Chapter: Evaluation of Management Thought

Scientific Management Principles

Meaning
The term scientific management is the combination of two words i.e.,
scientific and management. The word scientific” means systematic analytical
and objective approach while “management” means getting things done
through others.
In simple words scientific management means application of principles and
methods of science in the field of management. “Scientific management is the
art of knowing best and cheapest way.” It is the art of knowing exactly what is
to be done by whom it is to be done and what is the best and cheapest way of
doing it.
Scientific method and techniques are applied in the field of management i.e.,
recruitment, selection, training, placement of workers and methods of doing
work in the best and cheapest way.
The scientific management can be studied under the following heads:
● Primary principles of scientific management as evolved by F.W. Taylor.
● Secondary principles of scientific management.
Definitions of scientific management
The main definitions of scientific management are as follows:
According to Fredrick Winslow Taylor, “Scientific management means
knowing exactly what you want men to do and seeing that they do it in the
best and the cheapest way.”
According to Peter F.Drucker, “Scientific management is the organized study
of work, the analysis of work into its simplest element and the systematic
improvement of the workers.”
Characteristics/Features of Scientific Management
The main characteristics or features of scientific management are as follows:
Approach: It is a systematic, analytical and objective approach to solve
industrial problems.
Economy: The basis of scientific management is economy. For implementing
economy, all the unnecessary elements of production are eliminated and a
sincere effort is made to achieve optimum production at the minimum cost.
A definite plan: The main characteristic of scientific management is that
before starting and work there must be a definite plan before as and the work
is to be done strictly according to that plan.
Emphasis: It lays emphasis on all factors of production, men, material and
technology.
Techniques: It implies scientific techniques in methods of work, recruitment,
selection, and training of workers.
Attempts: It attempts to develop each man to his greatest efficiency and
prosperities.
Method: It attempts to discover the best method of doing a work at the
cheapest cost.
A definite Aim: It is another main characteristic of scientific management.
Scientific management is the process of organizing, directing, conducting and
controlling human activates. Hence there must be a definite aim before the
managers, so that the human activities be organized directed conducted and
controlled for achieving that aim or aims.
Changes in attitude: It involves a complete change in the mental attitude of
workers as well as the management.
A set of Rules: There must be a set of rules in accordance with the laid plan so
that the objectives can be achieved. According to F.W. Taylor, it is no single
element but rather the whole combination that constitutes the scientific
management.

I. Primary Principles of Scientific Management as evolved by F. W.

Taylor
F.W.Taylor is the father of scientific management. He evolved the following
five primary principle of scientific management.
Science, not rule of Thumb
(Rule of thumb is the basic principle of scientific management as formulated
by Taylor…Rule of Thumb means the application of traditional methods or
the methods decided by the manager based on the past experience.)
Rule of Thumb was the technique of pre-scientific management era. Taylor
maintained that the rule of thumb should be replaced by scientific knowledge.
While rule of thumb emphasizes mere estimation, scientific method denotes
precision in determining any aspect of work. This should be done with the
help of careful scientific investigation. Exactness of various aspects of work
like day’s fair work, standardization in work, differential price rate for
payment etc. is the basic care of scientific management. Therefore, it is
essential that these should be measured precisely and not on mere estimates.

Harmony not Discord

Taylor emphasized that harmony rather than discord should be obtained in
group action. Harmony means that a group should work as a unit and
contribute to the maximum. Within it there should be mutual give and take
situation and proper understanding.

Cooperation not Individualism

Scientific management requires that parts of industrial body co-operate with
each other, scientific management is based on mutual confidence, cooperation
and goodwill. It requires a complete mental revolution on the part of both
workers and management. Taylor suggested “Substitution of war for peace,
hearty and brotherly co-operation for contention and strife, replacement of
suspicious watchfulness with mutual confidence of becoming friends instead
of enemies.”

The development of each man to his greatest efficiency and prosperity

In order to maximize production all possible efforts are made to increase the
efficiency of workers. Workers are selected according to the nature of work. It
includes scientific training, scientific allotment of work, implementation f
incentive wage plan above all, development of workers to the fullest extent for
themselves and also for the companies’ highest prosperity. Scientific
management leads to the development of each worker to his greatest
efficiency and prosperity.

