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theories and approaches to industrial relations
theories and approaches to industrial relations
scientific management in modern organizations
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Background of Frederick W. Taylor
Frederick W Taylor was an American inventor and engineer, considered the father of "scientific management". Although born to a wealthy family, Taylor began his work life when he signed on as an apprentice at a small Philadelphia pump works. Four years later, at a plant in Midvale, he developed the basic elements of what later came to be known as "scientific management" - the breakdown of work tasks into constituent elements, the timing of each element based on repeated stopwatch studies, the fixing of piece rate compensation based on those studies, the standardization of work tasks on detailed instruction cards and generally the systematic consolidation of the shop floor's brain work in a "planning department."
His influential theory enabled industry to move away from "rule of thumb" management and be more efficient and prosperous. The modern systems of manufacturing and management would not be the examples of efficiency that they are today, without his work. Frederick Taylor was instrumental in bringing industry out of the dark ages by beginning to revolutionize the way work was approached. Taylor was able to increase wages, productivity and reduce per piece costs at the same time. His work was eventually adopted in a wide array of applications. Taylor's ideas had a significant influence on the industrial life of all modernized countries. His work was an extension of human work and technology. His principles of scientific management were conceived to be free of value judgment.
Frederick Taylor's Four Main Principles
Taylor's initial experiments were aimed at determining, how much work a "first-class man" could perform. It was Taylor's goal to collect raw data about the jobs in the workp...
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By the constantly changing dynamics of the 21st century business world, it is clear that it would be highly unproductive for managers to employ what is in actual fact a restrictive, controlling theory of management. As a results of globalisation of the economy, intensification of international competition, pervasive influence of the social market economy, increasing participation of women in the labour force and ecological consciousness, scientific management is no longer suitable in modern workplaces, as this theory tends not to allow for the constant innovation that is necessary to maintain a competitive advantage in the marketplace.
To say that scientific management theory doesn't exist at all in modern organisational life would be incorrect, as the problem with this idea is simply that it does not cater for all of today's business needs.
The classical approach can be understood easily if we compare the organization to a machine. This concept, formulated during the industrial period, was the subject of study for people who thought science could solve every issue and tried to apply it to different types of organizations. Researchers such as Weber, Taylor and Fayol wanted to determine if there is a way to make workers operate in a scientific manner in order to maximize profits. The assumption is that an employee is part of a machine, which can perform a specialized job when properly trained, conscious of the fact that every “part” of the machine can be replaced. Taylor studied different workplaces and under what circumstances workers are more or less productive. He also believed that there was only one way on how to perform a job and one way to explain it. Taylor’s key points of scientific management can be divided into three core concepts:
The major change came through the work of Fredrick Winslow Taylor and his theory of scientific management system. It was not that Taylor was unique or completely new; only time and motion study could be put in that category. The trend was already moving towards systematic management such as formal management methods or by cost ...
Scientific management is a way that an organisation regulates their staff within a workplace. The theory behind this is accomplished by selecting the ‘best person for the best role’, who will undertake the training to train each worker to do a ‘specific role the right way’ (Frederick Taylor). This extracts the responsibility from the employee whilst handing over executive decisions to the employer to make strategic directions. Frederick Taylor required the managers to set the tasks for the employees in advanced and that each task was to be detailed to each employee, to be done in a certain way and completed by an exact time no less.
Management Theorists such as F.W Taylor created the concept of scientific management, which is made up of six key aspects including observation, experiment, standardisation, selection and training, payment by results and co-operation. Despite some facets of his theory becoming outdated, scientific management can still be seen in the some way in current business structures. For example within Virgin, despite its reputation for having a relaxed working environment, some aspects of scientific management are used. Such as the selection and training and payment by results, with certain employees being offered rewards for showing ambition to set up their own businesses and showing signs of creative thinking.
Without a good management approach, the company will not be able to perform well in this competitive era. Maybank understands this concept really well and they have found a balance between both management as a science and management as an art together. Management can be classified either as a science or as an art.
After implement the scientific management, workers became dissatisfied with the work environment and it also lowered workers morale and increase existing conflicts between labour and management. The use of stopwatches was an objection issue and led to refusal to work at factory when “scientific management” was being tested. As a consequence, this approach causes reinforce labour unions and their bargaining power in labour disputes.
The concept of scientific management is based on the idea that work could be studied to increase efficiency, and specialization. Economist Adam Smith changed the way the world looked at the economy and organization. In his essay, “Of the Division of Labour,” Smith emphasizes the importance of specialization, and how division of labor leads to specialization. He states that this would allow a worker to be more productive and efficient (Shafritz, Ott, & Jang, 2011, p. 41-45). Frederick Taylor introduced the principles of scientific management, which stated that management is a science, workers should be scientifically selected and trained scientifically, and both management and workers should work together.
