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Scientific Management
F.W. Taylor claimed that an increase in specialization of a certain product and an increase in the labor division would therefore increase the efficiency of producing a product. The scientific management theory or a "systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency" was created by F.W. Taylor in the 1890s and had become recognized on the national scale by 1910 (Text pp 39-40). -
Information Flow/Decision Charts
In 1903, John Calder and Charles Day created informative flow charts that showed the advantages and disadvantages of using network analysis in a business. (Wrege 1999 Par. 24) -
Bureaucracy
At the beginning of the 1900s a man named Max Weber developed a term called bureaucracy which is "a formal system of organization and administration designed to ensure efficiency and effectiveness" (Text pp 45). -
Fayol's Principles of Management
Henri Fayol outlined 14 principles of managing a business at the beginning of the 20th century. These principles include:
Division of labor
Authority and responsibility
Unity of command
Line of authority
Centralization
Unity of direction
Equity
Order
Initiative
Discipline
Remuneration of personnel
Stability of tenure of personnel
Subordination of individual interests to the common interest
Esprit de Corps (Text pp 46-47) -
Behavioral Approach
The behavioral approach consists of the satisfaction of employees in the workplace that is improved by the behaviors shown to them by their managers in the form of motivation. A big front-runner for this idea was Mary Follett who thought that managers should behave a certain way towards their employees to help them in the workplace. (Text) -
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Hawthorne Effect
Studies done between 1924 and 1932 showed that a manager's attitude toward their workers or perhaps just in behavior can affect the performance of workers in that business. This theory became known as the Hawthorne Effect because the study was conducted at the Hawthorne Works in the Western Electric Company.
(Text pp 52) -
Group Dynamics
Kurt Lewin developed the idea for Group Dynamics in the 30s. Group dynamics explains the behaviors and processes that members of a group go through while being a part of that group. Before Lewin died he founded the M.I.T. Research Center for Group Dynamics (founded in 1945) that focuses on six areas of development:
Group Productivity
Communication
Social Perception
Training Leaders
Group Membership
Intergroup Relations (www.mhhe.com)
(Ettin 1999) -
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Trait Theory
The trait theory identifies characteristics that are necessary to be successful and unsuccessful and are used to make judgments of new managers as to how well they will perform in the workplace. Some of the most important characteristics include:
Achievement Drive
Honesty and Integrity
Self-Confidence
Cognitive Ability
Emotional Maturity (managementstudyguide.org) -
Likert's Management Systems
Rensis Likert began developing his manaagement systems which included:
Exploitative Authoritative
Benevolent Authoritative
Consultative
Participitative All of these systems describe how groups in the workforce work and communicate with one another. In a very brief definition, Exploitative is very demeaning and doesn't help a company grow, but Participative allows all members of a group to work together and achieve goals. (www.mhhe.com) -
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Total Quality Management
An approach by managers that seeks to involve all employees in the hope that it they can help the company produce higher and higher yields of customer satisfaction and success than previous years. (Antonaros 2010) -
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Leader/Non-leader Behavioral Studies
These behavioral studies were conducted at Ohio State University and the University of Michigan in the 1940s. Results showed that leaders were concerned about two things: employees and production. When concerned about employees the manager/leader would try and keep them happy and not care as much about the company. When the concern was shifted to production, however, less consideration was given to the employees. (www.mhhe.com) -
Hierarchy of Needs
Created by Abraham Maslow, the Hierarchy of Needs includes 5 groups of goals that people strive for including:
Physiological Needs
Safety
Love
Esteem
Self-Actualization The needs are arranged from top to bottom in a pyramid and every time someone attains a level of this pyramid they move on to the next level. (Nicholson 2001 Par 32) -
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Managerial Grid
Developed by Blake And Mouton in the 50s the Managerial Grid has 5 different categories:
Impoverished Management
Authority Compliance
Country Club Management
Middle of the Road Management
Team Management (changingminds.org) -
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Quantitative Management
Is a number or statistical based process that allows managers to base their decisions of their business on. Examples of quantitative management include graphs, charts, and models. (www.mhhe.com) -
Levels Of Existence Theory
Founded by Clare Graves in 1952, the Levels of Existence Theory stated that as people grow and progress their values follow suit. Graves believed that the older a person was the quicker they would be able to adapt to a change in organizational structure. (Roberson 2005 pp 9) -
Herzberg's Theory
Herzberg created his theory in 1959 that distinguished two factors: motivational and hygiene. Motivational factors increase job satisfaction and hygiene factors decrease job satisfaction. Motivational factors include:
Achievement
Recognition
Work
Responsibility
Advancement
Possibility of Growth Hygiene Factors Include:
Company Policy
Work Condition
Supervision
And more. (Ruthankoon 2003 Par 5) -
Contingency Theory
Developed by two people from Britain and two people from the United States, the contingency theory states control systems that that managers of a company choose to abide by depend on the outside environment that the company is working in.The contingency theory also states that there is not a single, best way to organize. (Text pp 57) -
Open Systems View
Created by Robert Kah, James Thompson and Daniel Katz, the open systems view is a system that gathers resources from the environment, creates products and then brings those products back to the same environment to sell them. There are 3 stages to the open systems approach including: the input stage, the conversion stage, and the output stage. (Text pp 56) -
Theory X & Y
Douglas McGregor outlined both Theories X & Y in 1960. Theory X stated that employees in the workforce lack ambition, are lazy, and do not like to work. Theory Y, on the other hand, stated just the opposite that employees are looking to be responsible and do not dislike their jobs. (Carson 2005 Par 4) -
Theory of Needs
Created by David McClelland in 1961 the Theory of Needs said that people have 3 types of needs:
Achievement
Affiliation
Power People that are high in the achievement category dislike succeeding by chance, but rather would like more certainty in their accomplishments. People high in the affiliation category like to have close relationships with people whether they be friends, family or relatives. People high in the power category like the ability to be influential to others. (Royle 2012) -
Equity Theory
Created by Adams in 1963, the Equity Theory states that the inputs put into doing something, in this case working, should equal the outputs created, in this case pay or wages. Equity theory also states that when a person is not getting the results they hoped for they will choose one of six different options to change them which include: changing their inputs, changing their perception of self, changing the outcomes, and leaving the situation among others. (Harder 1991)
(www.mhhe.com) -
Expectancy Theory
Victor Vroom created the Expectancy Theory in 1964. This theory is composed of 3 different parts:
Valence
Instrumentability
Expectancy Valence: can be both positive or negative whether someone wants to attain it or not.
Expectancy: Whether or not someone's act will be followed by an outcome.
Instrumentability: Belief that performing well will lead to better outcomes than performing poorly. (Lee 2007) -
Goal Setting Theory
Goal setting theory was proposed by Edwin Locke in 1968. This theory stated that goals that are harder to achieve allow a person to work at a higher performance level and easier goals do not increase performance levels. There are 3 steps to the goal setting theory which include: Setting a reasonable goal, staying committed to that goal, and the person receives feedback after the goal is either attained or not reached. (Locke) -
ERG Theory of Motivation
The ERG Theory of Motivation was created by Clayton Alderfer in 1969. ERG stands for:
Existence- physical well-being
Relatedness- relationships with people
Growth- continue growing The ERG branches off Maslow's theory Hierarchy of needs, but instead of having 5 needs there are only 3 basic ones the Alderfer outlines. (www.mhhe.com) -
Path Goal Theory
Created by Evans in 1970 and revised by Robert House in 1971 the Path Goal Theory states that to get wanted results certain tasks must be performed. The tasks become the path and the results are the goal to the Path Goal Theory. (DeCaro 2005)
