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The history of management thought

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The Advent of Scientific Management (Management History), Frederick Taylor

The Advent of Scientific Management (Management History), Frederick Taylor

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    The history of management thought The history of management thought Presentation Transcript

    • The History of ManagementThought MGT336 Michael L. Bejtlich Week 4
    • Chapter Seven The Advent of Scientific Management
    • Frederick Taylor (1856-1915)
    • Taylor’s Early Years Born in Germantown, PA in 1856 Father – Prosperous Lawyer Mother – Puritan roots to Colonial Taylor on far right, pictured with times mother, father, grandfather, younger sister Mary and older brother Edward.
    • Taylor’s Early Years Frederick Taylor Taylor, on the left, with brother Edward & sister Mary.
    • Taylor’s Early Years  Advantage of fine prep school – Philips Exeter Academy, NH  Travels to Europe  Membership in an exclusive social club  Did not go to Harvard due to failing eyesight  Began as a factory apprentice pattern maker  His early experiences as a worker shaped his views of management.
    • Taylor at Midvale Steel  Started as a laborer in 1878 and worked his way into management.  As a worker, then a first line supervisor, he observed numerous industrial practices that led him to his life’s work. Taylor at Midvale Steel 1886
    • Taylor at Midvale Steel  Taylor took a home study course to get his college degree in mechanical engineering in 1883 from Stevens Institute of Technology at Hoboken, New Jersey.
    • Natural Soldiering Natural soldiering – “the natural instinct and tendency of men to take it easy.” Taylor blamed management for not designing jobs properly and offering proper incentives. Taylor thought that a supervisor may be able to inspire or force workers to stop natural soldiering.
    • Systematic Soldiering Systematic soldiering resulted from group pressures for individuals to conform to output norms set by the work group. Taylor attributed this to a “lump of labor” theory. Taylor felt he could overcome soldiering and improve the situation if workers knew that the production standards were established by a study of the job, rather than by historical data, and if incentives could be provided.
    • Time Study Time study was a prescriptive in that Taylor sought to identify the time a job should take. Time study was analytical, breaking the job into its components and eliminating useless movements; and constructive, building a file of movements that were common to other jobs.
    • Search for Science inManagement Taylor intended to use a scientific fact-finding method to determine a better way to work. These are Taylor’s notes for shoveling.
    • A Better Way  In modern terms, Taylor’s concept of job design was to analyze the job, discard wasted movements, and reconstruct the job as it should be done.  He also sought to find the right tools, the right way to operate the machinery, and the right way to operate the machinery to make the job more efficient.
    • A Better Way  At the time, Scientific Management was the latest management fad…it was bigger than reengineering and lean manufacturing is today.  The ad on the left demonstrates the popularity.  However, the ad is misleading. There is not one, all purpose “scientific shovel” – the ideal shovel is based on the weight of material it moves.
    • Front Page News  Taylor made front page news the Sunday after he spoke at the ASME conference in 1903.  He basically read Shop Management word for word to the group.  Even though everyone thought his speech was boring…the story made it to the front page.
    • Frederick Taylor and Incentives Taylor criticized systems of payment based on quantity and quality of work. Taylor’s system consisted of:  (1) observation and analysis through time study to set the standard  (2) a differential rate system of piecework  (3) “paying men and not positions.”
    • Frederick Taylor and Incentives Taylor discouraged profit sharing because it did not reward the individual and because it occurred long after the performance. Taylor’s differential piece-rate paid those who did not reach the performance standard on ordinary rate of pay (like minimum wage); a higher rate of pay was given for attaining the standard. Taylor also recognized non-economic incentives, like promotion and shorter hours.
    • “First-Class” Worker Taylor believed that everyone was best or “first class” at some type of work. There should be a match between a person’s abilities and the person’s job placement.
    • “Functional Foreman” and TaskManagement Task Management consisted of time study and developing performance standards. Selection of workers and the differential piece rate system was included. Management was responsible for designing the job properly. Task Management depended on planning, organizing, and guiding the work to completion
    • Figure 7-1 Functional Foremen
    • “Functional Foreman” and TaskManagement Taylor had the idea that knowledge was authority. Supervisors could not know everything about the planning and performance of the work. Functional specialists would provide assistance to workers. In retrospect, Taylor had recognized the need for staff advice and assistance from people who had special abilities or knowledge.
