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U.S. was shifting - uneasily - from a looselyconnected world of small towns, smallbusinesses,andagriculturetoanindustrializednetwork of cities, factories, and largecompanieslinkedbyrail.247
Acrosstheindustrializedworldownersofearlyenterprises had the power to run theirbusinesseswithvirtuallynoconstraints.243
Althoughemployeeswereknowntobehuman,their personal interests and purposes wereirrelevanttotheiremployers.243
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As a result, they were treated more likedifficult-to-replace organs than easilyreplaceablemachineparts.243
Allthismadetheownerslessgod-like.243
Factoryworkwasdoneaccording to the craftsystem; jobs were “trades”, and their secretsandrulesof thumbwerepasseddown,slowlyandgrudgingly,frommastertoapprentice.244
The owners and operators of the businessreally had no idea how theirwork should bedone.244
They didn’t know how tasks were bestarranged, they didn’t know how to optimizethe output of the machines, and they didn’tknowwhatpaceofoutputwassustainable.244
The foreman set the wages using a “rule ofthumb”method,245246ahaphazardpracticeoforganizing the work, which gave individualworkersenormouscontrol.257
the foreman
In virtually all industries, regardless of thetypes of manufacturing operations takingplace, the foreman was, for all intents andpurposes,themanufacturer.245246
He was responsible for hiring and firingpersonnel, training them, arbitratinggrievances, promoting and demotingworkers, and enforcing the manufacturer’spersonnel policies regarding work hours,personalappearance,andrulesofconduct.245246
Some more or less experienced foreman orrate-setter came along and looked at a job,andmadewhatappearedtobeaguess(oftenaverycloseguess)atthetimethatshouldbetakentoperformthework.249
Aratewasfixedaccordingly.249
In many industries the “piece work” systemwascommon.245246
The manufacturer, for whom the foremanworked, usually watched the payroll veryclosely. When piece workers were soproductive that they earned more than theprevailingdaywage,themanufacturerwouldorder the piece rate cut, removing anyincentivetoproducemore.245246
Some believed that a more systematic orscientificapproachwasrequired.
Theinitialfocusofwhatbecameknownas‘thescientific management movement’ was onefficient use of labor and on costs and costsystems.332
AsAlexanderChurchdescribed:
Thenext stepon the pathof development of thepracticaluseofanalysiswasdue to thedesireofemployersoflabortofindsomesatisfactorybasisforrewardingitaccordingtoresults.
The early beginnings of this movement werecharacterized by a desire for more exact
knowledge.249
Oneofthefirstdocumentedusagesofa morescientific management approach was byBoultonandWatt.
Boulton&Wattmanufacturedstationarysteamengines. Itwas initially a partnership betweenMatthewBoultonandJamesWatt.173
ThefirmofBoultonandWattowedmanyofitsmanagement innovations not to James Watt,Sr., the inventor, or his partner MatthewBoulton, but to their sons, who took over theenterprise.261
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They instituted one of the first completeapplicationsofscientificmanagement.254
In this plant there is evidence of marketresearch, including machine layout studyinvolvingworkflow,productionstandards,costaccounting, employee training, employeeincentives,andemployeewelfareprograms.254
Although there is evidence of a scientificmanagement approach at Boulton & Watt’splant,thereislittleevidencethatthisapproachwasusedelsewhereatthetime.
In his book “The Making of ScientificManagement”,LyndallUrwickreported:
Thiswas perhaps the first model of whatwaslater to become a standard pattern in thedevelopment of industry, the “father”generation of inventors and entrepreneursbeingsucceededbythe“sons”whoturned topuremanagement.261
In 1794,Watt Jr.becameapartner in theSohoFoundryfirmofBoulton&Watt.250251
Matthew Robinson Boulton was mainlyinvolvedintheinitialplanningoftheFoundry,withJamesWattJr.beingmoreconcernedwithdailymanagementandorganisation.253252
Sincemanagement reliedheavilyonengineersfor advice in the new factories, it is notsurprising that associations of engineers weresome of the first to examine and write aboutmanagementproblems.254
Onesuchassociation,ASME,founded[in1880]as the American Society of MechanicalEngineers,isaprofessionalassociationthat,initsownwords, “promotes theart, science,andpractice of multidisciplinary engineering andalliedsciencesaroundtheglobe”.258
ASME had been founded to gather technicalinformation, but in 1886, Henry RobinsonTowne, read a paper called The Engineer asEconomist, which has been called “thefounding document of the new science ofmanagement”.257
In its setting as part of the history of thepioneers of scientificmanagement ...Was themanagementatSohoanisolatedinstanceinatimeofintenseindustrialchange?
Did itmaintain itshighstandardsovertwoorthree decades without exerting any influenceontheaffairsormindsofcustomersandothercontacts?
In this paper he recognised the need for ascience of management which could flourishonly through its own literature, journals andassociation259and laid out his ideas about themanagementrolefortheengineer.255
He was introduced to Linus Yale, Jr.255 theinventor of the pin tumbler lock440 256 and inOctober 1868, the two men formed the YaleLockManufacturingCompany.255
Towne was one of the first engineers to seemanagementasanewsocialroleforengineersand that the development of managementtechniqueswasimportantforthedevelopmentoftheengineeringprofession.255
As industrialismexpanded intheUnitedStatesfollowingtheCivilWar,theessenceofthelabormovement was the struggle for control of theworkplacebetweentheworkers,holding fasttotheircraftskills,andthemanagement.257
Frederick Taylorwas one of the first people toviewmanagementasasciencetobestudied.327
Much of this chapter will be dedicated todiscussing Taylor, such is his influence on thedesignandmanagementofworktoday.
