Taylor and Scientific Management- Administrative Thinkers

F.W. Taylor

Taylor’s Views

Some theorists say that Taylor has not been the first one to discuss Scientific Management. Theorists like Charles Babbage, R.H Towne etc. are prior to Taylor. Taylor has also not been the one who coined the term “Scientific Management”. Few other theorists have even said that there is nothing such as Management and there is no philosophy in that regard.

Frederick Winslow Taylor

1.      Life- He was very influenced by his mother, E.W. Taylor especially mother’s puritan (high morals, discipline, austerity and sincerity along with a sense of enquiry, dissatisfaction, dissent, revolt and also an emphasis on new vision) background. Taylor was very influenced towards mechanization; this was very visible at an early stage of his life. While playing, he used to very frequently use mechanistic innovations in sports activities and equipments.

Taylor started working at a very early age. Before he could complete his studies as a student of law, he started working in a firm called Enterprise Hydraulix Works as an Apprentice Machinist. After a small period of time, he shifted to Midvalle Steel plant and started as a labourer. Within a very small span of time, he rose to the post of Chief Engineer. He started working on his ideas in this plant. But, the final consolidation of ideas came about in Bethlehem Steel Plant.

Taylor had a unique distinction as a functionary since he had experience at all the levels of organization (top, mid and bottom). Taylor was a practitioner and not a theorist. Bottommost Level of the organization is referred to as “Shop Floor”. It is at the Shop Floor where all the work of the organization is done whereas at the other levels only the art of getting things done is performed.

2.     

Philosophy

a.      Failures of the organizations- The responsibility for the failure of the organizations lied both with the managers as well as the workmen. But, a greater share of responsibility lied with the managers (Nine- Tenth of the responsibility lied with the managers and one- tenth lied with the workmen).

                                                  i.      Manager’s Failure- The managers were responsible for the failure because of two I’s :

1.      Ignorance or lack of knowledge about a good day’s work- The capability or potentiality of a worker to produce an amount of work in a given day.

It is the manager’s responsibility to make sure that the worker is performing to the best of his capabilities. They were not able to perform this task and suffered from ignorance.

2.      Indifference towards good managerial practices- The managers were simply not concerned and lacked a commitment about getting a higher productivity and more efficient strategies.

The managers were managing the organization based on traditional practices. Hence, they were indifferent towards good managerial practices. Managers were performing a driving style of management and unscientific incentive system. Driving Style Management means the type of management which is based on authoritarianism and an emphasis on physical compulsions.

The managers were very authoritarian, thereby, leading to a disconnect between the management and workers. The work used to be done by the manual or physical exertion or capacity of the workers.

The incentive system was unscientific. He said that one of the incentive systems being that the payment is made to the position and not to the job or paying the position, not the job or paying the attendance and not the performance. This type of system restricts the productivity because in this type of system, the performance is not recognized.

Taylor has also identified another kind of incentive system. It is called as Piece Rate Wage System. This was a wage system based on decreasing piece rate as the productivity also contributed towards restricting productivity.

Piece rate means for each unit produced, the worker is paid separately. But, as the number of produced units increased, the rate per unit/piece decreased, the overall pay increased with increased work but it acted as a demotivation since piece rate had diminishing returns, more work did not really mean very high pay, the amount of work to increase returns beyond a threshold was way more than the returns itself.

This traditional approach has been referred to as Initiative and Incentive Approach or an Approach based on Lazy Manager’s Philosophy. He says that the initiative/effort/volition lies with the worker and he takes up the job because he needs money/incentive.

To define the job, the responsibility lies with the manager. If a manager does not perform this responsibility, it is being referred to as “Lazy Manager”. This leads to loss of productivity.

                                                ii.      Workmen’s Failure- The workers were indulging in large scale soldering. Soldering refers to restriction of work output. Taylor says that there are two types of soldering.

1.      Natural Soldering- It refers to restriction of the work output because of certain inherent or ingrained limitations with the workers like laziness, indolence, shyness etc. Natural Soldering is a comparatively easier situation to deal with. In this case, the workers should be persuaded. If Persuasion does not work, they should be retrenched.

2.      Systematic Soldering- It refers to restriction of the work output based on Second Thought Reasoning i.e. a deliberate or a planned approach towards reducing the productivity. Systematic Soldering can be addressed through Scientific Management with a special emphasis on Time and Motion Study and Differential Piece Rate System.

