F W TAYLOR

 Frederic Windslow Taylor was born in America on March 20, 1856 and died on March 21,1915.

 1874-He become an apprentice mechanist and learned factory conditions at the grass root level.

 1884- He became an executive at Midvale Steel company.

 1898- He joined in Bethlehem Steel Company and there he introduced piece rate system.

 1900- He worked as a professor in Tuck school of Business at Dartmouth College.

 1906-1907 he selected as the president of American Society of Mechanical Engineers.

MEANING AND DEFINITION OF SCIENIFIC MANAGEMENT

 Scientific Management refers to the application of science to management practices.

 Scientific management means “knowing exactly what you want men to do and do it in the best and
cheapest way.”

PRINCIPLES OF SCIENTIFIC MANAGEMENT

1. Science but not Rule of Thumb

 The basic principle of scientific management is the application of scientific methods in solving the
problems.

 Scientific method requires cause and effect relationship of any work to be performed.
 Scientific method involves investigation of traditional method through work study, unifying the best
practices and developing a standard method.
2. Harmony,Not Discord
Factory system of production implied that managers served as a link between the owners and the
workers. Always exist a class conflict between managers and workers. Taylor emphasised

that there should be a complete harmony between management and workers. Both should realise
that each one is important.Taylor called for complete mental revolution on the part of management
and workers.

Management should share the gain of the company with the workers . At the same time workers
should work hard and will be embrace change for the good of the company.
 3. Co-operation not Individualism

 It is an extension of the principle harmony not discord.

 Competition should be replaced by co-operation.
 Management should not close its ears for any constructive suggestions made by the employees.
 They should be rewarded for their suggestions which result in substantial reduction in costs.
 To attain this there should be equal division of work between management and workers.
 Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

 Management and workers should try for the benefit of maximum output.
 It suggests that on no ground is production to be curtailed or productivity allowed to decrease.

 Workers and management get good reward for their services.

 Maximum output will also be in the interest of the society.

 Individual efficiency depends to a large extent on a personal -competencies.

 According to Taylor scientific selection and training and development of workers is entrusted to a
central personnel department.Training is required for increasing efficiency.

Conclusion

 Taylor given more importance to the lower level management of the organisation. According to him if
operational level workers efficiency improved the over all objectives of the organisation can be
achieved easily.

TECHINIQUES OF SCIENTIFIC MANAGEMENT

FUNCTIONAL FORMANSHIP
Functional Foremanship is an extension of the principal of Division of Work or specialisation to the shop floor. Each
worker has to take orders from eight foremen in the process of production.Foremen should have
intelligence,education, tact,judgement,special knowledge, energy,honesty etc.So Taylor proposed eight specialists.
• Planning Incharge:

• Instruction card clerk- To draft the Instructions to be followed by workers in handling the jobs given to
them.

• Route clerk- To sort out the sequence of mechanical and manual operations

• Time &Cost clerk-To fix up the duties of starting and completing the work as per schedule and prepare
cost sheets for each operations.

• Disciplinarian- To ensure orderly systematic performance of the job.

Production Incharge

• Speed Boss- To ensure timely and accurate completion of the job.

• Gang Boss-To Keep machines, materials,tools,etc.ready for operation by the concerned workers.

• Repairs Boss-to ensure that machines and tools are kept in proper working position. Work worthiness
of the plant is his concern

• Inspector- To check up the quality of the work turned out by the workers.

standardization&Simplification

• Standardisation: it is a technique which involves the establishment ofStandard tools and equipment
for use by workers.

• Standard methods of work,process,working conditions.

• Standardisation is thus process of setting standards for every business activity . The purpose of
standardization is to attain the efficient performance of jobs.
• Simplification of work: It refers to the elimination of superfluous varieties,sizes and dimensions. The
purpose is to reduce labour costs through increased specialization of task, and helps in improving
the quality increasing the turnover at reduced costs and prices.

Method study

• The objective of method study is to find out one best way of doing the job. There are various methods
of doing the job. To determine the best way there are several parameters. Taylor devised the concept
of assembly line by using method study.

• Ford Motor co. used this concept very successfully.

• The objective of this method is to minimize the cost of production and maximize the quality and
satisfaction of the customer.

Motion study

• Motion study refers to the study of movements like lifting, putting objects,sitting and changing
positions etc.which are undertaken while doing a typical job.

• Taylor used stopwatches and various symbols and colours to identify different motions.

• The purpose of motion study is to identify and eliminate wasteful motions, so that it takes less time to
complete the job efficiently.

• On close examination of body motions, it is found that , Motions which are productive, and which are
unproductive.

Time study

• Time study is a technique which is used to measure the time that may be taken by a workman of
reasonable skills and ability to perform various elements of the tasks in a job.

• The purpose of time study is to determine standard time normally required to perform a well defined
job, to determine a fair day’s work for the workman, to determine labour costs, the no.of.workers.

• Time study is conducted with the help of stopwatch to observe time taken by each element of task.

Fatigue study

• Fatigue study is a technique which is used to determine the amount and frequency of rest intervals in
completing a task.

• Taylor suggested that frequent rest pauses should be provided to the workers for their efficient
functioning.

