Scientific management is logical approach towards the solution of management problems.
When F.W. Taylor assumed the responsibility of management, he realised the weaknesses of traditional method and consequentially made factual study of every work independently and advocated the use of standardised raw material, equipments, methods, techniques and the most appropriate worker on every job.
The scientific management includes:
Scientific study and analysis of work.
Scientific selection and training of employees.
Standardisation of raw material, equipment and working conditions.
Reasonable remuneration to employees.
Scientific management is economical method which makes the best possible use by integration and co-ordination of available resources.
Scientific management as such, is the logical approach, towards the scientific solution of management problems through scientific study and analysis of work, scientific selection, training, remuneration and development of employees, standardisation of raw material, machines, equipments and working conditions and making the best possible integration and utilisation of available resources.
Characteristics
Scientific management has the following characteristics:
Predetermined Objectives : In case of scientific management, the objective of every job is predetermined and in order to achieve that objective physical and human resources are applied.
Predetermined Plans : In order to achieve the predetermined goal of every job, effective plans for the most appropriate use of the available resources are prepared. Planning in this case is goal oriented.
Scientific Analysis of Plans : The utility, effectiveness and suitability of plans is tested and ascertained before it is put in practical operation.
Set of rules : In order to implement the plans, a set of rules are made. The appropriateness and suitability of rules is tested and verified as regards their effectiveness in the real business situations.
Firmness : Management has to be strict and firm in the implementation of the plan, so that the work may be done according to established norms.
Work Studies : Standardisation of time, motion, fatigue and work is done after careful studies, so that maximum output could be achieved at minimum sacrifice.
Review of Standards : Standards once established do not last for ever. They are reviewed from time to time and their effectiveness is verified. If any change is desirable, necessary amendments are made.
Fixing Responsibility : The duty, authority and responsibility of every employee is predetermined. Every one knows, what he is required to do, and to whom, he is responsible and accountable.
Effective Controls : In order to maintain the working efficiency of resources, necessary control is exercises just to evaluate the performance and if there is any deviation from the established standard, corrective measures have to be applied.
Difference between traditional and scientific management
Points of Difference
- Science and philosophy
- Training
- Standardisation
- Cost Accounting
- Gradation of workers
- Type of organisation
- Shirkers
- Methods of wage payment
- Studies
- Mental Revolution
- Method of work
Traditional management
- It is neither science nor philosophy.
- Standardisation of any kind is not there.
- It is not adopted.
- Workers are not graded according to their efficiency.
- Line organisation is adopted.
- Labour is shirker.
- Time wage system is commonly used. Sometimes piece rate system is also used.
- No study regarding time, motion and fatigue is done.
- No question arises.
- Trial and error method is adopted. Worker learn effective method by committing many errors.
Scientific management
- It is both science and philosophy.
- Training is offered before the worker is placed on specific job.
- Raw material, equipment methods etc. are standardised.
- It is adopted.
- Workers are graded according to their efficiency.
- Functional organisation is adopted.
- Labour is not shirker.
- Incentive wage system is adopted.
- Work studies i.e., time, motion and fatigue are made.
- Mental revolution emerges in the minds of both workers and management.
- The method of work is determined after careful scientific studies and analysis.
Merits
Reducing cost of production : As scientific management is the effective combination of the most suitable factors of production and thus the cost of production is reduced.
Effective planning and control : The short term and long term plans are made after scientific analysis and investigation of facts, as such they are more effective. The provision for their control helps in discovering and applying remedial measures, if there are deviations between predetermined and actual plans.
Simplification of productive process : Scientific and factual study and investigation of different methods and technique offers the most appropriate and simplified process.
Benefits of standardisation : The use of standardised raw material, equipments, machines, methods, technique and tools produces standard articles at the minimum possible price.
Increasing profit : Under scientific management profit is increased many time due to the effective integration of right men, material, money and methods.
Better relations between labour and management : Profit being increased many times, both the labour and management get good reward for their services. This reduces conflicts between them and good relation prevails.
Advantages to the workers
Improved working conditions : In order to achieve the maximum objective, working conditions, atmosphere and environment is improved and it becomes pleasant to work in refreshing atmosphere.
Higher standard of living : Scientific management enables workers to get more wages and as a result their standard of living is improved.
Free training : Workers are offered free training to make them more efficient in the real situations of the job and business.
Interesting job : Every one is offered the job for which he is the most suited. The psychological testing of the worker as regards his interest, attitude, aptitude and preferences results in his right placement.
Incentive wages system : Differential wages system provides an incentive to worker to increase their earning by improving their efficiency. Wages under the system are positively co-related with the efficiency.
Advantages to the society
Increased production : The effective integration of physical and human energies increases the production.
Industrial harmony : Scientific management results in industrial harmony by increasing the wages of workers and profit to the owners. In this way both labour and management are satisfied and mutual conflicts are reduced.
Prosperity : The increased production at minimum cost, the higher standard of living and the most economical and efficient use of social resources makes the society prosperous.
Fair price : Increased output at reduced cost makes goods available at fair price to the members of society.
Demerits
Scientific management has been disliked by different groups on the following grounds:
Objections by Workers
Rigid control : Workers rightly say that they are subjected to rigid control. They have to be efficient enough to reach the standard set by the management. The rigid behaviour of the officers sometimes becomes intolerable to workers.
Monotonous work : The worker has to perform only as small part of the work repeatedly for years according to his specialisation. The repetition of work creates monotony in the work.
Lack of initiative : The standardisation of raw material, equipments, tool, method and even technique leaves no place for the initiative. The worker has to follow the predetermined line of work.
Exploitation : The standardisation and work studies prescribe the amount and quality of work expected from every worker. If the worker is not able to do that much of work, he is humiliated and becomes a victim of physical and mental exploitation.
Lack of employment opportunities: Mechanisation and the most appropriate use of human resources reduce employment opportunities as such workers object to the scientific management.
Objections of Employers
Expensive system : Appointment of a large number of specialists and continuous studies and researches about raw material, too, equipments and methods make the system very expensive.
Dependence on specialists : Producer has to depend heavily on specialists who are responsible for all the work. The owner has no say in the operational affairs of the enterprise.
Instability : Different researches and studies being made from time to time make the factory a workgroup. Change depending on researches endanger the stability of the organisation.
Lack of trained and experienced workers : Qualified and technically proficient workers are not available to meet to the requirements of the organisation, as such the work suffers.
Complete standardisation not possible : Scientific management aims at the maximum output by complete standardisation for raw material, tools, equipments, method and techniques. The social, economic, emotional and psychological differences among workers do not allow perfect standardisation.
Lack of freedom : Producers are not independent in their decisions. They have to take decision and adopt their line of actions as suggested by specialists.
Burden of Depression : Most of the expense being fixed the organisation has to meet them even in depression. A large number of specialists are appointed in view of the long term objectives of the business and they can not be terminated.
