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Scientific Management Theory
Definied by Frederick Taylor, Scientific Management Theory studied the relationships between people and their jobs. The main purpose of such study was to increase workplace efficiency by rethinking the work process. "By 1910 had becoming nationally known and...faithfuly and fully practiced." (Jones, 2014, p. 40) -
Andrew Carnegie
Founded Carnegie Steel Company. Instead of having to go through many different channels to complete the steel making process he streamlined all of them so they happend at his company. Also adapted methods of steel making from the British. Was able to undercut competitiors and became very wealthy. Often at the expense of workers who worked 10-12 hour shifts. -
Principles of Bureaucracy
Developed by Max Weber, a system designed for organization, efficiency and effectiveness (Jones, 2014). Has a more negative connotation for current generations. Has five main principles: (1) Managerial Authority (2) Positions should be held due to performance (3) Tasks should be clearly defined (4) Organiziation should be organizated hierarchically (5) Managers should rules, SOP's and norms so they can be followed. (Jones, 2014, p.45-46) -
Henry Ford
In 1914 Henry Ford, after seeing company turnover reach alarming levels, announced he would reduce the work shift and double the basic wage for his employers (Jones, 2014, p.41) This caused a new term to be formed, a Fordism (Jones, 2014, p.41) for this unique approach. -
Frederick W.Taylor
Death of Frederick Taylor. Created the Principles of Scientific Management Theory. Believed that specilization of labor would streamline the work enivornment and increase efficiency. Used scientific methods to determine efficiency instead of non quantitative reasoning. (Jones, 2014) -
Decentralization
DuPont develops the multi divisional structure. Going away from one central hub and having many different "divisions" of the company. (Kiechel, 2012, p. 67) -
Hawthorne Studies
Hawthorne studies begin in 1924 and ran untl 1932 at the Hawthorne Works of the Western Electric company. (Jones, 2014, p.52) Cause for the term "Hawthorne effect", the studied showed that "a managers behavior can affect workers' level of performance." (Jones, 2014, p.52) This also led to the formation of the human relations movement. -
Henri Fayol
Died in 1925. Created Fayol's 14 Principles of Management. These include; division of labor, authority and responsibility, unity of command, equity, order, initiative, line of authority, centralization, unity of direction, discipline, remuneration of personnel, stability of tenure of personnel, subordination of individual interest to the common interest and espirit de corps. (Jones, 2014, p.47) These 14 principles Fayol believed were essential to efficiency of management process. (Jones, 2014) -
Elton Mayo
Harvard psychologist who was brought in to help the researchers dealing with the Hawthorne studies (Jones, 2014, p. 52) . Used relay assembly tests to decipher results. -
Mary Parker Follett
Died 1933. Considered the mother of management thought. (Jones, 2014, p.51) Her theory was that since those workers doing their job know the most about that job, they should be consulted when analyzing and adjusted said tasks. The Hawthorne studies was one of her most famous works. -
The Functions of the Executive
Book by Chester Barnard. "Analyzes how to
lead an organization, arguing against
top-down edicts in favor of
eliciting cooperation." (Sibbet, 1997, p. 4) The main focus was on how business actually operate, instead of theories and proposals. -
Management by Walking Around
A supervisory style made popular by the creators of Hewlett-Packard (Burroughs, 2004). This encouraged managers to leave their offices and socilize with their workers. Made for a much more "family" like atmosphere. -
Automation
Automation department is established my General Motors. The use of control systems to operate machinery, helps efficiency but has reduced human input. -
Theory X and Theory Y
The Harvard Business Review describes Theory Y as "Douglas McGregor challenges command-and-control
orthodoxies, advocating a "softer" management style" (Sibbet, 1997, p. 7) Theory Y states that workers are not inherently lazy and will do what is good for he company. Theory X on the other hand hypothesizes the opposite that workers need close supervision otherwise they will not work efficiently. -
Organizational Environment Theory
"A set of fores and conditions that operate beyond an organization's boundaries but affect a manger's ability to acquire and utilize resources." (Jones, 2014, p. 56) Within Organization Environment theory there is the Open-Systems view, which states resources are taken from the outside, converted into goods and then sent back to the customer. A closed system is the opposite, where everything is self contained. -
Contingency Theory
The basic premise of Contigency Theory is that there is "no one best way to organize" (Jones, 2014, p. 57) The best way to manage depends on the characteristics of the organization, so they are different for each company. Was developed by Tom Burns and G.M. Stalker in Britain and Jay Lorsch and Paul Lawrence in the United States. (Jones, 2014, p. 57) -
Abraham Zaleznik
Zaleznik suggests that "large corporations discourage
creative leadership in favor of a conservative managerial mystique." (Sibbet, 1997, p. 9). Stating that large corporations lacked substance in their work. -
Rosabeth Moss Kanter
Publishes Men and Women of the Corporation, a landmark
work on corporate power as it relates to women. (Kiechel, 2012, p. 72) Discusses how the work hierarchy impedes women's progress in the workforce. -
In Search of Excellence
Tom Peters and Robert Waterman Jr. publish In Search of Excellence. The book discusses successful companies and the strong organizational structure they possess. (Kiechel, 2012, p. 73) -
Management Women and the New Facts of Life
"Felice Schwartz sparks a debate on the needs of working mothers." (Sibbet, 1997, p. 10) Goes into detail on the "mommy track" for management women. -
What Makes a Leader?
Book by Daniel Goleman that focuses on emotional intelligence and the effects it brings to the workplace. (Kiechel, 2012, p. 74) -
Disruptive Innovation
Term coined by Clayton Christensen. Christensen states “If you only do what worked in the past, you will wake up one day and find that you’ve been passed by.” (Kiechel, 2012, p. 75) -
Analytics
Companies begin more and more using analytics to better understand trends and business happenings. Researchers such as Thomas Davenport study them to understand the data better. (Kiechel, 2012, p. 75) -
Agency Theory
Agency Theory oncerns the difficulties in motivating one party, the "agent", to act in the best interests of another,the "principal", rather than in his own interests.(Cuevas-Rodríguez, 2012, p. 526) In Agency Theory, management and stockholders must be on the same page. -
Human Relations Movement
Human Relations is defined as "all of the contacts that come about in the process of running a business" (Hotchkiss, 1923, p. 439). This management approact that superivors should receive training to handle their workers, to handle conflict and increase efficiency. (Jones, 2014, p. 52)
