Principles of Scientific Management

Fredric Winslow Taylor identified that the existing management practices were based on trial and error method. F.W. Taylor is known as father of Scientific Management.

Scientific management means the application of scientific methods of study and analysis the problems of management. Taylor developed the following principles for guiding the managers of an organisation. These principles are known as the principles of Scientific Management.

The principles of Scientific Management are:

  1. Development of Science for Each Element of Man’s Work: According to this principle, decisions should be based on facts rather than rule of thumb. The work assigned to a worker should be observed. Each element (time taken, fatigue of worker etc.) of work should be analysed. The purpose of such observation is to decide the best way of performing the job. Taylor stressed that each job should be based on scientific study.

  2. Scientific Selection, Training and Development of Workmen: F.W. Taylor suggested that if an organisation wants to improve the efficiency, it is necessary that workmen are appointed with due care scientifically on the basis of job analysis and job description. So that their skills and experience match with the jobs.

  3. Close Co-operation between Workers and Management: F.W. Taylor is of the view that there should be close co-operation between workers and management to carry out the work in accordance with the plans and standards.

  4. Mental Revolution: According to F.W. Taylor, without complete mental revolution of workers and managers, scientific management will not be successful. The workers and managers should have a complete change of outlook with respect to their relations and work efforts. This is called mental revolution.

  5. Maximum Prosperity: As per this principle, the aim of every management should be to secure maximum prosperity for the employers and employees. This is possible only when each worker is given the opportunity for maximum output rather than restricted output.

  6. Division of Responsibility: Taylor emphasized that there should be clear cut division of responsibility between management and workers. Planning of work should be the responsibility of managers. Execution work should be done by workers.

Techniques of Scientific Management

Taylor is best known for the techniques of scientific management, particularly in the production department and that too at the shop level. Following are the techniques of Scientific Management as given by Taylor:

  1. Work Studies: Work study is the systematic, objective and critical examination of all the factors governing the operational efficiency of any specified activity in order to effect improvement. It includes time study, motion study, fatigue study and method study.

    1. Time Study: It is a technique of observing and recording the time required to do a price of work and developing the best way of doing it.

    2. Motion Study: Under motion study, the movement of men, machines and materials are observed and analysed. Motion study eliminates wasteful motions and help to find the best method of doing a particular job.

    3. Fatigue Study: Fatigue study means the systematic, objective and critical examination of the causes and consequences of fatigue. This study is aimed to determine the amount and frequency of rest required in completing the work with full capacity.

    4. Method Study: Method study is concerned with analysing and evaluating the methods (capital intensive or labour intensive) of performing a job. Management should select a best method after considering the following factors : labour cost, availability of capital, material cost, etc.

  2. Standardisation: It refers to the methods of selecting standard materials, machines and tools for use by workers and standardisation of working conditions with respect to lighting, ventilation etc. It will improve the efficient performance of jobs.

  3. Functional Foremanship: Under functional foremanship, a worker is supervised by several specialist foreman. Eight foremen control various aspects of production.

Foreman under Planning Department

  1. Route Clerk: He will determine the process of production and the route through which the raw materials will pass.

  2. Instruction Card Clerk: He lays down the instructions for workers, who have to follow them to perform their jobs.

  3. Time & Cost Clerk: He sets the time table for doing various jobs and specify the labour cost and material cost for each operation.

  4. Shop Disciplinarian: He has the responsibility to maintain discipline in the factory.

Foremen under Production Department

  1. Gang Boss: He arranges workers, machines, tools and materials, etc. for the jobs.

  2. Speed Boss: He has the responsibility of maintaining the planned speed of production. In case of delay, he investigates the causes and tries to remove them.

  3. Repair Boss: He has the responsibility of maintaining (cleaning, greasing, oiling etc.) the machines, tolls and equipments.

  4. Inspector: He has to ensure that output agrees to the standards of quality set by the planning department.

Differential Piece Rate Plan

F.W. Taylor suggested higher payment for those workers who produced standard output or more and lower payment to those who fail to produce standard output. Workers are paid on the basis of number of pieces produced. Due to different rates for different sets of workers, it is known as differential piece rate plan.

Suppose standard output is fixed at 100 units and two workers A and B produced 120 units and 80 units respectively. If the two piece rates are Rs. 1 and Rs. 0.75, A will receive Rs. 120 and B will get only Rs. 60 only. As B receives a lesser pay, he will be under pressure to improve the efficiency and to attain the standard output.