Is “Scientific management” still relevant in a predominantly service economy? Discuss
Service economy means increase the importance for a service sector in industrialized economies. In order to develop this economy in better condition is focusing on the management between humans to productions or humans. Taylor's scientific management theory was established on purpose of achieving a maximal labour productivity and the high efficiency by introducing scientific and standard management method into work process. It was one of the oldest attempts to apply science to the engineering of processes and to management. This essay will argue that scientific management is still relevant in a predominantly service economy. The reasons for this statement contains that the manufactories could improve efficiency, the reasonable award system with the scientific management and through the interest of consumers to influence the decisions of business and states.
Firstly, Taylor's theory of scientific management has built an efficiency mode for the managers in the early 20th century throughout American and Europe. Freeman believed that the theory could be used effectively for works with knowledge as well as physical work by introducing a science for each movement in the working process (Freeman, 1996). With the development of the world's economy, service economy is becoming predominant nowadays. For example, it is predicted that the service companies account for larger proportion in the current list of Fortune 500 companies than manufactures in this day and age. Therefore, service companies also need scientific method for management. ‘Task idea’ of Taylor’s argument could fit into the economy in the recent days. All the work is carefully planned by the management beforehand including written instructions, task details, time limits as well as tools to be used. In terms of 'task idea’, Freeman argued that a modern interpretation like "planned out" becomes planning, while "complete...
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