The Psychology of Management by L. M. Gilbreth, Ph.D.
The Psychology of Management: The Function of the Mind in Determining, Teaching and Installing Methods of Least Waste was written by L. M. Gilbreth, Ph.D. (Lillian Moller Gilbreth). Published in March 1914, this book aims to introduce the reader to the psychological principles underlying efficient management, especially the scientifically derived methods of least waste. The central theme is that management success hinges on understanding the worker’s mind, thereby ensuring greater efficiency, cooperation, and overall welfare.
Who May Benefit from the Book
- Managers and Executives (especially those overseeing large organizations).
- Students of Philosophy and Education (to understand practical psychology).
- Engineering and Scientific Students (to learn practical application of laws).
- Industrial Workers (to optimize personal efficiency and working conditions).
- Vocational Guidance Directors and Teachers (for understanding training needs).
Top 3 Key Insights
- Successful management places primary emphasis on the man, not the work, maximizing efficiency by modifying materials and methods to suit the worker.
- Scientific Management (SM) is founded on laws derived from accurate measurement, particularly Time Study, transforming management from an art to a science.
- SM fosters individuality by analyzing individual capabilities and setting achievable tasks designed for the worker to continuously thrive.
4 More Lessons and Takeaways
- SM utilizes functionalization to separate planning from performing, ensuring specialized knowledge dictates methods and relieving workers of unnecessary mental burden.
- Standardization under SM applies universally to all elements—methods, tools, and surroundings—eliminating waste permanently and providing a foundation for invention.
- SM manages by teaching scientifically derived standard practices, insisting on forming right motions and habits first, which accelerates skill acquisition.
- SM integrates welfare and provides powerful, measurable incentives (positive, fixed, assured, prompt rewards) that cultivate contentment and industrial brotherhood.
The Book in 1 Sentence
This book argues that Scientific Management is the ultimate system because it applies psychology to utilize and develop every worker’s unique potential, ensuring least waste and mutual prosperity.
The Book Summary in 1 Minute
The Psychology of Management defines its subject as studying the interaction between the directing mind and the worker’s mind, arguing efficiency is best secured by emphasizing the person. It contrasts the indefinite Traditional Management with the predictable Scientific Management (SM), which is built on Frederick W. Taylor’s Time Study. SM’s structure rests on nine divisions, including Individuality, Functionalization, and Measurement. Through these divisions, SM scientifically selects and assigns workers to specialized functions (Functionalization) and measures their potential (Measurement). The system ensures work is standardized and taught using psychological principles, promoting correct habits. Finally, SM ensures incentives are prompt and assured, transforming worker fear into loyalty and developing the worker’s physical, mental, and moral welfare.
Chapter-wise Book Summary
Chapter I: Description and General Outline of the Psychology of Management
Definition and Scope: The Psychology of Management is defined as the effect of the directing mind upon the work directed, and the effect of the directed and undirected work upon the mind of the worker. Understanding psychology is vital for managers because successful management emphasizes the man, not the work, and efficiency is achieved by modifying equipment and methods to maximize the man’s potential.
Management Types: All management is divided into three types: (1) Traditional (or Initiative and Incentive Management), where authority lies theoretically with one man and teaching is often oral tradition; (2) Transitory, which is consciously moving toward Scientific Management; and (3) Scientific (or Ultimate/Measured Functional), which is a definite plan synthesized from scientific analysis and operates according to known laws. Scientific Management (SM) was made possible by Dr. Frederick W. Taylor’s discovery and application of Time Study, which allows for pre-performance measurement of output and necessary rest.
SM Divisions: The underlying ideas of Scientific Management are investigated through nine core divisions: Individuality, Functionalization, Measurement, Analysis and Synthesis, Standardization, Records and Programmes, Teaching, Incentives, and Welfare.
- Chapter Key Points:
- SM focuses on the worker’s mind for efficiency.
- Management types are Traditional, Transitory, and Scientific.
- SM rests on nine underlying divisions.
