Week 2: Scientific Management

Students’ Learning Outcomes

● Understand the meaning and principles of management;

● Understand the classifications of management;

● Analyse the functions and qualities of a manager;

● Distinguish the theories of management.

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Taylor’s Scientific Management

Frederick Winslow Taylor (1856-1915), an American mechanical engineer, was the first person who
insisted on the introduction of scientific methods in management. He launched a new movement during
the last decade of the 19th century, which came to be known as ‘Scientific Management. This led to the
emergence of Taylor as the father of scientific management. Taylor’s ideas of scientific management
emerged out of his working experience in three different companies, namely, Midvale Steel Company,
Simonds Rolling Machine Company, and Bethlehem Steel Company. Taylor worked most of his life in
steel companies, starting as a labourer and working his way up to the position of a chief engineer.

Meaning of Scientific Management

Scientific management implies the use of scientific methods in making decisions and acting on
organisational problems and situations. In this sense, scientific management discards the traditional
method of trial-and-error to manage organisations. Rather, scientific management develops a rational
basis for determining the standard output of work, selecting, and training workers, maintaining close
cooperation between the management and the workers, and bringing maximum prosperity and happiness
for the management and workers (Winslow, 1911)

Principles of Scientific Management

F.W. Taylor was the first person who insisted on the introduction of scientific methods to solve problems
and handle complex situations in organisations. Taylor expressed the basic philosophy of scientific
management by espousing the following principles:

1. Development of science for each element of work. This principle deals with the fixation of
standard output. Taylor called it a “fair day’s work,” i.e. the amount of work which an average
worker should be able to during a working day. The whole exercise is based on a scientific

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 analysis of work. It is in contrast with the traditional approach of determining standard output by
the management on the basis of opinions, prejudices and rule of them (Taneja et al, 2011).
2. Scientific selection, training, and development. For attaining productive efficiency, an
organisation must h9-ve a team of efficient workers. The selection of workers should be made by
using scientific methods of tests and interviews. A scientific selection process ensures the
selection of workers by tallying their abilities and skills with job responsibilities. Similarly, proper
training should be imparted to workers to increase and improve then immediate job skills and also
to prepare them for handling future organisational responsibilities.
3. Close cooperation between workers and management. In order to attain organisational efficiency
and effectiveness, workers and managers must work in close cooperation with each other and
make every effort to avoid discord and disharmony. Taylor emphasised the need for cooperative
behaviour as he believed that the interests of management and workers were basically the same.
Both believe in greater prosperity and happiness through greater production.
4. Division of responsibility between management and workers. For securing the benefits of
specialisation and division of labour, Taylor advocated the separation of planning function from
doing function. According to Taylor, planning of work should be the responsibility of managers,
and the execution of planned work should be the responsibility of workers.
5. Mental revolution. The principle of mental revolution in scientific management implies a positive
change in the attitude, outlook and behaviour pattern of managers and workers with respect to
their mutual relations and work responsibilities. Taylor suggested that workers should not treat
managers their enemies and must cooperate in performing organisational tasks. Similarly,
managers should not suspect the loyalty and integrity of workers and allow them participation in
management and profit sharing (Chen & Hitt, 2019) .
6. Maximum prosperity for employers and employees. According to Taylor, the principal object of
management should be to secure the maximum prosperity for the employer and the employees.
For the employer, ‘maximum prosperity’ means not just large profits in the short run but the
development of all aspects of the organisation to a state of permanent prosperity. Similarly, for
employees, ‘maximum prosperity’ means not just immediate higher wages but their development
so that they may perform efficiently in the higher grades for which their natural abilities suit them.

Techniques of Scientific Management

In order to facilitate the application of principles of scientific management. Taylor suggested the use of a
few techniques. Some of the more important techniques are discussed below (Oberoi, 2016):

1. Time Study. The technique of time study is used to measure the time taken by an average worker
to perform a job. Time is generally recorded with the help of a stopwatch. The object of time study
is to determine a fair day’s work (i.e. standard output) for workers.
2. Motion Study. The technique of motion study is used to observe the movements of the body and
limbs of a worker required to perform a job. By undertaking a motion study, an attempt is made
to know whether some elements of a job can be eliminated, combined or their sequence changed
to achieve the necessary rhythm. Thus, the object of motion study is to eliminate unnecessary and
wasteful movements and find out the best method of doing a job.