Systematic Soldering is a by-product of both managerial inefficiency and workers urge to earn more wages and avoid unemployment. This problem could be rectified through Scientific Management.

Success or Efficiency of the Organization

Organizational Success lies in bridging the gap between the 1^st class workers (Workers having higher potential but also acting to achieve that potential) and the 2^nd class workers (Workers who though high on potential but are not achieving that potential). It depends on a managerial style where the managers help or enable the workers to attain their true potential.

Efficiency in Organizational Management lies in identifying and establishing the best way of doing the job and ensuring the performance of the job in accordance to the best way. In this context, Taylor has discussed three methodologies.

A.    Time and Motion Study-

a.       One best way should be established- Time and Motion Study.

b.      The workers should be made to follow this one best way.

Time and Motion Study is a methodology using which the best way of performing a job can be established. It is a mechanism to establish the optimal routine/sequence of activities along with technology standard and time standard (minimum time taken to complete an activity) in order to perform the job maximally.

                                                                               I.            Breaking down the job into as many component acts or activities.

                                                                            II.            Finding out the most appropriate sequence of the component activities while eliminating wasteful and duplicating activities.

                                                                         III.            Establishing the appropriate implements or tools and techniques to be used in each of the component activities.

                                                                         IV.            Using a stop watch, the minimum time to perform a component activity and the whole of the act is to be established. Time standard has to be defined for each one the sub-activities as well as the whole activity.

                                                                            V.            The optimal routine of the activities along with the technology standards and the time standards is to be defined.

B.     Differential (non-uniform) Piece Rate System- This system ensures that workers follow the best method mention above. It is an incentive system by Taylor in which he has emphasized on a wage system where the payment will be for performance rather than for attendance. He said that Group performance should not be incentivized; rather individual performance should be incentivized. Taylor has promoted two types of Wage Rate System.

a.       Extraordinary Wage Rate- It is a higher wage rate. Workers who will be able to achieve the target within a given time frame will be eligible for Extraordinary Wage Rate.

b.      Ordinary Wage Rate- It is a lower wage rate. Workers who will achieve the target exceeding a given time frame will be eligible for Ordinary Wage Rate.

Piece Rate refers to the concept of work more, get paid more and work less, get paid less. Lower productivity needs to be discouraged and higher productivity needs to be rewarded and recognized.

C.     Functional Foremanship- It is a type of supervision that Taylor has promoted at the Shop Floor Level which is based on the idea of multiple supervision on account of functional specialization. While establishing the concept of Functional Foremanship, he rejected the well- established principle of his time of Unity of Command (It refers to a type of supervision where a subordinate receives from one super-ordinate).

Functional Foremanship is a type of supervision which is based on multiple supervisors on account of functional specialization. Each supervisor will be specializing only in one function. Taylor believed that division of work and specialization is required to increase productivity. He further said that Specialization does not go well with Unity of Command. Every job has a number of aspects; a supervisor cannot effectively evaluate all those aspects because a supervisor cannot be a specialist in everything. So, multiple supervisors are needed to evaluate every aspect of work and Unity of Command would forfeit this.

Taylor said there should be 8 supervisors (4- Planning Supervisors, 4- Execution Supervisors)

Planning Supervisors

A.    Route Clerk- His work is to undertake a scientific investigation of the job and find out the best way of performing the job along with the technology and time standards.

B.     Instruction Card Clerk- He is responsible for converting the findings of the Route Clerk into understandable language in the form of Instruction Cards meant for the workers.

C.     Time Clerk- He is responsible for maintaining a regular record of the individuals or workers eligible for the payment under the extraordinary wage rate and ordinary wage rate.

D.    Shop Disciplinarian- He is the Personnel Manager at the Shop Floor Level. His job is to recruit, hire and fire the workers. He also resolves disputes and addresses the grievances. He ensures that proper management of the workers/man power at the Shop Floor level takes place.

Execution Supervisors

A.    Gang Boss- He is the supervisor at the work or the foreman at the field. He is responsible for preparing the work environment, providing the implements of the work and handing over of Instruction Card to the workers.

B.     Speed Boss- He is responsible for ensuring the performance of the job within the time limit and if required, the speed boss has to demonstrate the actual way of doing the work.

C.     Repair Boss- He is the Maintenance Supervisor. He is responsible for cleanliness or hygiene of the workplace and implements. He is also responsible for the maintenance, repairing and replacement of various implements or work equipments.

