Summary

Frederick Winslow Taylor's "Shop Management" argues that the best management is founded on maintaining high wages and a low labor cost. This is achieved by implementing systematic planning and functional management, departing from the traditional military type of organization. The book advocates for centralizing all planning and clerical work into a dedicated department, relieving foremen and gang bosses of these responsibilities. Their roles should be strictly executive, focusing on overseeing the execution of plans and providing direct instruction and leadership to workmen.

The author details how the military organization, where foremen are responsible for all aspects of shop running, is insufficient. He proposes a "functional type" of management, where each individual performs a limited number of functions. This division of labor within management aims to improve efficiency and standardize shop operations. The ultimate goal is to shift from a poor system to a better type of management by clearly outlining principles and steps for this transformation, with the dual aim of benefiting both employer and employee through optimized production and fair compensation.

Key concepts

  • High wages and low labor costThe foundational principle of effective management, aiming for increased productivity alongside competitive labor expenses.
  • Functional managementA system of organizing management where each person performs a limited number of specialized functions, replacing the military type of organization.
  • Planning or laying-out departmentA centralized unit responsible for all planning and clerical work, separating it from shop floor execution.
  • Military type of organizationThe traditional hierarchical structure where a single foreman is responsible for all aspects of shop management.

From the book

Unfortunately for the character of the workman, soldiering involves a
Soldiering becomes such a fixed habit that men will frequently take
As a rule, the fewer the men employed by the contactor and the smaller

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