summary-History Of Management Thought-Scientific Management in theory and practic

Chapter 11
Scientific Management in theory and practice

Taylor and other pioneers and also some individuals bring movement to made scientific management formalize in college curricula, so the practice can be found at US industry and also other countries, then the ideas spread into other discipline and factory management.

The Study and Practice of Scientific Management
The First School of Business is Wharton School of Finance and Economy at The University of Pennsylvania

Education For Industrial Management

• 1895, John Richards, lectures on work administration with engineering students as his audience
• 1903-1905, Dexter Kimball, expanded the concept of scientific study of the distribution side of enterprise
• ASME continuing industrial management in collegiate education after Taylor’s death
• Harlow Person hosted the first scientific management conference in US, he promoted of the relationship between industrial psychology and scientific management, which arose out of their common interest in improving human relations.
• Bertrand Thompson, a consultant, did much to further the scientific management movement in both academia and industry
• Leon Alford and Church thought that Taylor’s were too mechanical, so they interpreted that “a science rather than an art of management”. They also proposed 3 broad principle: (1) the systematic use of experience (2) the economic control of effort, and (3) the promotion of personal effectiveness

The International Scientific Management Movement

• Henry Le Chatelier; regard to metal cutting, time study, and the introduction of scientific management in France, but caused of forgot perverted what Taylorisme, the French experience was not a good one
• Charless de Fre’minville; applying scientific management to the automobile manufacture Panhard and Levassor, with Peugeot, but French managers again resisted
• Freminville merger with Fayol and Taylor followers into Le Comite de l’Organisation Francais
• IMI had built to enable exchange of research about better management practice. IMI also received mixed acceptance and underwent various transformations in various countries. But British Manufacture engendered with Taylor, it made scientific management almost a negligible force
• In other countries, had different political and economic structures made it difficult to apply scientific management as Taylor would have advocated. So, managers often grasped the mechanics of time study, incentive schemes, etc
• In Poland, Karol Adamiecki developed a “harmonogram” as similar to Program Evaluation and Review Technique (PERT)
• In the Soviet Union, Lenin’s view, scientific management was the most progressive means to achieve socialist revolution There was Stakhanov whose effort exceeded ordinary output “workplace competition to speed up output”
• After Lenin death, Stalin and Polakov arose the Soviets how to plan and control performance to achieve the goals of the nation’s five year plans with used Gantt discipline
• Muto, Presindent of Kanebo, began paying more to attract better workers, to train the workers, and to improve factory supervision and organization
• Although variations occurred and perversions masqueraded as the real thing, the scientific management revolution began the US and facilitated the transition and modernization of industry in numerous country

Scientific Management in Industrial Practice

• Henry Kendall, Plimpton Press of Norwood, developed an advanced employment department, which centralized hiring, disciplining and discharging
• Jane William, credited scientific management with reducing labor turnover from 186% to 13% (4 years)
• At Tabor Manufacturing, Taylor’s system increased output 250%
• Thompson noted that an increase in the “stability of payroll” was one of the many benefits of scientific management in practice
• Joseph Willits, found the actual turnover ranged from 50 to 100%, and occasionally 50% in Philadelphia textile mills
• In brief, Taylor’s first class worker reduce the cost of labor turnover and reduce that waste of resource

The Hoxie Report

There were Hoxie, Valentine and Frey study with purposed was to investigate all systems of shop management, including Taylor’s, Gantt’s, and Emerson’s, the investigator examined 30 shops employing scientific management and 5 shops that were not designated as scientifically managed during January – April 1915

• The Hoxie Report found a market degree of diversity among the various shop studied
• Practice violated the precept of careful study and analysis prior to installation of any efficiency system. The efficiency experts who offered their services worked for the short run and did not have “the ability or the willingness to install scientific management in accordance with Taylor’s formula and ideals
• The concept of functional foremen found few adherents in practice
• Little or no progress was being made with respect to the scientific selection of workers
• Hoxie concluded that training practices in scientific management shops generally better than those that could be found elsewhere in industry
• Hoxie also concluded that industrial democracy could come only through the process of collective bargaining

• Hoxie blamed management for seeking shortcuts to efficiency, he faulted Taylor for trying to generalize his machine shop experience to all types and sizes industries, and he denounced efficiency experts who were guilty of selling patent medicine panaceas to employers in dire financial straits and eager to improve performance
  
