Chapter I: Fundamentals of Scientific Management
The principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employé.
The words "maximum prosperity" are used, in their broad sense, to mean not only large dividends for the company or owner, but the development of every branch of the business to its highest state of excellence, so that the prosperity may be permanent.
In the same way, maximum prosperity for each employé means not only higher wages than are usually received by men of his class, but, of more importance still, it means the development of each man to his state of maximum efficiency, so that he may be able to do, generally speaking, the highest grade of work for which his natural abilities fit him, and it further means giving him, when possible, this class of work to do.
It would seem to be so self-evident that maximum prosperity for the employer, coupled with maximum prosperity for the employé, ought to be the two leading objects of management, that even to state this fact should be unnecessary. And yet there is no question that, throughout the industrial world, a large part of the organization of employers, as well as employés, is for war rather than for peace, and that perhaps the majority on either side do not believe that it is possible so to arrange their mutual relations that their interests become identical.
The majority of these men believe that the fundamental interests of employés and employers are necessarily antagonistic. Scientific management, on the contrary, has for its very foundation the firm conviction that the true interests of the two are one and the same; that prosperity for the employer cannot exist through a long term of years unless it is accompanied by prosperity for the employé, and vice versa; and that it is possible to give the workman what he most wants — high wages — and the employer what he wants — a low labor cost — for his manufactures.
It is hoped that some at least of those who do not sympathize with each of these objects may be led to modify their views; that some employers, whose attitude toward their workmen has been that of trying to get the largest amount of work out of them for the smallest possible wages, may be led to see that a more liberal policy toward their men will pay them better; and that some of those workmen who begrudge a fair and even a large profit to their employers, and who feel that all of the fruits of their labor should belong to them, and that those for whom they work and the capital invested in the business are entitled to little or nothing, may be led to modify these views.
No one can be found who will deny that in the case of any single individual the greatest prosperity can exist only when that individual has reached his highest state of efficiency, that is, when he is turning out his largest daily output. . . .
Why is it, then, in the face of the self-evident fact that maximum prosperity can exist only as the result of the determined effort of each workman to turn out each day his largest possible day's work, that the great majority of our men are deliberately doing just the opposite, and that even when the men have the best of intentions their work is in most cases far from efficient?
There are three causes for this condition, which may be briefly summarized as:
First. The fallacy, which has from time immemorial been almost universal among workmen, that a material increase in the output of each man or each machine in the trade would result in the end in throwing a large number of men out of work.
Second. The defective systems of management which are in common use, and which make it necessary for each workman to soldier, or work slowly, in order that he may protect his own best interests.
Third. The inefficient rule-of-thumb methods, which are still almost universal in all trades, and in practising which our workmen waste a large part of their effort.
This paper will attempt to show the enormous gains which would result from substitution by our workmen of scientific for rule-of-thumb methods. . . .
The first illustration is that of handling pig-iron, and this work is chosen because it is typical of perhaps the crudest and most elementary form of labor which is performed by man. This work is done by men with no other implements than their hands. The pig-iron handler stoops down, picks up a pig weighing about 92 pounds, walks for a few feet or yards and then drops it on to the ground or upon a pile. This work is so crude and elementary in its nature that the writer firmly believes that it would be possible to train an intelligent gorilla so as to be a more efficient pig-iron handler than any man can be. Yet it will be shown that the science of handling pig-iron is so great and amounts to so much that it is impossible for the man who is best suited to this type of work to understand the principles of this science, or even to work in accordance with these principles without the aid of a man better educated than he is. And the further illustrations to be given will make it clear that in almost all of the mechanic arts the science which underlies each workman's act is so great and amounts to so much that the workman who is best suited actually to do the work is incapable (either through lack of education or through insufficient mental capacity) of understanding this science. This is announced as a general principle, the truth of which will become apparent as one illustration after another is given. After showing these four elements in the handling of pig-iron, several illustrations will be given of their application to different kinds of work in the field of the mechanic arts, at intervals in a rising scale, beginning with the simplest and ending with the more intricate forms of labor.
One of the first pieces of work undertaken by us, when the writer started to introduce scientific management into the Bethlehem Steel Company, was to handle pig-iron on task work. The opening of the Spanish War found some 80,000 tons of pig-iron placed in small piles in an open field adjoining the works. Prices for pig-iron had been so low that it could not be sold at a profit, and it therefore had been stored. With the opening of the Spanish War the price of pig-iron rose, and this large accumulation of iron was sold. This gave us a good opportunity to show the workmen, as well as the owners and managers of the works, on a fairly large scale the advantages of task work over the old-fashioned day work and piece work, in doing a very elementary class of work.
