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MANAGING FOR EFFICIENCY & CONTROL: SCIENTIFIC MANAGEMENT & FORDISM…
MANAGING FOR EFFICIENCY & CONTROL: SCIENTIFIC MANAGEMENT & FORDISM
Scientific Management (SM)
Overview
Developed by Frederick Winslow Taylor (1856 - 1915)
Goal: solve the "labour problem" by increasing productivity and efficiency
Key ideas
shift control of production
systematize work processes
systematize tasks
make labour predictable and controllable
SM and its Motivation
Worker Knowledge as Power
Eliminate "soldiering" (loafing)
SM as Taylor's Solution
Discovered via scientific study
Standardized processes
4 Stages of SM
Analysis of Labor Process
Scientific Selection & Training
Cooperation (Manager & Worker)
Equal Division of Work (Think vs. Do)
Benefits
Improving woeker output
Providing reliable measures
Increase managerial control
Enabling higher wages
Principles
Use scientific methods
Harmony (agreement), not discord (conflict)
Cooperation, not individualism
Maximum output, not restricted output
Development of each man to his greatest efficiency and prosperity
Impacts
Productivyty increase
Economic impact
Bethlehem Steel efficiency
Inventions
SM in Today's management
McDonald's
Disney
Japanese Adoption
Issues
Limited Mobility and Skill decline
Job security and satisfaction
Monotony and Boredom
Labor-Intensive Focus
Historical Context
Adam Smith (The Wealth of Nations)
Division of Labor
Example: Pin Factory
Result: Increased Efficiency
Industrial Revolution
Machine power replaces human labor
Rise of factories creates need for management
Fordism
The origin
Craft Production (Pre-Fordism)
Challeges of Craft Production
Henry Ford's Contribution and the Birth of Fordism
The features
Assembly Line Production
Rigid Division of Labour
Scientific Management and Technical Control
Impacts & Benefits
Drastic reduction in assembly time
Economies of Scale
Lower Prices -> Higher Demand
Criticism on Fordism
Workers treated as machine parts
High wages to combat high turnover
The Demise of Fordism
Became uncompetitive
Cause: Lack of variety compared to global competitors
Example: VW Beetle (Economy)
Example: MG (Sporty)