II. Secondary Principles of Scientific Management

Standardization of Tools and Equipments:

Another principle of scientific management is the standardization of tools and
equipments. It is essential for the improvement of quality of products and also
for bringing about uniformity in the production of standard goods. As a matter
of fact, standardization should be maintains in respect of tools, equipments,
materials, period of work, working conditions, amount of work, cost of
production etc.

Scientific Selection and Training of Workers:

Scientific management requires a radical change in the selection and training
or workers. They must be selected on a scientific basis. The old traditional and
absolute methods of selection of workers have to be replaced by the scientific
and modern methods. Taylor suggested that the workers should be selected on
scientific basis taking into account their educational background, health, work
experience, aptitude, physical, strength and I.Q. etc. Further, proper training
by qualified persons should be given according to their capabilities and nature
of work.
Experimentation and Scientific Investigation:
The success of scientific management depends upon experimentation and
investigation. It involves analytical study, observation research,
experimentation and investigation. It is only through constant experimentation
and scientific investigation that one can find out the best and most efficient
methods of doing a work. It has been rightly said that experimentation and
investigation is the life-blood of scientific management.

Incentive wage system:

Taylor for the first time advocate an incentive wage system in the form of
differential piece wages instead of time wages. Under differential; piece
system two wage rates are prescribed, i.e., one lower and the other higher.
Those who are unable to perform standard work within standard/right time are
paid wages at lower rate per unit. On the contrary, those who attain standard
or even more within the standard time are paid wages at higher rate per unit.
Thus, there is considerable difference in wages between those who attain and
those who do not attain standards.

Scientific Allotment of Task:

Every job must be entrusted to the best available man according to his
aptitude and training for that specific job. As a matter of fact, every person,
however efficient he may be, cannot perform all the jobs efficiently. One has
to carefully fit “the man to the job,” and “the job to the man”. The principle of
‘right job to the right person’ should be implemented.

Frank and Lillian Gilbreth

The Gilbreth used motion picture films to study hand and body motions. Their
concern was on “economy of movement “They emphasized on the use of
technique and methods to help workers in developing their fullest potential
through training, improved tools, working environment and standardize work
method.

Henry L. Gantt
Gant refined the production control and cost control techniques. Gant refined
the production control and cost control techniques. Gant invent a technique of
scheduling work which is also called Gantt chart. He was the first theorist to
suggest management to pay attention to service rather than profits.

Harington Emerson
Emerson not only focuses on efficiency and productivity of work but, on the
overall objectives, cost accounting and the function of staff department.

Contributions of Scientific Management

1. It promoted production through efficiency techniques. Productivity
increased through assembly line production method. Gantt chart
representing flow of work in still widely used for scheduling work.
 2. It facilitates job design through specialization and standardization of
work.
3. It gave importance to screening, selection, training and compensation of
workers for improving efficiency.
4. It introduced rational and systematic method to solve management
problems. It replaced “rule of thumb” method of doing work by
scientific method.

Administrative Management Principles

This theory is concerned with management principles and functions. It
provided the process approach to management. The major contributors of this
theory are Henry Fayol, Max Weber etc. This theory focuses on functions and
skills that are need for management. It consists of :
1. Administrative Management Theory (H. Fayol’s Tehory)
2. Bureaucracy Theory (Max Weber Theory).

Henri Fayol Theory of Management (Administrative Theory)

Fayol developed theory of management. According to him managerial
excellence is a technical ability and can be acquired. He developed theories
and principles of management which are universally accepted and make him
universalistic. He was pioneer of the formal education in management. He
stated that, management can be studied in terms of the management process.
Management consists of:
1. Managerial skill: it includes Physical skill, Mental skill, Moral skill,
Educational skill, Technical skill and Experience.
2. Management Functions: Forecast and plan, organize, command,
coordinate and control.
3. Business activities: It includes Technical, Commercial, Financial,
Security, Accounting and Managerial.
4. Principle of Management: following are the fourteen principles of
management developed by the Henery Fayol.
Henry Fayol, a French industrialist, offered fourteen principles of
management for the first time in 1916. During the period of 1920 – 40 in the
United States many authors did hard work in developing and testing various
principles of management.

