Question
Download Solution PDFComprehension
Read the following passage carefully, and answer the questions.
Scientific management is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science of engineering processes to management. Scientific Management is also known as Taylorism after its pioneer, Frederick Winslow Taylor.
Taylor began the theory's development in the the United states during the 1880 s and 1890 s within manufacturing industries, especially steel. Its peak of influence came in the 1910s. Although Taylor died in 1915, by the 1920s scientific management was still influential but had entered into competition and syncretism with opposing or complementary ideas.
The Midvale Steel Company, "one of America's great armor plate making plants," was the birthplace of scientific management. In 1877, Frederick W. Taylor started as a clerk in Midvale, but advanced to foreman in 1880 . As foreman, Taylor was constantly impressed by the failure of team members to produce more than about one-third of what he deemed a good day's work. Taylor determined to discover, by scientific methods, how long it should take men to perform each given piece of work; and it was in the fall of 1882 that he started to put the first features of scientific management into operation. Although scientific management as a distinct theory or school of thought was obsolete by the 1930s, most of its themes are still important parts of industrial engineering and management today.
Which one of the following periods is associated with the evolution of Scientific Management Concept?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is 1880 s and 1890 s
Key Points
- 1880s and 1890s marked the evolution of Scientific Management:
- The passage states that Frederick W. Taylor began developing the theory of Scientific Management during the 1880s and 1890s, particularly in steel manufacturing industries in the United States.
- This period marks the foundational phase of industrial engineering practices, a concept crucial for modern financial enterprises that rely on structured workflow, efficiency, and cost optimization.
- In financial enterprises, adopting similar systematic approaches aids in enhancing productivity, reducing redundancy, and increasing overall profitability—principles rooted in Taylor’s management theory.
Additional Information
- 20th Century:
- This is too broad and slightly misleading. While Scientific Management continued to influence practices in the early 20th century, its actual development began in the 1880s and 1890s.
- In finance, using correct historical context helps understand how evolving theories were applied to capital planning and labor management across industrial eras.
- 21st Century:
- This is incorrect. By the 21st century, Scientific Management as a standalone theory was long considered outdated, though its concepts are embedded in modern management practices.
- Financial systems today utilize more integrated technologies and agile methodologies, moving beyond the rigid structures of early Scientific Management.
- 1890s and 1900s:
- This range only partially overlaps with the correct timeline. The theory was already in development by the 1880s, and limiting its start to the 1890s overlooks important early contributions.
- Accurate timelines are vital in financial planning, particularly when assessing long-term trends or historical performance of managerial practices.