Taylor, Gulick, Fayol


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Taylor, Gulick, Fayol

  1. 1. Administrative ScienceFrederick Winslow Taylor (March 20, 1856 – March 21, 1915) Luther Halsey Gulick (1892–1993)Henri Fayol (Istanbul, 29 July 1841–Paris, 19 November 1925) Manuela Hortolomei
  2. 2. Frederick Winslow TaylorOne of the earliest of these theorists was Frederick Winslow Taylor. He started the ScientificManagement movement, and he and his associates were the first people to study the workprocess scientifically. They studied how work was performed, and they looked at how thisaffected worker productivity. Taylors philosophy focused on the belief that making peoplework as hard as they could was not as efficient as optimizing the way the work was done.In1909, Taylor published "The Principles of Scientific Management." In this, he proposed thatby optimizing and simplifying jobs, productivity would increase. He also advanced the ideathat workers and managers needed to cooperate with one another. This was very differentfrom the way work was typically done in businesses beforehand. A factory manager at thattime had very little contact with the workers, and he left them on their own to produce thenecessary product. There was no standardization, and a workers main motivation was oftencontinued employment, so there was no incentive to work as quickly or as efficiently aspossible.Taylor believed that all workers were motivated by money, so he promoted the idea of "a fairdays pay for a fair days work." In other words, if a worker didnt achieve enough in a day, hedidnt deserve to be paid as much as another worker who was highly productive.With a background in mechanical engineering, Taylor was very interested in efficiency.While advancing his career at a U.S. steel manufacturer, he designed workplace experimentsto determine optimal performance levels. In one, he experimented with shovel design until hehad a design that would allow workers to shovel for several hours straight. With bricklayers,he experimented with the various motions required and developed an efficient way to laybricks. And he applied the scientific method to study the optimal way to do any type ofworkplace task. As such, he found that by calculating the time needed for the variouselements of a task, he could develop the "best" way to complete that task.These "time and motion" studies also led Taylor to conclude that certain people could workmore efficiently than others. These were the people whom managers should seek to hirewhere possible. Therefore, selecting the right people for the job was another important part ofworkplace efficiency. Taking what he learned from these workplace experiments, Taylordeveloped four principles of scienTaylors four principles are as follows:Replace working by "rule of thumb," or simple habit and common sense, and instead use thescientific method to study work and determine the most efficient way to perform specifictasks.Rather than simply assign workers to just any job, match workers to their jobs based oncapability and motivation, and train them to work at maximum efficiency.Monitor worker performance, and provide instructions and supervision to ensure that theyreusing the most efficient ways of working.
  3. 3. Allocate the work between managers and workers so that the managers spend their timeplanning and training, allowing the workers to perform their tasks efficiently.tificmanagement. These principles are also known simply as "Taylorism".Taylors principles became widely practiced, and the resulting cooperation between workersand managers eventually developed into the teamwork we enjoy today. While Taylorism in apure sense isnt practiced much today, scientific management did provide many significantcontributions to the advancement of management practice. It introduced systematic selectionand training procedures, it provided a way to study workplace efficiency, and it encouragedthe idea of systematic organizational design.An analysis of the research reveals that, despite negative commentary and development ofnew management concepts, Taylor’s principles, themselves, were probably not the focus ofcriticisms of scientific management that resulted in new management approaches. Theresearch shows that modern industrial engineering, reengineering projects, quality circles, andtotal quality management initiatives rely on workflow studies and other techniques that reflectTaylor’s first principle, the scientific study of elements of a job. Current human resourcerecruitment and selection approaches mirror Taylor’s second principle, and training anddevelopment as expressed in his third principle are certainly major functions of mostorganisations. Finally, many of today’s organisations expect cooperation between managersand workers through various forms of employee involvement, reflecting Taylor’s fourthprinciple. Instead, the criticism of scientific management seems to be directed at Taylor’sspecific methods for complying with the principles, and not at the principles themselves. Thismay explain the esteem with which Taylor is still held today by management experts.The conclusion is that Frederick Taylor’s principles for scientific management are stillappropriate for managing modern organisations.Henri Fayols Principles of ManagementTodays managers have access to an amazing array of resources which they can use toimprove their skills. But what about those managers who were leading the way forward 100years ago?Managers in the early 1900s had very few external resources to draw upon to guide anddevelop their management practice. But thanks to early theorists like Henri Fayol (1841-1925), managers began to get the tools they needed to lead and manage more effectively.Fayol, and others like him, are responsible for building the foundations of modernmanagement theory.Fayols "14 Principles" was one of the earliest theories of management to be created, andremains one of the most comprehensive. Hes considered to be among the most influentialcontributors to the modern concept of management, even though people dont refer to "The 14Principles" often today.The theory falls under the Administrative Management school of thought (as opposed to theScientific Management school, led by Fredrick Taylor).
