Thursday, December 18, 2014

F W Taylor Scientific Management Theory Significance in present day Globalisation

Ques.5 In the present age of Globalization, the Scientific Management theory of Taylor is still relevant. Elaborate the statement.

Ans. The relevancy of Scientific Management Theory was criticized by many scholars such as Mayo, Follett, Peter Drucker, Chris Argyris and it was also opposed by workers and trade unions. But much of this opposition has been based on conditions and work environment prevalent in developed countries of the World.

Scientific Mng. Theory which was propounded more than 100 years ago still retains its prominence especially in context of today’s globalised world because –

(1). According to Taylor, the essence of SMT theory lies in mental revolution i.e. change in attitude and perception of both workers and management. In the highly competitive environment of globalization, foreign and domestic companies both are striving hard to sell their products to the same local market and for success in such competitive ambience - innovation, keenness and dedication is required from the part of both workers and management. This can only be brought in through mental revolution. For eg. 

(a) (Foreign Bank) HSBC Bank and SBI bank both striving hard to expand their customer base.

(b) Honda (Foreign Co.) and Maruti (Domestic Company) trying to sell their cars in the same Indian market.

(2) In Developed countries Telecom and expanded customer based companies outsource their work to consultancy companies of India, China, Philippines etc. Experts have opined that the reason of the above are strict labour laws of developed countries of North America and Europe. Where as laws and ways of operation of companies in India, China and other developing countries are more on the lines of Scientific Management Theory which gives a big weightage to financial incentives thereby transferring the work of developed countries to developing countries.  Hence still the SMT is influencing the work distribution pattern.

(3) Four principles of Taylor which are – 

(a) perform scientifically 
(b) select scientifically 
(c) dividing work on the basis of essence and knowledge 
(d) Harmonious relationship between workers and management

Adhering to the above principles is important as in increased globalization context, competition has increased and scientific selection and distribution of manpower has become a necessity.

(4) In the current globalization scenario economies of high potential areas like Asia and Africa are opening up and the present situation in these countries is similar to the situation that prevailed 50 years back in the US, the UK and other developed countries where now the Industrial Revolution is in the starting phase. So we can assume that the importance which SMT commanded in the US, Europe in the 1950’s in Asia and Africa it is commanding now. So obviously multinationals would like to invest in these new economies as they are more business friendly due to the presence of SMT.

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