Halsey proposed incentives based on pastproduction records, including a guaranteedminimumwage and a premium for not doingwork.254
Workers under the Halsey plan were allowedthesamelengthoftimetheyhavebeentakingin the past as a standard. If they increasedoutput, two-thirds of the gain went to theemployerandone-thirdwasgiventothemen.357
TheTowneandHalseyschemeswerebothtriedout in factories and both yielded results, interms of higher wages and increasedproductivity.441
However,thefearbyeithermanagementortheworkers that the other side was ‘getting toomuch’,wasalreadyrearingitshead.441
The America of the late ‘seventies and early‘eighties,theperiodwhenTaylorfirstcameonthe industrial scene, was gripped in a viciouscircle of low wages, low production, lowpurchasing power and a consequent lack ofprosperity.361
Strikes and other evidences of widespreadindustrialunrestmarkedtheperiod.361
BornintoawealthyfamilyinPhiladelphia,257in1873, [Taylor]decided to leaveschool (PhillipsExeterAcademy334)tobecomeanengineer.263
Sointhespringof1874,hequitExetertoworkina foundry, the EnterpriseHydraulicWorks,also known as Ferrell and Jones, after theownerswhomadesteampumpsandhydraulicmachinery, using the steam-pump designdevelopedbyHenryWorthington.263
The industrial revolution had been underwayfornearly100yearsbefore Taylortookhisfirstjob as an engineer at Philadelphia’s MidvaleSteelCompany.245442
In late 1877, Taylor met Wilfred Lewis andColemanSellers,whosefather,WilliamSellers,wastheheadofalargemachinetoolcompanyand who owned a controlling interest inMidvaleSteel,Sellerswasamechanicalgenius,with90patents.263
Immediatelyhewasplungedintodifficultiesofmanagement.Theoutputwas lowand,havingbeen aworker amongworkers of that day, heknew it was due to systematic as well asunconscious soldiering362 (today known asslacking,lazinessorshirking).
AsTaylorexplained:
Hardly a competent workman can be found … who does not devote a considerable part of his time to studying just how slowly he can work and still convince his employer that he is going at a good pace. 417FrederickTaylor
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For fi f teen years a t Midva le , Tay lorexperimentedandrecordedeveryaspectoftheworkprocess.257
For example, his determination to increaseproductivityledhimintheautumnof1880,toa series of systematic experiments in metal-cutting.257
He foundalmost immediatelythatcoolingthecutting toolswith awater spray, permitted anincreaseofthecuttingspeedby40%.257
The ideaof ‘guessing’about the timerequiredto perform a job was against Taylor’s basicoutlook.269
the productivity problem
He began in 1880 to keep “Book ContainingNotesofImportance,”andherecordedalldataaboutallprocesses,takingnothingforgrantedandacceptingnoneofthepastpractices.263
He also began researching what others weredoingtosolvethe“productivityproblem”:
AlmostassoonasIstartedwiththis ideaattheMidvale Steel works ... I started to collect whatinformation could be had that was written and
publishedonwhatconstitutedaday’swork.263
Taylor employed research, industr ial“tourism” (visiting other establishments) andearlyformsofbenchmarking.
If the workman succeeds in doing the job in ashorter time, he is still paidhis samewages perhour for the time he works on the job, and inaddition is given a premium for having workedfaster,consistingoffromone-quartertoone-halfthedifferencebetween thewagesearnedand thewages originally paid when the job was done instandardtime.326standard “should take” times
Taylor hypothesized that workers could beretooled like machines, their physical andmental gears recalibrated for betterproductivity.270
Taylor began to measure how work wasperformed, how long it took and, mostimportantly,begantoprojecthowlongeachjobshouldtake.257
Our trades are learned just as they were in the Middle Ages. 263FrederickTaylor(Testimony,1912)
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Everythingbecameamanagementmethodtoincrease productivity: the design of themachine,thedesignofthepiece,themotionsoftheoperator,etc.263
In doing so, Taylor broke down the job tocreate an expectation, almost mathematical,forfuturework.263
Hewentontoexplain:
since the rate-fixing is done from accurateknowledge,insteadofmoreorlessbyguesswork,the motive for holding back on work, or‘soldiering,’ and endeavoring to deceive theemployer as to the time required todowork, isentirelyremoved.336
Taylormaintainedthathigherproductivityledtohigheremployment,buttheworkersofthelate 19th century saw the reverse: they werecarefulnottofinishworktooquicklytoavoidboth running out of work and working toohard.257
For the first time, one of Taylor’s assistantsused a stopwatch to break down the workprocess into minute components, each ofwhich could be altered to speed upproduction.263
The use of time-study in organisations hadbegun. Ithadbeenusedbefore,goingbacktotheverybeginningsofthefactorysystem249butnot in a formalized,orwhatTaylorwould callscientific,way.
Taylor’sbattleforincreasedproductivitywouldleave no stone unturned, he also restrictedworkersfromleavingtheshopatlunchtime.263
InFebruary, 1884,Taylorwaspromoted,atage28, toalmostcompletecontrolof themachineshop; calling himself “Chief Engineer,” thoughhe did not officially receive this title until1887.263
263 Taylor Timeline. Author: Bill Barry, Community College of Baltimore County, used with kind permission.
Image: Shop Observation Card for Recording Stopwatch Time Studies, Cost Keeping and Scientific Management (1911), Author: Evans, Holden A, Publisher: New York [etc.] McGraw-Hill book company P. 205 archive.org/details/costkeepingands00evangoog
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Taylor stipulated that a fair day’swork shouldbe “determined through observations … andanalysis”.276
As he observed each movement, moreover,Taylortriedtosimplifyeachone.257
Hisviewwasthat:
StandardTime×WorkingHours=FairDay’sWork276
While his immediate goal was increasingproductivity,hecontributedtothedeskillingoftheworkplace.257
By calculating “scientifically” how each jobshould be performed, and how long it shouldtake, Taylor increased productivity but, mostimportantly, transferred control of the workprocessovertomanagement.257
In his chapter “Wasted Time Detected byTimeStudies”(1911)Evansstatedthat:
Wasted time is the principal reason forinefficientlabor.
