Scientific Management and its Relevance Today - Literature review Example

Scientific Management and its Relevance Today Taylor developed the principles of scientific management during the scientific revolution of 19th century over a hundred years ago. His principles on the best way to do a task and worker selection are some of his ideas that have continued to elicit varied reactions in management sector. There are those who think that Taylor’s ideas placed greater emphasis on the organization at the expense of the worker. Those who hold such views think that scientific management was not effective then and cannot be in the present days. This essay argues that Taylor’s scientific management system had its weaknesses, but the weakness can guide research towards making the theory more relevant to the current management realities. Scientific Management and its Relevance Today The result of years of experimentation and research that Taylor and his colleagues conducted is the scientific management theory. The following four principles anchor the theory: Establishment of a science that would increase production; selection and training of personnel that will improve efficiency and increase production; application of the science established to tasks designed; and building of teamwork between personnel and management to realise the set targets (Cannon, 2009). These principles have continued to inform management practices since the 19th century to the modern days. There are many areas within management, industrial and organizational psychology that scientific management principles are applicable today. Scientific management principles has had the greatest impact in two management subfields of human resource and accounting management. Many organizations have implemented these ideas to cost‐accounting and management of personnel (Wren, 2005). Areas were these principles are in operation today includes job design, selection, group processes, job performance criteria, organizational change and development, motivation and incentive systems, worker’s attitude and performance appraisal (Payne, et al. 2006). Examination of some general business practices and techniques is one of the means to prove this (Haden, Humphreys, Cooke & Penland, 2012). According to Wren (2011), studies conducted in recent years have shown that Taylor is the leading contributor to theoretical and practical approaches in management. Management researchers like Heames & Breland (2010) found Taylor at the top in their studies. Bedeian and Wren list Taylor’s book, The Principles of Scientific Management as the number one among the 25 most significant management books since the turn of 20th century. These studies were conducted decades after Taylor made the introduction of scientific management to the world. The result of these studies shows that scientific management principles have become an essential human resource tool for many managers. Application scientific management is apparent, for example, when a customer support representative picks a call under pressure from the 90/10 practice (regulations demanding customer support representatives to pick 90 percentage of calls and assist customers within 10 seconds). This regulation has its roots in scientific management as it is about efficiency and productiveness of personnel. Thus, scientific management is evident in such situations were machine-like accuracy is required for improved profitability (Bell & Martin, 2011). Taylor’s experimentation on time and motion provides guidelines of how long it should take workers to perform a task. Time study reduces wasted motions and set a suitable standard of task performance (Wren, 2011). The study helps in the elimination of motions that do not add value to the organization’s production process. Time and motion sensors also assist employers to make decisions on strategies and techniques needed for efficient specialization. Many organizations are today preoccupied with how to reduce time and motions that are not relevant to the achievement set goals. Thus, scientific management benefited, and continues to benefit employers, and staff (Bell & Martin, 2011). Many organizations are nowadays pushing for efficiency in their operations (Schachter, 2007). Among the problems that made Taylor conduct, studies on scientific management principles organizational inefficiency that was lowering production level in the 19th century organizations. Taylor’s assertion that solutions for organizational inefficiency is within systematic management as opposed to organizations looking for an extraordinary man is still valid today. According to Taylor, performance of tasks in traditional organized businesses was among causes of inefficiency. His solution is a time study that can determine ‘one best way’ of executing each task. In this regard, Taylor wanted the best performance conditions, machines; tools among others identified to encourage efficiency (Caldari, 2007). Human resource management has borrowed a lot from scientific management over the years. The scientific selection of the workers, their training, and a remuneration system that takes into account both output and quality of work to be done have been used extensively to manage personnel for efficient running of organizations (Cameron & Pertuze, 2009). This is possibly the most applicable principle today as far as the hiring process is concerned. During the hiring process, psychologists take part in the interview process to select the right worker for a task. Once the appropriate workers are determined, many firms enrol them in training programs to expand their skills (McKinnon, 2003). McKinnon gives an example of McDonald’s restaurants and Auckland based The Learning Curve were principles of scientific management are applied in worker selection and training. Inclusion of psychological factors into personnel suitability to perform a task can still be relevant today since it is not only proper training that makes a qualified worker, but state of the mind and behavioural factors also play an important part. Scientific management theory encourages management to verify, arrange workers for feasible tasks, and award salary according to the section allocated to the worker. This system makes organizational management and control of workers simple. It further encourages workers to improve their effectiveness. Business enterprises that have adopted this system of personnel management have recorded better production efficiency (Bell & Martin, 2011). Most of the workers in manufacturing, home construction and those in fast-food services are not aware of the ideas of scientific management. The managers of these businesses need to educate the workers on principles of scientific management. Contact with these principles will train the proletarian workers. This training will improve workers’ efficiency, which will result in higher profit margins for the business (Bell & Martin, 2011). To improve productivity, scientific management theory proposes that workers need incentives that will motivate them to produce more for the organization. This theory dismisses the myth that if workers increase organizational productivity, management will force them to work more for less pay. Scientific management argues that organization’s human resources will produce more if their production levels are going to be the basis of payment for their services. Managers should develop a worker remuneration policy that includes incentives for increased production. Personnel motivation also increases their morale as they work more since payment is according to results and not only the number of hours on the