• There are many causes for fatigue like long working hours, doing unsuitable work, having uncordial
relations with the boss or bad working conditions etc.
• If a worker is allowed rest intervals, he will be able to regain stamina and start working with same
capacity.

Mental Revolution

• Mental revolution involves a change in the attitude of workers and management towards one another
from competition to cooperation.

• Both should realize that they require one another. Both should aim to increase the size of surplus. This
would eliminate the need for any agitation.

• Management should share a part of surplus with workers. workers should contribute their might so
that the company makes profits.This attitude will be good for both of them and also for the company.

Differential piece rate system

• Taylor wanted to differentiate between efficient and inefficient workers.

• The standard time and other parameters should be determined on the basis of workstudy.

• It is a method of wage payment in which efficient and inefficient workers are paid at different rates
viz. higher rate per piece for a worker who produces equal to or more than a certain no.of pieces and
lower rate per piece for a worker who produces less than a certain no.of .pieces.

Example

• In one department a standard is set as follows:

• No.of .standard units-200, standard wage rates-Rs20 for those who completes standard units Or more,
and Rs`15,who not completes standard units or below standard units.

HENRY FAYOL
 Henry Fayol was a french management theorist .(1841-1925)

 He graduated from the mining academy of St. Etienne in 1860 in mining engineering

 The 19 year old boy started at the mining company ‘Companie de commentatary-fourchambean
Decazevillie as its managing director.

 Fayol was the first to identify the functions of management.

HENRY FAYOL’S 14 PRINCIPLES OF MANAGEMENT

14 PRINCIPLES OF MANAGEMENT
1. Division of work
According to this principle, the whole work must be divided into small task or units and instead
of assigning the whole work to one person . One task or job should be assigned to one person
according to the capability , qualification and experience of the person .
When a person is performing a part of job again and again he will become perfect and
specialised in that job and efficiency will improve . This principle is very useful for any
organisation be it private or public. It enhances overall performance of an organisation
because specialists perform consistently .
For example an orgaisation having different departments.
1. Authority & Responsibility
the concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the
right to give orders and the power to exact obedience. Responsibility involves being accountable, and
is therefore naturally associated with authority. Whoever assumes authority also assumes
responsibility.
a. There should be a balance between the two i.e. they must go hand in hand.
b. Authority without responsibility leads to irresponsible behavior whereas responsibility without
authority makes the person ineffective.

2. Discipline
According to Fayol, “Discipline means sincerity, obedience, respect of authority & observance
of rules and regulations of the enterprise”.
This principle applies that subordinate should respect their superiors and obey their order.
Discipline is not only required on path of subordinates but also on the part of management.
3. Unity Of Command
Each worker should have only one boss with no other conflicting lines of command.
In other words, a sub-ordinate should not receive instructions from more than one person because -

-  It undermines authority

-  Weakens discipline
-  Creates confusion
-  Delays the work
-  Escaping responsibilities
-  Duplication of work
-  Overlapping of efforts

4. Unity of Direction
The entire organization should be moving towards a common objective in a common direction.
Each group of activities having same objective must have one head and one plan.
People engaged in the same kind of activities must have the same objectives in a single plan. This is
essential to ensure unity of action and coordination in the enterprise.
Unity of command does not exist without unity of direction but does not necessarily flows from it.
5. Subordination of individual interests to the general interests
The interests of one person should not take priority over the interests of the organization as a whole.
In an organization, there are two types of interest, the individual interest of the employees, and the
general interest of the organization. The individual interest should be given less importance, while the
general interest should be given more importance. If not, the organization will collapse.
For example, for change of location of plant, for change of profit sharing ratio, etc.

6. Remuneration
Remuneration is the price for services received. If an organization wants efficient employees and best
performance, then it should have a good remuneration policy. This policy should give maximum
satisfaction to both employer and employees.
It should include both financial and non-financial incentives (free education, insurance, medical &
residential facilities).
7. Centralization (Or Decentralization)
a. Centralization means concentration of authority at the top level. In other words, centralization
is a situation in which top management retains most of the decision making authority.
b. Decentralization means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is decentralization.
c. According to Fayol, “Degree of centralization or decentralization depends on no: of factors like
size of business, experience of superiors, dependability & ability of subordinates etc.
d. Anything which increases the role of subordinate is decentralization & anything which
decreases it is centralization.
e. Fayol suggested that absolute centralization or decentralization is not feasible. An
organization should strike to achieve a lot between the two.

8. Scalar chain (Line of Authority)

Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top
to bottom. Every member must know who his superior is. He must also know who his subordinate is.
Scalar Chain is necessary for good communication. Scalar Chain must not be broken in normal
circumstances. However, if quick action is necessary, then this chain can be broken. This is done using
"Gang Plank"
 Gang Plank
A Gang Plank is a temporary arrangement between two different points to facilitate quick & easy
communication as explained below:
In the figure given, if F has to communicate with P he will first send the communication upwards with
the help of E, D, C, B to A and then downwards with the help of L, M, N and O to G which will take
quite some time and by that time, it may not be worth therefore a gang plank has been developed
between the two.

