Scientific Management and Bureaucracy - Essay Example

FWTWEBER Scientific Management and Bureaucracy (Unit: Management Foundations) ______________ ___________ _______________________ Scientific Management and Bureaucracy (Unit: Management Foundations) 1 Introduction 2 An organization is a complex ensemble of structure, processes, strategies, polices, people and its objectives. All things under ensemble decide how an organization reaches its objectives. The assessment criteria leading to the conclusion of having met the organizational objectives lead to further discussion on bringing about changes in the individual elements of the ensemble. Of all of these elements organizational structure is of prime importance. In fact when organizational structure is determined it is usually done on a long term planning horizon and its selection decides and shapes the remaining elements. If one has a bureaucratic form of organization then all the remaining organizational elements would be determined by this structure. Same can be observed for scientific management based organization structure. Both bureaucracy and scientific management structures are very interesting, evolved and comprehensive. Despite their respective merits and demerits they are still widely chosen forms of organizational structures the globe over. In the following paragraphs we examine each of these structures in some details focusing on their main features, merits and demerits and the specific type of settings where these can be preferred structures. Bureaucracy The rationalization process is the practical application of knowledge to achieve a desired end. It leads to efficiency, coordination, and control over both the physical and the social environment. Weberian general theory of rationalization forms the basis for evolution of bureaucratic form of economic organization. Marxists sociologist had detected rationalization in factory settings and the several labor related concerns associated with it. Weber observed and extended rationalization to almost all social spheres - politics, religion, economic organization etc. Rationalization refers to increasing human mastery over the natural and social environment. Rationalization is the process whereby every area of human relationships is subject to calculation, administration and control. Weberian sociology is conceptualized on the metaphysics of rationalization which eventually converts capitalist society into a system of interconnected bureaucracies. According to Weberian definition of rationalization in economic organization it was simply manifest in the organization of the factory in the bureaucratic form with the calculation of profit by systematic accounting procedures. In ethical connotations it essentially meant an increased reliance on discipline and training in society as a whole, the spread of bureaucracy, state control and administration. Thus bureaucracy held centre stage in Weberian sociology. Weber defines bureaucracy as "a hierarchal organization designed rationally to coordinate the work of many individuals in the pursuit of large scale administrative goals" (Haralambous, 1985).Its main features are a hierarchal structure based on commonality of codified purpose, specialization in the form of well defined division of labor which runs under a power system termed 'rational - legal authority'( based on the concept of domination prevailing in democratic societies and belief in the legality of certain rules. Those who issue the rules are seen as entitled to do so. It is possible to know which rules are formally correct, imposed by accepted procedures. This power authority system creates an impersonal order). That is each stratum expects the authority of higher strata and, in turn, exercises the same downstream for common purposes. Each bureaucracy position is gained by ability and competence. The 'consistent system of codified and abstract rules' and norms are adhered to and administered with an intent of 'moralistic impersonality'. At its best bureaucracy has an almost a machine like character - each parts fits perfectly-integrated vertically and horizontally, activated at appropriate time in defined manner. Weber stated that "the monocratic variety of bureaucracy - is, from a technical point of view, capable of attaining the highest degree of efficiency", (Weber, 1964). Weber argued " it makes possible, a high degree of calculability of results". Advantages of bureaucracy accrue via media long term changes in social structure brought about by rationalization and bureaucratic structures. These mould human character through changing values, philosophies, and beliefs. New norms and values such as individualism, efficiency, self-discipline, materialism, and calculability emerge. Bureaucracy was also seen to lead to efficiency, coordination, and control over both the physical and the social environment. Through increasing division of labor and specialization it was posited to result in unprecedented increase in both the production and distribution of goods and services. Disadvantages primarily comprised of secularization, depersonalization, and oppressive routine. It was also predicted that stock of codified procedures would naturally grow and entangle the organization process away from its objectives. The more complex is the task of organization the more would be such entanglement. Thus bureaucracy was seen as an efficient organizational structure for simple well defined economic activities where there was little need to evolve a large body of interrelated rules and procedures every passing day. Several modern economic activities have adopted bureaucracy as a chosen form of organization. Fast-food chains have turned the model of rationality. These chains have become predominant presences through bureaucratic principals of efficiency, predictability, calculability, and control. This is obviously suppressing creativity, intelligent insight, transparency, and real human contact primarily due to the fact that economic activity is simple well defined and taken up on a mass scale. McDonald's and McDonaldisation, then, do not represent something new, but rather the