job. Monetary incentives drive most workers to produce more, thus scientific management believes in paying basing on results (Sheldrake, 2003). Scientific management argues that the higher the financial incentive for a worker, the harder he will perform his tasks to gain the rewards. In order to motivate the workers, employers should compensate their workers for extra efforts (Cannon, 2009). The reward should not be only on a monetary basis but rests and breaks are also motivational factors for the human resource. This management strategy has led to a rise in personnel’s output, in the process earning more than ever before, and in the contemporary world, this principle still applies for workers who earn a bonus from commission (Koumparoulis & Vlachopoulioti, 2012). Inclusion of new ideas over the years has helped refine scientific management principles. The history of management approaches has advanced, presenting the opportunity for organizations to have a range of theories and practices for better management. Taylor’s ideas provide a starting point that enables scholars to extend their thinking and furthering their search on organizational management (Wren, 2011). Those that are against application of Taylor’s scientific management system have argued that it was transforming each worker into part of the machines of an organizational. They further claim that the approach was increasing employers’ income through exploitation of the worker (Caldari, 2007). In defence of scientific management, Proponents of Taylor’s approach have argued that, apart from focusing on scientific sustainability, Taylor’s works also focused on the needs of the social system. There are also instances where his focus is on the ‘man at work, especially, when he talks of prosperity of the organization and that of the worker (Bell & Martin, 2011). Today, many organizations are concerned with human resource welfare as a strategy to improve their production. Scientific management ideas on the worker’s prosperity can provide useful insights into how organizations can satisfy needs of their human resource. There has been criticism that Taylor did not consider the human factor in his approach management. This cannot be correct since in his books, and biographies, how to improve the worker was his focus. Scientific management principle of worker selection and evaluation contributed to the development of applied psychology, which is still useful to date (Giannantonio & Hanson, 2011). The maximum speed to do a task has been relevant over the years since the publication of principles of management. Determination of the levels of piecework and wages for work can still be undertaken using Taylors principles. The principle of the best way a task can be done shows connection with employees’ need for break due to fatigue and stress (Zuffo, 2011). The high level of specialization in scientific management has also faced a lot of criticism, as this theory advocates for the provision of guidelines for operations in advance. Any direction regarding change has to come from the planning department (Caldari, 2007). According to Marshall (1919), the structure of the firm runs the risk of becoming rigid, as workers have no mandate to change or make decisions on the spot. This sets a dangerous limit for the firm since at this point; adjustments are impossible in a short time to respond changes in the economic atmosphere (cited by Caldari, 2007). Although critics see this specialization as a limitation, it should not be thought as so. Specialization between managers and the workers enables businesses to be efficient. Using this approach, the worker concentrates only his job description of the day. Analyzing and taking the best course of action, on the other hand, becomes the role of the management (Koumparoulis & Vlachopoulioti, 2012). To promote the relevance of scientific management theory in 21st century business operations, Parker & Lewis (1995) believe that there are many points of convergence between the business environment of 19th Century industrial practices and the one we see today. Similarities between the two periods are in the areas of mergers, technological change, diversification, strong competition, and the concern with efficiency. They believe that organizations from these two periods are going through a period that is grappling with the same problems. The authors argue that, given that these two parallel periods are many generations apart, scientific management can still add value to management practices today (McKinnon, 2003). As seen from the above discussion, scientific management system is still relevant today. The principles of scientific management can still play a role in organizational management. Establishment of scientific means of production, scientific selection, and training of personnel, and building of teamwork between personnel and management can benefit organizations today. The limitations that that critics of scientific management have put forward should not aim at proving scientific management are not applicable today. Studies into limitations of the theory should instead focus on areas of improvement that will have a positive contribution to the advancement of management and other organizational practices today. Evidence from organizations that integrate scientific management practices into their systems has shown increased productivity. Increased productivity will benefit both the employer and the worker in terms of increased profit and better pay respectively. The organization cannot succeed if the worker fails in his responsibilities. On the other hand, the worker cannot achieve his goals of employment when the organization performs poorly. Principles of scientific management provide the basic templates to guide management in the current century. Realities in current management should inform exploitation of Taylor’s ideas. In making scientific management relevant to today’s organizational practices, this study has reported the importance of training workers to perform efficiently as opposed to searching for workers who have experience. The history of management approaches has advanced, presenting the opportunity for organizations to have a range of theories and practices for better management. However, Taylor’s ideas provide a starting point that enables scholars to extend their thinking and furthering the search. Such perception is essential in improving scientific management practices that began with a set of principles in 19th century. Companies need to incorporate improved work methods, manageable work schedule, more effective wage incentives, and practices that will lead to efficient production. In summary, scientific management, by developing principles to promote efficiency, is significant to the management of human resources in businesses and the public sector because it better serves the needs of the organizations, personnel, management, and customer. References Bell, R. & Martin, J. 2011. The Practical Uses of Two Classic Management Theories in Everyday Managerial Communication Situations. Proceedings of the 76th Annual Convention of the Association for Business Communication. Montreal, Quebec: Canada. Caldari, K. 2007. Alfred Marshall’s Critical Analysis of Scientific Management. The European Journal of the History of Economic Thought, 14(1): 55 – 78. Cameron, B. & Pertuze, J. 2009. Disciplinary Links between Scientific Management and Strategy Development. [online] Available at http://www ejournal.narotama.ac.id [Accessed: 25th August 2013]. Cannon, R. 2009. The Importance of Scientific Management. 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