The History of Management Thought

MGT336Michael L. BejtlichWeek 4

Chapter Seven

The Advent of Scientific Management

Frederick Taylor (1856-1915)

Taylor’s Early Years

Born in Germantown, PA in 1856

Father – Prosperous Lawyer

Mother – Puritan roots to Colonial times

Taylor on far right, pictured with mother, father, grandfather, younger sister Mary and older brother Edward.

Taylor’s Early Years

Taylor, on the left, with brother Edward & sister Mary.

Frederick Taylor

Taylor’s Early Years Advantage of fine prep

school – Philips Exeter Academy, NH

Travels to Europe Membership in an

exclusive social club Did not go to Harvard

due to failing eyesight Began as a factory

apprentice pattern maker

His early experiences as a worker shaped his views of management.

Taylor at Midvale Steel Started as a laborer

in 1878 and worked his way into management.

As a worker, then a first line supervisor, he observed numerous industrial practices that led him to his life’s work.

Taylor at Midvale Steel 1886

Taylor at Midvale Steel Taylor took a home

study course to get his college degree in mechanical engineering in 1883 from Stevens Institute of Technology at Hoboken, New Jersey.

Natural Soldiering Natural soldiering – “the natural

instinct and tendency of men to take it easy.”

Taylor blamed management for not designing jobs properly and offering proper incentives.

Taylor thought that a supervisor may be able to inspire or force workers to stop natural soldiering.

Systematic Soldiering Systematic soldiering resulted from group

pressures for individuals to conform to output norms set by the work group.

Taylor attributed this to a “lump of labor” theory.

Taylor felt he could overcome soldiering and improve the situation if workers knew that the production standards were established by a study of the job, rather than by historical data, and if incentives could be provided.

Time Study

Time study was a prescriptive in that Taylor sought to identify the time a job should take.

Time study was analytical, breaking the job into its components and eliminating useless movements; and constructive, building a file of movements that were common to other jobs.

Search for Science in Management

Taylor intended to use a scientific fact-finding method to determine a better way to work. These are Taylor’s notes for

shoveling.

A Better Way

In modern terms, Taylor’s concept of job design was to analyze the job, discard wasted movements, and reconstruct the job as it should be done.

He also sought to find the right tools, the right way to operate the machinery, and the right way to operate the machinery to make the job more efficient.

A Better Way

At the time, Scientific Management was the latest management fad…it was bigger than reengineering and lean manufacturing is today.

The ad on the left demonstrates the popularity.

However, the ad is misleading. There is not one, all purpose “scientific shovel” – the ideal shovel is based on the weight of material it moves.

Front Page News Taylor made front

page news the Sunday after he spoke at the ASME conference in 1903.

He basically read Shop Management word for word to the group.

Even though everyone thought his speech was boring…the story made it to the front page.

Frederick Taylor and Incentives Taylor criticized systems of payment based on

quantity and quality of work. Taylor’s system consisted of:

(1) observation and analysis through time study to set the standard

(2) a differential rate system of piecework (3) “paying men and not positions.”

Frederick Taylor and Incentives Taylor discouraged profit sharing because it did

not reward the individual and because it occurred long after the performance.

Taylor’s differential piece-rate paid those who did not reach the performance standard on ordinary rate of pay (like minimum wage); a higher rate of pay was given for attaining the standard.

Taylor also recognized non-economic incentives, like promotion and shorter hours.

“First-Class” Worker

Taylor believed that everyone was best or “first class” at some type of work.

There should be a match between a person’s abilities and the person’s job placement.

“Functional Foreman” and Task Management Task Management consisted of time study

and developing performance standards. Selection of workers and the differential

piece rate system was included. Management was responsible for

designing the job properly. Task Management depended on planning,

organizing, and guiding the work to completion

Figure 7-1 Functional Foremen

“Functional Foreman” and Task Management Taylor had the idea that knowledge was

authority. Supervisors could not know everything

about the planning and performance of the work.

Functional specialists would provide assistance to workers.

In retrospect, Taylor had recognized the need for staff advice and assistance from people who had special abilities or knowledge.

Taylor after Midvale He developed an accounting system based

on the Hayes-Basley system used by RRs. He became a consultant for various firms,

such as Simonds Rolling Company and Bethlehem Steel. He implemented his ideas in these and other firms with varying degrees of success.

