“Scientific management… has for its very foundation the firm conviction that the true interests of the two are one and the same; that prosperity for the employer cannot exist through a long term of years unless it is accompanied by prosperity for the employe, and vice versa; and that it is possible to give the workman what he most wants high wages and the employer what he wants a low labor cost for his manufactures.”

— Frederick Winslow Taylor

Source: Principles of Scientific Management, 1911, p. 10; As cited in: Frank B. Gilbreth (1912). Primer of scientific management https://archive.org/stream/primerofscientif00gilbrich#page/1/mode/1up, p. 12.

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Frederick Winslow Taylor 22

American mechanical engineer and tennis player 1856–1915

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Frederick Winslow Taylor (1856–1915) American mechanical engineer and tennis player

Source: Principles of Scientific Management, 1911, p. 9; Lead paragraph ; Chapter 1: Fundamentals of Scientific Management.

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“Suppose a clothing manufacturer learns of a machine that will make men’s and women's overcoats for half as much labor as previously. He installs the machines and drops half his labor force.This looks at first glance like a clear loss of employment. But the machine itself required labor to make it; so here, as one offset, are jobs that would not otherwise have existed. The manufacturer, how ever, would have adopted the machine only if it had either made better suits for half as much labor, or had made the same kind of suits at a smaller cost. If we assume the latter, we cannot assume that the amount of labor to make the machines was as great in terms of pay rolls as the amount of labor that the clothing manufacturer hopes to save in the long run by adopting the machine; otherwise there would have been no economy, and he would not have adopted it.So there is still a net loss of employment to be accounted for. But we should at least keep in mind the real possibility that even the first effect of the introduction of labor-saving machinery may be to increase employment on net balance; because it is usually only in the long run that the clothing manufacturer expects to save money by adopting the machine: it may take several years for the machine to "pay for itself."After the machine has produced economies sufficient to offset its cost, the clothing manufacturer has more profits than before. (We shall assume that he merely sells his coats for the same price as his competitors, and makes no effort to undersell them.) At this point, it may seem, labor has suffered a net loss of employment, while it is only the manufacturer, the capitalist, who has gained. But it is precisely out of these extra profits that the subsequent social gains must come. The manufacturer must use these extra profits in at least one of three ways, and possibly he will use part of them in all three: (1) he will use the extra profits to expand his operations by buying more machines to make more coats; or (2) he will invest the extra profits in some other industry; or (3) he will spend the extra profits on increasing his own consumption. Whichever of these three courses he takes, he will increase employment.”

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“What I want to try to prove to you and make clear to you is that the principles of scientific management when properly applied, and when a sufficient amount of time has been given to make them really effective, must in all cases produce far large and better results, both for the employer and the employees, than can possibly be obtained under even this very rare type of management which I have been outlining, namely, the management of ‘initiative and incentive’, in which those on the management’s side deliberately give a very large incentive to their workmen, and in return the workmen respond by working to the very best of their ability at all times in the interest of their employers. I want to show you that scientific management is even far better than this rare type of management.”

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