- Important Quote: “The emphasis in successful management lies on the man, not on the work “.
Chapter II: Individuality
Definition and Role: Individuality is the consideration of the individual as a unit with special characteristics, emphasizing both likenesses (as one of many) and differences (idiosyncrasies). Under Traditional Management, individuality was rarely recognized systematically; workers were seen as a crowd, and selection was often guesswork. In contrast, Scientific Management recognizes the individual as the unit to be measured, and functionalization is based on utilizing each person’s specific powers.
SM Implementation: Individuality is considered during worker selection, task assignment, instruction cards, and incentives. Outputs are separated and recorded individually, even in gang work, to allow for individual compensation and foster a healthy competitive spirit (like an athletic contest). The task assigned is always a percentage of the standard man’s task that the particular individual can achieve without injury and continuously thrive. Scientific Management ultimately aims to select workers based on thorough psychological and physiological study, ideally supplemented by vocational guidance before they enter the industry.
- Chapter Key Points:
- Individuality is the scientific unit of study.
- SM uses individual records and tasks for motivation.
- Scientific selection and training are crucial for optimal placement.
- Important Quote: “The term ‘Initiative and Incentive’ is used by Dr. Taylor, and is fully described by him… He points out in his definition of the terms the likenesses between the old and new forms”.
Chapter III: Functionalization
Definition: Functionalization is the assignment of work according to capacity or faculty. Under Traditional Management, the foreman attempted to fulfill numerous, often conflicting, duties, leading to inefficiency. Scientific Management introduces functionalized foremanship, dividing the foreman’s work into specialized roles (e.g., Gang Boss, Speed Boss, Repair Boss, Inspector, Disciplinarian).
Key Principle: A central application of functionalization is separating the planning from the performing. The Planning Department handles determining the method, sequence, time, and men required. The workers cooperate by performing the standard tasks, concentrating on execution rather than planning. This specialization applies to workers as well, relieving them of tasks they are not best suited for (like planning). This systematic division ensures increased output and maintenance of quality, leading to lower costs, higher wages, and greater profit.
- Chapter Key Points:
- Functionalization assigns work by capacity.
- SM separates planning (done by specialists) from performing.
- Specialization ensures efficiency, quality, and individual development.
- Important Quote: “Functional Management’ consists… in so directing the work of management that each man from the assistant superintendent down shall have as few functions as possible to perform”.
Chapter IV: Measurement
Importance: Measurement is foundational, providing the accurate knowledge upon which SM rests. Measurement determines the Task, defined as the largest amount of work a “first-class man” can do and continuously thrive, calculated by time spent working, resting for fatigue, and overcoming delays.
Methods: The primary methods are Motion Study (dividing work into fundamental subdivisions to determine methods of least waste) and Time Study (timing elements of the best method to synthesize a standard time). Measurement must be impartial and transparent; no worker should ever be observed or timed surreptitiously. Measurement is crucial for selecting men, methods, equipment, and tools. Accurate measurement allows managers the ability to predict, which is necessary for establishing schedules and programmes.
- Chapter Key Points:
- Measurement (via Time Study) is SM’s basis for science.
- Task setting relies on scientifically measured work and rest time.
- Observation must be open and cooperative to maintain trust.
- Important Quote: “The average workman does not know either his true efficiency or his true capacity”.
Chapter V: Analysis and Synthesis
Process: Analysis is the resolution of work into its constituent elements. Under SM, analysis continues to the minutest subdivisions possible, as the value of the knowledge gained is proportional to the fineness of the division. Synthesis is the combination of necessary and efficient elements, eliminating useless actions and arranging the remaining ones for the most economic result.
The Task: The synthesis results in the method that forms the basis for the Task. This scientific task is achievable because it is built from observed and timed operations, plus a definite allowance for overcoming fatigue. Analysis and synthesis, while sometimes resulting in inventions (like new tools), are fundamentally about conserving valuable elements and discovering governing laws (like the law of percentage of rest for overcoming fatigue). The result of this process is standardized work, enabling predictable quantity and quality of output.