He also traveled and lectured to various groups to promote his ideas.

Bethlehem Steel

Bethlehem Steel

Story of Henry Knolle & Bethlehem Steel

Taylor conducted his famous pig-iron experiments at Bethlehem Steel.

James Gillespie and Hartley Wolle established an incentive for loading pig iron at Bethlehem Steel.

Workers refused to work by the piece and were discharged.

Taylor’s story of the experiments centered on Henry Knolle although three men participated.

Henry Knolle (also Noll) Stood 5 feet 7 inches tall

and weighed 135 pounds. He came down through

history as “Schmidt” in the embellished recollections of the pig iron experiments at Bethlehem Steel.

He averaged between $1.35 and $1.70 per day (average rate was $1.15 per day).

In the story, he was the only worker to persevere throughout the pig-iron loading – “First Class Man.”

Henry Knolle’s Motivation Knolle needed the

money to build a house so he could get married.

He would work on the house before work.

He would load 47 ½ tons of pig-iron.

He would return to work on the house until dark.

Knolle’s House

Henry Knolle and his Wife

Pig Iron Experiments Results of experiments

were less than ideal even though Taylor labeled them as successful.

James Gillespie and Hartley Wolle were not careful in their time study.

Taylor did not use his differential piece rate.

Taylor set the rate of payment arbitrarily.

Men who helped Taylor with time study

Pig Iron Experiments

Results: Yard labor costs fell from $.072 per ton

under day wages to $.033 per ton under piece rates

Workers averaged 60 percent more in wages than they had before

Who prepared the “pig-tale?”

In “Taylor’s Pig-Tale: A Historical Analysis of Frederick W. Taylor’s Pig-Iron Experiment,” authors Charles D. Wrege and Amadeo G. Perroni, state that Taylor embellished the report.

Later, Wrege and R. Greenwood wrote that the “Pig-Tale” was “prepared by Taylor’s assistant, Morris L. Cooke.”

The mystery remains: the penmanship was Cooke’s, but were the words Cooke’s or Taylor’s?

Morris L. Cooke

Eastern Rate Case - 1910 In this case before the U.S. Interstate

Commerce Commission, Louis Brandeis, attorney for the shippers, used individuals to testify that the railroads did not need to increase rates if they would adopt known management improvements.

Brandeis coined the phrase “Scientific Management” to describe Taylor’s ideas.

This brought a great deal of attention, some unwanted, to Taylor and his colleagues

Watertown - 1911

Taylor’s ideas were to be implemented at the federal arsenals at Watertown (Massachusetts) and Rock Island (Illinois).

Representatives of the machinists’ union told the workers to resist and a strike occurred at Watertown.

Strike lasted one week.

Congressional Investigation Oct. 1911 - Feb. 1912 However, congressional representatives

from the two districts asked for an investigation of the Taylor and “other efficiency systems.”

No evidence was found that there were abuses under scientific management and no need for remedial legislation.

Despite findings, time-measuring devices and incentive pay were prohibited in any military agency and in army and navy appropriation bills.

Mental Revolution Taylor described his

philosophy that labor and management had a “mutuality of interests” and needed to work together in his Congressional testimony.

Management, Workers, and Owners must work together to share to make the pie bigger – not get a bigger piece to the detriment of each other.

Mental Revolution This “revolution”

emphasized the need of both labor and management to change their attitudes and work together, otherwise scientific management could not exist.

Notice that unions were not a part of his theory.

Other Ideas of Taylor Human factor – “systems” were not

enough…there must be a good relationship between workers and managers.

Resistance to change – this is to be expected, but with time and explanations, people would see the benefits.

“Scientific management at every step of the way has been an evolution, not a theory.” (Taylor 1915)

Taylor’s Patents

Taylor’s wealth was increased from his various patents

Taylor’s Patents

Drawing of “Steam Hammer” Actual Press…notice the man standing

next to the machine depicting the size of the press

Taylor’s Patents Two-Handled Golf Club Tennis Racket with curved handle

Personal Information on Taylor Taylor as a cross-

dresser: during a theatrical performance by an all-male club of which he was a member, he took the role of “Miss Lillian.”

