Is “Scientific Management” Still Relevant in a Predominantly Service Economy Essay Example

Is â€Å"Scientific Management† Still Relevant in a Predominantly Service Economy Essay Is â€Å"Scientific management† still relevant in a predominantly service economy? Discuss Service economy means increase the importance for a service sector in industrialized economies. In order to develop this economy in better condition is focusing on the management between humans to productions or humans. Taylors scientific management theory was established on purpose of achieving a maximal labour productivity and the high efficiency by introducing scientific and standard management method into work process.It was one of the oldest attempts to apply science to the engineering of processes and to management. This essay will argue that scientific management is still relevant in a predominantly service economy. The reasons for this statement contains that the manufactories could improve efficiency, the reasonable award system with the scientific management and through the interest of consumers to influence the decisions of business and states. Firstly, Taylors theory of scien tific management has built an efficiency mode for the managers in the early 20th century throughout American and Europe.Freeman believed that the theory could be used effectively for works with knowledge as well as physical work by introducing a science for each movement in the working process (Freeman, 1996). With the development of the worlds economy, service economy is becoming predominant nowadays. For example, it is predicted that the service companies account for larger proportion in the current list of Fortune 500 companies than manufactures in this day and age. Therefore, service companies also need scientific method for management. Task idea’ of Taylor’s argument could fit into the economy in the recent days. All the work is carefully planned by the management beforehand including written instructions, task details, time limits as well as tools to be used. In terms of task idea’, Freeman argued that a modern interpretation like planned out becomes plann ing, while complete written instructions are replaced by the work order (Freeman, 1996). According to Freeman, scientific management has revised principle to cover the lack of effective only in heavy physical work place such as heavy lifting and shovelling coal and ash.For instance, in the concept of management control, it means using a minimum waste of human and material energies to bring a maximum of human welfare and contentment (Freeman, 1996). From this perspective, we can refer that scientific management is still relevant to todays service economy but it could be used in a new interpretation. Secondly, with regards to measurement of employees performance, Taylor’s theory is relevant for reasonable award system. It was presented in the call center case that the measurement of employee performance by Taylorist is both quantitative and qualitative (Bain et al. 002). The quantitative factors contains how many calls answered in a day and how long it takes while qualitative f actors refer to the soft elements such as knowledge and relevant skills. The job in a call center carries multi-tasks, services and functions; therefore it requires high levels of skill, knowledge and experience. Taylors theory is likely playing its role in workers daily movements and continuing efforts to require target-setting (Bain et al. 2002).Call center is a typical service company in which all the staff are required not only quantitative output but also qualitative abilities such as communication skills and problem solving skills. It leads to more competition between workers in order to get the benefit from managers. Specifically, also in service economy, employers pay more attention on the customers that whether the customers get good service from their employees or not. The reasonable award system from scientific management makes employees do their jobs more carefully and consumers get â€Å"warm† from employees’ service.So the theory still survived in managem ent system. Furthermore,scientific management rises the capacity of consumer interest to impact the decision of business and state. Taylor threw himself into the effect of National Consumers League’s (NCL) to control the activity which could make managers more enthusiastic to their workers. In this way, the labor will get satisfaction on their work (Mclean and Tyson, 2006). For example, because NCL that a case passed a law which set a maximum working hour for females in 1908.Although it was a little step in the whole industries, it caused a revolution for the management which gives employees more freedom about their private time. On the other hand, the society could share benefit which in low price of recourse (Mclean and Tyson, 2006). In service economy, the recourse may be some invisible resource, like human recourse and business model. According to both concepts, scientific management is used positively in nowadays. Nonetheless, scientific management theory has its limits in service economy in terms of employees self motivation.Under scientific management workers had quite few opportunities for further thinking, experimenting or suggestion making. Caldari (2007) emphasis a harmony between managers and workers to produce a high income and good margin while Taylorist emphasis on a precised separation between managers and labour (Caldari, 2007). Therefore the theory need to be improved when apply to modern management. In conclusion, management theories play an important role in enterprises management, which teaches managers how to be a better boss, and how to motivate employees to be more professional person.Taylors scientific management theory had been wildly used in manufacturing entities through America and Europe in the last century because it helped managers effectively make use of sources and improve working efficiency. In addition, it may help managers organize and concordance the resource and labours perfectly. This essay show that Taylors scien tific management theory is still in predominantly service economy by providing reasons. However, it needs to be improved and adapted into modern management system. The service economy injects more critical management to face different business environment.Scientific management would be expansion on psychology and activities of human. Reference Bain,P. , Watson, A. , Mulvey, G. , Taylor, P. ; Gall, G 2002, ‘Taylorism, targets and the pursuit of quantity and quality by call centre management’, New Technology, Work and Employment,Vol. 17,no. 3: 170-185,Viewed 19 March 2011, EBSCOhost Business Source Premier, UNSWLIBRARY SIRIUS. Caldari, K. 2007, ‘Alfred Marshalls critical analysis of scientific management’ Euro. J. History of Economic Thought, Vol. 14 no. 1 pp55-78 Viewed 19 March 2011. EBSCOhost Business Source Premier, UNSWLIBRARY SIRIUSFreeman, M. 1996, ‘Scientific management: 100 years old; poised for the next century’. SAM Advanced Management Journal, Vol. 61, no. 2, pp 35-41 Viewed 20 March 2011, EBSCOhost Business Source Premier, UNSWLIBRARY SIRIUS. Mclean, T Tyson, T 2006, ‘Standard Costs, Standard Costing and the Introduction of Scientific Management and New Technology into the Post-Second World War Sunderland Shipbuilding Industry’, Accounting, Business and Financial History, vol. 16, no. 3, viewed 25 March 2011, pp. 389-417, EBSCOhost Business Source Premier, UNSWLIBRARY SIRIUS.