    • Taylor after Midvale He developed an accounting system based on the Hayes-Basley system used by RRs. He became a consultant for various firms, such as Simonds Rolling Company and Bethlehem Steel. He implemented his ideas in these and other firms with varying degrees of success. He also traveled and lectured to various groups to promote his ideas.
    • Bethlehem Steel
    • Bethlehem Steel
    • Story of Henry Knolle &Bethlehem Steel  Taylor conducted his famous pig-iron experiments at Bethlehem Steel.  James Gillespie and Hartley Wolle established an incentive for loading pig iron at Bethlehem Steel.  Workers refused to work by the piece and were discharged.  Taylor’s story of the experiments centered on Henry Knolle although three men participated.
    • Henry Knolle (also Noll) Stood 5 feet 7 inches tall and weighed 135 pounds. He came down through history as “Schmidt” in the embellished recollections of the pig iron experiments at Bethlehem Steel. He averaged between $1.35 and $1.70 per day (average rate was $1.15 per day). In the story, he was the only worker to persevere throughout the pig-iron loading – “First Class Man.”
    • Henry Knolle’s Motivation  Knolle needed the money to build a house so he could get married.  He would work on the house before work.  He would load 47 ½ tons of pig-iron.  He would return to work on the house Knolle’s House until dark.
    • Henry Knolle and his Wife
    • Pig Iron Experiments  Results of experiments were less than ideal even though Taylor labeled them as successful.  James Gillespie and Hartley Wolle were not careful in their time study.  Taylor did not use his differential piece rate. Men who helped Taylor with time study  Taylor set the rate of payment arbitrarily.
    • Pig Iron Experiments Results:  Yard labor costs fell from $.072 per ton under day wages to $.033 per ton under piece rates  Workers averaged 60 percent more in wages than they had before
    • Who prepared the “pig-tale?”  In “Taylor’s Pig-Tale: A Historical Analysis of Frederick W. Taylor’s Pig-Iron Experiment,” authors Charles D. Wrege and Amadeo G. Perroni, state that Taylor embellished the report.  Later, Wrege and R. Greenwood wrote that the “Pig-Tale” was “prepared by Taylor’s assistant, Morris L. Cooke.”  The mystery remains: the penmanship was Cooke’s, but were the words Cooke’s or Morris L. Cooke Taylor’s?
    • Eastern Rate Case - 1910 In this case before the U.S. Interstate Commerce Commission, Louis Brandeis, attorney for the shippers, used individuals to testify that the railroads did not need to increase rates if they would adopt known management improvements. Brandeis coined the phrase “Scientific Management” to describe Taylor’s ideas. This brought a great deal of attention, some unwanted, to Taylor and his colleagues
    • Watertown - 1911 Taylor’s ideas were to be implemented at the federal arsenals at Watertown (Massachusetts) and Rock Island (Illinois). Representatives of the machinists’ union told the workers to resist and a strike occurred at Watertown. Strike lasted one week.
    • Congressional InvestigationOct. 1911 - Feb. 1912 However, congressional representatives from the two districts asked for an investigation of the Taylor and “other efficiency systems.” No evidence was found that there were abuses under scientific management and no need for remedial legislation. Despite findings, time-measuring devices and incentive pay were prohibited in any military agency and in army and navy appropriation bills.
    • Mental Revolution Taylor described his philosophy that labor and management had a “mutuality of interests” and needed to work together in his Congressional testimony. Management, Workers, and Owners must work together to share to make the pie bigger – not get a bigger piece to the detriment of each other.
    • Mental Revolution  This “revolution” emphasized the need of both labor and management to change their attitudes and work together, otherwise scientific management could not exist.  Notice that unions were not a part of his theory.
    • Other Ideas of Taylor Human factor – “systems” were not enough…there must be a good relationship between workers and managers. Resistance to change – this is to be expected, but with time and explanations, people would see the benefits. “Scientific management at every step of the way has been an evolution, not a theory.” (Taylor 1915)
    • Taylor’s Patents Taylor’s wealth was increased from his various patents
    • Taylor’s Patents  Actual Press…notice the Drawing of “Steam man standing next to Hammer” the machine depicting the size of the press
    • Taylor’s Patents Two-Handled Golf Club  Tennis Racket with curved handle
    • Personal Information on Taylor  Taylor as a cross- dresser: during a theatrical performance by an all-male club of which he was a member, he took the role of “Miss Lillian.”  Taylor said that there were only two places sacred enough where you could not “swear”…the home and the golf course.