culmination of a series of rationalization bureaucratic processes that had been occurring throughout the twentieth century (Ritzer, 1992). McDonald follows similar sounding operating rules (akin to franchisee manuals) like it tells staff exactly how to draw milkshakes, grill hamburgers, and fry potatoes. It specifies exact cooking times for all products and temperature settings for all equipment............... including the disposal of meat and potato products that were held more than ten minutes in a serving bin" (Ritzer, 1992). Scientific Management While Weberian ideas affected management and motivation, their main focus was on organization theory. Frederick Taylor is commonly recognized as the first management theorist, per se. He believed that managers should take a scientific approach to studying work and called his collective theories "Scientific Management". The underlying belief of scientific management was also rationalization. It provided the basis for separating management from the execution of work. "The rationalization of work has the effect of transferring functions of planning, allocation and co-ordination to managers, whilst reinforcing the managerial monopoly of decision-making, motivation and control"(Hales, 1994).Taylor had based his management system on four main principles, three of which relate to motivation viz. (1) devising best work methods, via systematic observation, measurement and analysis; (2) the scientific selection and training of workers; (3) bringing together devised best work methods and trained workers; (4) defining the co-operation of managers and non-managers based on division of work and the managers' responsibility of work done according to best work methods. Hales (1994) summarizes scientific management, from the above 4 principles as being comprised of systematic standardized work methods via mechanization and standard times based on a clean functional division between managers and non-mangers. It can also be characterized as being essentially a separation of conception from execution involving centralized planning and control and low-involvement employment relationship due to its requirement of the individual employee of just carrying out their specified low-skilled task. An ideology of neutral technical efficiency. Advantages of Taylorism can be best seen in results. Using time and motion studies, Taylor achieved productivity increases of up to 200 per cent (Dunphy and Griffiths, 1998). Taylor showed the world that the methodical and scientific study of work could lead to improved efficiency. He believed that by defining clear guidelines for workers many improvements could be made to the production of goods. Taylor was well supported by others. For instance during a 1910 Interstate Commerce Commission hearing, Louis D. Brandeis argued that US railroads could save a million dollars a day if they introduced scientific management into their operations (Oakes and Miranti, 1996). The efficiency came from precision in job design, clear division of responsibilities and tight policing of implementation (Taylor, 1915).Taylor's primary concern was to increase productivity, wages and improve working conditions benefiting the company as well as the workers. Some of his methods aimed to increase the pace of the workers, but others tended to target fatigue, stress, or injuries' reduction. The improved productivity-linked wages and reduction of fatigue and injuries tended to increase employees' motivation. It also became an easy policy that once the one best way for each task was determined, all were expected to use it. This reduction in work procedure flexibility was, on the contrary, demotivating for some. On the disadvantages front was the fear of consequences of Taylor's methods. Many workers were scared that the increasing demand for raised output would result in workers working harder and managers and owners getting richer. In many cases it turned true. Many managers corrupted Taylor's methods using them to increase production, without paying commensurate pay incentives. Taylor clarified that his methods were meaningful only if both workers and owners shared in the benefits. Conclusion In conclusion, both Weberian and Scientific Management share common base of rationalism as yet also display some significant differences in approach. While a bureaucracy is concentrated on organization structure scientific management is concerned with methods of doing organizational work. Both systems achieve organizational goals. However these goals can be entirely distinct. Scientific management has proven to be successful organization structure in manufacturing systems where assembly line category of work codification was prevalent. Bureaucracy on the other hand is most popular with the governments of the world and several researches, educational and developmental institutions. Both systems are based on division of labor and specialization but bureaucracy does nor consciously use these two concepts to address productivity but wastes the leverage in authority and organizational description in form of layers of hierarchy. A combination of two systems is being successfully tested around the global food market chains.That, of course is an efficient bureaucracy with flatter organizational structure. Thus depending upon enabling circumstances and business types these two structures can be successfully deployed on stand alone or hybrid basis. References Haralambous, M. Sociology - Themes and Perspective's, Bell and Hyman, London, England. 1985. Weber, M. The Theory of Social and Economic Organization, The Free Press, New York, USA. 1964. Ritzer, G. The McDonaldization of Society, Pine Forge Press, California, USA. 1992. Hales, C. Managing Through Organization, Routledge, London. 1994. Dunphy, D. & Griffiths, A. The Sustainable Corporation (pp. 4-7).Sydney: Griffin Press.1998. Oakes, L.S. & Miranti, P.J. Louis D. Brandeis and standard cost accounting: A study of the construction of historical agency. Accounting Organizations & Society. 21, 569-586. 1996. Taylor, F. The Principles of Scientific Management. New York: Harper, (Copyright M E Sharpe Inc 1997). 1915. Read More