- Chapter Key Points:
- Analysis divides work into fundamental elements.
- Synthesis constructs the least wasteful method and the task.
- The task is achievable and compensates for fatigue.
- Important Quote: “The most important part of the synthesist’s work is the actual elimination of elements which are useless, and the combination of the remaining elements in such a way… that a far better method than the one analyzed will result”.
Chapter VI: Standardization
Principle: Standardization is establishing a unit of reference or model based on scientific study, which remains fixed until a more perfect standard displaces it. The purpose is the permanent elimination of waste. Since standards are derived scientifically, conforming to them eliminates the wasteful “decision of choice” by the worker.
Application: Standardization applies to all elements, including nomenclature (Mnemonic Symbols) and surroundings. The central document is the Instruction Card, the standardized method of conveying instructions regarding what to do, how to do it, and the time allowed. Standard clothing is also needed to ensure comfort and efficiency, resembling the specialized outfits used in sports. The insistence upon standardization does not make workers into machines; rather, it frees their initiative for productive invention and development.
- Chapter Key Points:
- Standards eliminate waste and are continuously refined.
- The Instruction Card conveys the detailed, timed method.
- Standardization applies to tools, methods, and environment.
- Important Quote: “The entire organization from the highest to the lowest must conform to these standards. It is out of the question to permit the deviations resulting from individual initiative”.
Chapter VII: Records and Programmes
Records: A record is a written account or register preserving memory. Under SM, Records are focused on efficiency and performance time, acting as a byproduct of the system rather than costly bookkeeping records. Records must reduce costs and simplify work. They include Records of Initiative (Suggestion Card) and Records of Achievement, often handled on the “Exception Principle” (focusing only on exceptionally good or bad results). Records provide the worker recognition and self-knowledge of their performance, influencing their mental development.
Programmes: A Programme is a plan for doing work, specifically laying out the path and sequence of events (routing). When programmes are based on scientifically derived, standardized records, the calendar becomes a true prophecy of what will take place. This ability to predict assures the worker of future employment and steady conditions, eliminating anxiety and fostering concentration.
- Chapter Key Points:
- Records track performance time, not just cost.
- Records allow managers to spot exceptions quickly.
- Standardized records enable accurate programmes (true prophecy).
- Important Quote: “No more fiendish punishment could be devised… than that one should be turned loose in society and remain absolutely unnoticed by all the members thereof”.
Chapter VIII: Teaching
Central Function: Teaching is the most important element of Scientific Management, converting knowledge into results, and is the key to minimizing waste and fostering industrial peace. Teaching must cover the right methods and the right habits for performing them.
Mechanism: SM utilizes Functional Foremen who specialize as teachers and use written documents: Instruction Cards (direct instructions on what and how) and Systems (explanations of the why). Teaching adheres to psychological laws: demanding concentrated attention, training senses, promoting valuable associations, and developing the will. Crucially, SM insists on teaching right motions first, then speed, with quality as the resulting product, thus quickly instilling permanent good habits. SM utilizes natural instincts (like curiosity, imitation, and emulation) as positive drivers for learning and skill development.
- Chapter Key Points:
- Teaching is vital for increasing industrial efficiency and peace.
- Functional foremen provide instruction supplementing written standards.
- The core method is teaching right motions first to form good habits.
- Important Quote: “To refuse to start in where others have left off, is really as wasteful as it would be to refuse to use mathematical formulas because they have been worked out by others”.
Chapter IX: Incentives
Nature of Incentives: Incentives move the mind or incite action, classified as direct (natural instincts like pride or emulation) or indirect (rewards and punishments). Under Traditional Management, rewards were unstandardized, often remote, and resembled a prize won by only one person.