Fourteen Principles of Henry Fayol

Division of Work
According to H. Fayol under division of work, “The worker always on the
same post, the manager always concerned with the same matters, acquire an
ability, sureness and accuracy which increases their output. In other words,
division of work means specialization. According to this principle, a person is
not capable of doing all types of work. Each job and work should be assigned
to the specialist of his job. Division of work promotes efficiency because it
permits an organizational member to work in a limited area reducing the scope
of his responsibility. Fayol wanted the division of work not only at factory but
at management levels also.

Authority and Responsibility

Authority and responsibility go together or co-existing. Both authority and
responsibility are the two sides of a coin. In this way, if anybody is made
responsible for any job, he should also have the concerned authority. Fayol’s
principle of management in this regard is that an efficient manager makes best
possible use of his authority and does not escape from the responsibility. In
other words when the authority is exercised the responsibility comes and
when the authority is exercised the responsibility is automatically generated.

Discipline
According to Henry Fayol discipline means sincerity about the work and
enterprise, carrying out orders and instructions of superiors and to have faith
in the policies and programmes of the business enterprise, in other sense,
discipline in terms of obedience and respect to superior. However, Fayol does
not advocate warning, fines, suspension and dismissals of worker for
maintaining discipline. These punishments are rarely awarded. A well-
disciplined working force is essential for improving the quality and quantity
of production.

Unity of Command
A subordinate should take order from only one boss and should be responsible
and accountable to him. Further he claimed that if the unit of command is
violated, authority is undermined, disciplined in danger, order disturbed and
stability threatened. The violation of this principle will face some serious
consequences. In this way, the principle of unity of command provides the
enterprise disciplined, stable and orderly existence. It creates harmonious
relationship between supervisors and subordinates, congenial atmosphere of
work. It is one of the Fayol’s important essential principle of management.

Unity of Direction
Fayol advocates “One head one plan” which means that group efforts on a
particular plan be led and directed by a single person. This enables effective
coordination of individual efforts and energy. This fulfils the principles of
unity of command and brings uniformity in the work of same nature. In this
way the principle of direction create dedication to purpose and loyalty. It
emphasizes the attainment of common goal under one head.

Subordination of Individual interests to general interest

The interest of the business enterprise ought to come before the interests of
the praise individual workers. In other words, principle of management states
that employees should surrender their personnel interest before the general
interest of the enterprise. Sometimes the employees due to this ignorance,
selfishness, laziness, carelessness and emotional pleasure overlook the interest
of the organization. This attitude proves to be very harmful to the enterprise.

Fair Remuneration to employees

According to Fayol wage-rates and method of their payment should be fair,
proper and satisfactory. Both employees and ex-employees should agree to it.
Logical and appropriate wage-rate and methods of their payment reduces
tension and differences between workers and management, create harmonious
relationship and pleasing atmosphere of work.

Centralization and Decentralization

There should be one central point in the organization which exercises overall
direction and control of all the parts. But the degree of centralization of
authority should vary according to the needs of situation. According to Fayol
there should be centralization in small units and proper decentralization in big
organization. Further, Fayol does not favor centralization or decentralization
of authorities but suggests that these should be proper and effective
adjustment between centralization and decentralization in order to achieve
maximum objectives of the business. The choice between centralization and
decentralization be made after taking into consideration the nature of work
and the efficiency, experience and decision making capacity of the executives.

Scalar chain
The scalar chain is a chain of supervisors from the highest to the lowest rank.
It should be short – circuited. An employee should feel the necessity to
contact his superior through the scalar chain. The authority and responsibility
is communicated through this scalar chain. Fayol defines scalar chain as “the
chain of superiors ranging from the ultimate authority to the lowest rank.” The
flow of information between management and workers is a must. Business
opportunities must be immediately avoided of. So we must make direct
contact with the concerned employee. Business problems need immediately
solution. So we cannot always depend on the established scalar chain. It
requires that direct contact should be established.

Order
According to Fayol there should be proper, systematic and orderly
arrangement of physical and social factors such as land, raw materials, tools
and equipments and employees respectively. As per view, there should be
safe, appropriate and specific place for every article and every place to be
used effectively for a particular activity and commodity. In other words,
principles that every piece of land and every article should be used properly,
economically and in the best possible way. Selection and appointment of the
most suitable person to every job. There should be specific place for everyone
and everyone should have specific place. This principle also stresses scientific
selection and appointment of employees scientific selection and appointment
of employees on every job.

