Scientific Management in Ford Motor Company

A gentleman by the name of Fredrick Taylor worked in the steel industry early in his career when he observed coworkers purposely operating well below their capacity so that they can get out of work. Fredrick Taylor came up with a theory called soldiering which describes his
coworkers? state of mind and their work ethic (NetMBA Buisness Knowledge Center, 2002). The common belief in the steel mill was that if they became more productive, fewer of them would be needed and their jobs would be eliminated. Workers in the steel mill got paid the same
whether they produce the minimum amount of work or produced outstanding results (NetMBA Buisness Knowledge Center, 2002). Fredrick Taylor was motivated and determined to make changes in the way work was completed. Taylor began studying and conducting experiments to
determine the best level of performance for certain jobs, and what was necessary to achieve optimal results (NetMBA Buisness Knowledge Center, 2002). In 1911, Fredrick Taylor published his theories, The Principles of Scientific Management, in which he described how the application of the scientific method to the management of workers could greatly improve productivity (NetMBA Buisness Knowledge Center, 2002). Prior to scientific management, work was performed by skilled craftsman who had learned their
jobs in lengthy apprenticeships (NetMBA Buisness Knowledge Center, 2002). They made their
own decisions about how the job was to be performed on a daily basis. Taylor?s theory of
scientific management took away much of this autonomy and converted skilled crafts into a
series of simplified jobs that could be performed by unskilled workers who could easily be
trained for the tasks (NetMBA Buisness Knowledge Center, 2002).
Fredrick Taylor, defines Scientific Management as the systematic study of
relationships between workers and their job duties for the purpose of redesigning the work
process to increase efficiency (Jones, G. & George, J., p.43). Fredrick Taylor developed the
following four principles to increase the efficiency in the workplace:
? Principle 1: states that a company should analyze the way workers perform their job

duties and gather all the information that the employees provide to improve the work

environment. The company should develop those ideas and experiment with ways of

improving their job structure. .

? Principle 2: states that a company should develop written rules, also known as standard

operating procedures for its employees.

? Principle 3: states that companies should carefully select its employees who are capable

of doing the job and train them to follow the standard operating procedures of the

company.

? Principle 4: states that there is a certain level of expectation or performance that the

company expects of their staff. The company must properly pay its employees for the

quality of work that they do (Jones, G. & George, J., p. 43).

Henry Ford, the founder of Ford Motor Company studied Frederick Taylor?s work and
applied his principles of scientific management into his company (NetMBA Buisness
Knowledge Center, 2002). Ford brought in Frederick Taylor, the creator of "scientific
management," to do time and motion studies to determine the exact speed at which the work
should proceed and the exact motions workers should use to accomplish their tasks (The Great
Idea Finder, 2007). Ford put these principles into play and developed the first automobile
assembly line. As a result, Ford Motor Company became the leading auto manufacturer in the
country.
Early Years in Ford Motor Company
Frederick Taylor?s First Principle
In 1903 with $28,000, eleven men, and Ford as Vice President and Chief Engineer, Ford
Motor Company was incorporated. They produced only three cars a day and had up to three men
working on each (Allen, 2010). In the early 1900?s, Ford Motor Company was just one of 15
car manufacturers in Michigan and there were a total of 88 total car manufactures in the United
States at the time (The Great Idea Finder, 2007). Beginning in 1903, the company began using
the first 19 letters of the alphabet to name new cars. The earliest record of a shipment of a Model
A was on July 20, 1903, approximately one month after incorporation, was to a Detroit physician
(The Great Idea Finder, 2007). . Henry Ford's insistence that the company's future lay in the
production of affordable cars for a mass market caused increasing friction between him and the
other investors. As investors left the company who did not agree with Ford?s vision; Ford
acquired enough stock to increase his ownership