Scientific MGT Theory by Fredrick Taylor edited.pptx

Guide to Organizational management

1. PRESENTED BY: OPIO DANIEL CONTENTS : TAYLOR’S CONTRIBUTION TO MANAGEMENT. WHAT IS SCIENTIFIC MANAGEMENT? TAYLOR’S MANAGEMENT THEORIES. PRINCIPLES OF TAYLOR’S SCIENTIFIC MANAGEMENT. ADVANTAGES AND DISADVANTAGES FOR TAYLOR’S MANAGEMENT PRINCIPLES. HOW TODAY’S MANAGERS USE TAYLOR’S SCIENTIFIC MANAGEMENT PRINCIPLES??

2. Background of F.W. Taylor (1856 – 1915) F.W (Frederick W inslow ) Taylor, was an American mechanical engineer who sought to improve industrial efficiency. He was the first management consultant to look at work and productivity scientifically. He is known as the “father of scientific management (TAYLORISM)” and the “father of industrial engineering.” The goal of his scientific management was to find out the “one best way” of doing things efficiently as possible.

3. CONT’d He brought a scientific approach, but did not value the needs of workers. He believed that workers were only interested in higher pay, and employers were only interested in lowering costs. Thus: Workers don’t enjoy work Managers should break down the jobs into bite- sized tasks. Training should be given so employees perform tasks in a standard way. Workers should be paid based on how much they produce (piece rate pay). The aim was to create a win-win situation.

4. What is Scientific Management? Scientific management is a theory of management that analyzes and synthesizes workflows (knowing exactly what you want men to do and then see in, that they do it in the cheapest way). Its main objective is improving economic efficiency, especially labor productivity. There are two words under Scientific Management- Scientific and Management. Scientific means ‘ augmentation of specific knowledge’ and management means ‘an appropriate manner of getting things done by others to achieve certain goals.

5. CONT’d He firmly believes that the real interest of both (workers and owners) are one and the same because the wealth of the owners can not go on for a long time without the prosperity of the workers. It can be done, so it is possible that the laborer should be given what he wants- high wages and the owner should be given what he wants- low labor cost. He tried to find out effective work standards against which the worker’s efficiency and performance can be judged in order to enhance the productivity of the worker.

6. 1. Systematic Task Planning It is first determined by: W hat work is to be done by the workers? How much work can be expected from a skilled worker? Thus, under scientific management, standardized work is determined by what work which is completed by an average worker in standardized conditions. Taylor called it ‘ A Proper Day’s Work. ’ T his involves; time study, motion study and fatigue study The task needs to be designated scientifically and not by rule of thumb. It aims at eliminating unnecessary and wasteful motions and finding out the minimum time required to do the job.

7. CONT’d This involves : Defining tasks and objectives clearly. Breakdown of complex tasks, into manageable steps. Identify and sequence tasks logically. Establish realistic timelines and deadlines. Assign tasks and responsibilities to individuals or teams. Allocate resources and materials effectively. Monitor progress and adjust plans as needed.

8. 2. Standardization In order to increase the efficiency of the employees as well as organization, it is important to set standards in advance to decide work procedures, working conditions, quality parameters and time schedules. Standardization reduces production costs, improves production methods and varieties, and also increases the efficiency of workers.

9. 3. Scientific selection and training of workers It involves finding the right person for the right job by matching the capabilities for the worker with the nature of the job . Lack of scientific selection affects the efficiency of workers and their morale. Every labor should be given work according to his/her efficiency and ability. Person should be selected according to the work and work according to the person. After selection of skilled workers, they should also be given training. In modern times, it has become necessary to train employees as the importance of labor division and specialization increases.

10. 4. Functional Foremanship Different departments need to be controlled by respective supervisors within an organization. These supervisors are functional specialists who plan and provide relevant advice to the workers. This help to differentiate planning from doing function. Taylor recognized ‘functional foremanship’ under the scientific method. Under this, the management and the functions of the employees are divided according to the method . Each person is assigned the same task in which he is an expert (principle of division of labor and specialization).

11. 5. Differential Piece rate system ‘Motivational wages (pay based on results)’ means that workers who completed the assigned work in a stipulated time are paid a higher rate of wages and those who do not do the work assigned in the stipulated time are given relatively lower wages. According to scientific management , a higher salary increases efficiency. Wage incentives were provided to motivate workers. Wages would depend on the piece of work distribution of gains between employers and employees.

12. 6. Harmony and not discord Employees and employers need to work in mutual cooperation with each other for the well being of the organization as a whole. It becomes possible by: Sharing a part of surplus with workers. Training of employees. Division of work. Team spirit. Positive attitude. Sense of discipline. Sincerity.

13. CONT’d For example, in most of the Japanese companies, paternalistic style of management is in practice and there is complete openness between workers and the management. Usually workers don’t go to strike but if at all they do, they just wear a black badge and work even more than the normal hours just to impress upon the management that their focus is on their demands as well as organizational objectives.

14. How today’s managers incorporate Taylor’s scientific management principles Task specialization Standardized processes Performance metrics Data driven decision making Employee training Work study Process optimization Time management Quality control Performance evaluation

15. Summary There are two parts to scientific management: A philosophy about how employees behave. A set of principles to maximize efficiency based on this philosophy. Related to: Autocratic leadership. McGregor's theory X: People are naturally lazy and uninterested to work. People needs to be controlled and directed to achieve goals. People prefer to be led and often avoid responsibilities. They are motivated by fear, money and benefits. They are capable of self direction and self control.

16. Reference: Taylor, F.W. (1912). “Scientific Management” in The American Magazine, Vol.74, No. 4. THANK YOU