Tuesday, 2 May 2017

Principle by Taylor---Case Studies 12th Business

Principles by Taylor

28-4-17

1 Science Not Rule of Thumb
There are various methods to complete a task. However there is only one best method which can bring maximum efficiency. When we say efficiency it means  production at low cost and consuming minimum time.

Case Study Ex –
When we eat at home, sometimes we find food tasty and sometimes not. It is because at home Rule of thumb is followed, that is, quantity of ingredients and time of cooking is different every time. But when we eat burger at McDonald we find same taste every time.It is because at McDonald rule of Science is followed, that is, a definite recipe is followed including precise time of cooking.   

Rule of thumb is less scientific because it is acquired by past Experience or Intuition or Personal opinion or Prejudice, whereas rule of science is acquired after observation, study, analyses and long research.

Taylor proposed Rule of science and not Rule of thumb to increase production at low cost because success from Rule of thumb was inconsistent whereas success from Rule of  science was more consistent.

Because of this rule many simple machines have been invented and the process is still on. Robots are latest.

Case Study Ex –
Stitching a cloth manually is rule of thumb. Manual stitching will never be even. whereas stitching by using a machine is rule of science because stitching will always be even. There will be same gap between two stitched. 

Case Study Ex –
Doing calculation manually is rule of thumb where as doing it using calculator is rule of science.

Case Study Ex –
Use of robots in surgery is following rule of science






2 Harmony not Discord
Maximum contribution of Management as well Workers is must to run a production house successfully and to avoid frequent strikes by workers.

It is possible when there is no discord (arguments, fighting) but complete Harmony (peace, no fighting, no arguments, and maximum trust) among people in management and workers. This is not easy. To bring Harmony, Taylor proposed Complete Mental Revolution from both, management people as well as workers. To bring complete mental revolution he proposed that
1. Management should be ready to share gain/profit with worker.
This way worker will trust management more. Their relation will be peaceful with workers. There will be less arguments and less fighting. If workers are paid more, there will not be any strike.  
2. Workers should be willing to work hard to increase gain/profit.
This way quality and quantity of production will grow. It will bring more profit. More profit will result in more pay and other allowances to workers.

Case study Ex -

Years ago, MarutiSuzuki and HeroHonda(now Hero) had to face strike by their workers. For many months, production was stopped and violence erupted. Both, management and workers had to face huge loss. Some of the employees are still facing court cases. The reason was workers were not satisfied with management for various reason.  
The consequence was devastating. Co lost over 2,500 crore and 6% market share.  scroll.in



Cooperation Not Individualism
In his third principle Taylor advocated that there should be cooperation among workers and management. It is good there is harmony and there is no discord among them. This brings peace only. But the Work will be carried out according to plan and standard of performance, only if, there is cooperation among workers and management. In other words management and workers should not compete with each other; rather, they should compatible to each other.

Ex. Management and workers are like two wheels of a motor bike. Management is front wheel which guide direction, whereas, workers are back wheel which carry the load and follows.
.

To achieve cooperation there should be open communication system that is

1. Management should not close their ears to any constructive (reduces cost of production) suggestion.

2. Reward employee for beneficial suggestion. 

3. Workers should avoid unreasonable demands and strikes.

4. Work should be divided according to talent among workers and management. Management should be working side by side with the workers to encourage them for smooth working.


Case study Ex –

A bridge was under construction on the river Chambal. The dead line was coming close yet much work was left to complete. Management and engineers decided to continue construction even in night. It was desolate and dacoit prone area. Workers were under fear. Moreover there was no food shop. Workers had to cook on their own. Worker Union demanded cook and safety. Management and engineers decided to stay whole night with the workers and also hired cook for cooking. There was common rest room and common mess (for food) for workers as well as for management. Some guards were also hired to protect from possible dacoit attack. This move encouraged and motivated workers. The task was complete as per dead line. Workers were awarded some bonus in addition to payment for overtime.  


Development of each and every person (worker) to his or her greatest efficiency and prosperity:
Taylor insisted that merely finding best method (under science not rule of thumb) is not enough. The existing staff should be given proper training to master ‘the best method’. If there is need of new staff, the selection of new workers should also be scientific. The work which to be assigned to new worker should be suitable to his/her
1. Physical capabilities (Strength)
2. Mental capabilities (Liking)
3. Intellectual capabilities (Technical knowledge)
  
Ex. A computer mechanic may not be strongly built but he/she should have capacity to work 8 to 12 hours. He/she should be passionate about his/her Job and is of sound mind. He/she should be Intelligent enough to locate faults and repair them.  

A Trained worker consumes less time and produces more. This principle if applies properly brings more earning to every worker as well as the company. Workers feel motivated. Their social status also goes up


Case study Ex –

During 1980-2000, banks used to operate manually. There was slowness in every task performed. Even local cheque used to take more than a week. Soon use of computers in banking business increased in USA and Europe. Indian banks followed the trend. They ordered computers in large quantity. But there was shortage of people who knew how to operate computers. Banks arranged for the training of their existing employees. It was costly for banks but it increased the speed of work. Consequently cost of banking reduced considerably, profit grew. It was later on resulted pay hike of banking staff. For new recruitment, knowledge of computer operation was made compulsory.





COMPOSED BY   PATHAK SIR   @pathaksirbst ( at twitter)
send your views at avnishpathak18@gmail.com or at  @pathaksirbst ( at twitter)


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