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 3. Standardisation. This technique is used to introduce standard quality trade tools and equipment,
raw materials and to provide standard working conditions at the workplace. Any compromise in
the quality of tools and equipment raw materials and working conditions may adversely affect the
level of efficiency of workers.
4. Functional Foremanship. To improve the quality of supervision of workers, Taylor suggested the
technique of functional foremanship. For the effectiveness of this technique, Taylor differentiated
between ‘planning’ and ‘doing’ functions and proposed that eight specialist foremen should
supervise each worker. He put four supervisors in charge of the planning department, namely,
Instruction Card Clerk, Route Clerk, Time and Cost Clerk and Disciplinarian. The four foremen
recommended for getting the work done included Speed Boss, Gang Boss, Repairs Boss, and
Inspector. The technique of functional foremanship put the workers under dual! multiple
subordination in the organisation (Su, 2017).
5. Differential Piece rate Plan. To differentiate between the efficient and inefficient workers and also
to motivate them to produce higher levels of output, Taylor suggested the use of the differential
piece-rate plan in organisations For this’ purpose; two-piece rates are used, one higher rate for
those workers who produce the standard output or more and the other lower rate for those who
produce less than the standard output. If the output of a worker is equal to or more than the
standard output, the worker is paid higher wage pier piece on his total output. For example,
suppose the standard output is 100 units and two workers, A and B produce 12 units and 8 units
respectively. If the two-piece rates are Rs. 2 and Rs. 2.50, the wages will be Rs. 30 (12 x 2.50) for
worker A and Rs. 16 (8 x 2) for worker B. It is clear from the illustration that Taylor’s system of
wage system work against inefficient workers and favours efficient workers. It is important to
note that the higher rate is for total output and not for units in excess of standard output. This
exerts a great influence on workers and motivates them to achieve higher levels of output.
6. Other techniques. Taylor also suggested other techniques like instruction cards, slide rules, graphs
charts etc. to standardise tasks and do better planning of work at the workplace.

Advantages of Scientific Management

The approach of scientific management is beneficial both for employers as well as employees. It offers
the following advantages (Taylor, 2004):

1. Higher productivity. The entire approach of scientific management aims at raising the level of
productivity of the workers. To achieve it, various techniques are used, such as standardisation,
wage incentive, specialisation, and proper planning of work to be performed by workers.
2. Better personnel relationship. With the help of this approach, work-related problems of workers
are solved amicably by getting them involved in the management process and providing a bonus
to them. In doing so, a sense of belongingness may be created, and they may be made more loyal
and sincere towards their work, co-workers, and the organisation.
3. Effective utilisation of resources. By using various techniques of scientific management,
resources of the organisation may be used in a better way for achieving objectives, and waste and
inefficiency are reduced considerably.

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 4. Benefits of specialisation. In the approach of scientific management, the work is divided into
small components, and to deal with each component’s specialists are appointed. The workers seek
orders and instructions from these specialists so as to get better results and higher efficiency.
5. Development of potential of the employees. The approach of scientific management seeks
scientific selection and proper training for the workers in the organisation. By way of providing
training to them, their knowledge regarding the job is increased, and they become capable of doing
it more efficiently.
6. Efficiency is rewarded. By applying the approach of scientific management, wages paid to the
workers are linked with their efficiency and those who perform better get higher wages as
compared to others. In doing so, efficient workers get more, and others are also motivated to work
more efficiently to get more wages.
7. Improved working behaviour. Through the process of mental revolution, the attitude and
behaviour of both managers and workers are improved and made it desirable for achieving
objectives. It would also help in maintaining harmonious relations and building a congenial work
environment.
8. Prosperity of organisation and workers. The approach of scientific management does not only
help in increasing the operational efficiency of workers, and it also leads to more production at a
reduced cost, besides higher wages for the workers.
9. Simplification and rationalisation of work. The work to be performed by the workers is fully
rationalised by conducting several studies regarding it. The standard of work is determined for
them, and regular monitoring is done to ensure that each worker meets the given target or standard.