Very few owners or managers realize that anenormousamountof time iswastedbymen intheiremploy.
Wasted time, while due to many causes, maybe classed under four general heads: Loafing,Employment on Unsuitable Work, Lost Timedue to Unnecessary Waits, and PoorEquipment.
Theproperprocedureistofirstfindthecause.
This can only be accomplished by detailobservation.
In a further attempt to improve productivityTaylor also created “instruction cards,” whichnoted each motion and each decision thatworkers had passed along informally to eachother.257
Thesedecisionswererecordedfortheforemanandwereusedboth to instructand tocontrolnewworkers.257
Eachdetailoftheoperationisdescribedalongwithhowlongeachoperationshouldtake,andhow long it did take. The worker whoperformedtheworkisrecorded,asishisboss,andanybonusearned.
In 1883 Taylor also began to break down thejob of the foreman, he advocated functionalforemanship.276
The scheme of functional foremanship is anextensionof[the]principleofspecializationatthesupervisorylevel.276
This techniquewasdeveloped to improve thequalityofworkasasinglesupervisormaynotbe an expert in all the aspects of the work.Therefore workers were to be supervised byspecialistforeman.276
Taylor had now separated planning fromdoing.Fourofthespecialistforemanwouldbelocated in theoffice forplanningand fourontheshopfloorwiththeworkmen.
At the planning level there were foursupervisors.274
Taylordescribed their roles inrelation to theworkerwhodoesthework:
The InstructionCardClerk;describing indetailthetaskwhichheistoaccomplish,aswellasthemeans to be used in doing the work.434Theseinstructionsrepresentthecombinedworkof several men in the planning room, each ofwhomhashisownspecialtyorfunction.
The SpeedBoss; sees that themachine is runatthebestspeedandthatthepropertoolisusedintheparticularwaywhichwillenablethemachinetofinishitsproductintheshortestpossibletime.
Taylor proposed a form of incentive foremployees to make suggestions if they felt animprovement could be made to either themethodor the implementusedtoundertakeatask.265
After analysis of the suggestion, and if it wasintroduced into theworkplace265 Taylor statedthat:
The workman should be given the full credit forthe improvement, and should be paid a cash
premiumasarewardforhisingenuity.443
Staff suggestion schemes and innovationbonuseswereborn.
Taylorsoughttomeasurethehumaninputsandoutputs in manufacturing. Workers wereevaluated and rewarded in terms of the ‘workunits’theyproduced.266
resource planning department
Inherent in Taylor’s style of management wasthe setting up of planning departments ofclerks who ensured that ‘... every labourer’sworkwasplannedoutwellinadvance,andtheworkmen were moved from place to place bytheclerkswithelaboratediagrams’.265
AsTaylorstated:
Thesemenofnecessity spendmostof their timeintheplanningdepartment,becausetheymustbeclose to the records and data which theycontinually use in their work, and because thisworkrequirestheuseofadeskandfreedomfrom
interruption.277
Thus, today’s resource planning and processimprovementdepartmentswereborn.
Under differential piece rate system, astandard output was first fixed. Then twowagerateswerefixedasfollows:274
It consistsbriefly inoffering twodifferent ratesfor the same job; ahighpriceperpiece in casetheworkisfinishedintheshortestpossibletimeand in perfect condition, and a low price, if ittakesalongertimetodothejob,orifthereare
anyimperfectionsinthework.273
This enabled the management to fix theamountofworktobedonebyeachworkerinonehouror inoneday.That is,managementcanfixastandardoutputofworkforacertainperiodoftime.274
differential rates
Taylor claimed the primarymotivationof anemployeewastoearnmoney. Therefore,thewaytogetanemployeetoworkharderwastopaybythepiece.267
Taylortheorizedthatworkerswereinefficientbecausetheytendedtorationtheirworkloadorworklessthantheycouldtopreventthejobtasks fromrunningout, resulting ina lossofwages.268
By 1884,Taylor proposed a set ofdifferentialrates at Midvale that would be set“scientifically,”withhigherratesperpiecepaidabove certa in product ion s tandardsestablishedbymanagement.263
It was intended to provide individualemployeeproductivityincentives.267
Halsey’s plan, along with Taylor’s ideas onpiece rates, had a major influence in theUnitedStatesandGreatBritainonthedesignofpayschemes.254
Herewas the genius, perverse or inspired, ofTaylorism,whichfarexceededtheprincipleofdifferentialrates:theseizingofcontroloftheworldprocessonbehalfofmanagement.257
This created a new class, and successivegenerations, of order-takers: do it themanagement way or else, destroying the lastvestigesofworkercontrolinthepre-industrialworkplace.257
“Modern” industrial practices, as we knowthemtoday,begantotakedefiniteform.257
Taylor in his paper describing the differentialrate, read before the Society of MechanicalEngineers273said:
The following table will show the economy of
payinghighwagesunderthedifferentialrate:273
Sincedifferentrateswouldbepaidforallworkona kindof sliding scale,dependingondailyproductivity, these differential rates were adramaticchangefromsimplepiecerates,whichhad been introduced at Midvale and werecommoninmachineshops.263
In thetwelveyearshespentatMidvale,or intheyearsofhisyoungmanhoodbetween theages of twenty-two and thirty-four, hedeveloped single-handed a system of shopmanagementthelikeofwhichneverhadbeenknownbefore,anddespite theoppositionhisradicallynewwayswereboundtoarouse,putthethingintoeffectwithsuchsuccessthathebroughttheentireworksaroundtoit.264
And it is to be observed that in these yearsMidvalesteadily increasedinsizeandgeneralimportance.264
that involved the need to increaseproductivity(which was considered low inarsenals)andmanagepeople.337
Metcalferealisedimmediatelyontakingoveras manager of Frankford Arsenal thattraditional methods of organisation andcontrolarebothwastefulandineffective.339
To remove these problems he developed asystem of control in 1881 which wasuniversally recognisedasanewmilestone inmanagementliterature.339
the science of administration
Captain Henry Metcalfe, a graduate of WestPoint and the Ordnance Department, wentbeyond technologymanagement and focusedonthescienceofadministration.338
WhileTaylorwasengagedinhisearlyMidvalebattles, Metcalfe had progressed enough towrite The Cost of Manufactures, publiclybroaching the need for an administrativescience whose researchers would collect andclassify past records to produce genericprinciplestoapplyinfuturecases.337
His book isconsideredapioneerwork in theareaofmanagementscience.254
In the bookMetcalfe described the “PresentSystem”inuseatthattimeatanArsenal:
The timekeeper, generally the foreman, goesabouttheshoptowardsthecloseofthedayandasks each workman how he has spent it;according to the workman’s recollection heentersthetimereportedinabook.