Scientific Management Incentives: SM rewards are designed to be positive, predetermined, personal, fixed, assured, and prompt, ensuring continuous interest and effort. Promotion is assured and gradual. Pay includes guaranteed wages plus a bonus for achievement. SM uses task-based pay systems (like Differential Rate Piece or Task Work with Bonus) which are founded on time study and scientific knowledge. Punishments, such as loss of bonus or fines, are used constructively; fines never accrue to the management, instead benefiting the workers’ funds. This structure makes incentives strong by removing anxiety and worry while directing competition (pugnacity) against the work rather than fellow workers.
- Chapter Key Points:
- SM incentives are positive, fixed, assured, and prompt.
- Task-based pay systems are founded on scientific time study.
- Rewards and punishments foster loyalty and cooperation.
- Important Quote: “The man who is punished in every case will be led to some sort of action. Whether this really results in an increase of output or not simply determines whether the punishment is a scientifically prescribed punishment or not”.
Chapter X: Welfare
Welfare Defined: Welfare encompasses the worker’s well-being—physical, mental, and moral development. Traditional Management typically failed to ensure positive development in these areas, lacking regularity, standards, and appreciation for the worker, often leading to a lack of the “square deal”.
SM Welfare: Scientific Management ensures welfare by making it an integrated, non-charitable part of the system.
- Physical Improvement is achieved through scientifically apportioned work and rest periods, standardized motions, and proper clothing, leading to regularity, good habits, and increased strength.
- Mental Development results from habits of attention and the scientifically derived “method of attack,” leading to wider interest and increased mental capabilities.
- Moral Development is fostered through individual recognition, appreciation of standing (via records), self-control, and the assurance of the “square deal”.
The result is increased capacity for both work and life, fostering contentment and brotherhood among workers and managers.
- Chapter Key Points:
- Traditional management neglected systemic worker welfare.
- SM ensures physical, mental, and moral development through its structure.
- Welfare is an integrated part of SM, not charity.
- Important Quote: “The man or woman who ignores fashion does not get much pleasure from associating with those that follow it, and the new member consequently tries to fall in with the sentiment of the community”.
Notable Quotes from the Book
- “The emphasis in successful management lies on the man , not on the work “.
- “Scientific Management is that management which is a science, i.e., which operates according to known, formulated, and applied laws”.
- “The fundamental idea of the tradition, that it is oral , is the essence of the difference of the old type of management from science, or even system, which must be written”.
- “Psychology is the science of the self as conscious”.
- “A man’s social use is the recognition which he gets from his mates”.
- “The standard once written down, there can be no slipping back into the old methods based upon opinions of the facts”.
- “An acquired habit, from the psychological point of view, is nothing but a new pathway of discharge formed in the brain…”.
- “The greatest single cause of making men capable under the old plan was the foreman’s unconscious ability to make his men believe, before they started a task, that they could achieve it”.
- “The general policy of the past has been to drive; but the era of force must give way to that of knowledge, and the policy of the future will be to teach and to lead…”.
- “The knowledge of scientific time study would prepare the workers of any trade… with data for accurate decisions for legislation and other steps for their best interests”.
About the Author
The author is Lillian Moller Gilbreth, Ph.D. (L. M. Gilbreth). Her work, The Psychology of Management, originally set up and electrotyped in 1914, examines the psychological elements that determine, teach, and install methods of least waste. The book is dedicated to her father and mother. As an expert in this new field of investigation, Dr. Gilbreth drew upon extensive literature and established practices of authorities like Dr. Frederick W. Taylor and Henry L. Gantt. Her work highlights the critical need for psychological study in applying management principles effectively.
(Note: The provided sources do not contain additional biographical details or titles of other books by the author beyond her name and academic designation.)
How to Get the Most from the Books
Use this book to gain interest and adopt a method of attack toward learning management’s orderly facts. Follow the references to pursue deeper, detailed instruction.
Brief Conclusion
Scientific Management, by applying psychological principles through its standardized systems, assures progress by simultaneously increasing output and wages, lowering costs, and eliminating waste. The ultimate result of this scientific and psychologically sound approach is the complete development and well-being of the worker, fostering cooperation and leading toward the elimination of industrial warfare.