The Theory of Scientific Management.

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Andrew Mulrain

Business Coursework

Unit 9

Task 1A

Theorist: Taylor

Theory name: The Theory of Scientific Management

Taylor put forward that workers are motivated mainly by pay. Workers do not naturally enjoy their work which means they have to have close supervision and control. In order to do this, managers should break down production into a small series of tasks. Workers then should be given appropriate training and tools so that they are able to work efficiently as possible when appointed a task. Workers are then paid according to how much they produce (time-piece rate pay). As a result this increases productivity.

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Financial interests would include:

  • Opportunities to achieve bonuses eg. Employee of the month

  • Rewards after a certain duration such as an extra 5% on top of what has been earned

Non-financial interests would include:

  • Holidays abroad that have already been paid for

  • Company discounts

What business would it help?

This strategy could be used for businesses such as Jessops (an electrical store). If the worker plays a role of a sales executive, manager or assistant, they could be paid according to how much they sell. This would encourage them to work harder as they would be getting paid according to how much they are selling. This is called piece rate pay and they still receive a basic wage. Certain skilled jobs require different amounts of productivity levels such as being a sales assistant. A sales assistant would have to encourage customers to purchase a certain product in order to receive their pay. So, the more a sales assistant sells the more money the will be making. Even though Taylor has proved that this theory has proved to increase productivity, money is not always the only motivation. I feel that workers also have to be involved with each other in the working environment, to socialise to an extent where they can enjoy work as well as to earn for a living.

What business would it not work in?

The theory would not work in a business where all workers are already earning quite a lot of money and can stop working at a very early age. An example would be footballers in a well known football club such as Manchester United. As they are already multi-millionaires, money would not motivate them as much, so the manager would have to create motivators which suit the footballers’ lifestyles, to ensure that they enjoy their job.

Theorist: Maslow

Theory name: Hierarchy of needs 

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Maslow developed this hierarchy of needs based on research about what motivates people to work. He suggested that there were 5 levels of needs that influence a person’s behaviour.

  1. Basic needs: For food, drink and shelter
  2. Safety needs: Protection against danger, threat and deprivation
  3. Social needs: The needs for belonging, acceptance and friendship
  4. Self-esteem needs: Reputation and status
  5. Self-actualization: The need for realising one’s own potential for continual self-development

"We move toward self actualization". This quote brings in Maslow's theory of motivation, tying along with the growth, happiness and satisfaction of every person. He believes to be motivated that it is not driven by reducing tension or avoiding frustration that people look for a positive view. I have gathered this information from .

What business would it help?

Maslow’s theory would help businesses that involve tall decentralised structures such as Waitrose where the workers can take responsibility and can also progress. As tall structures have many stages, the workers can work their way up to the top of the structures. They are able to work their way up once they have the confidence and achieved what they need to move on to the next level. This can be taken from “esteem” in Maslow’s hierarchy.

What business would it not work in?

People that work from home for companies would not need to use this hierarchy to survive when working. As they would be in the comfort of their home, they will not feel unwanted or feel to be in need of friendships between workers.

A small business such as a newsagent, would not suit these hierarchy of needs as there would not enough people working in the business to build up this type of structure. For example it would involve the basic physiological needs of having food and a place to excrete but as the hierarchy moves up it involves many more needs that include the environment and the workers such as esteem. Esteem would involve self esteem itself, confidence, achievement and respect of and by others. These factors are not very suitable for small businesses as the workers would be working with a maximum of 3 people so building on respecting others would not make a great improvement on how the business is run. Self actualisation would be impossible to achieve if the workers decide to stay in a small business. They would not be able to gain any more responsibility than what they already have and they would also lack further opportunities to progress beyond being a shop floor manager. In order to improve their career prospects they would have to move out of the small business sector and into a business that is much larger.

Theorist: Elton Mayo

Theory name: The Human Relation Approach

Mayo believed that workers are not just concerned with money but could be better motivated by having their social needs met whilst at work. This was something that Taylor ignored. His theory focused on managers taking more of an interest in the workers, treating them as people who have worthwhile opinions and realising that workers enjoy interacting with each other.

He isolated two groups of women workers and studied the effect on their productivity levels when changing factors such as lighting and other working conditions. He expected the productivity levels to decrease as lighting or other working conditions became worse.

From this experiment, Mayo concluded that:

  • There was better communication between managers and workers

  • There was greater involvement in employees working lives

  • They worked more in groups or teams

What business would it help?