Thereare twogeneral formsof timebook;one,form A in which the time made by each manduringeachdayisenteredingross;
andformBoccupiesapageforeachday,anda
lineforeachman.342
You can see examples of forms A and Bopposite.
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Metcalfewent onto explain his newer system.He proposed a separate shop order card foreach job. The system required that theworkmannotethetimehespentoneachjobonaseparatelaborcard,filedbyjobnumber.341
Each workman is supplied with a book of fiftypages,eachpagecontainingacouponcard2¾x5½ inches and a stub about 1½ inches wide, inwhich, to save himwriting, is stamped his shopnumber, his name, and his wages per time unit,unlessheisworkingbythepiece.
Whentheworkmangoestoworkinthemorning,hegetshisbook fromthe foreman,andwhenheleavesworkhereturns it tohim,madeoutsoastoindicatethedistributionofhistimeduringtheday.
He fills that portion of the card showing theemploymentbywritingunder‘Chargeto’.
If thework receives the inspector’s approval, hepunchestheservicecardandforwardsitwiththeothercards.
The cards go to the Cost Clerk and the time isthenenteredinthetimebook.
The cards corresponding to each order numberare then placed in a pigeon hole bearing thenumberoftheorder.
Each pigeon hole shows at a glancewhat laborhasbeendoneonthejobitrepresents,when,andbywhom.Everyemptypigeonhole testifies toajobsofaruntouched,andsoon.
When the order ticket comes back ‘completed’,thecardscorrespondingtoitaretakenout.343
Thuswhattodaywewouldrecogniseastime-sheets were created, and put to use as amethodtomeasureutilisation.
Returning our story back to Taylor, afterleaving Midvale, Taylor worked at variouscompanies as a management consultant.Whilstsuccessfulasaconsultant,hisnextfulltimerolecameatBethlehemSteel.
It was realized, however, that somethingneeded to be done to brace up the worksmanagement.445
When the works management problem atBethlehembecamemorepressing, eyes therewereturnedtoMidvale.Notthattheywishedto copy their rival’s methods. But Midvaleappearedtohaveanexceptionallygoodworksmanagement.445
Taylor recognised thework ofMetcalfewhilsthewashimselfatMidvale.
Hewrote:
The card system of shop returns invented andintroduced as a complete system by CaptainHenryMetcalfe,U.S.A.,inthegovernmentshopsoftheFrankfordArsenalrepresentsanothersuchdistinctadvanceintheartofmanagement.
The writer appreciates the difficulty of thisundertakingashewasatthesametimeengagedin the slow evolution of a similar system in theMidvale Steel Works, which, however, was theresult of a gradual development instead of acomplete,wellthoughtoutinventionaswasthat
Philadelphia was then one of the biggestindustrial centres on the planet, the secondbiggestcity in theUSA,withapopulationofnearly 850,000andexport figuresmore thanfive per cent of the exports of the wholenation. In the six years before Taylor startedwork,3,000milesofrailhadbeenlaidacrossAmerica.275
Intheearly 1900sSouthBethlehembecameacrowded and noisy boomtown. BiographerCatherine Drinker Bowen, who lived inBethlehemasachild,wrote that theboroughwas
like another place and another planet, a WildWestofitsown.444
ThenegotiationswithTaylorlastedoffandonfrom November, 1897, throughout thefollowingwinter.Tohimtheprospectofgoingto Bethlehem was more than pleasing. Hereagain he saw opening for him the door of agreatopportunity.445
The Bethlehem Company at this time had anominal capital of $5,000,000,while its valuewas placed at $15,000,000 or more. Betweenfive and six thousand men were thenemployed.445
TheAmericansteelindustrywasreelingfromaprice-fixing scandal for armour plating, anddesperatelyneededtofindsomewayofcuttingcosts.275
Taylor,was indomitablyresolvedongettingtheBethlehem Company to accept his methodscomplete,and…whenitfinallywassettledthathe should begin his work in May, 1898, hepreparedhimselfforthestruggleofhiscareer.447
OnMay27,1898,thedayheformallybeganhiswork, he addressed to Linderman his“Recommendation No. 1. Subject: Desirabilityof establishing standards throughout theworks.”447
Inhisrecommendationhestated:
Anyattempttowardtheadoptionofstandardsofthiskindwillmeetwithgreatopposition,thechiefgroundofwhichisbasedonthesuppositionthatuniform conditions of this sort discourageoriginality and individual improvement amongthemen.
If this systemof standards,however, is properlyapplieditproducesquitetheoppositeeffect,sinceeach workman then understands that if hesucceeds in making any improvement that suchimprovement may be adopted as the work’s
standard.447
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The method of setting and documenting astandard,understandingandworkingto thatstandard, and then seeking improvement tocreateanewstandardhadbeenborn.
Today this is in use as recommended “bestpractice”, and has been adopted by manyefficiencyconsultantsandpractitioners.
TaylorwentontoaskLinderman:
1st. To determine whether you wish to adopt aseries of standards for the small detailsthroughoutyourworks.
2nd.Ifyoudecideintheaffirmative,toconvinceyour leading assistants in the works of thedesirabilityofstandards.
