Principles of Scientific Management

The Problem with "Rule of Thumb"

Before Taylor, factory managers had no established theory to guide them. They ran their factories based on personal judgment and whatever had worked for them in the past. This approach is called rule of thumb. It allowed managers to handle problems as they came up, but it was essentially trial and error. The big limitation was that nobody could say for sure why something worked — so there was no reliable way to teach others or repeat success.

Taylor's Solution: Scientific Management

Frederick Winslow Taylor, who worked at the Bethlehem Steel Company, saw that this was not good enough. He argued that management should be based on the method of science: define the problem, develop alternatives, anticipate consequences, measure progress, and draw conclusions. He broke down human activity into small parts and studied how each part could be done more effectively, in less time, and with less waste. This is what he called scientific management.

In Taylor's own words: "Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way."

At Bethlehem Steel, applying these ideas led to a three-fold increase in productivity.

Taylor identified the core principles of scientific management. He also listed many specific techniques (like time studies, standardisation, and differential rates), but he called these "merely the elements or details of the mechanisms of management" — they were extensions of the principles, not the principles themselves.

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The Principles of Scientific Management

1. Science, Not Rule of Thumb

Taylor insisted that there is one best method to do any job — the method that maximises efficiency. This method is not discovered by guesswork. It is developed through systematic study and analysis.

The scientific method works like this:

• Investigate traditional methods through work-study.
• Unify the best practices from different approaches.
• Develop a single standard method to be followed throughout the organisation.

Even a simple task like loading pig iron into boxcars could be scientifically planned. Taylor showed that this could save huge amounts of human energy, time, and materials. The more complex the process, the greater the savings. In today's world, the use of the Internet to improve internal efficiency and customer satisfaction is a modern example of the same principle.

2. Harmony, Not Discord

The factory system created a natural tension: managers had to get work done from workers, and this often led to a class conflict — managers versus workers. Taylor recognised that this conflict helped nobody — not the workers, not the managers, and not the owners.

He called for a complete mental revolution on the part of both management and workers. Both sides had to change their thinking. Management should share the company's gains with workers. Workers, in turn, should work hard and be willing to embrace change for the good of the company. Both should see themselves as part of one family.

Taylor wrote: "Scientific management has for its foundation the firm conviction that the true interests of the two are one and the same; that prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa."

The Japanese work culture is a classic example. In Japanese companies, there is a paternalistic style of management — complete openness between management and workers. Even when workers go on strike, they wear a black badge but work more than normal hours to gain the management's sympathy.

3. Cooperation, Not Individualism

This principle is an extension of the previous one. Competition between labour and management should be replaced by cooperation. Both sides must realise they need each other.

For this to happen:

• Management should not ignore constructive suggestions from employees.
• Workers should be rewarded for suggestions that reduce costs.
• Workers should be taken into confidence before important decisions are made.
• Workers should avoid strikes and unreasonable demands.

When there is open communication and goodwill, there may be no need for a trade union at all. Taylor believed there should be an almost equal division of work and responsibility between management and workers. Management should work side by side with workers all day — helping, encouraging, and smoothing the way for them.

4. Maximum Output, Not Restricted Output

Taylor was firmly against any deliberate restriction of output. He argued that both management and workers should give up the habit of holding back — workers fearing that higher output would cost jobs or wages, and managers hoarding the gains. Instead, both sides should aim to maximise output and enlarge the surplus that is then shared, rather than quarrelling over how to divide a small, restricted output. Continuously increasing production is in the interest of the employer, the employee and society alike.

5. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity …