An Evaluation of F.W.Taylor and D.McGregor's management theories

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An Evaluation of F.W.Taylor and D.McGregor’s management theories

Perspectives on Management (MN2018)

Introduction

Organisational theories develop from different backgrounds, experiences, and way of life and through unique set of frameworks, which in retrospect offer new perspectives to old conceptions and theoretical frameworks. Organisation theory can be defined as the study of the ‘structure, functioning and performance of organisations’ (Pugh, D, S, 1997:xii) and the behaviour of groups and individuals within them.

There are many popular writers in the field of management theory but the two who interest me the most are F.W.Taylor and D.McGregor. I am going to evaluate their management theories and critique their ideas.

These writers have attempted to draw together information and distil theories of how organisations function and how they should be managed. Their writings have been theoretical in the sense that they have tried to discover generalisations applicable to all organisations.

Frederick Winslow Taylor (1856-1915) was an American Industrial Engineer born in Germantown, Pennsylvania. His early observations as an foreman at the Midvale Steel Company (1878) inspired him to develop new management principles and a whole new perspective to practical management problems by applying scientific management to the workplace.

Scientific management involved a new system of working ‘time and motion studies’ (Kouvuri, D, 24/10/02). His innovations in time and motion studies, paid off in ‘dramatic improvements’ (Kouvuri, D, 17/10/02) in productivity, as they helped determine the best methods for performing a task in the least amount of time. At the same time, he was destroying the soul of work, dehumanising factories, and making them into ‘automatons’ (Needham, D & Dransfield, R, 1998: 156).

His principles known as ‘Taylorism’ (Dean, C, C, 1997) concentrated on gaining maximum efficiency from both the workers and the machines in the factory, which replaced the ‘old thumb of rule method’ (Cossette, P, 2002). He developed his principles in accordance to self-beliefs of maximum efficiency regardless of people feeling ‘alienated’ (Hannagan, T, 1998: 143). Alienation at work led to people being treated like part of the machinery, they were expected to do very repetitive and boring work, without any responsibility leading to unhappy employees. Pay can be used as an incentive to encourage people to work harder but it cannot help them to enjoy their work.

The way in which employment is rewarded is a factor in determining attitudes to work. Methods of payment such as Taylor’s ‘piece-rate’ (Kouvuri, D, 31/10/02) where employees are paid according to the number of items produced, can also add to a feeling of alienation (for example workers rushing to produce given targets in order to increase pay).

Douglas McGregor (1906-1964) was a ‘social psychologist’ (Pugh, Hickson & Hinings, 1964: 146) in America and was for some year’s chief executive of Antioch College and from 1954 until his death was Professor of Management at the Massachusetts Institute of Technology.

McGregor’s ideas had an insightful effect on management concepts and practices as he proposed two theories for management, Theory X and Theory Y. Theory X defines a ‘negative view of people’ (McGregor, D, 1960: 175) and Theory Y defines a ‘positive view of people’ (McGregor, D, 1960: 176). Theory X describes organisations whose methods are derived from management supervision and control to gain maximum efficiency regardless of social needs. Theory Y portrays the importance of acknowledging employee needs in an organisation rather than being treated as a ‘machine’ (Kouvuri, D, 17/10/02). It states how employees are the organisation and how they should be given ‘self control and self-direction’ (Hannagan, T, 1998: 8) to achieve organisational goals.

F.W.Taylor and D.McGregor theories are developed from different point of views. Taylor’s approach is of ‘Scientific management’ (Taylor, F, W, 1967: 34) whereas McGregor’s approach is further related with social needs and behaviour at work.  McGregor’s approach is linked to him being a Psychologist, which explains him being, classified as a social theorist and Taylor an Engineer, which explains him, being classified as a classical theorist. Even though the theorists developed their concepts to management in the 19th century, Taylor’s approach was used in the early 19th century and McGregor’s theory used in the late 19th century.

Their theories in some respect can be compared and differentiated as Taylor defines an organisation as a ‘machine’ (Huczynski, A & Buchanan, D, 2001: 254). Similar to McGregor’s Theory X. McGregor’s Theory Y ‘sums up the precepts of a unitary and normative frame of reference for managerial practice’ (Dean, C, C, 1997). Their points of view differ, as Taylor believes an organisation can only gain maximum productivity by controlling the workers, ‘money is the motivator’ (Hannagan, T, 1998: 45) whereas McGregor believes the social needs of employees should also be taken into consideration to increase motivation therefore to maximise production levels.

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Taylor’s perspective arises from objective rational action in which the ‘techniques for achieving ends are determined in accordance with scientific knowledge’ (Berkeley, T, 1993: 37). The approach, which he uses in his organisation, is a ‘rational professional view’ (Berkeley, T, 1993:38), which is concerned with using efficacious techniques in order to realise particular ends. This approach exploits and alienates the workers to gain maximum output at minimum cost.

Taylor’s rationality is perfectly understandable in the time he was writing, as his period needed a change. Factories in his time were ‘chaotic’ (Kouvuri, D, 14/11/02) due to poor pay, ...

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