6.4.4
Taylor's Theory
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Taylor's Theory on Motivation
Taylor suggests that to motivate employees they should be paid based on the amount of output they have produced.

Taylor's approach
- Taylor called his approach piece-rate pay and found that if employees were paid more for being more productive, they would, in turn, become more motivated and engaged with their job as there was an opportunity for employees to increase the amount they earnt.
- For example, a factory may pay its employees £2 for every complete unit produced, or £1 for every item added to a product on an assembly line.

Advantages of Taylor's theory
- Taylor’s theory may improve productivity which means a business can reduce its costs by employing fewer employees.

Disadvantages of Taylor's theory
- Taylor’s theory means that employees may rush during the production process leading to mistakes and errors.
- Taylor’s theory means that employees may become bored with completing the same task over and over again.
1What is Business?
1.1Nature & Purpose of Business
1.2Different Business Forms
1.3Businesses Operate Within an External Environment
2Managers, Leadership & Decision Making
2.1Management, Leadership & Decision Making
2.2Management Decision Making
2.3Role & Importance of Stakeholders
3Marketing Management
3.1Setting Marketing Objectives
3.2Understanding Markets & Customers
3.3Segmentation, Targeting, Positioning
3.4Using the Marketing Mix
3.4.1Marketing Mix3.4.2Pricing Decisions & Price Skimming3.4.3Pricing Decisions & Price Penetration3.4.4Promotional Decisions3.4.5Promotional Decisions 23.4.6Promotional Decisions 33.4.7Distribution Decisions3.4.8Distribution Decisions 23.4.9Social Media & Influencers3.4.10Digital Marketing3.4.11Evaluating Digital Marketing3.4.12A-A* (AO3/4) - The Marketing Mix & Promotion3.4.13A-A* (AO3/4) - Pricing & Competition
4Operational Management
4.1Setting Operational Objectives
4.2Analysing Operational Performance
4.3Increasing Efficiency & Productivity
4.4Improving Quality
4.5Managing Inventory & Supply Chains
4.6Business & The External Environment
5Financial Management
5.1Setting Financial Objectives
5.2Analysing Financial Performance
5.3Sources of Finance
5.4Improving Cash Flow & Profits
6Human Resource Management
6.1Setting Human Resource Objectives
6.2Analysing Human Resource Performance
6.3Improving Org Design & Human Resource Flow
6.4Improving Motivation & Engagement
6.5Improving Employer-Employee Relations
7Strategic Position of a Business (A Level Only)
7.1Mission, Objectives, Strategy
7.2Financial Ratio Analysis
7.3Assessing Overall Performance
7.4Assessing Political & Legal Change
7.5Assessing Economic Change
7.6Assessing Social & Technological Change
7.7The Competitive Environment
7.8Investment Appraisal
8Choosing Strategic Direction (A Level Only)
8.1Markets to Compete & Products to Offer
8.2How to Compete
9Pursuing Strategies (A Level Only)
9.1Assessing a Change in Scale
9.2Assessing Innovation
9.3Globalisation & Internationalisation
9.4Greater Use of Digital Technology
10Managing Strategic Change
10.1Managing Change
10.2Managing Organisational Culture
10.3Managing Strategic Implementation
10.4Problems with Strategy & Why They Fail
Jump to other topics
1What is Business?
1.1Nature & Purpose of Business
1.2Different Business Forms
1.3Businesses Operate Within an External Environment
2Managers, Leadership & Decision Making
2.1Management, Leadership & Decision Making
2.2Management Decision Making
2.3Role & Importance of Stakeholders
3Marketing Management
3.1Setting Marketing Objectives
3.2Understanding Markets & Customers
3.3Segmentation, Targeting, Positioning
3.4Using the Marketing Mix
3.4.1Marketing Mix3.4.2Pricing Decisions & Price Skimming3.4.3Pricing Decisions & Price Penetration3.4.4Promotional Decisions3.4.5Promotional Decisions 23.4.6Promotional Decisions 33.4.7Distribution Decisions3.4.8Distribution Decisions 23.4.9Social Media & Influencers3.4.10Digital Marketing3.4.11Evaluating Digital Marketing3.4.12A-A* (AO3/4) - The Marketing Mix & Promotion3.4.13A-A* (AO3/4) - Pricing & Competition
4Operational Management
4.1Setting Operational Objectives
4.2Analysing Operational Performance
4.3Increasing Efficiency & Productivity
4.4Improving Quality
4.5Managing Inventory & Supply Chains
4.6Business & The External Environment
5Financial Management
5.1Setting Financial Objectives
5.2Analysing Financial Performance
5.3Sources of Finance
5.4Improving Cash Flow & Profits
6Human Resource Management
6.1Setting Human Resource Objectives
6.2Analysing Human Resource Performance
6.3Improving Org Design & Human Resource Flow
6.4Improving Motivation & Engagement
6.5Improving Employer-Employee Relations
7Strategic Position of a Business (A Level Only)
7.1Mission, Objectives, Strategy
7.2Financial Ratio Analysis
7.3Assessing Overall Performance
7.4Assessing Political & Legal Change
7.5Assessing Economic Change
7.6Assessing Social & Technological Change
7.7The Competitive Environment
7.8Investment Appraisal
8Choosing Strategic Direction (A Level Only)
8.1Markets to Compete & Products to Offer
8.2How to Compete
9Pursuing Strategies (A Level Only)
9.1Assessing a Change in Scale
9.2Assessing Innovation
9.3Globalisation & Internationalisation
9.4Greater Use of Digital Technology
10Managing Strategic Change
10.1Managing Change
10.2Managing Organisational Culture
10.3Managing Strategic Implementation
10.4Problems with Strategy & Why They Fail
Practice questions on Taylor's Theory
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- 1What is the advantage of Taylor's theory?Multiple choice
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