Weak Spots and Criticism of Scientific Management

The entire movement of scientific management that led to’ development of this approach caught the
attention of executives, authors and practitioners of management. They concentrated on developing better
methods of doing things, making proper planning of work, and raising operational efficiency of the
workers (Su, 2017). Despite all these benefits, scientific management has been criticised and ridiculed on
the following grounds (Taneja et al, 2011):

1. While developing this approach, Taylor has completely ignored the human side of the
organisation. He has not provided human touch to the various elements of scientific management.
But an organisation is a manmade system, and therefore unless the importance of human beings
working in the organisation is fully recognised, desired results cannot be achieved.
2. Taylor has treated the workers as a part of the machine and like other factors of production. But
they have their needs and wants, beliefs, values, and perceptions, which continuously affect their
working behaviour. They cannot be made to work like physical resources.
3. In the approach of scientific management, Taylor has also assumed that workers are ‘economic
men’. Their working behaviour is affected and guided only by monetary incentives. But they carry
many more other needs like social needs, safety needs and other physiological needs that were
overlooked by him.
4. The approach of scientific management has a limited application. It can be applied only at the
shop-floor level, and it does not help in improving the overall efficiency of an organisation.

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 5. By applying the principles of scientific management, the initiative of the workers does not
develop. It is because they have to perform assigned work within the framework of standards
fixed by the managers. They do not get the freedom to apply their mind to work being done by
them.
6. Oversimplification of work and too much specialisation lead to boredom and monotony on the
part of workers. It adversely affects their efficiency because they lose interest in their work
(Oberoi, 2016).
7. The situation of dual command, in which two and more supervisors command activities of
subordinates, leads to violation of the principle of unity of command. And in practice, it is
recognised that subordinates cannot report and satisfy two or more bosses at a time.
8. The close supervision and control, as suggested by Taylor, do not help in creating positive
environments of producing more. Rather, the workers who are subject to such control feel
frustrated, demotivated, and tense.
9. Regarding scientific management, it is also argued that workers are expected to work more. They
do not feel like wasting their time because more production means higher wages. It has an adverse
effect on the health of workers, in the long run.
10. The approach of scientific management does not leave much scope for the development of a strong
trade union movement which is necessary for protecting the interests of working-class people.
Trade unionists always regarded the principles of scientific management as the means to exploit
labour because the wages of workers were not increased in direct proportion to their work
increases.

Despite its limitations, the scientific management theory is still relevant for the present-day organisations
insofar as it emphasises the need for doing work rationally and systematically (Chen & Hitt, 2019).

Fayol’s Administrative Theory of Management

Henri Fayol (1841-1925), a French mining engineer and a successful executive, had a long experience in
the field of general administration and management. Fayol’s ideas of management emerged out of his
work experience as a mining engineer with the French Coal and Iron Company in the capacity of a junior
executive. They got promoted as a Director in the same company. He put his work experience in the book
‘General and Industrial Management’ published in 1916 in French. This was translated in 1929 and then
a second English translation appeared in 1949 in the USA.

Fayol’s administrative management focuses on the manager and the basic managerial functions. He
concentrated his efforts in the field of general management and overall control of the organisation, and
not with the supervision and control of operations at lower levels of management (Wren et al, 2002).

His contribution in the field of management can be grouped and studies under the following heads:

I. Classification of business activities.

II. Basic functions of a manager.
III. Qualities and skills of a manager.
IV. Principles of management.

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 Classification of Business Activities

Fayol divided business activities into the following six groups (Wren et al, 2002):

i. Technical activities. These relate to the production and manufacturing of products.

ii. Commercial activities. These relate to the purchase of raw materials and selling/ exchanging the
finished goods.
iii. Financial activities. These relate to the search for acquisition and optimum use of financial
resources.
iv. Security activities. These relate to giving protection to human beings and ensuring the safety of
physical resources.
v. Accounting activities. These relate to the preparation of Profit & Loss Account and Balance Sheet;
minimising costs; and maintaining statistics.
vi. Managerial activities. These relate to the functions of managers like forecasting and planning,
organising, commanding, coordinating, and controlling.