3rd. To determine upon the best method ofestablishingthesestandardsandenforcingtheiradoption and maintenance throughout the
Calling Bethlehem Steel “a case study ininefficiency,” Taylor began to transform theworkplace ineveryarea, installing “scientificmanagement,” or “Taylorism,” as it was nowknown, over the objections of both workersandmanagers.257
Another protégé arrived at Bethlehem whenCarlBarthwashiredtodevelopmathematicalformulas for calculating the job rates. Bydevisingaspecialsliderule,managementwasabletoaccuratelypredicttheamountoftimeneededforeachprocess,eliminatingtherule-of-thumbwhichhaddominatedtheshop.257
Uptothespringof1899allofthematerialsintheyardoftheBethlehemSteelCompanyhadbeenhandledbygangsofmenworkingbytheday, andunder the foremanshipofmenwhohad themselves formerly worked at similarworkaslaborers.368
Focusingonworker’soutput,Taylorconducteda study at Bethlehem Steel regarding theloadingofpigironontorailroadcars.365
Atthestartofthestudy,workerswere loadingan average of 12.5 tons of pig per laborer perday, and received a wage of $1.15 per day,regardlessofindividualoutput.365
InadditiontoTaylor,twoofTaylor’semployeesworked at the Bethlehem Steel plant,experimenting with loading strategies andsearching out exemplary workers to serve asmodels for the assertion that “a good day’swagescouldbemadeattheexistingratesbyagoodman”.365366
schmidt pig-iron experiments
Enter “Schmidt,” the pig-iron handler atBethlehem.367
Tay lo r began the f amous shove l ingexperiments with an obscure 28-year oldlaborernamedHenryNoll,263laterdisguisedbyTayloras“amannamedSchmidt.”257
HewasalittlePennsylvaniaDutchmanwhohadbeenobservedtotrotbackhomeforamileorsoafterhiswork in the evening,aboutas freshaswhen he came trotting down to work in themorning.
To make up his special force of pig-ironhandlers,hehadtogetsomemenfromoutsidetheworks.369
Taylor’sresultswereimpressive.
By 1901, the workforce at Bethlehem washandlingthreetimesasmuchmaterialasbeforeandtheirwageswere60percenthigher.275
He reduced the number of shovellers in theirtwo-milegoodsyardfrom500to140.275
Underhismethods,thecostofhandlingpigironwasjustaboutcutinhalf.Andhewasundertheimpression thatwhat he had donewas a goodthingforeverybody.369
Tayloralsoanalysedtheaffectphysicalexertionhad a on a worker, and found that a workerrequired a fixed amount of time to rest peramount of work completed. With thisknowledge the most efficient use of properlyspaced rest periods could be devised thusresultinginincreasedoutput.
Beginning as an evaluation of a labor gangloading pig iron on freight cars, the laterexperimentsonshovelsizesanddesignshowedthat “Taylorism” could apply to even themostunskilledjob.257
In June 23, 1903, Taylor presented ShopManagement at the annual meeting of theAmerican Society of Mechanical Engineers(ASME)inSaratoga,NY.263
It was the first comprehensive summary of“Taylorism”.263
The presentation was filled with technicalexhibitsanddiagrams.257
Later on in 1911 a report was circulated byopponents of Scientific Management thatSchmidt had naturally succumbed to the tasklaiduponhimbyFredTaylor-thatSchmidt,infact,wasquitedead.370
Through the inspector of the OrdnanceDepartmentstationedattheBethlehemworks,Schmidt was found in that town, and inJ a nu a r y, 1 9 1 4 , A . B . Wad l e i gh wa scommissionedbyTaylortoemployaphysicianandreportonSchmidt.370
The physician, Dr. C.L. Johnstonbaugh,ofBethlehem, certified370 Noll to be “in goodphysicalcondition”.370
Taylor continued with his experimentation atBethlehemuntilheleftthecompanyin1901.
In 1906TaylorwaselectedpresidentofASME,and begin to import “efficiency” into theorganizationalpractices.263
The ASME had membership of 542 veryinfluentialmen263ofthetime.
the pivotal moment
Although his ideas were beginning to spread,Taylorcame tonationalprominence thanks tothe future Supreme Court justice LouisBrandeis,whorealised ‘scientificmanagement’could win his case against the railroadcompaniesforraisingfares.275
Itisworthwhileexploringthispivotalmoment,and how, as a result, “scientific management”becamepopularised.
Taylorwouldreport:
To ensure the best results, the organization ofproductive labormustbedirectedandcontrolledbypersonshavingnotonlygoodexecutiveability,and possessing the practical familiarity of amechanic or engineer, with the goods producedandtheprocessesemployed,buthavingalso,andequally,apracticalknowledgeofhowtoobserve,record, analyze, and compare essential facts inrelationtowages,supplies,expenseaccounts,andallelsethatentersintooraffectstheeconomyofproductionandthecostoftheproduct.326
“Shop Management” is seen as an extremelyinfluential.
Which iswhy a cultural historian likeMarthaBanta could describe Taylor’s 1903 lecture as“oneof thekeydocumentsshaping…modernindustrialisation”.275
Otherwitnesses,managersofplants,sworethatthrough Scientific Management they hadreduced their costs, while increasing theirmen’swages25to100percent.334
Scientific Management! In common with thepublic in general, reporters and editors of thenon-technical press never had heard of itbefore,anditseemedaphrasetoconjurewith.334
Early in the summer of 1910, the railroads ofthenorth-easternsectionoftheUnitedStatesfi led wi th the In ter s ta te CommerceCommission new freight tariffs calling for ageneral advance in rates, and in September,October,andNovembertheCommissionheldhearingstodeterminetheirreasonableness.334
Itwasthefirstcaseofitskind.334
Fromthebeginningthecontestprovidedgood“copy” for the newspapers, and it waxed inintensity.334
It was argued that through more efficientmanagement the railroads could save moremoneythantheydemandedinincreasedrates.334
Only a few days after the introduction of theevidence, the early December reviews ofcurrenteventsgavegreatspacetothedramatictestimonyofsomeofthewitnesses.334
Through January, February, March and everymonthof 1911, theperiodicalpress,popularaswell as technical, was filled with explanationafter explanation as to what scientificmanagement is, why it is good, or why it isworthless.334
By the fall of 1911, Dartmouth College hadarranged for a conference to spreadinformation as to the merits of scientificmanagement.334
“scientific management”
But how did “Scientific Management” get itsname?