9. Order
There should be an Order for Things and People in the organization.
Order for things is called Material Order. Order for people is called Social Order.
Material Order refers to "a place for everything and everything in its place."
Social Order refers to the selection of the "right man in the right place".

There must be orderly placement of the resources such as Men and Women, Money, Materials, etc.
Misplacement will lead to misuse and disorder.
10. Equity
The employees should be treated with fairness, kindness & justice if devotion is expected of
them.
It implies that managers should be fair and impartial while dealing with the subordinates.

They should give similar treatment to people of similar position.

They should not discriminate with respect to age, caste, sex, religion, relation etc.

Equity is essential to create and maintain cordial relations between the managers and sub-
ordinate

But equity does not mean total absence of harshness.

Fayol was of opinion that, “at times force and harshness might become necessary for the sake
of equity”.

11. Stability of Tenure of Personnel

Employees work better if job security and career progress are assured to them. An insecure tenure and a
high rate of employee turnover will affect the organization adversely

According to Fayol. “Time is required for an employee to get used to a new work & succeed to doing it
well but if he is removed before that he will not be able to render worthwhile services”.

As a result, the time, effort and money spent on training the worker will go waste.
Stability of job creates team spirit and a sense of belongingness among workers which ultimately increase
the quality as well as quantity of work.

12. Initiative
Management should encourage initiative. That is, they should encourage the employees to suggest ideas,
experiences& new method of work.It is the first step with self motivation.

It helps in developing an atmosphere of trust and understanding.It creates eagerness to initiate actions
without being asked to do so.It develops feelings of belongingness among the employees.

 . 14. Esprit de Corps

Esprit de Corps means Union is Strength

 Management must foster the morale of its employees. He further suggests that: “real talent is needed
to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit
without arousing possible jealousies and disturbing harmonious relations.”

 Here Fayol emphasizes the need for building and maintaining of harmony among the work force ,
team work and sound interpersonal relationships.
Conclusion

 As we all know that a building cannot attain stability without proper foundation, an organization also
cannot be stable in its long run and achieve its long term goals without following these 14 principles of
management.

 Organization and these principles are like complimentary goods which completes each other, one is
useless without the other. Like car & petrol.

TIPS FOR THE STUDENTS:

1. Henri Fayol the father of management gave five elements of management. They are planning,
organizing, commanding, coordinating and controlling.
2. Management may be viewed as a process consisting of these functions.
3. Henri Fayol the father of management gave five elements of management. They are planning,
organizing, commanding, coordinating and controlling.
4. Management may be viewed as a process consisting of these functions.
 PRINCIPLES OF MANAGEMENT:
1. Division of work, Authority and responsibility, Discipline, Unity of command, Unity of direction,
subordination of individual interest to the general interest, Remuneration, centralization, Scalar chain,
order, equity, stability, initiative and spirit de corps.

These principles can be used as guide to decision making in different situations. They are flexible in
nature.
SCIENTIFIC MANAGEMENT
F.W. TAYLOR the father of scientific management advocated the application of scientific methods
and enquiry for effective management. The broad features of scientific management are as under:
Functional foremanship, Method study, motion study, time study, standardization of work and
different piece wage system.
PRINCIPLES OF SCIENTIFIC MANAGEMENT
1. Replacing the old rule of thumb method by scientific investigation.
2. Harmony between the management and the workers,
3. Cooperation and individualism
4. Development of each worker to his greatest efficiency and prosperity.
5. Equal division of responsibility between the workers and the managers.

SIMILARITY BETWEEN TAYLOR AND FAYOL

1. Both Taylor and Fayol aimed at improving the efficiency of management and putting it on a rational and
systematic basis.
2. Both Taylor and Fayol were managers. They developed their principles on the basis of their experience
in managing industrial enterprises.

TERMINOLOGY(IMPORTANT POINTS TO BE REMEMBERED)

1. Principles of Management: General guidelines which can be used for conduct in work places under
certain situations.
2. Scientific Management: According to Taylor, It means knowing exactly what you want men to do and see
that they do it in the best and cheapest way.
3. Method study: Study conducted to find “one best way of doing a job”
4. Motion study: Study of movements of men and machines which are undertaken while doing a particular
work.
5. Time study: Study to find the time required to complete a given work and to determine the number of
workers required to complete a given work.
6. Fatigue study: Technique used to measure the amount and frequency of rest intervals in completing a
task.
7. Work study: Scientific technique to determine a fair day’s work.
Work study= Motion study +Time study +Method study+ fatigue study.
8. Differential piece rate system: It is a method of wage payment in which efficient workers and inefficient
workers are paid at different rates (higher and lower) to motivate the worker either to produce more or
to reach the standard production.
9. Mental Revolution: It involves a change in the mindset of both management and workers towards one
another from competition to cooperation.” I should be replaced with We.”

SIMILARITY BETWEEN TAYLOR AND FAYOL

3. Both Taylor and Fayol aimed at improving the efficiency of management and putting it on a rational and
systematic basis.
4. Both Taylor and Fayol were managers. They developed their principles on the basis of their experience
in managing industrial enterprises.