Fayol’s belief was that the technical, commercial, financial, security and accounting functions were being
adequately attended to by a business unit (Heames et al, 2010). It was only the last activity, relating to
managerial functions, that was not receiving due attention in business.

Basic Functions of a Manager

Fayol suggested the following five functions of a manager (Khorasani & Almasifard, 2017):

i. Planning, i.e., determining the objectives and formulating steps to achieve those objectives.
ii. Organising, i.e., coordinating the resources and departments to give effect to plans.
iii. Commanding, i.e., giving orders and guidance to workers to facilitate their work performance.
iv. Coordinating, i.e., harmonising the actions and decisions of the employees to attain organisational
goals.
v. Controlling, i.e., ensuring implementation of plans and remove gaps between the performance and
plans.

Qualities and Skills of a Manager

Fayol suggested the following qualities and skills be possessed by a manager (Heames et al, 2010):

i. Physical qualities, such as health, vigour, and personality.

ii. Mental ability to understand and learn, to make decisions, and creativity.
iii. Moral education to accept responsibility and to show dignity and loyalty.
iv. Special knowledge about a specific activity, and commercial, technical, and financial prudence.
v. Experience, i.e., knowledge arising out of practice in handling functional area.

Principles of Management

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 Fayol listed fourteen principles of management. He used these principles during his work and based on
his experience; he perfected them. These principles are listed below (Heames et al, 2010):

1. Division of labour. Fayol suggested that all the activities of an organisation should be divided into
sub-activities and allocated to a number of persons. By performing a small part of work repeatedly
individual gains in speed and accuracy. This simplifies the work, reduces wastage and spoilage,
and increases the efficiency of individual employees.
2. Parity of authority and responsibility. Authority refers to the right of a manager to make
decisions, use organisational resources, and issue orders to secure obedience from subordinates.
Responsibility implies obligation or duty for the performance of functions and attainment of
goals. Fayol advocated parity (i.e. equality) between authority and responsibility. If a manager
has more authority than responsibility, it may be misused. Likewise, if a manager shoulders
greater responsibility than authority, he will be rendered ineffective. Thus, for the satisfactory
performance of organisational work, the authority must equal responsibility (Edwards, 2018).
3. Discipline. For the effective management of organisations, Fayol suggested the principle of
discipline. Discipline means obedience to rules and regulations, proper conduct towards fellow
employees and judicious use of organisational resources. Discipline gets promoted if there is no
arbitrariness in decision making, rules are clear, and managers are responsible and caring towards
subordinates.
4. Unity of command. This principle states that one subordinate should have only one superior from
whom he shall receive orders and to whom he shall be accountable. Adherence to the principle of
unity of command is necessary to avoid confusion, prevent the division of loyalty, preserve
authority, enforce discipline, and ensure stability.
5. Unity of direction. Unity of direction means one head and one plan for a group of activities having
the same objective. Its purpose is to achieve unity of action so that all the activities move
harmoniously towards the attainment of organisational goals.
6. Subordination of individual interests to general interests. Fayol suggested this principle to
emphasise the supremacy of common goals. Generally, managers should make efforts to bring
about the convergence of general and individual interests. However, in the event of a conflict
between the two, each employee should sacrifice and subordinate his interest and goal and work
for the larger good of the organisation.
7. Fair remuneration. Fayol suggested that employees should be paid fair and reasonable
remuneration so that they remain in the organisation and work with full commitment and loyalty.
Fair remuneration is decided after considering the work effort of employees, cost of living, the
financial position of the organisation and average wages for similar work in the industry. Fayol
was of the firm view that the method of wage payment should be just and fair to everybody and
as far as possible, it should accord satisfaction to both the employer and employees.
8. Centralisation and decentralisation. Centralisation is a state when top management retains the
authority of decision-making on important and crucial organisational matters. Decentralisation
represents ‘a situation where decision-making authority is pushed down the organisational
hierarchy. Fayol suggested that the relationship between centralisation and decentralisation is a
matter of promotion and optimum balance should be maintained between the two, keeping in
view the needs and circumstances of the organisations (Edwards, 2018).