Equity
The principle of equity should be followed and applicable at every level of
management. There should not be any discrimination as regards caste, sex and
religion. An effective management always accords sympathetic and human
treatment. The management should be kind, honest and impartial with the
employees. In other words, kindness and justice should be exercised by
management in dealing with their subordinates. This will create loyalty and
devotion among the employees. Thus works should be treated as part of every
level.
Stability of use of personnel
Principle of stability is linked with long tenure of personnel in the
organization. It is always in the interest of the organization that its trusted,
experienced and trained employees do not leave the organization. Stability of
job creates a sense of belongingness among workers who with this feeling are
encouraged to improve the quality and quantity of work.

Initiative
Under this principle, the successful management provides an opportunity to its
employees to suggest their new ideas, experiences and more convenient
methods of work. To ensure success, plans should be well formulated before
they are implemented.

Initiative - allowing all personnel to show their initiative in some way is a

source of strength for the organization.

Spirit de crops (Spirit of cooperation)

In order to achieve the best possible results, individual and group efforts are to
be effectively integrated and coordinated. Everyone should sacrifice his
personal interest and contribute his best energies to achieve the best results.

Esprit de corps - management must foster the morale of its employees. He

further suggests that, "real talent is needed to coordinate effort, encourage
keenness, use each person's abilities, and reward each one's merit without
arousing possible jealousies and disturbing harmonious relations." Harmony
and pulling together among personnel.
Max Weber’s Bureaucracy Theory
Max Weber (1864 – 1920), who was a German sociologist, proposed different
characteristics found in effective bureaucracies that would effectively conduct
decision making, control resources, protect workers and accomplish
organizational goals. Max Weber’s model of Bureaucracy is oftentimes
described through a simple set of characteristics, which will be described
below:

Fixed Division of Labor

The jurisdictional areas are clearly specified, and each area has a specific set
of official duties and rights that cannot be changed at the whim of the leader.
This division of labor should minimize arbitrary assignments of duties found
in more traditional structures, in which the division of labor was not firm and
regular, and in which the leader could change duties at any time.

Hierarchy of offices
Each office should be controlled and supervised by a higher ranking office.
However, lower offices should maintain a right to appeal decisions made
higher in the hierarchy.

Rational-legal authority
A bureaucracy is founded on rational – legal authority. This type of authority
rests on the belief in the “legality” of formal rules and hierarchies, and in the
right of those elevated in the hierarchy to possess authority and issues
commands. Authority is given to officials based on their skills, position and
authority placed formally in each position.

Creation of rules to govern performance

Rules should be specified to govern official decisions and actions. These
formal rules should be relatively stable, exhaustive and easily understood.

Separation of personal from official property and rights

Official property rights concerning e.g. machines and tools should belong to
the office or department – not the office – holder. Personal property should be
separated from official property.

Selection based on qualifications

Officials are recruited based on qualifications, and are appointed, not elected,
to the office. People are compensated with a salary, and are not compensated
with benefices such as rights to land, power etc.

Clear career paths

Employment in the organizations should be seen as a career for officials. An
official is a full-time employee, and anticipates a lifelong career. After an
introduction period, the employee is given tenure, which protects the
employee from arbitrary dismissal.

Behavioral Science Theory

Behavioral science theory includes human relation and behavioral science
movement. It modified improved and extended the classical; theory. Classical
theory concentrated on job content and management of physical resources,
where as behavioral science theory gave greater emphasis to man behind the
machine and stressed the importance of individual as well as group
relationship. The scholars under this theory were

Chaster Barnad: Barnad argued that people join organization to satisfy some
of their personal objectives. Organization should therefore, satisfy such
personal goals, of employees, while pursuing organizational goals. An
organization can sustain and survive only when it strikes a balance between
their personal and organizational goals.

Mary Parker Follet: Follet propounded democratic and participatory theory

of management. She pointed out the need for the concept of group and
association to be introduced in the practice of management. She advocates the
democratization of the work force.
Elton Mayo: He was famous for the Hawthorne Studies. They (Mayo and his
associates) experimented at Western Electric;s Hawthorne plant the effect of
illumination on work productivity. In that study, two groups controlled and
experiment groups were formed to find out the effect of bright and dim light.
The control group work without change in lighting and the experiment group
worked in fluctuating lighting condition. The result should that there is no
relation between illumination and performance. In other words, productivity
of both groups increased. Thus, the study concluded that the human element
(more specifically relation among workers) is important in the workplace.
This study discovered the effect of group norms and standard on individual
behavior. In another experiment Mayo revealed that productivity improved by
change in working conditions as length of rest time, duration of work,
presence or absence of free lunch etc.

