In: Economics
1/what two benefits does managing the firm scientifically give the manager ? how it will change the output process ?
Reduction in the cost of production:-With the help of
mechanization and the new technologies used in the manufacture of
the products, it improves efficiency. Because of the large-scale
production, production costs per unit are reduced
considerably.
Advantages of the Labor Division:-The specialization theory
implemented under scientific management guarantees the advantages
obtained from the division of labor. The work is simplified and is
done in the most economical and efficient manner possible.
Avoiding Labor and Management Disputes: Scientific management is
instrumental in the establishment of healthy collaboration between
management and labour, thereby cultivating productive and
harmonious relationships between the two. This leads to decreased
labor conflicts and to labor peace.
Higher Wages:-Scientific management strives to improve efficiency
and to raise wages for the workers. Taylor has suggested to
productive employees a competitive compensation package for
increased salaries. The higher wages are beneficial in rising the
employees' living standards.
One of the scientific management's core principles is that it
undertakes the scientific collection, placement and preparation of
industrial workers. In this way the right type of man is chosen for
the right type of job.
Scientific management is providing the workers with a proper work
atmosphere. Proper working hours are maintained for staff,
accompanied by rest breaks, adequate lighting , ventilation,
ensuring proper health, providing many other amenities etc.