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Andrew Carnegie
Carnegie made great improvements to industrial production. He noticed that companies were wasting money when they only performed one task of producing steel. He changed this by creating a steel plant that would do everything when converting iron ore to finsihed steel products. This saved money and time because the products could be made in larger quantities and didn't have to be shipped to other plants after each operation. (Jones, G., & George, J. (2013). Contemporary management. McGraw-Hill). -
Scientific Management Theory Developed
The scientific management theory was founded in 1890 by Frederick W. Taylor. The theory was used to increase efficiency by changing the work process in ways learned from studying the relationships between people and their tasks. Taylor came up with four principles that would help increase work efficiency. The theory was not always implemented properly, which lead to problems such as job dissatisfaction and workers resisting the new approaches. (Jones & George, 2013). -
Fayol's Principles of Management
Henry Fayol branded 14 principles that he thought would increase the efficiency of management. These principles include the division of labor, authority and responsibility, unity of command, line of authority, centralization, unity of direction, equity, order, intiative, discipline, rewarding of personnel, stability of tenure of personnel, subordination of individual interests to the common interest, and esprit de corps (shared feelings of devotion to a common cause). (Jones & George, 2013). -
The Theory of Bureaucracy
Developed by Max Weber in the beginning of the 1900s, the theory of bureaucracy is a "formal system of organization and administration designed to ensure efficientcy and effectiveness" (Jones & George, 2013). This theory is based on 5 principles, which all have relate to having clear rules, appropriate positions, and authority. (Jones & George, 2013). -
The Gilbreths
The Gilbreths further developed Scientific Management by studying workers. They did this by filming a worker performing their job, breaking the film down into individual frames, and then studying each part of the movements that it takes to perform a job. Their goal in studying this was to find a method to perform the job that would maximize efficiency and save money and time. They also studied fatigue and what causes worker fatigue. (Jones & George, 2013). -
Administrative Management
Administrative management was developed in the early 1900's. The purpose of administrative management was to make an organizational structure and control system that would maximize effectiveness and efficiency. Organizational structure is the authoritative relationships that control how employees use resources to achieve organizational goals. Max Weber and Henry Fayol were two of the most important views of Administrative Management. (Jones & George, 2013). -
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Development of the conveyor belt
Henry Ford's production managers worked from 1908 to 1914 on developing the moving conveyor belt. This development simplified the manufacturing process. This was a huge success for Henry Ford and made cars significantly cheaper for the public, but it created a lot of stress for the workers. (Jones & George, 2013). -
Fordism
After the development of the conveyor belt, Henry Ford's manufacturing plants began experience extremely high worker turnover rates as high as 400% a year. Workers were leaving due to high stress due to their work. To combat this Ford shortened the work day from 9 to 8 hours and dubled the basic wage. This approach made Ford famous and hence it was named Fordism after him. (Jones & George, 2013). -
Harvard Business Review
The Harvard Business Review was developed in 1922 by the dean of the Harvard Business School. The dean wanted to give trainee managers better insight into the field of management. The magazine contains the current concerns in management, useful ideas, and helpful management practices. It is also where many influential management researchers, such as Peter Drecker, published their ideas. (Kirby, J. (2012). Inventing HBR. Harvard Business Review, 90(11), 84-88). -
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Peter Drucker
Peter Drucker published 3 books that set the concept that a corporation should be a social institution where all workers and their abilities are to be respected. Drucker is thought to be the one who brought in the ways of how we think about in running companies and changed our thoughts from boss and worker to manager and employee. He also brought back the ideas of Mary Parker Follett, mainly ideas of 'power with' instead of 'power over' and trying to achieve 'win-win' solutions. (Kiechel 2012). -
General Agreement on Tariffs and Trade
GATT was a treaty made to remove the barriers so trade between countries of goods, services and capital would become more free flowing. (Jones & George, 2013). -
