LEARNING INTENTION Identify the key characteristics of Taylor’s “Scientific Theory” Explore the concept of “The Economic Man” Students to identify how managers and leaders can use the understanding of Taylor’s theory to modern day _nOFq94cvSYBiKuIK3rMPa&index=3

KEY CHARACTERISTICS OF TAYLOR’S THEORY Systematically partition work into its smallest elements and standardise the tasks to achieve maximum efficiency Advocated vertical job specialisation so that detailed procedures and work practices are developed by engineers, enforced by the supervisors and carried out by the employees. He also applied horizontal job specialisation like narrowing down the supervisor’s role to such an extent that one person would manage operational efficiency, another would manage inspection/quality control and another would manage discipline etc

Taylor’s theory looks like this in practice… Leading (engineer develops detailed procedures and work practices) Supervisor (scheduling) Task 1Task 2 Supervisor ((coordinating) Supervisor (Planning) Task 3Task 4

More key characteristics of Taylor’s theory of Scientific Management.. Taylor popularised organisational practices such as goal setting, employee training and incentive systems which are still common today. Taylor believed man was rational and therefore would make economic choices based on the degree of monetary reward. This led him to devise payment systems that closely related the kind of effort a leader wanted with the level of reward offered.

STORY….. One of Taylor’s earliest examples proving that his scientific management theory worked was at a ball-bearing factory where 120 women each worked 55 hour week. Through job specialisation and work efficiency analysis, Taylor increased production by 2/3 using a workforce of only 35 women working fewer than 45 hours per week! He also doubled the employees previous wages! Of course, one could say that some of this result came about from some serious goal setting but definitely from the success of job specialisation.

What are the advantages and disadvantages of this approach? AdvantageDisadvantageWhy the disadvantage? Tries to increase work efficiencyDoes not automatically increase job performance. Job specialisation ignores the effects of job content on employees. JS can result in jobs being so specialised that they are tedious, trivial and socially isolating. Allows companies to buy cheap unskilled labour (“The Economic Man”) Have to pay employees more in the long run To compensate for job dissatisfaction of narrowly defined work Costs the company more Higher employee turnover so need to constantly train new workers. Absenteeism affects productivity Sabotage and mental health problems Lower work quality because workers cannot appreciate where their job fits into the big picture.

In summary…Taylor’s theory Ignores the motivational potential of jobs as jobs become more specialised, they become easier to perform but less motivating. as jobs become more complex, work motivation increases but the ability to master the job decreases because it has been broken down into too simpler steps. Taylor was too concerned with his ideas.. that employees are only motivated by pay that the most efficient way of doing a task should be identified and carried out in this manner…(this led to production assembly lines) That employees need close supervision and pay schemes that will reward those who produce more

In today’s world………… What do you think of the relevancy of Taylor’s theory of Scientific Management and “the Economic Man” ? Goal setting Employee training Incentive schemes Motivated by money Require constant close supervision