1.
PIECE RATE SYSTEM & SHOP MANAGEMENT
PRINCIPLES of SCIENTIFIC MANAGEMENT
Presented By
TARUN KASHNI

2.
INDEX
2
1. INTRODUCTION TO PIECE RATE SYSTEM
2. IMPLEMENTATION OF PIECE RATE SYSTEM
3. ADVANTAGES & DISADVANTAGES OF PIECE RATE SYSTEM
4. INTRODUTION TO SHOP MANAGEMENT
5. IMPLEMENTATION OF SHOP MANAGEMENT
6. PRINCIPLES OF SCIENTIFIC MANAGEMENT THEORY
7. ADVANTAGES & DISADVANTAGES OF SCIENTIFIC MANAGEMENT THEORY

3.
PIECE RATE SYSTEM
3
INTRODUCTION
Piece rate system is the method of remunerating the workers according to
the number of unit produced or job completed. It is also known as payment
by result or output. Piece rate system pays wages at a fixed piece rate for
each unit of output produced.

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5
Garments industries Foil manufacturing
Telecom duct
manufacturing Tea manufacturing
Fgfd
WHERE THE PIECE RATE
SYSTEM IS IMPLEMENTED

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7.
7
SHOP MANAGEMENT
INTRODUCTION
Shop Management is a manual that
goes into the nuts and bolts of
efficiency and improvement. Like
every good consultant, Taylor sums
up big ideas with concise points and
principles. In shop management
there is a particular task for each
section in the industry and their
specialization increase over the
period of time

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WHERE THE SHOP MANAGEMENT
IS IMPLEMENTED
AUTO MANUFACTURING PLANT

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9
WHERE THE SHOP MANAGEMENT
IS IMPLEMENTED
E COMMERCE

10.
10
WHERE THE SHOP MANAGEMENT
IS IMPLEMENTED
GOOD DISTRIBUTION

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11
WHERE THE SHOP MANAGEMENT
IS IMPLEMENTED
DEPARTMENTAL STORES

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PRINCIPLES OF SCIENTIFIC
MANAGEMENT
1. Science, Not Rule of Thumb:
In order to increase organizational efficiency, the ‘Rule of Thumb’ method should be
substituted by the methods developed through scientific analysis of work.
Rule of Thumb means decisions taken by manager as per their personal judgments.
According to Taylor, even a small production activity like loading iron sheets into box
cars can be scientifically planned. This will help in saving time as well as human
energy. Decisions should be based on scientific enquiry with cause and effect
relationships.
This principle is concerned with selecting the best way of performing a job through
the application of scientific analysis and not by intuition or hit and trial methods.

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PRINCIPLES OF SCIENTIFIC
MANAGEMENT
2. Harmony, Not Discord:
Taylor emphasized that there should be complete harmony between the workers and
the management since if there is any conflict between the two, it will not be
beneficial either for the workers or the management.
Both the management and the workers should realize the importance of each other.
In order to achieve this state, Taylor suggested complete mental revolution on the
part of both management and workers.
It becomes possible by
(a) sharing a part of surplus with workers
(b) training of employees
(c) division of work
(d) team spirit
(e) positive attitude
(f) sense of discipline
(g) sincerity etc.

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PRINCIPLES OF SCIENTIFIC
MANAGEMENT
4. Cooperation, Not Individualism:
This principle is an extension of principle of ‘Harmony, not discord’ and lays stress on
mutual cooperation between workers and the management. Cooperation, mutual
confidence, sense of goodwill should prevail among both, managers as well as
workers. The intention is to replace internal competition with cooperation
Management should always welcome suggestions of workers and should also reward
them if their suggestions prove to be beneficial for the organization viz. reduction of
costs or increase in production etc

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PRINCIPLES OF SCIENTIFIC
MANAGEMENT
4. DEVELOPMENT OF EACH PERSON BY ITS GREATEST EFFICIENCY
• SCIENTIFIC SELECTION RIGHT PERSON AT RIGHT
TIME
MENTAL
PHYSICAL
INTELLECTUAL
• TRAINED EMPLOYEES
FIRST PREFERENCE IS TO SELECT EXPERIENCE CANDIDATE
TARINING IF NEEDED (BY CONFERENCE, SEMINARS etc.
SO THAT WORKERS CAN WORK BY ITS HIGHEST EFFICENCY

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PRINCIPLES OF SCIENTIFIC
MANAGEMENT
5. MAXIMUM NOT RESTRICTED OUTPUT
6. EQUAL DIVISION OF RESPONSIBILITY B/W MANAGEMENT AND WORKERS

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ADVANTAGES OF SCIENTIFIC
MANAGEMENT
1. ENHANCED PRODUCTION MANAGEMENT & WORKERS
COOPERATION
HARMONY
2. ABILITY TO CONTROL
SPECIALIST EMPLOYEES BY REPEAT TASK
EASY FOR MANAGER TO CONTROL WORKER
3. DECREASES INACCURACY
BETTER PLANNING AND DECISION MAKING ACCURACY IS
ACHIEVED
4. DECREASES AUTOCRACY
COOPERATION AMONG EMPLOYEES & MANAGERS
ENHANCES DEMOCRACY IN THE WORKPLACE
5. COST OF PRUDCTION IS REDUCED
6. PIECE PAY WORK SYSTEM
7. QUICK DESCION MAKING
8. BENEFITS TO CUSTOMER
9. EFFICENCY INCREASED
10. BEST USE OF RESOURCES AND DEVELOPMENT

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DISADVANTAGES OF SCIENTIFIC
MANAGEMENT
1. REQUIRES HUGE CAPITAL
2. MANAGEMENT TAKES CONTROL
3. REPEAT TASK – LACK OF CREATIVITY (REDUCES EMPLOYEES MOTIVATION
4. MECHANISTIC- WORKER FEEL LIKE MACHINE

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