MGC1010 Lecture Notes - Lecture 2: Midvale Steel, Scientific Management

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30 Jun 2018

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THEORIES OF MANAGEMENT

Started in the mid-1700s in Great Britain

Transition from hand production to machineries method

Changed the nature of work and increased the standard of living for the general population

Britain and Europe were major industrialised economies of the late 1800s

America was also catching up post civil war

Without a class system, America did not face limitations to growth as British

Wealthy became factory owners

They became more educated and wanted to look for ways to increase their profit

CLASSICAL APPROACH

Frederick Winston Taylor

Known as the father of scientific management

Worked at Midvale steel company

oPromoted from worker to chief engineer

o Affected by his workers soldiering, restricting output to 1/3rd of what was possible

oNew workers, new machines, and role-modelling did not work

oWorkers began breaking their machines, even threatened to shoot Taylor.

Studied the work habits of labourer

oObserving labourers loading iron ore to railroad trucks

oDetermine that there is one best way to load the iron

oDeveloped the 4 principles of scientific management

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