All through the testimony about ScientificManagement, one man was referred to as itsoriginatorandprincipalexponent.334
ThoughBrandeishadvisitedhimseveraltimestogetinformation,thismanhaddonenothing,directly or indirectly, to prompt theintroduction of the Scientific Managementideaatthoseratehearings,andhehimselfdidnotappear,butagainandagainhisnamecameup.334
A name had been found, and people werekeen to talk about their experiences of itsappl icat ion, and on the subject ofmanagementingeneral.
the taylor society
In 1911 there was a meeting of ASMEmembers who found it increasingly difficultto get any papers on the subject ofmanagement through the Meet ingsCommittee.330
Under the leadership of Frank Gilbreth andRobert T. Kent, these insurgent engineersheld their first meetings ... and out of theirdeliberations came the organization at firstcalled the Society toPromote the ScienceofManagement, and after Taylor’s death, theTaylorSociety.330
In October, 1910, Brandeis had a conferencewith [Henry] Gantt and several otherengineers including Frank B. Gilbreth andRobertT.Kent,andatthisconference,heldinGantt’s New York apartments, the questioncameupastowhatthesystemtheyallhadinmindshouldbecalled.329
“Efficiency,” “Functional Management,” and“Taylor System” were some of the namesformallyconsideredandrejected.329
Then was suggested the phrase Taylor forseveralyearshadbeenusingcasually,andallpresent agreed that Brandeis could not dobetter, in speaking of the system at the ratehear ings , than to ca l l i t Sc i ent ificManagement.329
Following thepopularitygiven to thisphraseattheratehearings,Taylorhimselfmadeboldtouseitformally.329
OnApril26,1911,JamesO’Connell,presidentofthe “International Association of Machinists,affiliated with the American Federation ofLabor,” sent to the various lodges of thatassociationacircular:450
Thepresentefforton thepartofMr.Taylor is tohave his system installed in the Governmentarsenalsandnavyyards.
He has been so successful that the WarDepartmenthasdecidedtogivethesystematrial.
This would give his methods a tremendousadvertisement,andonlybea short timeuntilallprivate manufacturers throughout the countrywouldadopthissystem…thisproposedstaggeringblow at labor must be met by determinedresistance.450
The proposed introduction of “scientificmanagement” at the Watertown, MA,Arsenal,257 in August, 1911263 starting with atime-study, caused individual opposition,shop-wide work stoppages, petitions,discharges, extensive meetings and nationalpublicityalloverthetopicof“Taylorism.”257
As a result, the House of Representativesauthorized a “Special Committee toInvestigate the Taylor and Other Systems ofShopManagement”.257
ThecommitteebeganitsworkonOctober4,1911, and did not finish it until February 12,1912. It visited theWater-town Arsenal, andheld hearings in Boston, New York, andWashington.448
At the one of the hearings, James O’Connellstated:
Mr. Taylor’s plan is this: He will come to yourestablishment and say to you: “I want to lookover your factory.”After looking over it, he willsaythathefindsthatyouhaveagreatamountofwasteineverylineofindustryinyourfactory.
Then he will say: “Now, I will put into effect asystem that will be the means of saving you a
greatdealofmoney,...423
“
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Iwillputamanhere,anexpert in this lineofbusiness,whowillsuccessfullyputthisschemeintooperationforyou.”
The men at the Rock Island Arsenal, of theUnitedStatesGovernment,1,500ofthem,whenit became generally known that the Taylorsystem would be put into effect, these men,regardless of their trade or calling, whethermechanicsorlaborers,thisarmyofmenaroseasonemanandsaid:“No;noTaylorsystemforus.WewillnotaccepttheTaylorsystem.”
We state to you that this system is wrong,
becausewewantourheadsleftonus.423
moral implications
Livingasaconsultantofsorts,Taylorhadnotbeen directly confronted with the moralimplicationsofscientificmanagementand
over theyearshad forcedhissystemthroughunorganizedworkplaces.257
At most of the hearings, especially the earlyones, Taylor was present as a sort of laycounselforhiscause.448
Taylor’s own testimony was given at theCapitol in Washington towards the close ofthehearings, in January, 1912.Hewason thestandmorethantwelvehoursscatteredoveraperiodoffourdays.448
From the Congressional hearing, the editedtranscript provides the fullest expression ofTaylor’sviews.257
Itisnotanewsystemoffiguringcosts;itisnotanew scheme of payingmen; it is not holding astop watch on a man and writing things downabouthim; it isnottimestudy; it isnotmotionstudynorananalysisofthemovementsofmen;itisnottheprintingandrulingandunloadingofa ton or two of blanks on a set of men andsaying,“Here’syoursystem;gotoit.”
It is not divided foremanship or functionalforemanship; it is not any of the devices whichthe average man calls to mind when scientificmanagementisspokenof....Iamnotsneeringatcost-keeping systems, at time study, atfunctional foremanship, nor at any new andimproved scheme of paying men, nor at anyefficiency devices, if they are really devices thatmakeforefficiency....449
It was Taylor’s most heroic attempt toelucidate the philosophy of ScientificManagementinapopularway.449
Fromhistestimony:
There are many elements of scientificmanagement ... that are utterly impossible togointoatahearingofthiskind;butIwant...tomakeclearwhatmaybecalledtheessenceofit,so that when I use the words “scientificmanagement,” youmenwhoare listeningmayhaveaclear,definiteideaofwhatisinmymind....
