almost universal among workmen.2. The defective systems of management that were common in those days and which made it necessary for each workman to soldier, or work slowly, in order that he may protect his own best interests.3. The inefficient rule of thumb methods, which were almost universal in all trades in those days, and in practising which the workmen waste a large part of their effort.
The paper tried to show the enormous gains which would result from the substitution by workmen of scientific for rule-of-thumb methods.
Taylor argued that the cheapening of any article in common use almost immediately results in a largely increased demand for that article. This view contradicts the belief that a material increase in the output of each man or each machine in the trade would result in the end in throwing a large number of men out of work. As to the second cause for soldiering, Taylor pointed to many quotes from 'Shop Management' and hoped that it would explain fully the cause for soldiering. Some quotes that tried to illustrate his views are:
"This loafing or soldiering proceeds from two causes. First, from the natural instinct and tendency of men to take it easy, which may be called natural soldiering. Second, from more intricate second thought and reasoning caused by their relations with other men, which may be called systematic soldiering."
"This common tendency to 'take it easy' is greatly increased by bringing a number of men together on similar work and at a uniform standard rate of pay by the day."
"To illustrate: The writer has timed a naturally energetic workman who, while going and coming from work, would walk at a speed of from three to four miles per hour, and not infrequently trot home after a day's work. On arriving at his work he would immediately slow down to a speed of about one mile an hour. When, for example, wheeling a loaded wheelbarrow, he would go at a good fast pace even up hill in order to be as short a time as possible under load, and immediately on the return walk slow down to a mile an hour, improving every opportunity for delay short of actually sitting down. In order to be sure not to do more than his lazy neighbor, he would actually tire himself in his effort to go slow."
"The feeling of antagonism under the ordinary piece-work system becomes in many cases so marked on the part of the men that any proposition made by their employers, however reasonable, is looked upon with suspicion, and soldiering becomes such a fixed habit that men will frequently take pains to restrict the product of machines which they are running when even a large increase in output would involve no more work on their part."
Taylor argued that the substitution of scientific for rule of thumb methods would be benefit both employers and employees.

Chapter 2 : The Principles of Scientific Management
In this section, Taylor explained his principles of scientific management. Taylor's scientific management consisted of four principles:
1. Replace rule of thumb work methods with methods based on a scientific study of the tasks.2. Scientifically select and then train, teach, and develop the workman, whereas in the past the employee (or workmen) chose his own work and trained himself as best he could.3. Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task" (Montgomery 1997: 250).4. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.
According to F. W. Taylor, the above combination of the initiative of the employee, coupled with the new types of work done by the management, that makes scientific management so much more efficient than the old plans.
Under the management of "initiative and incentive", the first three elements exist in many cases, but their importance is minor. However, under the scientific management, they form the very essence of the whole system.
According to Taylor, the summary of the fourth element is: Under the management of "initiative and incentive practically the whole problem is "up to the workman," while under scientific management fully one-half of the problem is "up to the management

Importance of the monograph
This highly influential monograph has been cited by several books. The monograph was translated into several languages, giving the ideas of Taylor an influence around the world. ROLAN-Division Of Work: Division of work means dividing the total work into small convenient components and giving each component to one employee. This brings specialisation and enables people to concentrate effectively on the assigned responsibility. This improves performance, ability and accuracy in the work. Authority and Responsibility: Authority should be equal to responsibility. These two terms are integral aspects of the managerial process AND inter-related as responsibility is the corollary of authority. Those who have authority to give orders must be willing to accept responsibility for the results. Responsibility arises when the authority is used and hence authority and responsibility cannot be separated. Discipline: Discipline is the obedience and outward mark of respect shown by an employee. Fayol considers that discipline is absolutely essential for smooth and orderly running of a business unit. For proper discipline, attention needs to be given to good supervision,fair agreements and judicious use of Penalty.

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