Principles of scientific management

There are several principles of scientific management affecting functioning of management processes in modern companies. We can distinguish 5 basic principles and several decision making directives.

Basic management principles and laws

Principle of division of labour (by Adam Smith). If the repetitive work of any individual or group will be divided in such a way that each component function will detach and perform sets at a certain level of expertise, the overall amount of work and the means of production will decrease

Principle of concentration (by F. W. Taylor). If several elements performing the same (similar) function will be combined into one team working together or replacing one larger team executing the same task in an amount equal to the production of all elements, the overall amount of work and the means of production will decrease

Law of increased production (by Karol Adamiecki). The performance of the product cost per unit decreases and reaches its optimum size beyond which further effort and resources is no longer economical

Law of harmony (by Karol Adamiecki). Accuracy of selection (harmonization) of elements whose work is divided into a maximum time of alignment, the size of the useful effect of the team depends on the item, which has the smallest performance. Variations of the law of harmony: harmony in the choice of workers (optimizing of performance of interacting agents), the law of harmony in the operation of bodies (harmonization of operational time)

Rule of defiance (by Henry Louis Le Châtelier and Karl Ferdinand Braun). If the system in the state of equilibrium is subjected to a new external factor or participation in the operation of various external factors change, then the system will tend to reduce the impact of external factors and achieve a new state of equilibrium, similar to the initial equilibrium.

Effective decision rules and principles

Rules can be considered directional indications to help make appropriate decisions in certain situations. In its activities, the company should be guided by the following principles:

• the principle of economic rationality
• the principle of entrepreneurship,
• the principle of profitability,
• the principle of economic calculation.

The principle of economic rationality. According to this principle optimum can be defined in two ways:

• providing a maximum amount of the anticipated benefits of any project as an objective measure, (PRINCIPLE OF BEST PERFORMANCE)
• providing a corresponding minimum of resources assuming achievement of the anticipated benefits of a project (PRINCIPLE OF SAVINGS).

Duality of this principles is that the optimal solution is the same for both variants, if, for example, the optimum amount of production is defined by x, x is found in both the cost of a minimum size is achieved, and at the same x benefit (such as yield, profit) reaches the maximum value. Examples of applications of rational management principles: choice of quantitative structure of production, the search for the shortest route of transport, setting sales strategy.

The principle of entrepreneurship involves ability to take up initiative and creative problem solving, the ability to use emerging opportunities and being flexible to adapt to changing conditions. Entrepreneurship is the pursuit of maximum creative use of resources at the disposal company, in order to exploit any opportunities that arise in its environment. The principle of entrepreneurship is a way in making new, unconventional and risky ventures and in showing initiative in their search for and implementation. It is therefore directed towards the development, with innovative character.

Adhering to the principle of profitability makes the company receive the excess return on their investment in production after the sale. Consequently, once provided with the means - if the production is adapted to the needs - company becomes self-sufficient financially. Adhering to the principle of profitability across the enterprise and the use of full payment for the provision of individual companies requires not only the conduct of the relevant records and control of the business assets of the accounting department, but also the calculation of costs for services provided to other entities. Application of the principle of profitability determines the degree of implementation of the objective principles of economy in the company.

Principle of economy involves in the company's economic profit. The concept of "economic calculation" can be defined as a way of measuring the costs and benefits of economic activity, which is conducive to optimal decisions in order to maximize the effects of performance. Economic calculation forces managers to think in terms of alternatives and practical application of certain rules of operation. It requires use of a proper information system, development of mathematical methods for the determination of optimal solutions, which creates objective variant development opportunities and solving economic problems.

Examples of Principles of scientific management

1. Division of Labor: This is the idea of breaking down a job into smaller tasks and having a specialist take care of each task. This allows for greater efficiency and specialization in each task. For example, in a factory, one worker may specialize in assembling parts while another may specialize in painting the finished product.
2. Time Study: This is the practice of measuring the time it takes to complete a task and then using that information to optimize the task and reduce wasted time and motion. For example, a bakery may time how long it takes to bake a certain kind of cake and then optimize the process to make the cake faster.
3. Functional Foremanship: This is the practice of assigning a specialized foreman to each department or task within a business. This allows for the foreman to have a deep understanding of the task and be able to provide specialized instructions and direction.
4. Standardization of Tools and Tasks: This is the practice of standardizing the tools used in a job and the tasks that need to be completed. This allows for consistency in the quality of the end product, as well as greater efficiency. For example, a carpenter may standardize the tools they use to build cabinets and the measurements of the cabinets they make.
5. Scientific Selection and Training of Employees: This is the practice of selecting the best employees for the job, and then training them to do the job properly. This ensures that employees are qualified and knowledgeable about the task they are performing. For example, a manufacturing plant may use specialized tests to select the best employees for the job and then provide them with training on how to do the job properly.

