Question
Download Solution PDFComprehension
Read the following passage carefully, and answer the questions.
Scientific management is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science of engineering processes to management. Scientific Management is also known as Taylorism after its pioneer, Frederick Winslow Taylor.
Taylor began the theory's development in the the United states during the 1880 s and 1890 s within manufacturing industries, especially steel. Its peak of influence came in the 1910s. Although Taylor died in 1915, by the 1920s scientific management was still influential but had entered into competition and syncretism with opposing or complementary ideas.
The Midvale Steel Company, "one of America's great armor plate making plants," was the birthplace of scientific management. In 1877, Frederick W. Taylor started as a clerk in Midvale, but advanced to foreman in 1880 . As foreman, Taylor was constantly impressed by the failure of team members to produce more than about one-third of what he deemed a good day's work. Taylor determined to discover, by scientific methods, how long it should take men to perform each given piece of work; and it was in the fall of 1882 that he started to put the first features of scientific management into operation. Although scientific management as a distinct theory or school of thought was obsolete by the 1930s, most of its themes are still important parts of industrial engineering and management today.
Scientific Management is also known as:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Taylorism
Key Points
- Taylorism refers to Scientific Management pioneered by Frederick Winslow Taylor:
- The passage clearly states that Scientific Management is also known as Taylorism, named after Frederick W. Taylor, who developed this theory in the late 19th century.
- This method aimed at improving efficiency and labor productivity through scientific study of workflows — a principle that is still crucial in financial enterprises for optimizing operations and resource allocation.
- In the context of financial enterprises, adopting Taylorism-inspired methods can lead to improved process standardization, reduced operational waste, and increased profitability through data-driven performance metrics.
Additional Information
- Managerial Rationalism:
- This is not a recognized synonym for Scientific Management. While it may refer to logical or rational approaches to management, it does not specifically denote the methodology developed by Taylor.
- In finance, clarity in terminology is essential to avoid misinterpretation of management principles or practices.
- Fayolism:
- This term is associated with Henri Fayol, a different management theorist who introduced administrative management theory — distinct from Taylor’s focus on labor productivity and scientific workflow.
- Confusing these schools of thought can mislead professionals trying to implement the appropriate method in financial planning or strategy design.
- Functional Organization:
- This is an organizational structure, not a theory of management. It describes how work is divided within an enterprise, typically by specialized functions, but does not encapsulate the methodology or principles of Scientific Management.
- In financial enterprises, functional organization might be an output of management theories like Taylorism, but it is not synonymous with the theory itself.