Every organization needs to streamline their business processes in order to remain competent in competitive market. Streamlining and optimized utilization of resources is very important for increasing the productivity as well as revenue of the company. Many techniques and strategies are being involved in different companies and if these strategies are successful then they are adopted by most of the companies around the globe for standardization of their operations and business processes.
Scientific management is a theory of management which was developed by Frederick Taylor and this theory is also known as “Taylorism”. This main objective of this theory is to amalgamate workflow and increase most important parameter of organizations known as “labor productivity”. Labor productivity means is the amount of goods produced in a given amount of time. Thus scientific management increases the throughput of labors by implementing scientific techniques in the practices and thus increasing overall productivity of the company (De Grazia, 2005). Scientific management has contributed to the organizations in many ways by evolving many best practices and strategies. Scientific management strategies were especially designed towards increasing the productivity through various models such as soldiering, time and motion studies and total quality management.
Taylor was the first person who differentiated between skilled labor and unskilled labor. Skilled labors are skilled for particular tasks and thus they charge heavy. Unskilled labors have no specific skill set which makes them less used in earlier days. They were only used for mechanical jobs and hence they were paid very less (Rosen, 1993). Thus Taylor understood the prime importance of unskilled labor being paid fewer amounts which increases the overall revenue of the company. Thus the main principle of Taylor was to break the part of all the skill needing jobs into smallest tasks which does not need any skill and can be done by unskilled labor. Thus this increased the value of unskilled labor without paying much to these labors. Hence the Taylorism or scientific management was considered very effective. The other basic principle of scientific management was time and motion studies which were carried out by Taylor in order to increase labor productivity. As per this study, the time is calculated for completing tasks by a normal labor in ideal condition. Now motion of the task being conducted is also changed by changing layout or floor plan measurement of company thus calculating the best possible time for completing a task or set of tasks. This helped in increasing labor and work productivity.