To What Extent Is Scientific Management an Appropriate Way to Manage In the 21st Century - Essay Example

TO WHAT EXTENT IS SCIENTIFIC MANAGEMENT AN APPROPRIATE WAY TO MANAGE IN THE 21st CENTURY? Introduction The evolution of management has been termed as a continuous process that changes and adapts according to the need of the scenario (Canter and Atkinson. 2010). Schaltegger and Burritt (2006) observed that managerial theories and concepts have been developed by scholars mainly by observing the nature of work being conducted and managed at operational level in the companies. However, Levin (2006) observed that most of the theories were developed with a single focus on improving employee management and resource utilisation process of the firms. Cash et al. (2003) stated that Taylor’s theory of scientific management was among the first managerial concepts to widen the scope of management approach for the business houses and also develop a national focus on the aspect of efficiency. The theory of scientific management was praised and criticised for its principles and polices by the contemporary researchers of management. Considering the contemporary scenario of management practices, it can be stated that with the changes in the market and customer response, organisations have also initiated numerous alterations in their operational practices (Vidal, 2004). One of the most crucial aspects of the business management processes as stated by Waddell (2005) is the power enjoyed by the workforce of the firms which was almost ignorable during the time of scientific management. Carrying forward these arguments and statements, the essay will focus on evaluating the validity of the scientific management process in the contemporary scenario. Main features of Scientific Management According to Schaltegger and Burritt (2006), scientific management primarily focuses on the aspect of discipline for developing better employee management processes. The features of the scientific management can be assessed by evaluating the principles and guidelines of the managerial processes. Although, many changes have taken place in the aspect of business management processes, discipline have always remained one of the core variables (Certo and Certo, 2006). The first feature of the scientific management system can be thus reflected as the systematic approach which allows managers to control their workforce and direct them in the desired manner. This systematic approach is designed by observing the behavioural pattern of the employees and the needs of the organisation (Canter and Atkinson. 2010). Managing the employees within a controlled atmosphere helps the company to achieve employee loyalty. The second feature of scientific management concept can be stated as the psychological changes that are initiated among the employees as well as the employer (Levin, 2006). The change here stated refers to the development of a shared vision among the workforce of the firm. It is necessary for the employers as well as the employees to understand and appreciate the requirements of the organisation (Vidal, 2004). Thus, the managers have to ensure that the strategic decisions being taken by the employers are for the benefit of the organisation. Meanwhile, the organisational objectives are closely followed up by the direction of productivity of the workforce. In the words of Schaltegger and Burritt (2006), scientific management process is a revolutionary concept as it rejects the rules and regulations of traditional management processes but develops a flexible approach for managing the work environment of a firm. The concept of scientific management, although discarded in the contemporary scenario was built by considering the changes that take place in the business environment (Certo and Certo, 2006). The aspect of flexibility and adaptations to the challenges and unknown risks that present themselves in the process of management were included as an inherent feature of the scientific management approach. Waddell (2005) mentioned that adaptations and flexibility helps a firm and its employees in facing not only the internal changes but also the external challenges of the business. Robbins et al. (2006) criticised that scientific management is a rigid process considering the criteria of following the guidelines and principles of the concepts to the dot. However, this aspect of the scientific management approach has also been considered by scholars such as Dyson (2010) and Boulton, Libert and Samek (2009) as core ingredient of the concerned method. The scientific management processes as reflected above was built for managing the employee base of the firm and initiating a disciplinary process in the work culture of a business. This requires the managers as well as the employees to abide by the principles of the approach. One of the features of scientific management processes can also be related to the modern managerial concepts being used in the business environment i.e. specialisation. Specialised skills are on high demand in the present business market (Levin, 2006). The scientific management approach highlighted that employees should be allocated jobs based on their strengths and abilities in order to gain higher efficiency in their respected designations. Specialised skills will also help the managers to ensure better quality, productivity and performance in their respected roles (Vidal, 2004). However, this also reduces the ability of the workforce to change and adapt to scenarios that are outside their scope of knowledge. One of the highly criticised and also appreciated aspects of scientific management processes is its expensiveness. The principles and concepts of the scientific management approach make it very expensive for small and medium scales firms (Certo and Certo, 2006). Aspects such as overall and unified focus on the workforce of a firm, unification of employee and employer requirements, etc can be developed by implementation and installation of high profile technological and experienced human resources (Vidal, 2004). Also the fact that business expenses are increasing does not make it easy for small and medium scale organisations to apply the concept of scientific management in their work place (Canter and Atkinson. 