It was an era where so many alterations in the world Economy took place. In the closing decades of the 19th century there was a quest of seeking innovative ways to increase organizational efficiency and effectiveness. The Scientific Management Theory initiated on the basis of that. In this period of time crafts production was substituted by large factories in which a lot of technical revolutions have been taking place. The owners and managers were not capable of coping to these challenges therefore they hunted for advanced techniques to overcome this situation. As a solution the concepts of Job Specialization and division of labour came about. In this scenario workers who specialized in their respective tasks became more skilled.
The Scientific Management Theory
Fredrick W. Taylor was the architecture of the concept Scientific Management, “The systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency”. It was believed that the most effective and efficient division of labour could best be determined by the concept of Scientific Management. There were four core principles in this concept.
* Investigation and experimentation on organization performance * Codification of new methods/standards
* Selection of employees according to codified standards
* Establishing a level of performance and a pay system with rewards
In 1910 most of the organizations were using this concept but selectively. Even though there was an increase in performance some disputes about this concept lead to an increase in trade union involvement. There were some major issues in this concept. * Availability of fewer jobs
* Job dissatisfaction
* Distrust among employees and employers.
Some organizations redesigned the principles according to their vision. For example introduction of moving conveyer belts in Henry Ford’s factory can be taken in to...