Theory X and Theory Y
In the 1960 Douglas McGregor developed Theory X and Theory Y. Theory X defines managerial assumpitions that workers will try to do as little work as possible and that managers should closely supervise and create strict rules for workers. Theory Y defines assumptions that employees will do what is good for the organization when given the opportunitiy and that managers must allow room for self-direction. (Kopelman & Prottas 2012; Jones & George 2013). -
Open-Systems View
Developed in the 1960's by Daniel Katz, Robert Kahm, and James Thompson the open-systems is a view of organizations where they take resources from the outside environment, make them into goods and services, send them back to the environment to be sold to customers. This is considered to be one of the most powerful views of the effect of the external environment on organizations. There is also the closed-system which is not affected by the external environment. (Jones & George 2013). -
Contingency Theory
Tom Burns, G. M. Stalker, Paul Lawrence, and Jay Lorsch established the contingency theory, which is that the outside environment affects how a manager will choose to organize the company. The main point of the theory is that there is not one way to organize a company that is the best way, it all depends on the environment. Managers can choose between a mechanistic structure or organic structure based on how the environment is changing and the accessibility of resources. (Jones & George 2013). -
Equal Pay Act Enacted
In 1963 government passed the Equal Pay Act. The act requires that men and women be paid equally when they have the same qualifications and perform the same work. (Jones & George, 2013). -
Civil Rights Act
In 1964 Title VII of the Civil rights act was passed. This stated that when making employment decisions, such as hiring, firing, raises, promotions, and working environment, managers can not discriminate based on gender, race, religion, color, or national origin. (Jones & George, 2013). -
Age Discrimination in Employment Act
This act was enacted to ban discrimination against workers who were over 40 years old and inhibit mandatory retirement. (Jones & George, 2013). -
Pregnancy Discrimination Act
This act was put in to place for when managers make employment decisions prohibiting discrimination against women because of pregnancy, childbirth, or other related medical decisions. (Jones & George, 2013). -
Hofstede's Model of National Culture
Hofstede's model of national culture has five categories that can be used to describe different national cultures. The five categories are individualism vs collectivism, power distance, achievement vs nuturing orientation, uncertainty avoidance, and long-term vs short-term orientation. These categories are useful in helping managers understand different cultures and how to be appropriately responsive when dealing with different national cultures. (Jones & George, 2013). -
Americans with Disabilities Act
This act was put into place so employers can't discriminate against people with disabilities in hiring, firing, raises, and other decisions and it requires employers to create an environment where disabled workers can accomplish their jobs. (Jones & George, 2013). -
Civil Rights Act
The Civil Rights Act was passed to enforce the prohibition of discrimination from Title VII and to permit people to be awarded damages and back pay if they are intentionally discriminated against. (Jones & George, 2013). -
Family and Medical Leave Act
The FMLA was enacted to require employers to give unpaid leave of 12 weeks for family and medical reasons, such as illness, paternity leave and sick family members. (Jones & George, 2013). -
North American Free Trade Agreement
NAFTA was established in 1994 with the goal to remove the tariffs of almost all the goods that are traded between the United States, Mexico, and Canada by 2004. This didn't happen, but it was successful in removing many of the barriers and opened up a flow of resources. Many companies now sell products produced in Mexico. There are also many companies that have moved into expanding their stores into Canada and Mexico, and vice versa. (Jones & George, 2013). -
World Trade Organization
The WTO replace GATT and is still working on reducing tariffs. The WTO is more powerful than GATT because it has more authority to give penalties and punish countries that break global agreements. GATT and the WTO have drastically decreased tariff barriers since 1948 and thus greatly increasing world trade. (Jones & George, 2013). -
Central American Free Trade Agreement
CAFTA was formed in 2005 to remove tariffs between all the countries in Central America and the United States. By 2006, 5 of the countries had accepted the agreement. Costa Rica has still not accepted the agreement. The development of CAFTA is paving the way to establishing the Free Trade Area of the Americas (FTAA), which would establish free-trade between all the countries of the Americas, except for Cuba. (Jones & George, 2013).
