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Period: to
History of Management
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Moving Conveyor Belt
Through trial and error, Henry Ford and his team of production managers developed the moving conveyor belt. The new and innovative piece of equipment increased efficiency dramatically. However, workers did not like the work-induced stress and employee turnover reached 400%. Henry Ford motivated his workers by decreasing hours worked and doubling their pay per hour (Jones 41). -
Scientific Management
Fredrick W. Taylor's scientific management increased efficiency by job specialization and division of labor. Scientific Management is defined as the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency (Jones 39). -
Theory of Bureaucracy
Max Weber developed the principles of bureaucracy to help Germany manage its industrial enterprises while it was striving to become a world leader. The principles of bureaucracy were designed to ensure efficiency and effectiveness (Jones 45). -
Fayol's 14 Principles of Management
Fayol came up with 14 principles that he thought were vital to increasing the efficiency of the management process. These 14 principles were 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 intersts to the common interest, and espirit de corps (Jones 46-47). -
Behavioral Management
Behavioral management is the study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. Mary Follett was a key contributor to the Beavioral Management Theory. Much of her writing related to the human side of the organization. She stated that employees can contribute to the organization a great deal when they are allowed to participate and exercise initiative in their work lives (Jones 51). -
Human Relations Movement
The human relations movement is a management approach that advocates the idea that supervisors should recieve behavioral training to manage subordinates in ways that elicit their cooperation and increase their productivity. This movement was created as a result of the findings of the Hawthorne effect. It was thought that the feeling workers had towards their managers directly affected the workers' performance (Jones 52). -
Management Science Theory
Management science theory is an approach to management that uses rigorous quantitative techniques to help managers make maximum use of organizational resources. Some of the branches of management science include quantitative management, operations mangement, total quality management, and management informations systems (Jones 55). -
Maslow's Hierarchy of Needs
Maslow wanted to understand what motivates people, so he developed the hierarchy of needs represented by a pyramid. The five needs included in the pyramid starting from the bottom are physiological, safety, social, esteem, and self-actualization. When one need is fulfilled a person seeks to fullfil the next one, and so on (McLeod). -
Uniform Commercial Code (UCC)
The UCC governs the sale and purchase of goods in all the states of the U.S., except in Louisiana. The goal of the UCC is to have all the states conforming to the same rules and guidelines when there are transactions amongst different states. (i.e. If goods are manufactured in Minnesota, warehoused in Wisconsin, sold from Ohio, and delivered from New York, the UCC creates uniformity in commercial laws) (Wisner 65). -
Vertical Inegration
Vertical Integration refers to the strategy of a company expanding its operations either backward into a new industry that produces inputs for the company's products or forward into a new industry that uses, distributes, or sells the company's products. The main reasons a company would choose to vertically integrate are to add value to their products by making them special or unique or to lower the costs of making and selling their products (Jones 247). -
Theory X and Theory Y
Theories X and Y are related to the idea that workers' attitudes and behaviors affect mangers' attitudes and behaviors. The two sets of assumptions were developed by Douglas McGregor. Theory X is a set of negative assumptions that lead to the conclusion that managers must supervise workers closely. Theory Y are positve assumptions about workers that lead to the conclusion that managers must create a work setting that encourages workers to be imaginative and initiative (Jones 53-54). -
Internet
The internet is a global system of computer networks that is easy to join and is used by employees of organizations around the world to communicate inside and outside of their companies (Jones 513-514). Today the internet is key in several business functions, including emailing, ecommerce/ eprocurement, advertising, researching, etc. It is an ideal way to connect business from across the globe. -
Equal Pay Act
The Equal Pay Act requires that men and women are to be paid equally if they are performing equal work (book). Enacting this law was a huge step towards gender equality, but as we learned in class, many companies are still not fair to women in regards to pay; there are still several cases of men and women being paid different amounts for the same work or men being promoted when a woman is more deserving (Jones 373). -
SWOT Analysis
SWOT analysis is defined as a planning exercise in which managers identify organizational strenghts, weaknesses, enviromental opportunities, and threats. After completing the SWOT analysis, managers can continue the planning process and determine specific strategies for acheiving the organization's mission and goals based on the strengths, weaknesses, oportunities, and threats (Jones 237). -
Expectancy Theory
Expectancy theory was developed by Victor H. Vroom. It states that motivation will be high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes. It is one of the most popular theories of work motivation because if focuses on all three parts of the motivation equation: inputs, performance, and outputs (Jones 409). -
Title VII of the Civil Rights Act
The Title VII of the Civil Rights Act prohibits employment discrimination on the basis of race, religion, sex, color, or national origin; it covers a wide range of employment decisions including hiring, firing, pay, promotion, and working conditions (Jones 373). This was a big movement in a time when racism was still a big issue in regards to hiring. -
Contingency Theory
The contingency theory was developed by Tom Burns, G. M. Stalker, Paul Lawrence, and Jay Lorsch. It stated that there is no one best way to organize: the organizational structures and the control systems that managers choose depends on characteristics of the external environment in which the organization operates (Jones 57). -
Age Discrimination in Employment Act
Age Discrimination in Employment Act prohibits discrimination against workers over the age of 40 and restricts mandatory retirement. This includes decisions about hiring, firing, layoffs, pay, benefits, promotions, demotions, or any other condition of employment (Jones 373). -
Pregnancy Discrimination Act
Pregnancy Discrimination Act prohibits employment discrimination against women on the basis of pregnancy, childbirth, and related medical conditions. Employers must hold open a job for a pregnancy-related absence the same length of time that jobs are held open for employees on sick or disability leave (Jones 373). -
Supply Chain Management
Supply chain mangement became increasingly popular in the early 1980s. It can be defined as the integration of key business processes regarding the flow of materials from raw material suppliers to the final customer. Supply chain mangement has several advantages includung lower purchasing and inventory carrying costs, better product quality, and higher levels of customer service--all leading to more sales (Wisner 7-9). -
Six Sigma
Six sigma is a technique used to improve quality by systematically improving how value chain activities are performed and then using statistical methods to measure the improvement. The goal of six sigma is to improve a company's quality to only three defects per million (Jones 276). -
Outsourcing
Outsouring is the strategic use of outside resources to perform activities traditionally handled by internal staff and resources. It is the practice of organizations contracting out major functions to specialized and efficient providers. Some reasons that companies outsource are to reduce and control operating costs, improve host company focus, gain access to world-wide capabilities, a function may be time-consuming to mange, insufficient resources are availabe internally, etc. (Handfield). -
Americans with Disabilities Act
The Americans with Disabilities Act prohibits employment discrimination against individuals with disabilities and requires that employers make accomodations for such workers to enable them to perform their jobs (Jones 373). -
E-commerce/ E-procurement
E-commerce and e-procurement are terms used to describe trade that takes place between companies using the internet. There are several advantages that can come from making trades through the use of the internet including time savings, cost savings, accuracy, real-time access, trackability, and more. E-procurment is becoming the more efficient and cost effective way of making trades and the old manual system is slowly fading (Wisner 47-49). -
Central American Free Trade Agreement
The CAFTA promotes trade liberalization between the United States, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. CAFTA is considered to be a stepping stone to the larger FTAA. CAFTA was the first "sub-regional" agreement to be accepted between such unequal trading partners, where the combined GDP of Central America is 0.5 percent of United States' GDP (Washington Office on Latin America).
