Henry Gantt Theories - Essay Example

Henry Gantt Henry Laurence Gantt is considered as one of the pioneers of Scientific Management. Given his field of expertise, he has made significant contributions in the development of notable organizational behavior theories and management tools that are still widely applied hitherto. This paper discusses Gantt's primary interest and his findings relative to the analysis of management concepts particularly in the areas of human relations and efficiency management. Biographical Overview Gantt was born in 1861 in Calvert County, Maryland. His parents were well-to-do farmers, however, his childhood was steeped with some level of deprivation since the onset of the Civil War adversely affected his family's wealth. ("Wikipedia") Upon graduating from the John Hopkins College, Gantt worked as a schoolteacher and draughtsman. He then pursued mechanical engineering and was employed by Midvale Steel and Bethlehem Steel in 1887. In these companies, he worked as a management consultant in collaboration with Frederick W. Taylor, known as the father of Scientific Management. ("Wikipedia") Management Theories and Tools Gantt became influential during the early 1900s when his proposed management theories and tools where broadly recognized in the world of business. As one of the pioneers of the Scientific Management movement, Gantt believes that management problems should be studied according to scientific methods. This entails the elimination of guesswork, setting a proper task for each man and allocating apt rewards for the achievement of assigned tasks. (Gaus) His most prominent legacy to the management discipline is the Gantt chart, an important tool in project management. Aside from this, Gantt also focused on developing motivational schemes, reward systems, methods of measuring efficiency as well as the importance of leadership qualities and management skills in building effective industrial organizations. ("Gurus") Gantt's contributions are discussed in detail as follows: Motivational Schemes and Reward Systems Gantt is recognized as a forerunner of the Human Relations School of Management. He "humanized" the prevailing salary scheme during those times, which was based on Taylor's piece-rate system, by developing a pay incentive scheme comprising of a guaranteed minimum wage plus bonus system ("Gurus"). With Gantt's proposed wage program, bonuses are provided for workers who accomplished their jobs in less time than the benchmark set (Higgins). This served as the motivating factor for workers to strive to become more productive in completing assigned tasks. He advocated this type of incentive scheme because he deemed that this would result in the congruency of interests of both employers and employees. He believed that organizational efficiency could be substantially enhanced by further improving the productivity of workers in the same pace as that of production technology. (Knoedler) In terms of employee training, Gantt disagreed with Taylor's vision that the purpose of training was primarily to assist employees in learning and perfecting rudimentary tasks. During his stint as management consultant, he permitted machinists to experiment with new methods until they were able to discover innovative means of improving their productivity and earning bonus based on the quality of their performance. (Knoedler) Given these findings, Gantt had indeed refined and expanded the human resource management theories asserted by Taylor (Henderson). Furthermore, he believed that all corporate undertakings should be in line with human nature. Gantt posited, "We cannot drive people; we must direct their development." ("Professional Development in Private Sector") Gantt's influence on wage incentive and training schemes is still remarkable until now. Nowadays, companies tend to relate their bonuses and other benefits on employee performance which in return is based on the meeting of specific objectives or targets set for each employee. Moreover, companies provide relevant trainings and seminars for employees to facilitate the enhancement of their overall productivity and career development. Measuring Productivity and Efficiency Central to Gantt's proposed incentive scheme are the concepts of productivity and efficiency, i.e. the accomplishment of a particular work load at a specified time (Higgins). Gantt suggested that any measure of technical efficiency should be related to achieving the maximum production rather than low direct labor cost (Knoedler). Aside from this, he also argued that measuring efficiency should take into account idle factors of production since this was a form of waste which entailed cost. According to Gantt, waste brought about by misdirected energy or implementation of inappropriate policies should be charged directly to management as loss and should not form part of the computation of actual unit cost. This means that some of the factor idleness would be attributable to managers. In this regard, such should be considered in assessing managerial performance and managers should strive to eliminate the causes of idleness. (Knoedler) Gantt's views on efficiency and idleness are still applied by employers through the recognition of the fact that idleness of capital, labor or machinery entails opportunity cost. As such managers and industrial engineers attempt to address the causes of idleness and ensure that all factors of production are efficiently utilized. Focus on Service According to Gantt, "business system has its foundation in service, and, as far as the community is concerned, has no reason for existence except the service it can render." (Knoedler). With this, Gantt urged businesses to focus on the provision of services because this is their primary purpose. As such making profits should only be a secondary objective. Gantt Chart The Gantt chart, a fundamental project management tool, is primarily used for scheduling multiple overlapping tasks over the project duration ("Management History"). This tool is said to be initially intended for the vision-impaired, however, it gone beyond this purpose and is now utilized for keeping track of project deadlines ("The Scientific Management Era"). The Gantt chart illustrates the relationship between planned and completed tasks (usually on the y-axis) and elapsed time or period allocated for each task (usually on the x-axis). (Higgins) In view of its practical use, this planning and control technique is still commonly utilized in project management. In fact, making a Gantt chart is featured in the Microsoft Project Software. ("The Scientific Management Era") Conclusion Hitherto, we can easily observe how Gantt's theories, specifically in terms of human relations, laid the foundations for today's business practices. For instance, his views with regard to wage incentive scheme, wherein workers are provided with minimum wage and bonus, are widely applied. As workers are paid their base salary, they are also granted performance-based bonuses. Furthermore, he advocated the training of employees to encourage them to be more innovative in coming up with their own work method would bode well with their skill and productivity level. He also recognizes the roles of managers in improving organizational efficiency. Through the implementation of sound company policies, the management is enabled to address the idleness of capital, labor and machinery and minimize wastage. In addition, he was an advocate for companies' social responsibility such that they should initially consider as to how they can make the most out of the community's life instead of focusing solely on profits. This concept has been increasingly recognized by companies as they attempt to balance their responsibility to the community with their pursuit for profit. Guidelines pertaining to social responsibility have been instituted both by the government and companies as well as part of their ethical standards. Gantt proffered his myriad ideas with regard to motivational schemes and measuring costs and efficiency in order to bring about resolution to the classic struggle between workers pushing for higher wages and employers targeting higher profits (Knoedler). Furthermore, he endeavored to promote goal congruency between employers, employee and the community as a whole. With this, we become aware that Gantt's contribution to the world of business goes beyond the renowned Gantt chart. He is one of the foremost pillars of management in view of his substantial contributions to the field of organizational behavior. Works Cited Gaus, J.M. "A theory of organization in public administration." Frontiers of Public Administration. New York: Russel & Russel, 1967. Gurus 18 October 2005 Henderson, G. Human Relations Issues in Management. Westport, CT: Quorum Books, 1996. Higgins, J.M. The Management Challenge: An Introduction to Management. New York: Mcmillan, , 1991. Knoedler, J.T. "Veblen and Technical Efficiency" Journal of Economic Issues 31(4), 1997. Management History 18 October 2005 Professional Development in the Private Sector 18 October 2005 The Scientific Management Era 18 October 2005 Wikipedia. 18 October 2005 Read More