Mayo’s theory would help businesses that have large departments such as Marks and Spencer’s, John Lewis and Sainsbury’s. People that work there are mainly designated to do their own job. For example, they will stand at the till, work behind the pharmacy counter or stock the shelves etc. These job roles can get very boring as there is a lot of repetitiveness. Even if they are motivated by the money alone, not all motivation is due to the pay. Workers have to be involved with the working environment which means they have to enjoy their time spent at work so they have the motivation to go into work. This would help the workers to be more involved with their job roles and these departments that they are allocated to work together as a team so it also covers the social needs that have to be met in order to have an enjoyable working environment.

What business would it not work in?

This theory would not work for catering businesses. As catering businesses employ people on a short term basis they are used to seeing different people most of the time which means they cannot socialise much. It takes the workers time to fit in with the new environment of people that are moving in and out of their working conditions which means they are unsettled so they are unable to socialise. Overall, I would see this type of business being motivated by money and not by socialisation needs.

Task 1B

Two theories that Waitrose use to keep their workers motivated are:-

  • Maslow’s hierarchy of needs

  • Hertzberg’s two factor theory

How Maslow’s theory is used by Waitrose

Maslow’s theory is used by Waitrose as they provide their workers everything that Maslow has in his hierarchy. Waitrose provides the basics, the safety and security, the employee of the month, socialisation time and also helps their workers build up confidence.

Waitrose provides:

  • Health services
  • Three full time occupational doctors
  • Fifty health advisors working for them
  • Life assurance which pays a sum equivalent to three times the annual salary to their nominated beneficiary
  • A pension scheme from the age of 60, to most partners who have completed a five-year qualifying period
  • Annual bonuses, discounts, benefits and paid holidays
  • Leisure activities where Waitrose own residential clubs for workers that have provided three years of service

These can all be seen as motivator factors as health services, having three occupational doctors and fifty health advisors working for them gives great security of well being which other companies are unable to give. The disadvantage of this aspect is that it is costing Waitrose a lot of money but it does act a very strong motivator.

Life assurance also plays a large motivator as this money provides a piece of mind. It is a lump sum of money which is three times as much as the individuals’ salary which goes to the next of kin if the employee dies whilst working for them. The disadvantage for the company is that it increases company liability as three times the amount of their salary is a lot of money. In order to do this, Waitrose has to also buy insurance to cover them.

Waitrose also gives a pension scheme to employees that have stayed on for five years. This would motivate employees to carry on working for Waitrose as they would be receiving an extra factor that would benefit them in the future and it is a non-contributory scheme. This means that the employee does not have to contribute to their pension if they do not wish to do so. The disadvantage of this scheme is that the money is coming from Waitrose, therefore this would also increase company liability.

Providing leisure activities for employees that have given three years of service would also motivate them to stay on with Waitrose as they would be receiving an extra benefit. The disadvantage of having this aspect is that Waitrose are again spending their profits in order to keep their employees motivated.

Annual bonuses, discounts, benefits and paid holidays are also a motivator to work for Waitrose as the company shows their employees that they are needed. They also want to make working at Waitrose an enjoyable experience. The disadvantage of this aspect is that in order to provide this luxury, profit is being spent. Having discounts is not so much of a liability as a percentage of the profits still remain the same, but it takes longer to gain the money back.

The overall advantage of having these motivators is that they all have the possibility of reducing staff turnover even if a lot of money has to be spent. This is what makes peoples experience at Waitrose enjoyable.

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How Hertzberg’s theory is used by Waitrose

Hertzberg’s theory includes motivational and hygiene factors. Below is a diagram of Hertzberg’s theory model.

The motivational factors that Waitrose use are:

  • Status
  • Opportunity for advancement
  • Gaining recognition
  • Responsibility
  • Challenging/ stimulating work
  • Sense of personal achievement and personal growth in a job

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Waitrose match up to these factors as they provide responsibility so the workers have the opportunity to be in control of their work lives. This gives the workers more confidence as they have the power of a small amount of control. The company also provides employee of the month, which will also motivate the workers as they will have the push to work to their best limits to get to the top. Waitrose also offer challenging management career paths in the fast moving retail sector and they also believe that all workers have a say in the way the organisation is run.

Waitrose offers challenging career paths which relates to Herzberg’s motivational factor of having the opportunity for advancement. As the company allows their employees to work to achieve this they gain a sense of personal growth in a job. To help their employees gain this achievement they give them some responsibility so they are faced with a challenge.

