THE FINEST TYPE OF ORDINARY MANAGEMENT

Before starting to illustrate the principles of scientific management, or "task management" as it is briefly called, it seems desirable to outline what the writer believes will be recognized as the best type of management which is in common use. This is done so that the great difference between the best of the ordinary management and scientific management may be fully appreciated.

In an industrial establishment which employs say from 500 to 1000 workmen, there will be found in many cases at least twenty to thirty different trades. The workmen in each of these trades have had their knowledge handed down to them by word of mouth, through the many years in which their trade has been developed from the primitive condition, in which our far-distant ancestors each one practiced the rudiments of many different trades, to the present state of great and growing subdivision of labor, in which each man specializes upon some comparatively small class of work.

The ingenuity of each generation has developed quicker and better methods for doing every element of the work in every trade. Thus the methods which are now in use may in a broad sense be said to be an evolution representing the survival of the fittest and best of the ideas which have been developed since the starting of each trade. However, while this is true in a broad sense, only those who are intimately acquainted with each of these trades are fully aware of the fact that in hardly any element of any trade is there uniformity in the methods which are used. Instead of having only one way which is generally accepted as a standard, there are in daily use, say, fifty or a hundred different ways of doing each element of the work. And a little thought will make it clear that this must inevitably be the case, since our methods have been handed down from man to man by word of mouth, or have, in most cases, been almost unconsciously learned through personal observation. Practically in no instances have they been codified or systematically analyzed or described. The ingenuity and experience of each generation—of each decade, even, have without doubt handed over better methods to the next. This mass of rule-of-thumb or traditional knowledge may be said to be the principal asset or possession of every tradesman. Now, in the best of the ordinary types of management, the managers recognize frankly the fact that the 500 or 1000 workmen, included in the twenty to thirty trades, who are under them, possess this mass of traditional knowledge, a large part of which is not in the possession of the management. The management, of course, includes foremen and superintendents, who themselves have been in most cases first-class workers at their trades. And yet these foremen and superintendents know, better than any one else, that their own knowledge and personal skill falls far short of the combined knowledge and dexterity of all the workmen under them. The most experienced managers therefore frankly place before their workmen the problem of doing the work in the best and most economical way. They recognize the task before them as that of inducing each workman to use his best endeavors, his hardest work, all his traditional knowledge, his skill, his ingenuity, and his good-will—in a word, his "initiative," so as to yield the largest possible return to his employer. The problem before the management, then, may be briefly said to be that of obtaining the best initiative of every workman. And the writer uses the word "initiative" in its broadest sense, to cover all of the good qualities sought for from the men.

On the other hand, no intelligent manager would hope to obtain in any full measure the initiative of his workmen unless he felt that he was giving them something more than they usually receive from their employers. Only those among the readers of this paper who have been managers or who have worked themselves at a trade realize how far the average workman falls short of giving his employer his full initiative. It is well within the mark to state that in nineteen out of twenty industrial establishments the workmen believe it to be directly against their interests to give their employers their best initiative, and that instead of working hard to do the largest possible amount of work and the best quality of work for their employers, they deliberately work as slowly as they dare while they at the same time try to make those over them believe that they are working fast.*

[*Footnote: The writer has tried to make the reason for this unfortunate state of things clear in a paper entitled "Shop Management," read before the American Society of Mechanical Engineers.]

The writer repeats, therefore, that in order to have any hope of obtaining the initiative of his workmen the manager must give some special incentive to his men beyond that which is given to the average of the trade. This incentive can be given in several different ways, as, for example, the hope of rapid promotion or advancement; higher wages, either in the form of generous piece-work prices or of a premium or bonus of some kind for good and rapid work; shorter hours of labor; better surroundings and working conditions than are ordinarily given, etc., and, above all, this special incentive should be accompanied by that personal consideration for, and friendly contact with, his workmen which comes only from a genuine and kindly interest in the welfare of those under him. It is only by giving a special inducement or "incentive" of this kind that the employer can hope even approximately to get the "initiative" of his workmen. Under the ordinary type of management the necessity for offering the workman a special inducement has come to be so generally recognized that a large proportion of those most interested in the subject look upon the adoption of some one of the modern schemes for paying men (such as piece work, the premium plan, or the bonus plan, for instance) as practically the whole system of management. Under scientific management, however, the particular pay system which is adopted is merely one of the subordinate elements.

Broadly speaking, then, the best type of management in ordinary use may be defined as management in which the workmen give their best initiative and in return receive some special incentive from their employers. This type of management will be referred to as the management of "initiative and incentive" in contradistinction to scientific management, or task management, with which it is to be compared.

The writer hopes that the management of "initiative and incentive" will be recognized as representing the best type in ordinary use, and in fact he believes that it will be hard to persuade the average manager that anything better exists in the whole field than this type. The task which the writer has before him, then, is the difficult one of trying to prove in a thoroughly convincing way that there is another type of management which is not only better but overwhelmingly better than the management of "initiative and incentive."

The universal prejudice in favor of the management of "initiative and incentive" is so strong that no mere theoretical advantages which can be pointed out will be likely to convince the average manager that any other system is better. It will be upon a series of practical illustrations of the actual working of the two systems that the writer will depend in his efforts to prove that scientific management is so greatly superior to other types. Certain elementary principles, a certain philosophy, will however be recognized as the essence of that which is being illustrated in all of the practical examples which will be given. And the broad principles in which the scientific system differs from the ordinary or "rule-of-thumb" system are so simple in their nature that it seems desirable to describe them before starting with the illustrations.