What Conclusions Did Business Managers Draw from Scientific Management

question 222

Short Answer

What conclusions did business managers draw from scientific management?
Because salary is a hygiene factor, wages do not motivate workers to produce more.
The informal group was relatively unimportant.
Goal setting increased worker output.
Business firms had to provide for food, water, shelter, and sleep for their workers to increase output.
Paying workers a higher wage and redesigning the job into simple tasks would dramatically increase output.

---

Definitions:

Net Operating Income

An entity's income from operations, calculated by subtracting operating expenses from revenues generated from normal business operations, excluding non-operating income and expenses.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the business assets.

Sales

The total amount of revenue generated from goods or services sold by a company.

Variable Cost Per Unit

The cost associated with producing one additional unit of product, which varies with the level of production.