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 9. Scalar chain (or hierarchy). This principle refers to the hierarchy of superior-subordinate
relationships. The scalar chain is the chain of authority responsibility relationships from the top
management to the lowest ranks in the organisation. In this sense, each manager along the scalar
chain is superior in relation to a manager below him, but the same manager becomes a subordinate
to his own superior. The scalar principle comes into effect due to the delegation of authority.
Fayol’s principle of scalar chain is important insofar as it serves as a chain of command and chain
of communication. So that communication through the scalar chain is not obstructed, Fayol gave
the concept of gangplank which means employees of different departments can communicate
directly with each other on urgent matters provided they keep their superiors informed about the
same.
10. Order. This principle is concerned with the arrangement of material thing as well as people in an
organisation. Arrangement of material things (machines, tools, raw materials, etc.) is called
material order, and the arrangement of people (managers and non-managers) is called social order.
In order to ensure smooth flow of work and efficient use of resources, everything should be in
proper place and order.
11. Equity. The principle of equity suggests that fair and equitable treatment should be meted out to
all the employees in an organisation. Fayol considered equity as the enforcement of rules and
regulations tempered by kindness and justice. Equity is essential to create and maintain cordial
relations between managers and workers.
12. Stability of tensure of personnel. Since people take time to learn their jobs, there should be
reasonable stability of tenure both in a specific position and in the organisation. Stability of tenure
provides ample opportunities for employees to prove their worth and contribute to the prosperity
of the organisation. Lack of stability of tenure proves expensive for the organisation as it leads to
employee turnover (i.e. employees quitting the organisation) and entails expenditure on
recruitment, selection and training of new employees.
13. Initiative. This principle emphasises that employees should be given enough opportunities to
develop and use their skills and abilities for solving organisational problems. They should be
encouraged to feel free to suggest newer and better ideas to perform organisational tasks and deal
with complex situations. The initiative, however, should be circumscribed by authority
relationships defined by the scalar chain in the organisation.
14. Esprit-de-Corps. This principle calls for team spirit, i.e. employees should work in close
cooperation with each other and contribute to realising common goals. Mutual conflicts and
uncalled for dissensions destroy an organisation and work against the individual interests of
employees.

TAYLOR VS. FAYOL

Taylor’s theory of scientific management aimed at improving the efficiency of the operative workers,
whereas Fayol’s administrative theory focused on enhancing the effectiveness of the organisation. The
following table presents a comparison between Taylor’s (Su, 2017) and Fayol’s approaches (Edwards,
2018):

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 References

Chen, V. Z., & Hitt, M. A. (2019). Knowledge Synthesis for Scientific Management: Practical Integration
for Complexity Versus Scientific Fragmentation for Simplicity. Journal of Management Inquiry,
1056492619862051.

Edwards, R. (2018). An Elaboration of the Administrative Theory of the 14 Principles of Management

by Henri Fayol. International Journal for Empirical Education and Research, 1(1), 41-51.

Heames, J., Pryor, M. G., & Taneja, S. (2010). Henri Fayol, practitioner and theoretician–revered and
reviled. Journal of Management History.

Khorasani, S. T., & Almasifard, M. (2017). Evolution of management theory within 20 century: A
systemic overview of paradigm shifts in management. International review of management and
marketing, 7(3).

Oberoi, R. (2016). Frederick Wilson Taylor’s Scientific Management Theory.

Su, Y. (2017). Taylor scientific management theory carding and significance of organization
management. Social Sciences, 6(4), 102-107.

Taneja, S., Pryor, M. G., & Toombs, L. A. (2011). Frederick W. Taylor's scientific management
principles: Relevance and validity. Journal of Applied Management and Entrepreneurship, 16(3), 60.

Taylor, F. W. (2004). Scientific management. Routledge.

Waring, S. P. (2016). Taylorism transformed: Scientific management theory since 1945. UNC Press
Books.

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 Winslow, F. (1911). The principles of scientific management. Cosimo.

Wren, D. A., Bedeian, A. G., & Breeze, J. D. (2002). The foundations of Henri Fayol’s administrative
theory. Management Decision.

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