THE EVOLUTION OF MANAGEMENT THOUGHT, 6 TH EDITION Electronic Resource by: Regina Greenwood and Julia Teahen

Scientific Management in Retrospect CHAPTER TWELVE

Scientific Management in Retrospect  The Economic Environment  Technology  The Social Environment  The Political Environment

The Economic Environment  The United States was in transition from an agrarian to an industrial nation. In this period of growth, scientific management provided a means whereby a better utilization of resources could occur.  The U.S. worker prospered, both in real wages and reduced hours of work.  More employees were in management with the addition of staff specialists. This growth in managerial hierarchy made it more critical to plan, organize, etc.

The Economic Environment  Alfred Chandler’s rationalization of resource utilization describes the needs of industry during this era. The ideas of the scientific management pioneers fit these needs. Alfred Chandler’s  Industrial efficiency was increasing, partially due to scientific management. Alfred D. Chandler Alfred D. Chandler Courtesy of Harvard Business School

The Economic Environment  America was uniquely diverse :  Immigrants were 80% of New York’s population.  More Irish lived in the US than in Ireland.  71% of Ford’s labor force was foreign born.  Developing systems and procedures and standardization was more important with the heterogeneous workforce.  Productivity increased due to:  Methods of mass production.  Taylorism (Scientific Management)  Cheaper sources of power The 1909 Model T.

Technology: Opening New Horizons  Enterprises developed and grew – 247 of the Fortune 500 were founded from  New technologies developed:  Bessemer process in steel  Oil refining  Internal combustion engine  Synthetic material  Telephony  Electric energy Bessemer process in steel

Technology: Opening New Horizons  The automobile changed people’s lives and created a new industry.  Henry Ford, Charles Sorenson and their associates at Ford created the moving assembly line for mass production. Henry Ford  1910 – 2,773 workers produced 18,664 cars  1914 – 12,880 workers produced 248,307 cars Henry Ford

The Social Environment

 Horatio Alger, Jr. characterized the “success” ethic of U.S. enterprise.  Scientific management ideas were consonant with the social values of self-directing, high need for achievement, individuals  Change came as the Western frontier closed; William G. Scott called this the Collision Effect, which would lead to a transition period of individualism being replaced by a social ethic.  Taylor’s “cooperation, not individualism” bridged the gap between the social and individualistic ethics.

The Social Environment  The Social Gospel shaped personnel management acting as a counterpoint to social Darwinism and precursor to progressivism.  Followers of the Social Gospel, like Robert G. Valentine, thought unions were instruments of social and economic reform.  A reciprocal work-welfare equation linked the progressives and scientific management.  Efficiency was also advocated by conservationists, feminists, and religious leaders.

The Political Environment  The political articulation of the Social Gospel was the Populist-Progressive Movement.  Scientific management appealed to the Progressives, especially Morris Cooke.  Scientific management offered leadership by expertise and knowledge, not class, so it appealed to moderate Progressives like Louis Brandeis, Herbert Croly, and Walter Lippman. Lewis Hine (1915)

The Political Environment  An increasing regulation of business under Theodore Roosevelt after 1901 overcame the inadequacies of the earlier Sherman Act.Theodore Roosevelt  Tax rate comparison – Underwood-Simmons Tariff Act of  1% on personal incomes over $3,000  Surtax added progressively on incomes up to $20,000  Maximum tax rate of 7% on incomes in excess of $500,000 (compared to 35% today) Theodore Roosevelt, courtesy of the Constitution Society

Summary of Part Two  Taylor was the focus for a deeper philosophy of managing human and physical resources in a more technologically advanced world.  Taylor’s disciples improved productivity and service to society.  Fayol and Weber, Taylor’s contemporaries, also reflected a rational approach to enterprise.  Taylor and his followers were affected by and did affect the times.

Part Two Internet Resources  Academy of Management – Management History Division Website  List of Internet Resources compiled by Charles Booth  Western Libraries Business Library – Biographies of Gurus  Frederick Winslow Taylor  Fascinating Facts about Frederick Winslow Taylor  Who Made America – Frederick Winslow Taylor  Films of Westinghouse Works –

END OF PART TWO