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Andrew Carnegie: Production Methods
Andrew Carnegie created the Carnegie Steel Company which cut costs by performing "all the steelmaking operations necessary to convert iron ore into finished products" (Jones, 2013). By doing this, Carnegie eliminated the expensive costs of working with other companies and was able to sell a much cheaper and higher quality product. (Jones, 2013) -
Max Weber: Principles of Bureaucracy
At the start of the 20th century, Max Weber developed five principles of bureaucracy which is "a formal system of organization and administration designed to ensure efficiency and effectiveness" (Jones, 2013). His principles outlined a managerial hierarchy and how it should operate. -
The Principles of Scientific Management
Fredrick W. Taylor writes "Principles of Scientific Management". Scientific management has four core principles that includes: (1) observing workers and experimenting with ways to perform better, (2) Codify new methods, (3) Match workers abilities with the task, and (4) Develop a reward system that encourages work above acceptable system. (Jones, G. R., & George, J. M. (2014). 2. Contemporary management (8th ed., p. 38). New York, NY: McGraw-Hill/Irwin.) -
Henry Ford Pays Employees $5 a day
At the start of 1914, Henry Ford announced that he would pay his workers an astonishing $5 a day, along with cutting the typical work day to a shorter eight hour shift. Ford revolutionized management by doing so and became even more successful than ever. (Jones, 2013) -
The Gilbreths and Time-Motion Study
The Gilbreth's would analyze each action of a worker performing a task and break it apart into compnent actions. They would then come up with ways to better perform those tasks to maximize efficiency. (Jones, 2013) -
Fayol's Principles os Management
Henry Fayol came up with fourteen principles of management that he thought were essential to efficient management. -
The Hawthorne Effect
Researchers learned through studies on increasing efficienc in manufacturing plants that workers "attitudes towards their managers affect the level of workers' performance" (Jones, 2013). These results encouraged companies to train managers to behave in ways that would encourage cooperative behavior from employees. -
W. Edwards Demming and Quality Management
In 1950 Demming was invited to lecture in Japan where he brought to light the importance of quality management. Demming said that every employee should try and make the best quality product rather than just trying to meet sales quotas. He recommended that top-down management structure be eliminated. Japanese companies quickly followed his advice shortly followed by the US. (Tanz, 2003) -
The President of GM
In 1923, Alfred P. Sloan was made president of GM. he put into practice a revolutionary type of decentralized management by delegating authority to other managers instead of having a centralized structure. (Tanz, J. (2003, October 01). A brief history of management. Retrieved from http://money.cnn.com/magazines/fsb/fsb_archive/2003/10/01/353427/) -
The HP Way
When HP was founded, they emphasized the importance of treating every employee with respect and consideration and gave recognition for achievements. This outlook is still an important part of HP today. (Jones, 2013) -
Largest Labor Strike in US History
At the end of WWII, "a wave of nationwide strikes battered the maritime, railroad, coal, oil, auto, electrical, telephone, and steel industries; four and a half million workers were on the picket lines". Workers fought against wages, discipline, and company policies. (Barbash, J. (n.d.). Chapter 6: Unions and rights in the space age. Retrieved from http://www.dol.gov/dol/aboutdol/history/chapter6.htm) -
Peter F. Drucker Writes "The Practice of Management"
Drucker publishes "The Practice of Management" and in it outlines the five roles of managers. Overall he talks about how attaining goals and giving your organization longevity. In addition he talks about how imperitive it is that managers also focus on external environment and how it relates to the company. -
Douglas McGregor Theory X and Y
In "The Human Side of Enterprise" McGregor outlined two classifications of thought that highlighted how work attitudes dominated the way managers thought and affected how they acted within an organization. Theory X basically assumes that the typical worker is lazy and needs to be constantly encourage productive behavior. Theory Y assumes the opposite and that workers need not be so closely managed. (Jones, 2013) -
SWOT
Albert Humphrey coins "SWOT" in the 1960's which is an evaluation of your strengths, weaknesses, opportunities, and threats. -
Mechanist and Organic Structures
Mechanist and organic structures are two ways which managers can "organize and control an organization's activities to respond to characteristics of its external environment. Mechanist structure is a form of centralized management with a vertical structure. Organic is decentralized management that allows fast action. (Jones, 2013) -
Equal Pay Act
The Equal pay act made it so that women were required to be paid equally to men if they were doing equal work. (EEOC. (n.d.). Retrieved from http://www.eeoc.gov/laws/statutes/epa.cfm). -
Civil Rights Act
In 1964 the civil rights act was put into place. The act outlawed unfair treatment of individuals based on their race, sex, or ethnicity. (Equal Employment Opportunity Commission. (n.d.). Retrieved from http://www.archives.gov/education/lessons/civil-rights-act/) -
The Contingency Theory
Developed by Paul Lawrence and Jay Lorsch, the contingency theory stated that "there is no one best way to organize" (Jones, 2013). The contingency theory basically says that how managers design an organizational hierarchy is "contingent on the characteristics of the organizational environment" (Jones, 2013) -
Age Discrimination Act
The Age Discrimination Act provides that no employer can separate a person from others based upon their age. Employers cannot fire, reduce wages, etc. based on age. (U.s. equal employment opportunity commission. (n.d.). Retrieved from website: http://www.eeoc.gov/laws/statutes/adea.cfm) -
Robert Greenleaf and Servant Leadership
In 1970 Greenleaf writes an essay that brings forth his idea of "servant leadership". At it's core, servant leadership is about a leader not just reaching for a goal but more so serving his employees to keep them happy. Greenleaf saw leadership as a responsibility to the employees rather than just a responsibility to do well. (Tanz, 2003) -
Pregnancy Discrimination Act
This act prohibits discrimination of women because of pregnancy. According to the terms, pregnant women are entitled to all the same benefits as other employees. (U.s. equal employment opportunity commission. (n.d.). Retrieved from http://www.eeoc.gov/laws/statutes/pregnancy.cfm) -
Giving Back
In His book "Leadership" James MacGregor introduces transformational management. He stresses the importance of organizational leaders need to determine how their company and employees can benefit society. (Taz, 2003) -
Theory of Constraints
Introduced by Eliyahu M. Goldratt, the theory of constraints states that the achievement of goals will be limited by at least one constraint or weak link. -
Americans with Disabilities Act
The Disabilities act "prohibits discrimination against people with disabilities in employment" (United States Department of Labor. (n.d.). Retrieved fro http://www.dol.gov/dol/topic/disability/ada.htm) -
The Learning Organization
Peter Senge publishes his book "The Fifth Discipline: The Art and Practice of the Learning Organization". His book defines a learning organization as something with the capacity to shape its own future. He states that a learning organization values teams and leaderships at all levels and has five disciplines. The disciplines are: system thinking, personal mastery, mental models, shared vision, and team learning.