Advantages of Principles of scientific management

Introduction: The principles of scientific management have several advantages that can help modern companies to improve their management processes.

• Increased efficiency: Scientific management principles emphasize on analyzing work processes and finding the most efficient way to perform them. This helps to reduce wastage of time, money and resources and increase productivity.
• Division of labor: The principles of scientific management call for dividing labor into smaller tasks, which helps to create specialization of workers and increase their efficiency.
• Standardization of tools and methods: The principles of scientific management emphasize on finding the most efficient tools and methods to perform tasks and standardizing them, which makes it easier to train and manage workers.
• Clear division of responsibility: The principles of scientific management call for a clear division of responsibility between management and workers, which makes it easier to manage and control the work.
• Employee motivation: The principles of scientific management emphasize on motivating employees by offering incentives and rewards for better performance. This helps create a positive work environment and encourages employees to work harder.

Limitations of Principles of scientific management

Introduction: The Principles of Scientific Management are a set of guidelines designed to optimize efficiency and productivity in the workplace. However, they have some limitations, which are as follows:

• Limited applicability to certain types of work: The Principles of Scientific Management are based on the notion of "one best way" of doing things, which may not be suitable for all types of work. Certain tasks, such as creative activities, require flexibility, which the Principles of Scientific Management do not provide.
• Employee dissatisfaction: The Principles of Scientific Management focus on increasing efficiency, but often come at the cost of employee satisfaction. By strictly controlling the workflow and focusing on efficiency, employees may become frustrated and dissatisfied.
• Centralization of authority: The Principles of Scientific Management rely on a centralized authority to make decisions and allocate resources, which can lead to a lack of flexibility and responsiveness.
• Neglect of human elements: The Principles of Scientific Management do not take into account the human elements of the workplace, such as motivation and job satisfaction. As a result, employees may feel undervalued and unappreciated.
• Difficulty of implementation: The Principles of Scientific Management require a great deal of resources and effort to implement, which may be difficult for some companies to manage.

Other approaches related to Principles of scientific management

Apart from the five principles of scientific management, there are several other approaches which can be used to facilitate management processes in modern companies.

• Organizational Design: This approach focuses on the design of organization structure, roles and processes that enable the organization to be efficient and effective. It is important to consider the factors such as size of the organization, its goals, resources, and environment when designing an organization.
• Human Resources Management: This approach emphasizes on the utilization of people as resources in the organization. It involves activities such as recruitment, training, and development of employees. It also helps in maintaining good employee-employer relations and ensuring that the organization has the right people with the right skills.
• Strategy and Planning: This approach involves the creation of vision and mission statements, setting goals, and developing plans to achieve these goals. It also involves making decisions about the allocation of resources in order to achieve objectives.
• Process Improvement: This approach involves the continuous improvement of processes and systems within the organization in order to increase efficiency and reduce costs. It also involves the implementation of new technologies and the identification of areas for improvement.
• Operational Excellence: This approach focuses on the optimization of operations in order to maximize performance and efficiency. It involves activities such as quality control and cost management.

These approaches, apart from the five principles of scientific management, are important for modern companies as they help in designing organizations, managing human resources, planning and strategizing, improving processes, and optimizing operations.

Principles of scientific management — recommended articles

Management functions — Quality of work — Personnel strategy — Origin and development of the management science — Functional strategy — Theory of management — Administrative management — Harrington Emerson — Development and organizational balance

References

• Holt, D. H. (1987). Management: Principles and practices (Vol. 1). Prentice Hall.
• Koontz, H., & O'Donnell, C. (1964). Principles of management: an analysis of managerial functions [by] Harold Koontz [and] Cyril O'Donnell. McGraw-Hill.
• Shafritz, J., Ott, J., & Jang, Y. (2015). Classics of organization theory. Cengage Learning.
• Taylor, F. W. (1914). The principles of scientific management. Harper.
• Wren, D. A., & Bedeian, A. G. (1994). The evolution of management thought.