  4. 4. Fayol’s 14 principles derive from the circumstance that Fayol felt that management was notwell defined. In his striving to change this circumstance he suggested “some generalizedteaching of management” to be a main part of every curriculum at places of higher educationand even beginning in “primary schools” . 1. Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient. This very objective has not been altered in today’s labor. In a sense this principle is the fundamental feature of modern economy, allowing for the largest increases of productivity. In the early industrialization, the Ford motor company , where Taylor’s system of a scientific approach was applied: Taylor was interested in skill development by means of standardization and functional specialization . One worker would assemble the dashboard, another would assemble the wheels, and yet another would paint the exterior. The effects of this are well known and lead to Ford becoming not just the predominant car maker but also the inventor of the conveyer-belt production system- revolutionizing many industries. However, one could argue that extremes of division of work could lead to undesired effects. Division of labor can ultimately reduce productivity and increase costs to produce units. Several reasons as causes for reduction in productivity can be thought of. For example, productivity can suffer when workers become bored with the constant repetition of a task. Additionally, productivity can be affected when workers lose pride in their work because they are not producing an entire product they can identify as their own work. 2. Authority – Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility. Apparently, Fayol’s “authority and responsibility”-appeal is being disregarded by some; nevertheless, this example provides evidence for the validity of his observation that with great power great responsibility should arise. 3. Discipline – Discipline must be upheld in organizations, but methods for doing so can vary. Fayol recognizes the complexity of human interaction as an important topic to be addressed. Expanding on this idea Elton Mayo provides evidence for us that Fayol was onto the right idea, at least a functioning idea, for that matter. Mayo’s behavioral approach has shown that workers under experimental observation performed better than unobserved. It has frequently been argued, that there is evidence in this that discipline and the correlating performance can maybe best be achieved by a treatment emphasizing fairness, participation, a caring attitude, and respect. 4. Unity of Command – Employees should have only one direct supervisor. Dual command must not necessarily derive from an intentional organizational design, but can occur coincidently, for instance if departments are not clearly demarcated, responsibilities and authorities are not clearly defined, or relationship dynamics (e.g.
  5. 5. amongst friends, family etc) lead to someone assuming authority that was not originally associated with this individual.5. Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly coordinated. That means first one( CEO for example) must know where to take the company and subsequently constantly assure that the plan is still on track.6. Subordination of Individual Interests to the General Interest – The interests of one employee should not be allowed to become more important than those of the group. This includes managers. Generally speaking however, the companies’ interests must be put ahead of personal interests . The struggle of interest can be exemplified by the worker rights movements and unions. Fayol was not at all opposed to such organizations as unions. In fact, he believed in granting benefits to workers . Interestingly, Fayol suggests “constant supervision” as one measure to restrict unwanted egoistic effects, like selfishness, laziness and others, which cloud the vision for the company’s interests .7. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation. In discussing how to apply fair modes of payment, Fayol mentions several still used strategies, e.g. time rates, job rates, and piece rates . Most interestingly he also mentions the aforementioned bonuses and profit sharing. As Fayol explains himself, in his time bonuses and profit-sharing were still rather new concepts. And he wonders what would happen with bonuses in lean times, pointing out, that a salary entirely depending on profit-sharing would lead to a loss of salary under certain circumstances. This attitude echoes like a warning for today’s management leaders, whose remuneration practice is perceived as socially unsustainable and hence immoral, and Fayol’s suggestion is thereby proven to be a relevant principle also today.8. Centralization – This principle refers to how close employees are to the decision- making process. It is important to aim for an appropriate balance. In today’s corporate world IT has contributed to an easier approach to centralization. At the same time has the fact that large corporations act globally led to adjustments that can best be performed locally. In other words, a company must be able to do both. For different business aspects, different solutions must be found.9. Scalar Chain – Employees should be aware of where they stand in the organizations hierarchy, or chain of command. In many organizations, the scalar chain principle is still very much alive. However, some have argued that modern management demands new approaches. It has been argued that with ever increasing size of globally acting companies the scalar chain is increasing in length, thus increasing the cost of coordination . A problem associated with the scalar chain, as Fayol observes it, occurs when a subordinate bypasses a manager in either the communication of information or the making of a decision. This would undermine the authority and position of the manager who is bypassed. If this would be allowed, morale of the managers would decline.