2010). Another setback and feature of scientific management previously discussed is also related to its application, the aspect of abiding by the rules. As noticed that the approach of scientific management is all about enhancing the ability of a management to utilise their resources efficiently, it also lays the foundation of the approach (Ghoshal, 2009). In modern managerial terms this can also be termed as wastage management process in the business development process. Resource utilisation is a crucial function of the managers of the organisations. Multinational firms such as Toyota, Sainsbury, British Petroleum, etc are known for their approaches that have focused solely on better utilisation of resources by reducing wastage in their operational functions (Levin, 2006). The managerial bodies are also trying to reduce their cost of operations without reducing the value addition to the quality of the products and services being manufactured. The characteristics of scientific management can thus be related with the functional as well as the planning processes of the firms. Characteristics such as discipline, adaptations, resource utilisation, wastage reduction, etc are some of the primary considerations for application of the scientific management process. However, the changes in the business scenario just might have reduced the validity of the approach in the contemporary scenario which can be better analysed by interpreting the managerial challenges and problems being faced by the organisations in the prevailing situations. Use of Scientific Management in the contemporary scenario Cash et al. (2003) explained that use of scientific management processes was mainly because of its ability to create a connective network among the various functions of a company and also align the employee motives with it. It should be noted that the period when scientific management was developed, trade and labour unions were a key aspect in the business functions. Thus, in order to reduce the external influence of trade unions in the business functions and also to build a better strategic approach increased the use of scientific management approach in the business scenario. However, the managerial approaches in the contemporary scenario are changing rapidly which may hold the concept of scientific management invalid. Considering the definitions of management being followed in the prevailing business environment, the utilisation of scientific management can be better explained. Schaltegger and Burritt (2006) defined management as the process of performing many activities such as planning, decision making and implementation in a streamlined manner that focuses on achieving the organisational goals and objectives. On the other hand, Certo and Certo (2006) stated that management is the process of controlling the resources of a firm in order to develop a system for fulfilling organisational objectives. It can be observed from the given definitions that now the management processes are more focused on the overall functions of the organisations rather than the employee management process which was the key during the days of Taylor. Waddell (2005) explained that scientific management theory was more related to the systems of resource utilisation for ensuring better productivity. However, as the number of influencing factors in the business management processes are increasing, the firms are trying to focus on creating a sustainable approach that also relates to their internal and external functions. For instance, Apple Inc is trying to improve their performance by indulging in vertical integration which reduces their costs of operation and also allows the business house to monitor their activities in a superior manner (Makadok, 2011). In the words of Cash et al. (2003), the efficacy and efficiency of the management systems are mainly evaluated by highlighting their contribution towards designing a long-term sustainable competitive advantage. The concept of competitive advantage was not present in the scientific management system but it referred to the approach which helps in building their core strengths (Morris, Schindehutte and Allen, 2011). One of the core strengths of the contemporary management practices is the focus on teamwork and on building integration among various functions of the business houses (Cash et al. 2003). On the contrary, the approach of scientific management has mainly focused on the individual specialisations of the employees so that unions and groupism can be reduced in the workforce. Schaltegger and Burritt (2006) observed that trade unions and employee groups were a major challenge for the managers in the business decision making and hence in order to tackle this obstruction, Taylor developed the scientific