Taylor said that there were only two places sacred enough where you could not “swear”…the home and the golf course.

Taylor’s Love of Golf led to soil and grass studies

Taylor’s Home

Recreated room with actual furnishings from Taylor’s home located at Steven’s

Institute

Taylor’s Wife - Louise

Taylor’s Family The Taylor’s

did not have any children of their own.

They adopted their friend’s three younger children after their parents’ sudden death.

Taylor’s Death

Taylor died the day after his 59th birthday from pneumonia in 1915.

His wife died in 1949. By that time the Taylor

family plot was full but Louise wanted to be buried by Fred.

Her remains were cremated and the urn was placed in Fred’s grave.

This was not a last effort at efficiency but necessitated by the space available.

Taylor’s grave site at the West Laurel Hill Cemetery in Philadelphia

Taylor’s Books

Taylor’s Books Shop Management was published in 1903.

It was based on a speech delivered earlier to the ASME.

The Principles of Scientific Management was published in 1911 by Harper and Row.

Speculation exists over the true authorship of the book; although published under Taylor's name, Harper and Row paid all royalties to Morris L. Cooke.

Summary Frederick W. Taylor was a central figure in

the development of management thought. Taylor is considered the most influential

contributor by managements and business historians.

His work was more reform than scientific. He willingly used others ideas that worked,

like Gantt’s task and bonus incentive plan and the Hayes-Basley accounting system.

Chapter Eight

Spreading the Gospel of Efficiency

Others Involved in the Scientific Management Movement

Carl George Lange Barth Henry L. Gantt Frank Gilbreth Lillian Gilbreth Harrington Emerson Morris Cooke

Carl Barth (1860-1939): The Most Orthodox Mathematician who

helped Taylor with some metal-cutting experiments.

He was probably a major influence in the writing of the “official” biography of Taylor.

Assisted in installing scientific management in various companies.

Carl Barth One company was the Franklin Motor Car Company which

was noteworthy because it preceded Henry Ford’s moving assembly line. Note: Scientific Management lost its importance to the

auto industry once the assembly line was implemented.

Work was placed on a belt and individuals were no longer able to influence their output and therefore their reward.

Barth created a “slide rule” for every machine for scientific measurements.

Personal note: Barth would not let his son date because it would detract from his scientific work. His son married after Barth’s death.

Henry L. Gantt (1861-1919)The Most Unorthodox Gantt’s early work

paralleled Taylor’s in his belief about worker selection, incentives to reward performance, mutuality of interests, etc.

Taylor and Gantt admired each other’s work.

Gantt was a prolific writer – over 150 titles.

Henry L. Gantt

Henry L. Gantt:Task and Bonus System Implemented task work with a bonus to

stimulate performance. When he discovered that this provided little

incentive beyond meeting the standard, he modified the payment plan. He influenced Taylor because Taylor believed Gantt’s plan was better.

Rewards to supervisors when their employees came up to standard (rewarded development of employees).

Emphasized importance of morale, training, and development of employees.

Figure 8-1 Gantt Chart

The Gantt Chart

The Gantt Chart

Steadily evolved into a valuable tool for planning and controlling work.

Widely used during World War I. Became an international

management technique. A forerunner of subsequent planning

and controlling techniques such as major milestones, PERT & CPM.

Other Gantt Ideas

The New Machine – a group headed by Gantt to promote the idea that engineers should be industrial leaders.

Social responsibility – Gantt’s concern that business should not lose sight of its service role in the economy.

Frank & Lillian GilbrethPartners for Life

Frank – Worked in the construction trades and called his job design “motion study.” Independent of, but influenced by, Taylor.

Lillian – our “First Lady of Management” and “First Lady of Engineering for her accomplishments with her husband as well as after Frank’s death.

Frank and Lillian Gilbreth

Frank Gilbreth (1868-1924) Refused a place in MIT to

work as a laborer. His first job was

apprentice brick layer. He was able to lay 2700

bricks per day compared to others who were laying an average of 1000 per day.

Motions to lay a brick reduced to 4 from 18.

Today, union rules only allow workers to lay between 900 and 1100 bricks per day.