  6. 6. hile he sees this bypassing of parts of the scalar chain as negative, he emphasizes that it can be justified in some instances. He states that it can be acceptable to short-cut the scalar chain, so long as this action has been approved by the immediate superiors . In my mind the argument that modern companies disregard Fayol’s principle is therefore not valid.10. Order – The workplace facilities must be clean, tidy and safe for employees. Everything should have its place. In discussing, what he calls material order, Fayol points to lost time and an increase of mistakes as a main disadvantage of disorder . Ultimately, material order is a question of “quality management”. The international organization for standardization (ISO) is one modern example of how today’s management attempts to achieve order. The ISO has developed guidelines that intent to help management to achieve order and the correlated high level of quality of leadership, production and documentation . The ISO certifications, which are designed to test a companies’ compliance with the ISO principles, are a fixed part of literally every business undertaking there is. The principle of order that Fayol mentioned is thereby taken very seriously in today’s business world.11. Equity – Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with kindness where appropriate. One indication for this claim is to be found in the fact that most companies have appointed officials who deal with complaints of employees against the management, for instance the so-called ombudsman . However, this system is naturally not fool proof and private organizations attempt to draw attention to the victims of mistreatment. ( As a response, many nations have created several laws that intend to establish a juridical basis for people who fell victim of inequality.)12. Stability of Tenure of Personnel – Managers should strive to minimize employee turnover. Personnel planning should be a priority. While from an employee perspective the protection laws make sense, employers may occasionally view this issue differently. In fact, it is easy to find web-blogs with advice how to fire workers without ensuing lawsuit and some influential individuals. While stability is important for the employee it is just as important for the employer. One would think that this leads to both parties pulling in the same direction. But as we can see, it requires a change of mind in some instances to establish an environment of trust and mutual care.13. Initiative – Employees should be given the necessary level of freedom to create and carry out plans. Some modernly run companies have come to find their special ways in order to ensure employee satisfaction, and, concomitantly their initiative. Letting go of employees through independent projects can mean getting more from them. It’s a way to get people to go beyond what’s expected of them. Apparently, with the right strategies a company can increase employee participation and initiative by given the “inspiration” Fayol requested from the management.14. Esprit de Corps – Organizations should strive to promote team spirit and unity.
  7. 7. Fayol emphasizes the importance of meetings and personal communication over written communications. The importance of teamwork is mentioned, and Fayol warns managers against believing they could achieve their goals by the strategy “divide an rule”. Companies who strive to become successful must strengthen team spirit.Fayols six primary functions of management, which go hand in hand with the Principles, areas follows: 1. Forecasting. 2. Planning. 3. Organizing. 4. Commanding. 5. Coordinating. 6. Controlling.Henri Fayols "14 Principles of Management" have been a significant influence on modernmanagement theory. His practical list of principles helped early 20th century managers learnhow to organize and interact with their employees in a productive way.Although the 14 Principles arent widely used today, they can still offer guidance for todaysmanagers. Many of the principles are now considered to be common sense, but at the timethey were revolutionary concepts for organizational management.Luther GulickLuther Gulick was among those who expanded on the works of Henri Fayol to build afoundation for management theory. He viewed management functions as universal. His seven-activities acronym, POSDCORB, is a familiar word throughout management practice.POSDCORB stands for planning, organizing, staffing, directing, co-ordinating, reporting andbudgeting. He wanted to revise administrative practices by the establishment of general rules.He agreed with Frederick Taylor in that he believed that certain characteristics oforganizations provided administrators with the means to manage effectively. He was in accordwith Max Weber in that organizations were hierarchical. Gulick added the concept of span ofcontrol, which addressed the factors limiting the number of people a manager could supervise.He also recommended unity of command because he felt that people should know to whomthey were responsible. His homogeneity of work centred on the fact that an organizationshould not combine dissimilar activities in single agencies. This was the basis of Gulick’smajor contribution in the area of departmentalization.Planning Function of ManagementPlanning is the function that establishes in advance what should be done. It is looking inadvance and getting ready for the future. It is a technique of deciding the business objectivesand charting out the methods of achieving those objectives. In other words, it is thedetermination of what is to be done, how and where it is to be done, who is to do it and how