    • Taylor’s Love of Golf led to soiland grass studies
    • Taylor’s Home Recreated room with actual furnishings from Taylor’s home located at Steven’s Institute
    • Taylor’s Wife - Louise
    • Taylor’s Family  The Taylor’s did not have any children of their own.  They adopted their friend’s three younger children after their parents’ sudden death.
    • Taylor’s Death  Taylor died the day after his 59th birthday from pneumonia in 1915.  His wife died in 1949.  By that time the Taylor family plot was full but Louise wanted to be buried by Fred.  Her remains were cremated and the urn was placed in Fred’sTaylor’s grave site at the West Laurel Hill grave. Cemetery in Philadelphia  This was not a last effort at efficiency but necessitated by the space available.
    • Taylor’s Books
    • Taylor’s Books Shop Management was published in 1903. It was based on a speech delivered earlier to the ASME. The Principles of Scientific Management was published in 1911 by Harper and Row. Speculation exists over the true authorship of the book; although published under Taylors name, Harper and Row paid all royalties to Morris L. Cooke.
    • Summary Frederick W. Taylor was a central figure in the development of management thought. Taylor is considered the most influential contributor by managements and business historians. His work was more reform than scientific. He willingly used others ideas that worked, like Gantt’s task and bonus incentive plan and the Hayes-Basley accounting system.
    • Chapter Eight Spreading the Gospel of Efficiency
    • Others Involved in the ScientificManagement Movement  Carl George Lange Barth  Henry L. Gantt  Frank Gilbreth  Lillian Gilbreth  Harrington Emerson  Morris Cooke
    • Carl Barth (1860-1939): TheMost Orthodox Mathematician who helped Taylor with some metal-cutting experiments. He was probably a major influence in the writing of the “official” biography of Taylor. Assisted in installing scientific management in various companies.
    • Carl Barth One company was the Franklin Motor Car Company which was noteworthy because it preceded Henry Ford’s moving assembly line.  Note: Scientific Management lost its importance to the auto industry once the assembly line was implemented.  Work was placed on a belt and individuals were no longer able to influence their output and therefore their reward. Barth created a “slide rule” for every machine for scientific measurements. Personal note: Barth would not let his son date because it would detract from his scientific work. His son married after Barth’s death.
    • Henry L. Gantt (1861-1919)The Most Unorthodox Gantt’s early work paralleled Taylor’s in his belief about worker selection, incentives to reward performance, mutual ity of interests, etc. Taylor and Gantt admired each other’s work. Gantt was a prolific writer – over 150 titles. Henry L. Gantt
    • Henry L. Gantt:Task and Bonus System Implemented task work with a bonus to stimulate performance.  When he discovered that this provided little incentive beyond meeting the standard, he modified the payment plan. He influenced Taylor because Taylor believed Gantt’s plan was better. Rewards to supervisors when their employees came up to standard (rewarded development of employees). Emphasized importance of morale, training, and development of employees.
    • Figure 8-1 Gantt Chart
    • The Gantt Chart
    • The Gantt Chart Steadily evolved into a valuable tool for planning and controlling work. Widely used during World War I. Became an international management technique. A forerunner of subsequent planning and controlling techniques such as major milestones, PERT & CPM.
    • Other Gantt Ideas The New Machine – a group headed by Gantt to promote the idea that engineers should be industrial leaders. Social responsibility – Gantt’s concern that business should not lose sight of its service role in the economy.
    • Frank & Lillian GilbrethPartners for Life  Frank – Worked in the construction trades and called his job design “motion study.” Independent of, but influenced by, Taylor.  Lillian – our “First Lady of Management” and “First Lady of Engineering for her accomplishments with her husband as well as after Frank’s death. Frank and Lillian Gilbreth
    • Frank Gilbreth (1868-1924)  Refused a place in MIT to work as a laborer.  His first job was apprentice brick layer.  He was able to lay 2700 bricks per day compared to others who were laying an average of 1000 per day.  Motions to lay a brick reduced to 4 from 18.  Today, union rules only Frank Gilbreth allow workers to lay between 900 and 1100 bricks per day.