Frank Gilbreth

Bricklaying

Typical building site in Boston before Gilbreth’s new methods are applied

With Gilbreth’s new methods, bricks are arranged to be grabbed easily, right side up.

Gilbreth Patent Scaffold This invention

eliminated a lot of stooping by keeping the bricklayer at the same distance from the top of the growing wall.

The scaffolding was the first in Gilbreth’s attempts in reducing motion and fatigue in workers.

Gilbreth Patent Scaffold

Frank’s Construction Business

Boston was in a period of rapid growth…during the building age of the country.

He used advertising to promote contracts and the need for workers which was uncommon at this time.

Within six years from the start of his business, he was one of the most important men in contracting in Boston.

Frank’s Construction Business

Building constructed by Frank at MIT in record time

Lillian Gilbreth (1878-1972) Earned undergraduate

and graduate degrees from the University of California-Berkley.

Enrolled in a Ph.D. program at the University of California.

Study was interrupted by her family who decided that Lillian should travel abroad – chaperoned by Frank Gilbreth’s cousin.

Lillian Gilbreth

The Partnership Soon after their

marriage, Lillian realized that she would not fill the traditional role of “wife.”

Lillian followed Frank to work and began to learn the business.Frank and Lillian Gilbreth

The Gilbreth Children

Frank decided that twelve children is the right number for a family.

According to Frank, with proper planning, the children would not interfere with their work.

Frank and Lillian achieved both goals.

However, their daughter (Mary Elizabeth) died at the age of six from diptheria.

Part of the family vacation home on Nantucket

The Gilbreth Family

The Gilbreth Children at their summer home in Nantucket

The Gilbreth Family

The Gilbreth children tell the story of growing up in this family in three books.

Lillian’s Dissertation

Lillian finished her thesis in 1912.

However, the University of California would not lift the residency requirement so she could not graduate.

Her thesis was eventually published in book form by Sturgis and Walton in 1914 under the name L.M. Gilbreth (so one could not distinguish that is was written by a woman)

The book stands in management literature as one of the earliest

contributions to the study of the human element at work.

Lillian’s Ph.D.

Frank found Brown University where Lillian could complete her degree and still care for the children

Frank arranged it so that Lillian could attend course in one specific room where she could look out the window and watch their children

She completed a 2nd dissertation “Some Aspects of Eliminating Waste in Teaching”

She graduated in 1915

Lillian Gilbreth

Gilbreth’s Motion Study

“Our duty is to study the motions and to reduce them as rapidly as possible to standard sets of least in number, least in fatigue, yet most effective motions” (Gilbreth, 1911, p. 3)

Frank Gilbreth

Therbligs Frank developed a list of seventeen basic

movements to aid him in analyzing motion.

Each movement was called a “therblig.” These fundamental movements, which

could not be broken down into other motions, gave Frank a way to accurately analyze elements of any movement a worker may make.

Can you determine the origin of the term “therblig?”

Motion-Picture Camera Using a motion-

picture camera, Frank was able to capture each movement of a job on film so he could easily analyze each motion.

To save film, he changed the camera aperture to record 4 movies on one reel of film.

Applied Motion Study The Gilbreths also used lights and time-

lapsed photography in their motion study. This use of light and photography was called

the “chronocyclegraph method of recording.” This device recorded a path of motion a

worker used to complete a job. The device consisted of a small electric light

which was attached to a finger or another moving part of the body.

The film was exposed during this time period and recorded each line of light.

Applied Motion Study The Gilbreths

conducted motion studies with typists, surgeons, nurses, and sports.

The photographs to the left were from an exhibit of the Gilbreths’ work at the Smithsonian.

Applied Motion Study – Typing for Remington Typewriter Co.

Applied Motion Study - Surgery

Applied Motion Study – Surgical Sewing

Fatigue Studies

Through proper rest breaks, fatigue could be reduced.

Suggestions: Reduced working hours so that

employees had sufficient time to recover and be prepared for the next working day.

Longer lunch periods, coffee or tea breaks.

Fatigue Studies

To make rest breaks more attractive to employees, the Gilbreths suggested that organizations could provide proper reclining chairs, lunch rooms, rest rooms, or other entertainment.