  8. 8. consequences are to be assessed. This is done not only for the organization as a whole but forevery division, subdivision or sub-section of the organization. Thus planning is a functionwhich is carried out by managers at all levels in an organization - top, middle and supervisory.Plans made by top management for the organization as a whole may cover time as long as fiveor ten years. Plans carried out by middle or first line managers, cover much shorter periods.Such plans may be for the next days work, for example, or for a two-hour gathering to takeplace in a week.Organizing FunctionTo organize a business is to make available it with everything useful to its functioning, saypersonnel, raw materials, tools and capital. All this may be separated into two main segments,the human organization and the material organization. Once managers have establishedobjectives and developed plans to accomplish them, they must design and develop a humanorganization that will be capable to perform those plans effectively.Staffing may also be considered as one of the significant Functions of Management involvedin constructing the human organization. In staffing, the manager challenges to find the rightperson for each job. Staffing fixes a managers responsibility to recruit and to make sure thatthere is adequate manpower available to fill a variety of positions needed in the organization.Staffing involves the selection and training of future managers and an appropriate system ofreward. Staffing apparently cannot be done once and for all, since people are frequentlyleaving, getting fired, retiring. Often too, the transformations in the organization generate newpositions, and these must be filled.Directing Functions of ManagementAfter plans have been ready and the organization has been established and staffed, the nextstep is to progress towards its distinct objectives. This role of manager can be called byvarious names like "actuating", "leading", "directing", "motivating" and so on. Butwhatsoever the name used to recognize it, in carrying out this function the manager clarify tohis people what they have to do and facilitate them do it to do the best of their capability.Directing thus engages three sub-functions; they are communication, leadership andmotivation. Communication is the process of passing information and understanding from oneperson to another person. Leadership is the process in which a manager guides and influencesthe effort of his subordinates. Motivation means arousing desire or wish in the minds ofworkers to give their greatest to the enterprise. It is the act of inspiring or rousing workers. Ifthe workers of an organization are appropriately motivated they will pull their weightefficiently, give their loyalty to the enterprise, and perform their duty effectively. Motivationis classified under two broad categories; financial and non-financial. Financial motivationtakes the form of bonus, profit-sharing, distribution of company share etc. whereas non-financial motivation takes the form of opportunity of advancement, job security, recognition,praise.Controlling Function of Management
  9. 9. The manager must make certain that the whole thing occurs in compliance with the plansadopted, the directions issued and the principles established. This is the controlling functionof management, and involves three essentials. 1. Establishing performance standards 2. Evaluating current performance and comparing it against the established performance standards. 3. Taking corrective action to any performance that doesn’t meet established standards.Innovation functionNowadays, it is not essential for an organization to grow bigger. But it is essential that itcontinuously grows better. This creates innovation important functions of management.Innovation refers to generating new ideas which may either result in the development of newproducts or finding new customers for the old products. One may, though, considerinnovation not a separate management functions but only a part of planning.Representation functionA manager is also required these days to spend a part of his time in representing hisorganization in front of various outside groups which have some stake in the organization.These stake-holders can be government officials, financial institutions, labor unions, vendors,customers, etc. They exert influence over the organization. A manager must win their supportby efficiently managing the social impact of his organization. It should be implicit that every function has two dimensions: substantive andprocedural. Substantive dimension is what is being done and procedural dimension is how it isdone. The above description and Functions of Management not only help us to recognize amanager but they tell us about how he manages. A highly useful way to know this is to thinkof management as an operational procedure and its function as sub-processes in a circularcontinues movement.Luther Gulick was the person who developed the classic theories on span of control to anotherlevel, but his belief was still that a manager should not have more than three to sevensubordinates. In an organisation with a number of different functions, it is vital to reduce thespan of control since the managers with responsibility for personnel integrate with manydifferent types of individuals. If, on the other hand, all the subordinates carry out the samemonotonous tasks then it is possible for a manager to lead and co-ordinate a larger group ofpeople. When it comes to time and stability Luther Gulick focused mainly on stability. In astable organisation, with low staff turnover, the managers with responsibility for personnel donot need to train and supervise new employees.
  10. 10. Bibliography:Principles of Scientific Management, Frederick Winslow Taylor (1911)http://www.marxists.org/reference/subject/economics/taylor/principles/ch02.htmManagement theoretician Henri Fayol’s 14 principleshttp://davidkramer.wordpress.com/Time to Revive Luther Gulick- On Span of Control and Organisation Quality© Lena Andersson-Felé 2006