management approach on employee management and discipline. Dyson (2010) argued that the primary consideration for scientific management was to make decisions based on practical observations and justified logics rather than implementing a rule of thumb process. This shows that including teamwork within the managerial framework of the scientific management approach is an authentic exercise. Waddell (2005) highlighted a completely different and wider approach for assessing the validity of scientific management approach in the existing management process considering the new factors included in business functions mainly corporate social responsibility. The scientific management approach has considered resource utilisation as a hardcore feature of the business management processes and CSR in this regard is often regarded as an external expense for the firms. Meanwhile, it should be noted that in the beginning of 20th century, CSR was not an inclusive factor in the managerial practices. The concern for environment was not as hyped during the early 20th century as it is in the current scenario. Nevertheless, CSR is still criticised by Boulton, Libert and Samek (2009) and Robbins et al. (2006) as waste of business resources and may not be a part of the scientific approach if implemented in the contemporary scenario. The contribution of scientific management in the present scenario will be mainly focused on development of a steady practice procedure that can relate the organisational objectives with the work structure and the requirements of the employees. It should be mentioned that unlike the 20th century, employee management practices of the contemporary scenario are mostly based on motivation and reward structures instead of strict policies and actions. For instance, Google Plc is known to have one of the best work cultures in the corporate sector that promotes innovation, creativity and teamwork among their workforce (Dyson, 2010). They provide their employees psychological as well as materialistic benefits which enhance employee loyalty and job satisfaction (Vidal, 2004). The employee considerations are limited in the scientific management process but it focuses on developing a shared vision among the employers and employees which also portrays the requirements of motivation, rewards and leadership skills from the managers and the employees of the company. Challenges faced by managers in the 21st century The present scenario of business processes have changed hugely based on local and international influences on the business processes. The development of the firms does not only depend on the internal strengths of the firms but also focus on their ability to manage the external threats and uncertainties (Canter and Atkinson. 2010). The concept of globalisation is among the most influencing factors that are creating barriers for the managers operating in multinational regions. Cash et al. (2003) stated that globalisation has increased the cultural diversity in the workforce of the firms which has increased the complexities for the managers in designing the work structure and organisational culture of the firms. Globalisation has allowed the business firms to venture into new markets and also develop a strategic advantage against the cut-throat competition (Morris, Schindehutte and Allen, 2011). However, as new markets are being explored, new work forces are also recruited which has increased the diversity in the employee needs and interests. Managers on the other hand are finding it difficult to create a uniform work environment considering the need of the employee groups. In this context, the application of scientific management may not be able to solve the cultural issues in an efficient manner. However, Dyson (2010) argued that scientific management will allow the employees and employers to understand each other and focus on designing a system that solely concentrates on organisational requirements. Ghoshal (2009) criticised that neglecting employee needs is an authoritative approach and can result in dissatisfied employee groups and high employee turnover for the firm resulting in increased expenses. One of the new challenges faced by the managers of the business is the technological growth in context of information and communication technology. The growth of ICT as termed by Schaltegger and Burritt (2006) is a huge benefit for the managers of the firm rather than a barrier as it helps in monitoring and measuring all the functions of the work place and also helps in improving customer management processes. Nevertheless, management processes were not targeted towards the development of technological resources during the early 20th century and hence the aspect of technological benefits were also not directly embedded in the guidelines of the scientific management processes (Boulton, Libert and Samek, 2009). In context of technology as a challenge for the managers, Waddell (2005) stated that technology has increased the transparency in their operational processes and strategy formulations. Employees as well as customers have access to market information which also causes problems in designing the competitive strategies for the business houses. Implementing scientific management in this regard has been regarded as a useful process by (Cash et al. 2003). This was mainly because of the variable of resource utilisation in the scientific management approach. ICT has no doubt increased the ability of business houses for measuring their performance and