    • BricklayingWith Gilbreth’s new methods, bricks are arranged Typical building site in Boston before Gilbreth’sto be grabbed easily, right side up. new methods are applied
    • Gilbreth Patent Scaffold  This invention eliminated a lot of stooping by keeping the bricklayer at the same distance from the top of the growing wall.  The scaffolding was the first in Gilbreth’s attempts in reducing motion and fatigue in workers.
    • Gilbreth Patent Scaffold
    • Frank’s Construction Business Boston was in a period of rapid growth…during the building age of the country. He used advertising to promote contracts and the need for workers which was uncommon at this time. Within six years from the start of his business, he was one of the most important men in contracting in Boston.
    • Frank’s Construction Business Building constructed by Frank at MIT in record time
    • Lillian Gilbreth (1878-1972)  Earned undergraduate and graduate degrees from the University of California-Berkley.  Enrolled in a Ph.D. program at the University of California.  Study was interrupted by her family who decided that Lillian should travel abroad – chaperoned by Frank Gilbreth’s cousin. Lillian Gilbreth
    • The Partnership  Soon after their marriage, Lillian realized that she would not fill the traditional role of “wife.”  Lillian followed Frank to work and began to learn the Frank and Lillian Gilbreth business.
    • The Gilbreth Children  Frank decided that twelve children is the right number for a family.  According to Frank, with proper planning, the children would not interfere with their work.  Frank and Lillian achieved both goals.  However, their daughter (Mary Elizabeth) died at the age of six from diptheria.Part of the family vacation home on Nantucket
    • The Gilbreth Family
    • The Gilbreth Children at theirsummer home in Nantucket
    • The Gilbreth Family
    • The Gilbreth children tell the story of growingup in this family in three books.
    • Lillian’s Dissertation  Lillian finished her thesis in 1912.  However, the University of California would not lift the residency requirement so she could not graduate.  Her thesis was eventually published in book form by Sturgis and Walton in 1914 under the name L.M. Gilbreth (so one could not distinguish that The book stands in management literature as one of the earliest contributions to the study is was written by a of the human element at work. woman)
    • Lillian’s Ph.D.  Frank found Brown University where Lillian could complete her degree and still care for the children  Frank arranged it so that Lillian could attend course in one specific room where she could look out the window and watch their children  She completed a 2nd dissertation “Some Aspects of Eliminating Waste in Teaching”  She graduated in 1915 Lillian Gilbreth
    • Gilbreth’s Motion Study “Our duty is to study the motions and to reduce them as rapidly as possible to standard sets of least in number, least in fatigue, yet most effective motions” (Gilbreth, 1911, p. 3) Frank Gilbreth
    • Therbligs Frank developed a list of seventeen basic movements to aid him in analyzing motion. Each movement was called a “therblig.” These fundamental movements, which could not be broken down into other motions, gave Frank a way to accurately analyze elements of any movement a worker may make. Can you determine the origin of the term “therblig?”
    • Motion-Picture Camera  Using a motion- picture camera, Frank was able to capture each movement of a job on film so he could easily analyze each motion.  To save film, he changed the camera aperture to record 4 movies
    • Applied Motion Study The Gilbreths also used lights and time- lapsed photography in their motion study. This use of light and photography was called the “chronocyclegraph method of recording.” This device recorded a path of motion a worker used to complete a job. The device consisted of a small electric light which was attached to a finger or another moving part of the body. The film was exposed during this time period and recorded each line of light.
    • Applied Motion Study  The Gilbreths conducted motion studies with typists, surgeons , nurses, and sports.  The photographs to the left were from an exhibit of the Gilbreths’ work at the Smithsonian.
    • Applied Motion Study – Typingfor Remington Typewriter Co.
    • Applied Motion Study - Surgery
    • Applied Motion Study –Surgical Sewing
    • Fatigue Studies Through proper rest breaks, fatigue could be reduced. Suggestions:  Reduced working hours so that employees had sufficient time to recover and be prepared for the next working day.  Longer lunch periods, coffee or tea breaks.
    • Fatigue Studies To make rest breaks more attractive to employees, the Gilbreths suggested that organizations could provide proper reclining chairs, lunch rooms, rest rooms, or other entertainment.