I want to clear the deck, sweep away a gooddeal of rubbish first by pointing out whatscientificmanagementisnot....
Scientific management is not any efficiencydevice ... nor is it any bunch or group ofefficiencydevices.
449 Frederick W. Taylor, Father of Scientific Management (1923), Author: Copley, Frank Barkley, Volume: v.1, Publisher: New York, London, Harper and Brothers pp. 9-10 archive.org/details/frederickwtaylor01copl
That is the essence of scientific management,thisgreatmentalrevolution.
Scientificmanagementcannotbesaidtoexist...inanyestablishmentuntilafterthischangehastaken place in themental attitude of both themanagementandthemen,bothastotheirdutyto cooperate in producing the largest possiblesurplusandastothenecessity forsubstitutingexact scientific knowledge for opinions or theoldruleofthumborindividualknowledge.
Ibelieveinthem;butwhatIamemphasizingisthat these devices in whole or in part are notscientificmanagement;theyareusefuladjunctstoscientificmanagement,soaretheyalsousefuladjunctsofothersystemsofmanagement.
Now, in its essence, scientific managementinvolves a complete mental revolution on thepart of the workingman engaged in anyparticular establishment or industry - acompletementalrevolutiononthepartofthesemenastotheirdutiestowardtheirwork,towardtheirfellowmen,andtowardtheiremployers.
And it involves the equally complete mentalrevolution on the part of those on themanagement’s side - the foreman, thesuperintendent, the owner of the business, theboard of directors - a complete mentalrevolutionontheirpartastotheirdutiestowardtheirfellowworkersinthemanagement,towardtheir workmen, and toward all of their dailyproblems.
ThePrinciplesofScientificManagement,waspublished in three issues of The AmericanMagazine,beginninginMarch,1911;andthen,a long w i th Shop Management (bu tseparately),wasbroughtout inbook formbyHarper&Brothers.330
From the outset the book proved extremelypopular.
At the close of his testimony he wasdeliberately baited by his labor-leaderopponents.448
Two of them went at him at the same timewith insultsand sneers. In so faras theplanwas tomake him lose his temper, todestroyhisself-control, itwasasuccess,448he losthistempersouncontrollably that therecordwasscrubbed.275
The committee made a report to the house.DatedMarch9,1912,itwasunanimous.448
Thecommittee...failedtofindanygroundintherepresentations made by the opponents of thesystem upon which to base condemnation or
Taylor developed five principles of scientificmanagement:282
1. Each part of an individual’s work is analysed‘scientifically’, and the most efficient methodforundertakingthejobisdevised;the‘onebestway’ of working. Measuring the maximumamounta‘first-class’workercoulddoinaday;workersarethenexpectedtodothismuchworkeveryday.265
2. Themostsuitablepersontoundertakethe jobis chosen, again ‘scientifically’. The individualistaughttodothejobintheexactwaydevised.Everyone, according to Taylor, had the abilityto be ‘first-class’ at some job. It wasmanagement’sroletofindoutwhichjobsuitedeachemployeeand train themuntil theywere
first-class....265
Second.To try to convince the reader that theremedy for this inefficiency lies in systematicmanagement,ratherthaninsearchingforsomeunusualorextraordinaryman.
Third.Toprove that thebestmanagement isatrue science, restinguponclearlydefined laws,rules,andprinciples,asafoundation.
And further to show that the fundamentalprinciples of scientific management areapplicabletoallkindsofhumanactivities,fromoursimplest individualacts to theworkofourgreat corporations, which call for the mostelaboratecooperation.
And,briefly,throughaseriesofillustrations,toconvince the reader that whenever theseprinciples are correctly applied, results must
3. Provide financial incentives for following themethods.282
4. Managers must cooperate with workers toensurethejobisdoneinthescientificway.265
5. There is a clear ‘division’ of work andresponsibility between management andworkers. Managers concern themselves withtheplanningandsupervisionofthework,and
workerscarryitout.265
Taylorwarnedaboutattemptingtoimplementparts of scientific management withoutaccepting the whole philosophy, stating thattoofastofachangewasoftenmetwithtrouble,strikes,andfailure.328
It is only through enforced standardization of methods ... and enforced cooperation, that faster work can be assured. The duty of enforcing the adoption of standards and enforcing this cooperation rests with management alone. 452FrederickTaylor
During 1911, the fifty-fifthyearof his age, hisscheduleoflectureswasaheavyone.451
Thisexcerptfromaletteraddressedbyhimin1909 to the Boston Merchants’ Association,expresses the attitude he continued to takegenerally:451
Toconvinceeventhemostinterestedmanthatthenewtypeofmanagementmustofnecessitybe overwhelmingly better than the old, takesmenotlessthantwohours.451
Taylorwouldstateinhisstandardlecture:275
Every day, year in and year out, each manshould ask himself over and over again, twoquestions … First, ‘What is the name of theman I am now working for?’ And havinganswered this definitely then ‘What does thismanwantmetodo,rightnow?’
Not,‘WhatoughtItodointheinterestsofthecompany I am working for?’ Not, ‘What arethe duties of the position I am filling?’ Not,‘WhatdidIagreetodowhenIcamehere?‘Not,‘What should I do for my own best interest?’but plainly and simply, ‘What does this man
We do not ask the initiative of our men. We do not want any initiative. All we want of them is to obey the orders we give them, do what we say, and do it quick. 293Frederick Taylor
Taylor prescribed the way to do things betterwas that each part of an individual’s work isanalysed ‘scientifically’, and the most efficientmethod forundertaking the job isdevised; the‘onebestway’ofworking.265
Thiswouldinvolvethebreakdownofworktasksinto constituent elements; the timing of eachelementbasedonrepeatedstopwatch
studies; the fixing of piece rate compensationbasedonthosestudies;standardizationofworktasks on detailed instruction cards; andgenerally, the systematic consolidation of theshop floor’s brain work in a “planningdepartment.”244
Today, this “bestpractice” iswidely inuse.Wehave workforce planning departments, andprocess improvement departments, that areseparate fromwhereworkoccurs justasTayloradvocated;witha relianceondataand reportstoinformthemonhowworkisprogressing.