  • Gilson thought that Hoxie’s Report closed minds and hasty feet
  • Nyland noted that The Hoxie Report was heavily skewed
  • Commons said that Hoxie and his colleagues missed a grand opportunity to evaluate the theory and practice of scientific management, and mislead generations of scholars about its practice

The Thompson and Nelson Studies

• Thompson studied 172 “definitely known” applications of scientific management in 8 types of organization. 149 of the applications were in factories and had progressed far enough at 113 plants to permit. 59 were judged complete success; 20 were partially successful; 34 were failures.
• Thompson was aware of the Hoxie report and commented on the inclusion of plants that were not scientifically managed.
• Nelson studied 29 installations made by Taylor’s closest followers and although variations occurred
• The two ideas of least applicability were differential piece rate and functional foremen
• Nelson noted strong positive correlation between scientific management and industrial efficiency, which used mostly in batch assembly and labor intensive nonassembly operation
• Scientific management became an international movement, experiencing varying levels of acceptance and differing degrees of appropriate implementation. Despite misinterpretations, perversions, and erroneous charges, scientific management was generally associated with improvement in industrial practice

EMERGING GENERAL MANAGEMENT

The Impact of Scientific Management on Other Disciplines

• William Leffingwell applied the principles of scientific management to office management
• Leonard white made numerous contribution to public administration
• Shaw, Butler, Weld, Cherington, and Converse contributed in marketing
• Henry Hess developed cross over point in relationship between Total Cost and Total Revenues
• Rautenstrauch coined the phrase “Break Even Point”
• Jont William contributed on “flexible budget
• James Kinsey, about budgets function
• AMA was broaden the study of management not only production and personnel, but also to include sales, financial, and other facets of managerial responsibilities

Early Organizational Theory

• 1909, Russel Robb attempted a compromise between the old military style and the new conditions of industry
• Robb lectures heavily that there were still general principles: Structure, lines of authority, responsibility, division of labor, system, discipline; accounting records, and statistics; esprit de corps, cooperation, and team play
• Scientific Management at Du Pont and General Motors (1902)
• Pierre, sought to broaden Taylor’s cost concepts to include a measure of overall performance rather than just manufacturing efficiency
• Du Pont power company inaugurated “return on investment” as a measure of organizational performance, apparently the first use of this important managerial tool
• Pierre is credited with implementing the financial operational, and managerial techniques necessary to turn the Du Pont company into an effective organization
• Pierre also pioneered in separating the line and staff function, in developing uniform objectives and policies for the company, in the concept of decentralization of authority, and in the development of managerial talent
• Brown contribution was to refine the concept of return on investment into a device for measuring and comparing the performance of various department
• Brown developed the Formula R= T x P
• Durant conceived the idea of creating General Motors from an amalgam of motorcar and parts producers
• Sloan, the successor of Pierre created the concept of decentralized administration and operation, with centralized control and review
• From Taylor, Pierre du Pont learned the necessity of a rational basis for organizational and managerial control. He used to build Du Pont, applied to General Motors and through Sloan, used to enable the overtaking of the Ford Motor Company
• Business Policy and Philosophy
• Education for business in the first quarter of 21st century, the curricula were oriented specialized business function
• Then, Shaw brought in business executives who described a problem confronting their organization at that time; the students were then required to discuss, analyze and prepare report, which were presented o the business leader at a subsequent meeting
• For Church, every industrial undertaking consisted of two elements: (1) the determinative element, which fixed the manufacturing and distribution policies of the firm;(2) the administrative element, which took the policy as determined and gave it practical expression through buying, manufacturing and selling
• In Church view, Taylor’s ideas were analytical and formed a restricted view the task of management
• Church stopped short of the General Management notions of Henry Fayol, but nevertheless broadened the views of Taylor and provided some early insights into policy formulation and implementation
• Taylor’s Philosophy was reflected in his mental revolution, the fusing of labor and management’s interest into a mutually rewarding whole
• In Sheldon’s Philosophy, the economic basis of service, the dual emphasis on human and technical efficiency, and the responsibility of management to provide social justice would all lead to a science of industrial management of benefit to all parties