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.
THE EVOLUTION OF MANAGEMENT THOUGHT, 6TH EDITION Electronic Resource by: Regina Greenwood and Julia Teahen CHAPTER TWELVE Scientific Management in Retrospect 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 D Chandler Courtesy of Harvard Business School 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 Industrial efficiency was increasing, partially due to scientific The Economic Environment America was uniquely diverse 1890-1920: 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) The 1909 Model T Technology: Opening New Horizons Enterprises developed and grew – 247 of the Fortune 500 were founded from 1880-1929 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 1910 – 2,773 workers produced 18,664 cars 1914 – 12,880 workers produced 248,307 cars Henry Ford The Social Environment 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 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 Lewis Hine (1915) The Political Environment Theodore Roosevelt, courtesy of the Constitution Society An increasing regulation of business under Theodore Roosevelt after 1901 overcame the inadequacies of the earlier Sherman Act Tax rate comparison – Underwood-Simmons Tariff Act of 1913 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% 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 http://www.aomhistory.baker.edu/departments/leadership/mgthistory/links.html List of Internet Resources compiled by Charles Booth http://www.jiscmail.ac.uk/files/MANAGEMENTHISTORY/links.htm Western Libraries Business Library – Biographies of Gurus http://www.lib.uwo.ca/business/gurus.html Frederick Winslow Taylor http://www.accel-team.com/scientific/scientific_02.html Fascinating Facts about Frederick Winslow Taylor http://www.ideafinder.com/history/inventors/taylor.htm Who Made America – Frederick Winslow Taylor http://www.pbs.org/wgbh/theymadeamerica/whomade/taylor_lo.html Films of Westinghouse Works – 1904 http://memory.loc.gov/ammem/papr/west/westhome.html END OF PART TWO .. .CHAPTER TWELVE Scientific Management in Retrospect Scientific Management in Retrospect The Economic Environment Technology The Social Environment The Political Environment The Economic... Lewis Hine (1915) The Political Environment Theodore Roosevelt, courtesy of the Constitution Society An increasing regulation of business under Theodore Roosevelt after 1901 overcame the inadequacies... ideas of the scientific management pioneers fit these needs Industrial efficiency was increasing, partially due to scientific The Economic Environment America was uniquely diverse 189 0-1 920: