Management 14th Edition by Leslie Rue,Lloyd Byars ,Nabil Ibrahim

Exercise 6

Granddad's Company
J.R.V. Company, which manufactures industrial tools, was founded in 1945 by James R. Vail, Sr. Currently, James R. Vail, Jr., is the president of the company; his son Richard is executive vice president. James Jr. has run the company for the past 30 years in a fashion very similar to that of his father.
When the company was founded, James Sr. had been a big supporter of scientific management. He had organized the work very scientifically with the use of time and motion studies to determine the most efficient method of performing each job. As a result, most jobs at J.R.V. were highly specialized and utilized a high degree of division of labor. In addition, there was always a heavy emphasis on putting people in jobs that were best suited for them and then providing adequate training. Most employees are paid on a piece-rate incentive system, with the standards set by time and motion studies. James Jr. has largely continued to emphasize scientific management since he took over almost 25 years ago. All employees now receive two weeks' paid vacation and company health insurance. Also, employees are generally paid an average wage for their industry. The present J.R.V. building was constructed in 1979, but it has had several minor improvements, such as the addition of improved lighting and an employees' lunchroom.
James Jr. is planning to retire in a few years. Recently, he and Richard, his planned successor, have disagreed over the management of the company. Richard's main argument is that times have changed and time and motion studies, specialization, high division of labor, and other company practices are obsolete. James Jr. counters that J.R.V. has been successful under its present management philosophy for many years, and change would be "foolish."
Are the principles of scientific management applicable in today's organization? Explain your answer.