Scientific Management Theory is a theory of industrial administration that aims to increase productivity by application of scientific principles to all aspects of work, worker and workplace.
F. W. Taylor had worked as a machinist. Due to this experience of working as a practitioner rather than as a manager, he focused on the shop-floor, the lowest level - in other words, the level of the worker.
Three assumptions of Scientific Management are:
- A good worker is not supposed to take initiative, but is supposed to obey orders.
- Application of scientific principles will improve productivity.
- The worker is an economic man and is motivated by monetary incentives and rewards.
- Functional foremanship : a worker should be under the command of eight “functional foremen” or supervisors, each in charge of a particular aspect of work e.g shop disciplinarian, gang boss, time and cost clerk, repair boss, speed boss, inspector etc.
- Principle of Exception: a manager should be interested not in standard performance but in exceptional performance with deviates from the standard.
- Differential Piecework Plan: a system of monetary incentive to motivate the worker to put in his best efforts. Above the basic salary, a bonus is to be paid depending on the workers performance.
- Separation of planning and execution: His principle ' Division of Responsibility' stated that planning must be done by higher officials and employer. Lower level employees must focus only on executing the plans of their employer.He further advocated that there should be seperate people for each function within an organisation. If the same person is given both planning and executive responsibilities, his efficiency will go down and the organisation will
- Motion and Time Study: scientific assessment of hand and body motions, tools, procedures and equipment to find the “one best way” of doing things and eliminating unnecessary motions to maximize productivity and efficiency.
- Cooperation, Division of Work: between worker and management.
- Scientifically recruiting, training and developing the worker.
- Soldiering: the tendency on part of the worker to restrict output.
Other contributions to the Scientific Management school came from Henry Gantt (devised the Gantt chart of job scheduling against time), Frank and Lillian Gilbreth (gave concept of speed work, motion study, flow process chart).
Limitations of Scientific Management School:
- Undermines importance of non-monetary rewards
- Ignores the human-side of the organization, treats worker mechanistically.
- Curbs initiative.
- Takes away manager’s judgement and discretion by subjecting him to scientific principles.
- Narrow focus - focus only on the lowest level of the organization i.e the shop floor, not the top level management.
- Explains human motivation only in terms of economic factors.
- Ignores inter-personal relationships in the organization.
Contribution of Scientific Management School:
- Introduced concept of work study.
- Underline importance of performance standards and quantitative assessment of work.
- Contributed a lot to management thought.
- Role specificity and clear delineation of authority and responsibility.
- Underlined importance of task specialization at the workplace.
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