Modern Management Theory: Frederick Taylor

Modern Management Theory:  Frederick Taylor 

Frederick Winslow Taylor [1] (1856 – 1915) was an American mechanical engineer who sought to improve industrial efficiency. He was one of the first Management consultants and the first efficiency expert. Historically, trades were learned by watching another laborer, and workers were paid by piece work. The faster they worked, the lower their rate (measured by rate per unit). Taylor thought the system was ridiculously inefficient. He was the first person that said that work can be analyzed, torn apart and structured in a more efficient way. He became a consultant to the steel industry when he convinced the owners that he could speed up production.  

In his book the Principles of Scientific Management [2], he provides a blueprint in what we know to be Scientific Management. He explains that every act can be reduced to a science. He claimed that workers were not operating at maximum efficiency, and there was a significant waste of human effort. Workers do not have incentives to increase their productivity. Workers would engage in the concept of “soldiering”, which means that they will deliberately work at a slower pace to avoid abuse from management. If one increased the productivity, management might start to request this level of productivity as the new norm. Workers were paid on a working day basis, based on what management thought was ideal to produce in that day, and then uniformly paid this to all workers, regardless of output. 

Workers would be paid the same day wage, regardless of productivity. Workers actually had an incentive to engage in soldiering, since they would be paid the same day wage regardless of their efforts. Those who did produce more, would eventually succumb to peer pressure and reduce the output.  Taylor believed the key was to secure maximum prosperity, both for employers and employees. It was necessary for the workers and employers to reach a situation of mutual benefit, as opposed to viewing each other as enemies. Workers learned their work by watching other workers do their jobs and as a result were much more knowledgeable than management. Management would then allow workers to define how to perform their individual tasks required to complete their assignments. Taylor argued that it was best to define a unified way of working that would outline how the tasks should be performed. This determination would be made by observing workers perform to identify inefficiencies and track the amount of time it would take for workers to complete certain tasks. Once this set of rules was created, management had then the responsibility to train the workers with these procedures. By training the workers, management can then ensure that the tasks are being performed in the most efficient way. Management could then reassign the tasks and collaborate with the workers to ensure the efficiency of the processes. The goal is to achieve lower costs for the company as well higher wages for workers. Henry Ford’s Assembly Line followed Taylor’s principles; Taylorismwas soon being applied everywhere.  

I personally came across Taylor’s theories at the University of Buenos Aires in Argentina, the 2nd best University in Latin America. I applied them to make my studies more efficient. I divided the chapters I was to study into pages and paragraphs, and timed them, giving me a margin of 5 minutes per page, or 20 pages per hour with a 10-minutes margin for pauses. This boosted my efficiency; having a clear perspective allowed me to focus on the task at hand and avoid distractions. Taylorism can be applied to increase efficiency levels in big or small companies. However, consider that workers must be given an incentive to work more efficiently. Putting too much pressure on them without giving anything in return will only push them towards soldiering. Not measuring or controlling efficiency in any way will only breed laziness throughout the organization. Once that direction is taken, it is difficult to swing it around without undergoing a major restructuring.  

https://en.wikipedia.org/wiki/Frederick_Winslow_Taylor
https://en.wikipedia.org/wiki/The_Principles_of_Scientific_Management