Home Reading Box Movement

The Gilbreths also worked to establish libraries at each job site to check out material to read at home or during breaks.

Ergonomics Frank Gilbreth is

often called the “Father of Ergonomics.”

The Gilbreths pioneered the use of devices, such as adjustable chairs and improved workstations, to ease strain on the body and reduce injuries. Adjustable chair designed by F. and L. Gilbreth

The End of the Partnership Frank died in 1924. Lillian continued to

work even though it was difficult for a woman and to make a name for herself without Frank.

She spent the rest of her life (into her nineties) consulting and speaking all over the world.

Lillian Gilbreth

Some Lillian Gilbreth Honors Only woman awarded the

Gilbreth Medal (named for Frank and Lillian).

Only woman awarded the Gantt Gold Medal.

Only woman Awarded the CIOS Gold Medal.

Earned over 13 graduate degrees between 1928-1952 in addition to her first 3 degrees.

US Postage stamp issued in her honor in 1984

Harrington Emerson (1853-1931): Efficiency through Organization

He worked for the most part independently of Taylor but they corresponded and he was aware of Taylor’s ideas.

His experience as a consultant on railroads provided his qualifications at the Eastern Rate Case regarding the savings possible if scientific management methods were installed.

He founded Emerson Consultants which exists today.

Harrington Emerson

Harrington Emerson’s Ideas Lack of organization was a major problem. He proposed the line-staff organization as

a way of bringing staff knowledge to assist the line managers.

His line-staff idea was similar to Taylor’s desire to use the knowledge of functional foreman, but an improvement since it did not split the chain of command.

Harrington Emerson’s Ideas He took Taylor’s idea of setting performance standards

and applied this to cost accounting. Standards should be established for what the costs should be, rather than estimating costs from previous records.

Emerson provided 120% wages for 100% performance (the standard) and that increased if the worker produced more.

He wrote Twelve Principles of Efficiency in 1913. Of Emerson’s numerous “principles,” clearly defined

ideals (objectives), participative decision making, and the proper use of staff stand out as the more unique of his ideas.

Morris L. Cooke (1872-1960)The Gospel in Nonindustrial Organizations

Worked closely with Taylor and became one of the four individuals Taylor considered his disciples. Gantt, Barth, and

Hathaway were the others

Extended gospel of efficiency to education and government.

Morris L. Cooke

Morris L. Cooke

Taylor sent Cooke on various consulting assignments: In education – he felt that college

administration was inefficient. In government – Cooke became Director

of Public Works for the City of Philadelphia and successfully implemented scientific management.

Morris L. Cooke Used a stenographic transcript of Taylor’s

talks at Boxly as the basis for his proposed book, Industrial Management.

His book became Taylor’s Principles of Scientific Management.

Taylor assigned all royalties to Cooke. Cooke would write other books,

particularly in the field of public administration.

Morris L. Cooke – Later Work Interested in getting the leaders of

organized labor to work within scientific management ideas. Suggested that management needed to

“tap labor’s brains.” Worked with labor leaders in gaining

better feeling about union-management cooperation.

Served Presidents F.D. Roosevelt and Harry Truman in government positions.

Three Other Scientific Management Contributors

Henri Le Chatelier M. Clarence Bertrand Thompson Horace K. Hathaway

Henri Le Chatelier French Engineer Help to bring

Scientific Management to France

Stated that Shop Management was a more important work than the Origin of Species.

Henri Le Chatelier

M. Clarence Bertrand Thompson (1882-1969)

Worked in France until 1948. Received the Legion of Honor

for keeping French factories alive during the War.

Unlike Taylor, he believed Unions were important in instituting Scientific Management Principles.

After he left France, he received a Ph.D. (around the age of 80) in biochemistry and worked in cancer research until he died (around the age of 90).

M. Clarence Bertrand Thompson

Horace K. Hathaway Instituted Scientific

Management principles into a whole system including accounting, planning, organization, and production scheduling

His plan was essentially an ERP system

Horace K Hathaway

Summary Scientific Management reached

maturity in the 1920s. The movement was assisted by

Taylor’s disciples Carl Barth, Henry Gantt, and Morris Cooke.

Other notable contributors to the evolution of Scientific Management were Frank and Lillian Gilbreth and Harrington Emerson.