Taylor described that “elaborate diagrams”; 265shouldbeusedbysuch functions.Today theseare called spreadsheets, slide packs, and flowcharts.
Convention is that activity equals cost andthat standardising work will improveefficiency. However writing standard workinstructions are guaranteed to makeperformanceworse,yetwestilldoit.279
Iwouldarguethatmanyofmethodsused inScientific Management bear a remarkables imi lar i ty to methods employed byconsultants today, obsessedwith eliminatingwasteanddelays,andimprovingefficiency.
The method of setting and documenting astandard,understandingandworkingtothatstandard, and then seeking improvement tocreateanewstandardwasbornunderTaylor.This method is still in use today as arecommended “best practice” and has beenadopted by many efficiency consultants andpractitioners.
Taylor’saimwas toseekways todo itcheaperand faster. He was the earliest advocate of“worksmarter,notharder”,280amantrastillverymuchespousedintoday’sorganisations.
If you remember back to chapter two, wediscussed how in Babbage’s Economy ofMachinery it was described what is nowcalled the Babbage principle. It pointed outcommercial advantages available with morecarefuldivisionoflabour.202
What Babbage remarked is that skilledworkers typically spend parts of their timeperforming tasks that are below their skilllevel. If the labour process can be dividedamong severalworkers, labour costsmay becutbyassigningonlyhigh-skilltaskstohigh-costworkers,restrictingothertaskstolower-paidworkers.202204
The Babbage principle is an inherentassumption in Frederick Winslow Taylor’sscientificmanagement.202271
We have discussed how Taylor applied thedivisionoflabor,tobothwhiteandblue-collarjobs, creating the modern white-collarworkforce, dividing the work place intoworkersanddirectorsofwork.263
His functional foremanship isanextensionofprinciple of specialization at the supervisorylevel.276Asaresult,referencesto“whitecollar”appearasearlyas1911.454
Taylor’s industrialmodels separated ‘working’from‘doing’;hebelievedthatitwastheroleofmanagement to determine the ‘one bestway’to perform the work28 and managers weretasked with the responsibility of motivatingtheiremployees.279
Scientific Management proponents wantedto expose lazy workers and improve theutilizationof theworkforce. This led to theinvention of production standards, timesheets, worker inspection, employeeper formance records and employeediscipline. Thesemethods are commonly inusetoday.
Taylor sought to drive out craft production;wecanseethis thinkingstill inusebythosewhomanageknowledgeworkerstoday.
Employees are becoming commoditizedassets. For example, youwill hear managerstalking about “resources” when they meanpeople, it has become the norm to simplifyandstandardizeworkwhichcanthenbe
outsourced to lower cost organisations orlowercosteconomies500toreducecosts.
Scientific management bases humanmotivation wholly on extrinsic rewards anddiscardstheideaofintrinsic272motivation.
It is common for organisations today to setoutput targets and reward employees if theyreach them, or apply pressure if they arefallingshort;managementbyfear.
The ideaof productivity incentives; paymentbyresults,iscommonplacetodayasamethodformotivationandincreasedproductivity.
Surely we have moved on? Do we not valueinputfromouremployeesandaskforthemtosuggest improvements rather than imposemethodsuponthem?
As we discussed, Taylor created staffsuggestion schemes; with financial rewardsfor each suggestion that was implemented,bothofthesemethodsareusedtoday.
Taylor was the world’s first managementconsultant.266
Today, there are thousands of managementconsultancies,andhundredsof thousandsofmanagementconsultants.
Governments and organizations spendbillions on management consultants, yet,many of them will promulgate the samescientific management methods we havediscussedinthischapter.
Rather than being vilified, as many peopleoften do (for example there is a piece onYouTubeentitled “FrederickTaylor-thebiggestbastard ever” 453), Taylorism unquestionablysupplied the methods which were largelyresponsible for growth of American Industry;also fortheabilitytomobiliseandemploytheraw untrained labour which flooded into theUSinthelate19thandearly20thcentury.279
Taylorwantedtoexploittheworkpotentialofalarge uneducated and untrained workforce.Thisleadattheverybeginningoftheindustrialagetoenormousproductivityincreases,highersalariesandshorterworkinghours,allinalltoahigherstandardofliving.282
A balanced look at his life and times revealsnotavillainbutatragichero.244
His innovations ushered in enormousp roduc t i v i t y g a in s , wh i ch b rough tunprecedentedaffluencetotheUnitedStatesand thenations that followed its lead;at thesametime,though,Taylor’ssystememployedmethods that misunderstood, and therebygrievously undermined, the full promise ofthenewmassproductioneconomy.244
It is fair to say that Frederick Taylor’s careerexemplified the Industrial Revolution hehelped to lead: a mixture of beneficentachievementsandmalignshortcomings.244
I will leave the final thoughts on Taylor’sinfluence on today’s theory of work; how wedesignandmanagework,tomanagementguruPeterDrucker.
Taylor was the first man in recorded history who deemed work deserving of systematic observation and study. His approach to work is still the basic foundation used today. Not much has been added even though he has been dead for years. 281PeterDrucker
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Taylor’sworkwasalsodescribedbyDruckeras“themostpowerfulaswellasthemost lastingcontribution America has made to WesternthoughtsincetheFederalistPapers.”275
DruckerrankedhimwithFreudandDarwinasa maker of the modern world 286 - more eventhanMarx.275
As we will learn in the next chapter, hespawned a mental revolution that still has agriptoday.
In our next chapter we will discuss howScientific Management spread around theworld,across thewholeof society, resultinginTaylor’s“MentalRevolution”takinghold.