also designing their strategies based on logical and scientific approaches. Implementation of technological aspects such as Enterprise Resource Planning and Accounting Information Management Systems has helped the managers in making faster and accurate decisions (Goksoy and Ozsoy, 2010). Another changing trend in the process of business management is the shift of focus from specialised employees to multi-skilled employees (The Atlantic, 2015). As the cost of business operations is increasing, managers are under the pressure of meeting their objectives with limited resources and hence they are trying to develop a strong workforce which can adapt to tough situations and also perform under various functional departments (Levin, 2006). This reduces the cost of recruitment, selection and training processes of the firm and keeps the operational expenses in control. However, scientific management approach as opposed to the policy of multi-skilled employees prefers specialised employees who can increase the productivity in their expertise (Makadok, 2011). Based on the changing scenarios and trends in the contemporary business, scenario of the firms has developed a barrier for the managers to include employees who can adapt themselves with the situations and needs of the business. Related to the changes of operational functions and managerial concepts, the decision making processes of the firms are facing many changes. One of the changes that can be related with the scientific management approach is the participation of the employees in the decision making processes of the firms (Goksoy and Ozsoy, 2010). It has been highlighted in the principles of the scientific management processes that the decision making should be strictly conducted by the management of an organisation; the managers have superior knowledge and experience and are better positioned for understanding the requirements of the company (Ghoshal, 2009). In the contemporary scenario, the decision making processes are being conducted in a participative manner which includes the employees and is being supported by the recruitment process of the firms that searches for knowledge driven workforce (Vidal, 2004). As employees are now experienced and have the freedom of reflecting their thoughts in the decision making processes of the firms, the managers may find it overcrowded in the planning room (Levin, 2006). Robbins et al. (2006) also quoted that the business decision making can now be related to the case of too many cooks spoiling the broth. One strategy for reducing complexities in business decision making is the stack ranking process which is being commonly practiced in the business segment. Stack ranking process monitors the performances of the employees and uses quarterly performance reviews for motivating the employees. However, this strategy not been successful despite being a performance focused process for increasing productivity of the employees. Companies such as Microsoft Corp and Yahoo Inc are real life examples of the ill implementation of stack ranking processes (BBC, 2014). Conclusion Management approaches and concepts being used in the business processes are mostly concerned with the gaps existing in the current practices of business firms. The concepts of management have mostly focuses on the problems being faced in managerial practices at a particular time period. This is the primary difference between the numerous managerial concepts being utilised by the corporate firms. In order to understand the concepts of management in an alternative manner, it is essential for managers to communicate their aims and objectives to their employees in layman’s terms. Communication in this regard is the most useful tool. Focusing specifically on the theory of scientific management, business houses can relate the integral principles with the concept of lean management and total quality management. Both these concepts are mainly used for operational functions have influence the overall managerial decisions of the business firms. Scientific management approach was developed during an era when many factors dominating the current business segment were non-existent. It was observed that the primary focus of the theory was to ensure resource utilisation, discipline, flexibility and wastage reduction. All these factors are present in the contemporary business scenario, but with time and challenges the influencing variables in the management processes has also evolved. Managers now have to deal with human as well as technological intelligence which are not considered in the scientific management approach. Implementation of scientific management may not be the most suitable aspect in the prevailing business scenario, but upgrading the theory by relating it to the existing managerial aspects can make it an effective system of decision making, planning and implementation for the business firms. Reference List BBC 2014. Work Rules we Love to Hate. [online] Available at: [Accessed 18 March 2015]. Boulton, R. E. S., Libert, B. D. and Samek, S. M., 2009. A Business Model for the New Economy. Journal of Business Strategy, pp. 29-35. Canter, L. W. and Atkinson, S. F., 2010. Adaptive management with integrated decision making: an emerging tool for cumulative effects management. Impact Assessment and Project Appraisal 28(4), pp. 287-297. Cash, D. W., Clark, W. C., Alcock, F., Dickson, N. M., Eckley, N., Guston, D. H., Jager, J. and Mitchell. R. B., 2003. 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