    • Home Reading Box Movement  The Gilbreths also worked to establish libraries at each job site to check out material to read at home or during breaks.
    • Ergonomics Frank Gilbreth is often called the “Father of Ergonomics.” The Gilbreths pioneered the use of devices, such as adjustable chairs and improved workstations, to ease strain on the Adjustable chair designed by F. and L. Gilbreth body and reduce injuries.
    • The End of the Partnership Frank died in 1924. Lillian continued to work even though it was difficult for a woman and to make a name for herself without Frank. She spent the rest of her life (into her nineties) consulting and speaking all over the world. Lillian Gilbreth
    • Some Lillian Gilbreth Honors Only woman awarded the Gilbreth Medal (named for Frank and Lillian). Only woman awarded the Gantt Gold Medal. Only woman Awarded the CIOS Gold Medal. Earned over 13 graduate degrees between 1928-1952 in addition to her first 3 degrees. US Postage stamp issued in her honor in 1984
    • Harrington Emerson (1853-1931):Efficiency through Organization  He worked for the most part independently of Taylor but they corresponded and he was aware of Taylor’s ideas.  His experience as a consultant on railroads provided his qualifications at the Eastern Rate Case regarding the savings possible if scientific management methods were installed.  He founded Emerson Consultants which exists today. Harrington Emerson
    • Harrington Emerson’s Ideas Lack of organization was a major problem. He proposed the line-staff organization as a way of bringing staff knowledge to assist the line managers. His line-staff idea was similar to Taylor’s desire to use the knowledge of functional foreman, but an improvement since it did not split the chain of command.
    • Harrington Emerson’s Ideas He took Taylor’s idea of setting performance standards and applied this to cost accounting. Standards should be established for what the costs should be, rather than estimating costs from previous records. Emerson provided 120% wages for 100% performance (the standard) and that increased if the worker produced more. He wrote Twelve Principles of Efficiency in 1913. Of Emerson’s numerous “principles,” clearly defined ideals (objectives), participative decision making, and the proper use of staff stand out as the more unique of his ideas.
    • Morris L. Cooke (1872-1960)The Gospel in NonindustrialOrganizations  Worked closely with Taylor and became one of the four individuals Taylor considered his disciples.  Gantt, Barth, and Hathaway were the others  Extended gospel of efficiency to education and government. Morris L. Cooke
    • Morris L. Cooke Taylor sent Cooke on various consulting assignments:  In education – he felt that college administration was inefficient.  In government – Cooke became Director of Public Works for the City of Philadelphia and successfully implemented scientific management.
    • Morris L. Cooke Used a stenographic transcript of Taylor’s talks at Boxly as the basis for his proposed book, Industrial Management. His book became Taylor’s Principles of Scientific Management. Taylor assigned all royalties to Cooke. Cooke would write other books, particularly in the field of public administration.
    • Morris L. Cooke – Later Work Interested in getting the leaders of organized labor to work within scientific management ideas.  Suggested that management needed to “tap labor’s brains.”  Worked with labor leaders in gaining better feeling about union-management cooperation.  Served Presidents F.D. Roosevelt and Harry Truman in government positions.
    • Three Other ScientificManagement Contributors Henri Le Chatelier M. Clarence Bertrand Thompson Horace K. Hathaway
    • Henri Le Chatelier  French Engineer  Help to bring Scientific Management to France  Stated that Shop Management was a more important work than the Origin of Species. Henri Le Chatelier
    • M. Clarence BertrandThompson (1882-1969)  Worked in France until 1948.  Received the Legion of Honor for keeping French factories alive during the War.  Unlike Taylor, he believed Unions were important in instituting Scientific Management Principles.  After he left France, he received a Ph.D. (around the age of 80) in biochemistry and worked in cancer research until he died (around the age of 90). M. Clarence Bertrand Thompson
    • Horace K. Hathaway Instituted Scientific Management principles into a whole system including accounting, planning , organization, and production scheduling His plan was essentially an ERP system Horace K Hathaway
    • Summary Scientific Management reached maturity in the 1920s. The movement was assisted by Taylor’s disciples Carl Barth, Henry Gantt, and Morris Cooke. Other notable contributors to the evolution of Scientific Management were Frank and Lillian Gilbreth and Harrington Emerson.