Scientific Management Essay Introduction Every organization needs to streamline their business processes in order to remain competent in competitive market. Streamlining and optimized utilization of resources is very important for increasing the productivity as well as revenue of the company. Many techniques and strategies are being involved in different companies and if these strategies are successful then they are adopted by most of the companies around the globe for standardization of their operations and business processes. Scientific management is a theory of management which was developed by Frederick Taylor and this theory is also known as “Taylorism”. This main objective of this theory is to amalgamate workflow and increase most important parameter of organizations known as “labor productivity”. Labor productivity means is the amount of goods produced in a given amount of time. Thus scientific management increases the throughput of labors by implementing scientific techniques in the practices and thus increasing overall productivity of the company (De Grazia, 2005). Scientific management has contributed to the organizations in many ways by evolving many best practices and strategies. Scientific management strategies were especially designed towards increasing the productivity through various models such as soldiering, time and motion studies and total quality management. Taylor was the first person who differentiated between skilled labor and unskilled labor. Skilled labors are skilled for particular tasks and thus they charge heavy. Unskilled labors have no specific skill set which makes them less used in earlier days. They were only used for mechanical jobs and hence they were paid very less (Rosen, 1993). Thus Taylor understood the prime importance of unskilled labor being paid fewer amounts which increases the overall revenue of the company. Thus the main principle of Taylor was to break the part of all the skill needing jobs into smallest tasks which does not need any skill and can be done by unskilled labor. Thus this increased the value of unskilled labor without paying much to these labors. Hence the Taylorism or scientific management was considered very effective. The other basic principle of scientific management was time and motion studies which were carried out by Taylor in order to increase labor productivity. As per this study, the time is calculated for completing tasks by a normal labor in ideal condition. Now motion of the task being conducted is also changed by changing layout or floor plan measurement of company thus calculating the 1|Page best possible time for completing a task or set of tasks. This helped in increasing labor and work productivity. Scientific management is a theory which has many pros and cons. It has proved to be extremely effective for organizations in increasing their productivity as well as they have gained a lot of controversies because of decreased employee satisfaction as well. Many organizations have modified the versions of scientific management and employed it in their companies which have helped them in reaping maximum benefits. Increasing productivity is a crucial task for manufacturing based companies which has been handled very effectively by implementing scientific management theories (Spender & Kijne, 1996). The disadvantages of scientific management were nullified by making some modification in the strategies and thus scientific management is still a popular approach of increasing labor productivity in many organizations. Influence on management practice in contemporary organisation Scientific management has several ways which has revolutionized the world and these major theories included in scientific management are as follows: 1. Soldiering: As per Taylorism, labors in all the organizations are divided as direct labor and indirect labor. Direct labors are those labors which are skilled for some tasks and indirect labors are those labors that have no designated skills. Indirect labor or unskilled labors are always cheaper than direct labor or skilled labor. Thus Taylor saw great opportunity in employing unskilled labor for the same tasks for which skilled labor was used and were charging higher amount. Soldiering in scientific management is about breaking of complex tasks which need skill into many small tasks which needs not much skill. These small tasks are those tasks which can be done by hiring unskilled or indirect labors and training them to perform those tasks (RMIT University, 2012). Scientific management theories and approaches are of opinions that if a person routinely and continuously completes a task then he becomes skilled in that task even if he was unskilled. This theory explained the breaking of complex tasks into many simpler tasks which are being accomplished by unskilled labor. This has greatly reduced the cost and expenditure involved and it has also resulted in 2|Page increased productivity as a labor gains expertise in the routine task being done by that labor. Time and motion theory: This theory proved to be very successful in scientific management package and considered to be helpful in increasing productivity by decreasing the time taken for all tasks. This strategy is done by noting time taken for completion of tasks and the best time is recorded for the completion. This is known as time and motion theory because motion is also taken in account while calculating time taken for completing the work. Motion is changed by changing the layout or changing floor plan of the workshops (Smith, 1776). This helps in suggesting the best possible time taken for completion of tasks in an organization. This calculation is ideal calculation of the time taken for doing certain task and thus it acts as benchmark. Scientific Management in an Organization: Honda Cars Scientific management aims at bringing more sense and logic to the way in which management world work and there are many cases where theory has been applied to practices and the companies have gained benefit out of the same. Scientific management has been the hallmark of any Honda Motor plants and they have been giving this an additional focus because of the quality standards that they maintain. This has resulted in many organisational improvements and changes in the way that they work in Honda. This focus on the scientific management and the focus on quality have made it the way Honda has become (Farquhar, 1919). They focussed on reducing the pain points in the system and at the same time they have made sure that they reduce the redundancies that are there in the system that increase3s the cost. They have started at a small scale and at the same time they had a big vision of becoming one of the leading manufacturers of cars in the world that has resulted in the huge focus by the top management in maintaining the productivity of the employees and ensure that they get the best products for the customers. They have based themselves on the principles of Taylorism that has added value to the customers and the company in terms of reducing the costs and improving the operational processes (Perkins, 1997). , In case of Honda the success comes from factors like depending on cheap labour and making sure that they follow the processes so that the quality standards are bang met. They also believe 3|Page in the philosophy of man maximum machine minimum that involves people as an important part. They have been basically automating the whole process by assembly line operations and this will help them in mass production and thus achieve economies of scale. This has also improved the labour since the work is standardised and at the same time there can be changes that can be made in the system the work may be divided into smaller pieces and this will help the employees in ensuring that they don’t need much of training and can learn things quickly. The work process is improved over a period of time by means of time motion study, this