The Bethlehem Steel Company had five blast-furnaces, the product of which had been handled by a pig-iron gang for many years. This gang, at this time, consisted of about 75 men. They were good, average pig-iron handlers, were under an excellent foreman who himself had been a pig-iron handler, and the work was done, on the whole, about as fast and as cheaply as it was anywhere else at that time.
A railroad switch was run out into the field, right along the edge of the piles of pig-iron. An inclined plank was placed against the side of a car, and each man picked up from his pile a pig of iron weighing about 92 pounds, walked up the inclined plank and dropped it on the end of the car.
We found that this gang were loading on the average about 12 1/2 long tons per man per day. We were surprised to find, after studying the matter, that a first-class pig-iron handler ought to handle between 47 and 48 long tons per day, instead of 12 1/2 tons. This task seemed to us so very large that we were obliged to go over our work several times before we were absolutely sure that we were right. Once we were sure, however, that 47 tons was a proper day's work for a first-class pig-iron handler, the task which faced us as managers under the modern scientific plan was clearly before us. It was our duty to see that 80,000 tons of pig-iron was loaded on to the cars at the rate of 47 tons per man per day, in place of 12 1/2 tons, at which rate the work was then being done. And it was further our duty to see that this work was done without bringing on a strike among the men, without any quarrel with the men, and to see that the men were happier and better contented when loading at the new rate of 47 tons than they were when loading at the old rate of 12 1/2 tons.
Our first step was the scientific selection of the workman. In dealing with workmen under this type of management, it is an inflexible rule to talk to and deal with only one man at a time, since each workman has his own special abilities and limitations, and since we are not dealing with men in masses, but are trying to develop each individual man to his highest state of efficiency and prosperity. Our first step was to find the proper workman to begin with. We therefore carefully watched and studied these 75 men for three or four days, at the end of which time we had picked out four men who appeared to be physically able to handle pig-iron at the rate of 47 tons per day. A careful study was then made of each of these men. We looked up their history as far back as practicable and thorough inquiries were made as to the character, habits, and the ambition of each of them. Finally we selected one from among the four as the most likely man to start with. He was a little Pennsylvania Dutchman who had been observed to trot back home for a mile or so after his work in the evening, about as fresh as he was when he came trotting down to work in the morning. We found that upon wages of $1.15 a day he had succeeded in buying a small plot of ground, and that he was engaged in putting up the walls of a little house for himself in the morning before starting to work and at night after leaving. He also had the reputation of being exceedingly "close," that is, of placing a very high value on a dollar. As one man whom we talked to about him said, "A penny looks about the size of a cart-wheel to him." This man we will call Schmidt.
The task before us, then, narrowed itself down to getting Schmidt to handle 47 tons of pig-iron per day and making him glad to do it. This was done as follows. Schmidt was called out from among the gang of pig-iron handlers and talked to somewhat in this way:
"Schmidt, are you a high-priced man?"
"Vell, I don't know vat you mean."
"Oh, yes, you do. What I want to know is whether you are a high-priced man or not."
"Vell, I don't know vat you mean."
"Oh, come now, you answer my questions. What I want to find out is whether you are a high-priced man or one of these cheap fellows here. What I want to find out is whether you want to earn $1.85 a day, or whether you are satisfied with $1.15, just the same as all those cheap fellows are getting."
"Did I vant $1.85 a day? Vas dot a high-priced man? Vell, yes, I vas a high-priced man."
"Oh, you're aggravating me. Of course you want $1.85 a day — every one wants it! You know perfectly well that that has very little to do with your being a high-priced man. For goodness' sake answer my questions, and don't waste any more of my time. Now, come over here. You see that pile of pig-iron?"
"You see that car?"
"Well, if you are a high-priced man, you will load that pig-iron on that car to-morrow for $1.85. Now do wake up and answer my question. Tell me whether you are a high-priced man or not."
"Vell — did I get $1.85 for loading dot pig-iron on dot car to-morrow?"
"Yes, of course you do, and you get $1.85 for loading a pile like that every day right through the year. That is what a high-priced man does, and you know it just as well as I do."
"Vell, dot's all right. I could load dot pig-iron on the car to-morrow for $1.85, and I get it every day, don't I?"
"Certainly you do — certainly you do."
"Vell, den, I vas a high-priced man."
"Now, hold on, hold on. You know just as well as I do that a high-priced man has to do exactly as he's told from morning till night. You have seen this man here before, haven't you?"