D.    Inspection Boss- He is responsible for Quality Control. He does regular inspection of the units or the produce or the manufactured goods and undertakes Quality inspection. He rejects all those goods which are of inferior or defective quality.

Principle of Exception

Managers should not interfere with the work of the foreman. The relationship between a manager and a foreman is based on the idea of decentralization. Whereas, the relationship between a foreman and a worker is based on the idea of centralization. It is because the foreman decides and the workers follow.

The manager should not interfere with the working of the foreman except two conditions.

A.    Excessively Lower Production below the target.

B.     Excessively Higher Production above the target.

Principles of Scientific Management

Taylor has discussed his generalized views with regard to Organizational Efficiency. He has emphasized that the Organizational Efficiency lies in the Efficiency in Management. His principles are not only meant to explain Organizational Efficiency but they are also the principles or ideas of Social Reform. This is because efficiency in management will increase the wages of the workers, increases the profit of the organization and will protect and promote the rights of the people or citizens. Inefficiency in management reduces the wages of the workers, reduces profit of the organization and compromises the rights of the people. Efficiency in management will lead to an efficient society.

In this context, he has discussed four principles of Scientific Management.

A.                The Science of Management- Taylor is emphasizing that an organization can be efficiently run provided the rule of thumb is replaced by the Science of Management. The manager should systematically study the job or scientifically investigate the job in order to establish the best way of doing each job along with bringing in such condition to enable the workers to pursue the best way to become maximally productive.

B.     Scientific Selection, Training and Development of the Workers- The manager should recruit the workers while preferring the brain workers over the hand workers. Workers, according to their suitability towards the job, should be recruited and once recruited, workers should be adequately trained and educated to handle the job.

C.     Bringing Science of Work and the Workers Together- Science of work refers to Manager. This principle refers to bringing the managers and workers and together. This is the core of Taylor’s theory. It forms the heart and soul of his philosophy. It has been explained through the concept of “Mental Revolution”. It is the wilful cooperation between the manager and the worker. Taylor says that:

“As the various tools and techniques of management such as Time and Motion Study, Piece Rate System, Functional Foremanship, Tools standardization, High Speed cutting of steel, use of stop watch and mnemonic classification are the appendages of my scientific management are also the appendages of other scientific management. The idea that makes my scientific management different from others is the concept of Mental Revolution. Mental Revolution requires a psychological reorientation of the managers towards the workers and vice-versa. In order to realize it, instead of focusing on sharing the surplus, the managers and workers should focus on increasing the size of the surplus. The Mental Revolution will increase the wages of the labour, the profits of the managers and bring satisfaction to the customers.”

The Mental Revolution is the key concept in the Taylor’s Arc of Scientific Management. The manner in which the managers are psychologically disposed towards the workers and vice- versa should change. The mutual suspicion and lack of cooperation between workers and managers is self- defeating. It is required that the traditional and stereotypical mind set of the workers and the managers should change and there should be a psychological reworking leading to mutual cooperation and no suspicion.

In order to bring about Mental Revolution, one should stop thinking about the sharing of surplus rather they should focus on increasing the size of the surplus.

The traditional approach of the management and the workers towards the surplus has been based on Zero Sum Gain Approach of Constant Sum Gain Approach. Under this approach, the value under consideration is considered to be constant and the competing parties striving to share the value believe that each of their respective gain can be only at the cost of the other.

Taylor’s Mental Revolution is based on the concept of Variable Sum Gain Approach. Under this approach, the value under consideration is considered to be variable and can be increased. Thus, the size of the surplus will increase leading to better goods and services at a lower cost. It is a win-win situation for both, managers and workers as well as the customers.

D.    Equal distribution of work and responsibility between the management and workers- This principle is a mere extension of the last principle. The manager should willingly take up his part of responsibility without shifting it towards the workers and the worker should also take up his part of responsibility. The responsibility of the manager is the science of management i.e. to establish the best way of doing job and the responsibility of the worker is to willingly follow the directions given by the management.

Taylor says that if these principles are followed, the rule of thumb will be replaced by the science of management, discord will be replaced by harmony, individualism will be replaced by cooperation and restricted output will be replaced by maximum output.

b.      Solutions

                                                              i.      Methods- Already covered.

                                                            ii.      Scientific Management Movement- Already covered.