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The hygiene factors that Waitrose use are:

  • Company policy and administration
  • Wages, salaries and other financial remuneration
  • Quality of supervision
  • Quality of inter-personal relations
  • Working conditions
  • Feeling of job security

Waitrose provides safe working conditions for their workers to ensure that they are secure and that they enjoy their work life. They provide benefits such as paid holidays and pension schemes which help out with the workers’ future and free time outside the working environment.

Two theories that Waitrose do not use and how Waitrose could use them:

  • Taylor’s Theory Of Scientific Management

  • McGregor’s Theory Of Theory X

How Waitrose could use Taylor’s Theory of Scientific Management.

The theory is based on piece rate pay. This means you are paid according to how much you are producing in the given period of time. An example could be a baker at Waitrose. The baker would earn according to how many loafs of bread he/ she produces. Another example could be the role of a shop floor assistant. Here he/ she would have to sell themselves very well in order to gain sales. The more sales they make, the more they earn.

Using this method for the business of Waitrose could make a huge amount of earning for the company, but in the long run it could cause many problems as errors would be made. Mistakes would occur as the workers would be working according to the piece-rate pay pushing them to work faster in order to earn more. As workers would only be motivated by the money they are making, Waitrose would not need to provide for their workers social lives within the working environment, such as the sports leisure centres, health services and pension schemes. Due to money being the only motivator in this scheme, there is no back up in case the workers start to feel de-motivated which will decrease sales dramatically. This would end up costing Waitrose a lot of money, proving that the scheme that they use now would suit their environment in the best possible way.

Waitrose’s workers would not enjoy their working life as money would be their only motivator. Money is not the only factor that motivates people. They want to be able to enjoy their experience as well as to earn money. This theory of motivation does not provide any security or fringe benefits. It does not give a chance for the employees to move higher so that they can achieve more as no responsibility is given outside of their job role. Using this theory could become a loss for Waitrose as it could cause high staff turnover as other companies would be able to provide them with better staff quality.

How Waitrose could use McGregor’s Theory X.

Waitrose could use this Theory with there workers by motivating them in different ways. This would include not giving responsibility, they would be one–way communicators, not very good listeners, can be demanding if manager is a Theory X worker and they would be very anti–social. Using this method of motivation would lose Waitrose a lot of money, as they would have to have more workers to keep up to speed and to keep other workers on the correct track. More workers would also be needed to keep a close eye on them in small groups in case they step out of line. The workers would not be trustworthy nor attached to the environment.

This theory could work for Waitrose if their workers prefer to be told what to do instead of looking for work. If they are given orders they are able to complete their tasks much faster but in return they also want security within their job. Waitrose would have a good chance of have high productivity levels if they give these employees what they want as they do not demand much and they do not want any responsibility.

Task 1C

The areas of conflict that could take place between the motivational method and the objectives of Waitrose:

Method of motivation:

  • To receive 25% discount on all John Lewis and Waitrose goods

Conflicts with this objective:

To reach profit target levels within a given period of time.

This method of motivation would disrupt the making of profits as it would prevent the company from reaching their target levels on time. As the company would be giving that percentage away to their employees it would take that extra time to make up for the loss.

Method of motivation:

  • To receive bonuses, annually/ profit share

Conflicts with this objective:

To reach profit target levels within a given period of time.

To be able to expand.

This could count towards Waitrose not making targeted profit levels as giving away extra pay would slow down the process of making more money. This would happen every year because they are annual bonuses so reaching an end of year target may not be possible. If these targets cannot be met then the business may not be able to follow their original plans on time.

Method of motivation:

  • To be trained according to the job role

Conflicts with this objective:

To reach profit target levels within a given period of time.

To provide a high quality of customer service.

As training staff can be expensive, profit levels may drop. This would be due to the extra staff that would have to come on to cover for the new workers and to pay for the time of the training for them. The cover staff may reduce the efficiency of the customer service as they may not be used to working in certain areas.

Method of motivation:

  • To receive social perks such as extra holidays but only for certain staff, for example people who have been working for the company for over 5 years

Conflicts with this objective:

To reach profit target levels within a given period of time.

To provide a high quality of customer service.

This method of motivation would simply affect the levels of profit as a lot of the money would be spent of buying the rewards. This method would also result in Waitrose employing temporary staff for replacement whilst their permanent employees are away. This would drop their quality of service because the environment would be new for the temporary staff therefore it would take time for them to get used to the surroundings.

Method of motivation:

  • To promote workers

Conflicts with this objective:

To reach profit target levels within a given period of time.

To provide a high quality of customer service.