would ensure that the operational costs are reduced and the costs per car are much lesser as compared to that of normal production (Tolliday & Zeitlin, 1987). As mentioned above all the operations are automated and it may be said that the several special instruments are being used to make sure that these assembly lines are possible. The employees have t be trained in such a manner that they are used to the same and this saves a lot of time and energy as most of the operations are automated (Morf, 1983). This would also ensure that the errors in production may be minimised to minimal levels. They also ensure that the employees are paid well and hence the level of action is less in this case that reduces the requirement for training. Thus by combining good management techniques and the Honda way of production they have ensured that they achieve high levels of productivity and in the mean while they also ensure that there are improvements in the existing set up. Critical view of scientific management Contribution This is a new technique that has been used where various scientific techniques are being used. Taylor first proposed the use of science in production that can make human lives easier. Taylor’s scientific management is the essence of personal judgments, opinions and experience instead of accurate research and scientific knowledge. He believed in optimisation of resources and ensuring that the right set of resources is being used for the right process. He believed that by resorting to the best methods to work one would be able to reach a high standard of living. He along with his colleagues has worked on a set of techniques that can help the companies in improving the productivity (Hartness, 1912). They were the ones who has popularised the use of time motion study and differential wage system that has been widely successful in the industry circles. 4|Page Limitation In spite of all the benefits that are being discussed here there are some of the limitations. It helped us in solving the initial issues and improves their operating efficiency, but it still doesn’t address the issues that the company faces as a whole. One of the biggest mistakes in his theory is that he believed in doing and planning separately which does not work in the normal scenario. According to his method the management has to take the ownership of the whole process and it is they who have to control the way things are done and this has resulted in multiple conflicts that exists in organisation (Krenn, 2011). Ethical and Moral Implications The ethical as well as moral implications of scientific management are very high. The scientific management is true believer of doing routine tasks as it increases productivity. But the major controversy revolving around this theory is that it increases employee dissatisfaction which in turn decreases productivity. This happens because of the monotonous jobs which are being done by labor for years after years thus increases frustration and decreases the productivity of labor. This also has given birth to an observation that career of labors don’t develop much if the company is utilizing scientific management as they are involved in same monotonous work for longer time. According to scientific management theories, monotonous work has made labor force much more dissatisfied towards their job which increases attrition rate and decreases productivity (Babbage, 1835). Also as per human rights, taylor’s view of doing jobs and completing tasks was far more different and harsh. Increasing labor productivity was good aspect but treating humans as machines was completely insane and this was the major reason why scientific management theories were considered to be unethical and immoral. Scientific management theories and principles influenced many other companies but it also influenced several criticisms making this management practice to be obliterated from the manufacturing companies. These ethical and moral implications should be valued and researched by the organizations before implementing all techniques of scientific management. Scientific management also covers relevant knowledge about total quality management which means that labors should always strive hard in order to improve quality at every step of production. This brings immense pressure 5|Page on labor force thus creating an image of a capitalist organization. This has severe moral and ethical implication of scientific management theories or taylorism on organizations. Other moral implication of scientific management was that taylorism used to turn a human into machine in order to generate profits and increase productivity. This caused serious implications on Taylor over his theory and was actually against human rights. Thus in spite of its usefulness, scientific management theories lost its aura in long run. Summary of Sustainability of Scientific Management Scientific management theories were introduced for rightful cause which was under utilization of resources and labor productivity. This was serious issue during few decades back and thus scientific management theories were adopted with good intention. These theories were even successful in most of the cases but were also remained a part of controversy because of increased pressure on labors for quality management as well as decreased productivity because of monotonous and routine jobs. There are several theories that were used for the production and Taylor’s theory of scientific management has been one of them that has been successful and has helped he companies in getting better productivity (Maier, 1970). Innovation is the key that drives today business. Most of the companies these days are dependent of the scientific theories and at the same time they have made necessary changes to the traditional theories just to ensure that it works in the context that they are operating. In Honda there are several theories that are being implemented and at the same time they have made necessary changes in the existing systems such as division of labour and extension of job role to match them and at the same time customise the same based on the needs of the organisation. They have improved their productivity and have reduced their costs as a result of the same and this has resulted in them fattening the bottom lines. In these days were technology is playing the key role in driving the business we may say that by merging both the old school and new school of production systems is the only way in which the companies can grow further. In fact many companies are utilizing scientific management in their companies by removing the negatives of these theories. For example, processes streamlining and layout optimization is very crucial processes in all the operation based companies ranging from automobile companies to 6|Page retail giants. All these modern companies are utilizing the scientific management theories but in different names. Total quality management is also a part of scientific management which was earlier considered as capitalist strategy is now adopted in almost all organizations. The major changes made to this strategy are that it is now incentive based and thus labors are benefitted when they adopt a strategy which helps in increasing quality. Thus it can be summarized that scientific management theories and strategies are basic foundation stone of quality management in organizations. These theories should be modified and adopted as per requirement of the organizations and thus they will be able to reap maximum benefits. Instead of criticizing scientific management organizations should embrace this theory and increase labor productivity thus increasing revenues. 7|Page References Smith, A 1776, An Inquiry into the Nature and Causes of the Wealth of Nations, London: Methuen & Co., Ltd. Babbage, C 1835, On the Economy of Machinery and Manufactures, 4ed, London: Charles Knight. 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