Maslow’s Hierarchy of Needs

Maslow hypothesized that there exists a hierarchy of five needs (from Lower
to higher orders)

1. Physiological needs: includes hunger, thirst, shelter, sex and other

bodily needs.
2. Safety needs: Includes security, protection from physical and emotional
harms.
3. Social needs: Affection, belongingness, acceptance and friendship.
4. Esteem needs: Internal factor such as self respect, autonomy and
achievement and external factors such as status, recognition and
attention.
5. Self-actualization needs: Drive to become what one is capable what one
is capable of becoming: includes growth, achieving one’s potential and
self fulfillment.

D. McGregor’s Theory X and Theory Y

Douglas McGregor invented this theory also known as “hard guy and soft gut”
approaches of managing people in the organization. It states that, people’s
commitment to work in organization is influenced by assumptions managers
make about people. One set of assumption is called theory X, which describes
employees with relatively negative view. And another set of assumption is
called theory Y, which describe employees positively.

The Decision Theory

Herbert Simon, Luther and Lyndall Urwick have been the major contributors
of this management thought. This theory focuses on managerial decisions.
Decisions are made through rational choice among different alternative. It is a
choice making activity and choice determines our activity.

Management Science Theory

The management science theory applies statistical and mathematical technique
to solve complex problem in business. It focuses on solving technical rather
than human behavior problem. It used the techniques like liner programming,
economic order quantity (EOQ), game theory, queuing theory etc. to solve the
problem. With the development of computer technology and other source of
communication media there has been high impact of management science
theory in the business world to make decision and solve complex problems.
Currently there are three main branches of management science. They are:

1. Quantitative management: It utilizes mathematical techniques such as

linear programming, modeling, queuing theory, etc to help managers
make right decisions.
2. Operations management: (Operation Research) It provides managers
with a set of techniques that they can use to utilize an organization’s
production system to increase efficiency.
3. Management Information System: It helps manager design information
system that provide information about events occurring within and
outside an organization.

The System Theory

During the 1960, management researcher began to analyze organization from
a systems perspective, a concept taken from physical science. A system is a
combination of two or more interrelated or interdependent parts in a whole
unit. A system is an established arrangement of components which leads to
attainment of particular objectives according to plan. The two basic types of
systems are closed system (which do not interact with their environment) and
open system (which dynamically interact with their environment).

The major features of system are

● Every system is always focusing on a goal.
● A particular system has some subsystem. Each subsystem interact with
each other.
● System may be open or close.
● There is always a unity of action in each and every subsystem to achieve
an overall system goal.
● System always has a boundary, which separate it from environment.
● System depends upon the flow of information in and outside its
boundary.
● The emphasis is given to the effective feedback for system function
control.

Contingency Theory (Situational Theory)

The Contingency theory can be described as “if, then” theory, i.e., If this is
the way my situation is, then this is the best way for me to manage. It states
that, organization and even the units within the same organization are diverse
–in size, goals, work activities etc. So one best way, or universally applicable
management is not possible. Thus management depends upon the situation
and should act according to the situation. The major contingency variable are:
1. Organizational size: As size increase, so do the problems of
coordination. For instance, the type of organizational structure
appropriate for an organization of 50000employees is likely to be
inefficient for an organization of 50employees.
2. Routineness of Task of Technology: To achieve its purpose, an
organization uses technology. Routine technologies require
organizational structure, leadership styles and control system that differ
from those required by customized or non-routine technologies.
3. Environmental Uncertainty: The degree of uncertainty caused by
environmental changes influences the management process. What works
best in a stable and predictable environment may be totally inappropriate
in a rapidly changing and unpredictable environment.
4. Individual Differences: Individual differences in terms of their desire
for growth, autonomy, tolerance of ambiguity, and expectations. These
and other individual differences are particularly important when
managers select motivation techniques, leadership styles and job
designs.