This method would decrease the profits as the company would have to give higher wages, pay for extra cover workers (recruitment costs), provide training for new workers and replacements. This would decrease the quality of service as the new workers would have to get used to the working environment therefore the working efficiency would not be as good until they have a suitable amount of experience and practice.


Task 2A

Below are 10 areas in which I have implemented Taylor’s theory into Waitrose. I have spoken about 10 different methods in which Waitrose could improve in and then related it to the company noting the advantages and disadvantages of each.

As I have already mentioned in the previous task that Taylor’s Theory of motivation is based on money. Taylor’s theory can be used by piece rate pay if it was to be used in Waitrose. Piece rate pay is when you are paid according to how much you produce. Waitrose would not have to spend money on motivation methods as money would be the only motivator that would encourage them to work. This would save the company a lot of money which means they would be making profit much faster than their current rate but errors would increase.

Profit

Advantages

The productivity in Waitrose is most likely to increase as employees become more used to and involved with their role. As time moves on, the employees would have a better view and aspect on their job role. Therefore they would become experts at their job and produce more products; this is due to undertaking small tasks respectively. An example of this would be baking bread.

Disadvantages

As the current employees would be highly trained giving Waitrose a chance to provide an excellent customer service, during the recruitment periods the quality of their service may drop as new employees would have no experience. In order to train them, they have to use their profits in order to gain back their high quality of customer service.

Reduce costs

Advantages

As employees become experts at their job due to repetition of their work, they would make less errors which leads to reduced costs for the business.

Disadvantages

This repetition may cause boredom for the employees which can increase the errors that are being made. Boredom of the job may also end up leading to high staff turnover which would decrease productivity levels and profit levels dramatically.

Minimise waste

Advantages

Although staff may have the wages following the piece rate pay where the workers get paid according to how much they produce, they will not want to take the risk of rushing in case they have a loss of pay for inadequate goods so, therefore the employees would take care when they are producing products. As employees also become used to their job roles they become experts which mean they would be less likely to make errors which would decrease the amount of damaged goods and waste products being produced.

Disadvantages

Employees at Waitrose may end up rushing their work in order to meet their target levels which will increase the waste being produced as they will be producing inadequate products. The staff may also become bored of their job roles which can lead to making mistakes as the employees may not be very complacent.

Staff turnover

Advantages

Waitrose have to think of ways in which their staff turnover remains the lowest possible. As they pay their employees by the piece rate pay wages, it gives the staff more of an opportunity to earn more money, as it is up to the individual to how much they work. This may act as a motivator to stay. The staff at Waitrose are given small discreet tasks to get on with which results in them becoming very efficient and they can feel proud of what they have achieved. This increases their self esteem.

Disadvantages

The employees may not feel as secure as they do not have a guaranteed wage. For example, when they take days of work for being sick or when the equipment they work on fails, they will not be able to work therefore they may not be paid. The staff at Waitrose may feel restricted to one job which means they may not have the opportunity to progress higher leading to boredom of the job role. Due to this, the employees may look for alternative employment which can offer them a better future.

Recruitment of workers

Advantages

Recruitment makes it easier for the business to attract new staff as the piece rate pay is incentive. The potential employees have easy job roles that require minimum skills, therefore it would also be easy to find replacements as simple job roles and few skills are needed. The job descriptions are easy to produce as there is limited responsibility and the type of staff that are needed do not need to have a wide range of skills. A simple and narrow but specific set of skills would be needed.

Disadvantages

The main disadvantage would be that employees may get very bored of the role, as it would be very simple and standard with nothing challenging to do. There also would not be much of an opportunity to progress further. Applicants may think twice about applying for the job roles because of the piece rate pay as they may want financial security and set wages.

Increasing profit levels

Advantages

If the profit levels increased, Waitrose would have the chance to expand further on their company. They would be able to produce a higher quality range of goods in order to fulfil the full customer satisfaction. Their employees would also receive higher wages because of their hard work and commitment. Taylor’s method of motivation would help to increase the profit levels as his theory is based on money and money only. His method of motivation is done according to how much each individual produces (piece rate pay), therefore the more they produce the more profits the company receives meaning the wages for the employees can also increase.

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Disadvantages

The employees of Waitrose would be very tired from all the hard constant work that they would have put into achieving the increased profit levels. The staff may become restless and over worked. This would not be efficient as staff would not be giving their full commitment later on due to all the stress and full on work. Staff turnover also has a chance of increasing as the employees may be over worked and they may not enjoy working there. Errors may also increase due to boredom of the job role leading to inefficiency. Costs would also ...

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