Many comparisons can be made between the two theories, such as the mechanisation, fragmentation and specialisation of work and that a lack of intellectual or skilled content will speed up the work at hand. Fordism's mechanisation of mass production further emphasised many of Taylor's popular beliefs about management being divorced from human affairs and emotions, using 'humans as instruments or machines to be manipulated by their leaders' (Hersey p.84). Fordism fused and emphasised the scientific methods to get things done by Ford's successful mass-production processes. Contrasts also exist between the two theories. Fordism dehumanisied the worker whereas scientific management convinced the workers that their goals could be readily achieved along with their employers goals, therefore they should all work together in this direction. Fordism suited industrial companies participating in mass production, whereas Scientific Management could be used in many types of organisation. Large companies such as Ford Motors, The Reichskuratorium fur Wirtschaftkichkeit (RKW) in Germany examples these theories in practice. These theories of the past are lessons for the way modern organisations are run today. Managers now realise that they should treat their workers more democratically and since the mid-70's, sweeping changes in markets and technology have encouraged managers and manufacturers to use greater product diversity and more flexible methods of production. Movements towards a more flexible organisation have become apparent. Examples of orgainisations such as Nissan, NASA and Toyota serve as modern day examples of post-Fordism and depict movement towards a modified Scientific Management.
Although Taylor's method led to dramatic increases in productivity and to higher pay in a number of instances, workers and unions began to oppose his approach because they feared that working harder or faster would exhaust whatever work was available, causing layoffs.
In the past, managers considered workers as machinery that could be bought and sold easily. To increase production, workers were subjected to long hours, miserable wages and undesirable working conditions. The welfare of the workers and their need were disregarded. The early twentieth century brought about a change in management and scientific management was introduced. This sort of management, started by Frederick Winslow Taylor, emphasised that the best way to increase the volume of output was to have workers specializing in specific tasks just like how a certain machine would perform a particular function. His implementation of this theory brought about tremendous criticism by the masses arguing that the fundamentals of Scientific Management were to exploit employees rather than to benefit them (Mullins, 2005)
Wrege, C. D. and A. G. Perroni (1974). 'Taylor's pig-tale: a historical analysis of Frederick W. Taylor's pig-iron experiments', Academy of Management Journal, 17, pp. 6-27.
? Some workers and unions opposed this theory because they feared that working harder or faster would exhaust whatever work was available, causing layoffs.
There are several theories that examine an organization and it’s approach to managing work in an effort to develop efficiency and increase production. Two classical approaches to management are Taylor’s scientific management theory and Weber's bureaucratic management theory. Both men are considered pioneers of in the study of management.
The evolution of management though the decades can be divided into two major sections. One of the sections is the classical approach. Under the classical approach efficiency and productivity became a critical concern of the managers at the turn of the 20th century. One of the approaches from the classical time period were systematic management which placed more emphasis on internal operations because managers were concerned with meeting the growth in demand brought on by the Industrial revolution. As a result managers became more concerned with physical things than towards the people therefore systematic management failed to lead to production efficiency. This became apparent to an engineer named Frederick Taylor who was the father of Scientific Management. Scientific Management was identified by four principles for which management should develop the best way to do a job, determine the optimum work pace, train people to do the job properly, and reward successful performance by using an incentive pay system. Scientifi...
Frederick Winslow Taylor was born in 20th March 1856 in Germantown, Philadelphia, Pennsylvania in a lawyer’s family. He studied in France and Germany for 2 years and ultimately transferred to the Europe in 1872. Taylor’s family encouraged him to become a lawyer like his father. He works hard and passed his Harvard law exam with honors. But, due to eyesight and poor health condition he turned his way from entering law school to pump manufacturing company in Philadelphia as an apprentice pattern maker. He completed his four year apprentice period in 1878 in same company and moved to Midvale Steel works as a machine shop labor. In his new company became a turning point of his career because he promoted rapidly within short period and eventually he became a chief engineer of the works within six years of the period. F.W Taylor was graduated with a mechanical engineering degree by attending to the exam in Stevens Institute of Technology in 1883. Later stage in 1898, he joined to the Bethlehem Steel company and involved to increase mass production using his principle of scientific management theories until he left the company in 1901. After the Bethlehem steel career period, he thought to promote his scientific management, publicity through seminar, consulting, writing and conducting lectures. Eventually, it became a famous scienti...