"No, I never saw him."
"Well, if you are a high-priced man, you will do exactly as this man tells you to-morrow, from morning till night. When he tells you to pick up a pig and walk, you pick it up and you walk, and when he tells you to sit down and rest, you sit down. You do that right straight through the day. And what's more, no back talk. Now a high-priced man does just what he's told to do, and no back talk. Do you understand that? When this man tells you to walk, you walk; when he tells you to sit down, you sit down, and you don't talk back to him. Now, you come on to work here to-morrow morning and I'll know before night whether you are really a high-priced man or not."
This seems to be rather rough talk. And indeed it would be if applied to an educated mechanic, or even an intelligent laborer. With a man of the mentally sluggish type of Schmidt it is appropriate and not unkind, since it is effective in fixing his attention on the high wages which he wants and away from what, if it were called to his attention, he probably would consider impossibly hard work.
What would Schmidt's answer be if he were talked to in the manner which is usual under the management of "initiative and incentive," say, as follows:
"Now, Schmidt, you are a first-class pig-iron handler and know your business well. You have been handling at the rate of 12 1/2 tons per day. I have given considerable study to handling pig-iron, and feel sure that you could do a much larger day's work than you have been doing. Now don't you think that if you really tried you could handle 47 tons of pig-iron per day, instead of 12 1/2 tons?"
What do you think Schmidt's answer would be to this?
Schmidt started to work, and all day long, and at regular intervals, was told by the man who stood over him with a watch, "Now pick up a pig and walk. Now sit down and rest. Now walk — now rest," etc. He worked when he was told to work, and rested when he was told to rest, and at half-past five in the afternoon had his 47 1/2 tons loaded on the car. And he practically never failed to work at this pace and do the task that was set him during the three years that the writer was at Bethlehem. And throughout this time he averaged a little more than $1.85 per day, whereas before he had never received over $1.15 per day, which was the ruling rate of wages at that time in Bethlehem. That is, he received 60 per cent. higher wages than were paid to other men who were not working on task work. One man after another was picked out and trained to handle pig-iron at the rate of 47 1/2 tons per day until all of the pig-iron was handled at this rate, and the men were receiving 60 per cent. more wages than other workmen around them.
The writer has given above a brief description of three of the four elements which constitute the essence of scientific management: first, the careful selection of the workman, and, second and third, the method of first inducing and then training and helping the workman to work according to the scientific method. . . .
The general adoption of scientific management would readily in the future double the productivity of the average man engaged in industrial work. Think of what this means to the whole country. Think of the increase, both in the necessities and luxuries of life which becomes available, of the possibility of shortening the hours of work when this is desirable, and of the increased opportunities for education, culture, and recreation which this implies. But while the whole world would profit by this increase in production, the manufacturer and the workman will be far more interested in the especial local gain that comes to them and to the people immediately around them. Scientific management will mean, for the employers and the workmen who adopt it — and particularly for those who adopt it first — the elimination of almost all causes for dispute and disagreement between them. What constitutes a fair day's work will be a question for scientific investigation, instead of a subject to be bargained and haggled over. Soldiering will cease because the object for soldiering will no longer exist. The great increase in wages which accompanies this type of management will largely eliminate the wage question as a source of dispute. But more than all other causes, the close, intimate cooperation, the constant personal contact between the two sides, will tend to diminish friction and discontent. It is difficult for two people, whose interests are the same, and who work side by side in accomplishing the same object, all day long, to keep up a quarrel.
The low cost of production which accompanies a doubling of the output will enable the companies who adopt this management, particularly those who adopt it first, to compete far better than they were able to before, and this will so enlarge their markets that their men will have almost constant work even in dull times, and that they will earn large profits at all times.
This means increase in prosperity and diminution in poverty, not only for their men, but for the whole community immediately around them.
As one of the elements incident to this great gain in output, each workman has been systematically trained to his highest state of efficiency, and has been taught to do a higher class of work than he was able to do under the old types of management; and at the same time he has acquired a friendly mental attitude toward his employers and his whole working conditions, whereas before a considerable part of his time was spent in criticism, suspicious watchfulness, and sometimes in open warfare. This direct gain to all of those working under the system is without doubt the most important single element in the whole problem.
Is not the realization of results such as these of far more importance than the solution of most of the problems which are now agitating both the English and American peoples? And is it not our duty, as engineers who are acquainted with these facts, to exert ourselves to make the whole community realize their importance?
From: Taylor, Frederick Winslow. Principles of Scientific Management. New York: Harper & Brothers Publishers, 1911.