Frederick W. Taylor's 1899 Pig Iron Observations

^' Academy of Management Journal
20(10. Vol. 43. No. 6. 1283-1291.

FREDERICK W. TAYLOR'S 1899 PIG IRON OBSERVATIONS:
EXAMINING EACT, EICTION, AND LESSONS
EOR THE NEW MILLENNIUM
CHARLES D. WREGE
Cornell University
RICHARD M. HODGETTS
Florida International University
Taylor's pig iron observations at Bethlehem Iron in 1899 are often cited as an example
of how scientific managementhelped increase industrial efficiency. The current research, relying almost exclusively on primary sources, reveals that Taylor's famous pig
iron anecdote was erroneous. Additionally, this article offers lessons and guidelines
for managers in the new millennium.
Although Frederick W. Taylor's impact on management cannot be denied, whether his work always represented the use of science to solvemanagement problems is questionable. George has said
that Taylor believed "to maximize output with a
given level of effort . . . the scientific method had to
be applied to worker selection, job determination, creation ofa proper environment, and so on,
to determine properly the task for each man"
[1972: 93).
This concept of a scientific, research-based approach in management practice was not new(Hoagland, 1955). For example, in Poland in the late
1890s Karol Adamiecki was developing work flow
network diagrams to solve production problems in
local factories [Marsh, 1975). However, Taylor did
impress his audiences by describing the apparent
use of scientific methods to reduce costs and to
create prosperity for the workforce. More importantly, his claims were readily accepted bypractitioners and scholars until almost 75 years later,
when they were challenged by Wrege and Perroni
[1974). These authors focused on how Taylor's account of his study of pig iron loading at the Bethlehem Iron Company continually changed in the
years from 1901 to 1911. However, they did not
attempt to study the details of pig iron loading or
whether the company or the workers actually prosperedfrom the piece rate system that Taylor recommended. The current research focuses on these
latter three aspects of Taylor's work.
The reason for the continued acceptance of Taylor's observations largely lies in the persistent reliance of management scholars on published sources
(usually those appearing in management publications) rather than on original documents prepared
at the time of theactual events Taylor described.

Unfortunately, for the majority of the readers of
management publications, the printed word has an
aura of authenticity that is seldom questioned, and
original documents are neglected.
This study draws on original documents and presents an analysis of what really happened during
the famous pig iron observations of 1899. It also
presents lessons to be learnedby researchers in
general and management scholars in particular.

BACKGROUND
Management history is replete with anecdotes
regarding the work of prominent people. Yet perhaps no story is more famous that that of Frederick
Taylor's pig iron observations, which were conducted at the Bethlehem Iron Company of South
Bethlehem, Pennsylvania, in March-May 1899.
Taylor had come to Bethlehem at thebehest of
Robert Linderman, president of the company, to
reduce costs by introducing a piece rate system
[South Bethlehem Globe, 1898; Taylor, 1898).
When Taylor arrived at Bethlehem, pig iron was
selling at $11.50 per long ton [2,240 pounds) [Hobson, 1899), and the company had 10,000 tons on
hand. However, it was waiting for a better price
before selling. By March 1899, the price had risento $13.50 per long ton [Iron Age, 1899), and the
company quickly sold its inventory and began
preparations for loading the iron onto gondola cars
for shipment. At this point Taylor decided to take
advantage of the opportunity to study pig iron loading for the purpose of lowering loading costs, as
well as to secure data for a book he was preparing
on time and performing work. He assigned...