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Scientific Management Theory
Problems arose with the Industrial Revolution such as the change from small-scale craft production to large-scale mechanized manufacturing, being unprepared for social problems that occurred when working in a large factory or shop system, and managers that only had technical orientation. People began searching for a new paradigm to deal with the influx of production and how to deal with it from a management standpoint. (Jones, 2013) -
Job Specialization and the Division of Labor
Workers were given jobs that they could specialize in. Instead of employees all having the same skill set, they were separated and taught how to do specific jobs. This improves efficiency and leads to higher organizational performance (Jones, 2013). -
Period: to
Industrial Revolution until now
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Administrative Management Theory
This was the study of how to create an organizational sructure and control system that leads to high efficiency and effectiveness. Organizational structure is the task and authority relationship that controls how employees use resources to achieve the organization's goals. This gave managers more information on how to operate with the most efficiency (Jones, 2013). -
Scientific Management
Frederick W. Taylor was one of the first people to study behavior and performance of people at work. This was termed scientific management - The systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency (Jones, 2013). -
Andrew Carnegie
Carnegie was a man who was obsessed with success. This lead to him continually attempting to find every way possible to reduce operating costs. His employees worked more than usual, he paid them the least amount possible, and he had no concern for safety. This lead to concern for a better way of organizing and controlling resources. Although Carnegie was a great success, like Ford, he gives us an example of how we can improve (Jones, 2013). -
Max Weber
Weber introduced bereaucracy. This is a formal system or ogranization and administration designed to ensure efficiency and effectiveness. This gave management a laid out plan that made decisions objective and straight-forward (Jones, 2013). -
Fordism
Henry Ford brought the moving conveyer belt to manufacturing and changed production practices. His employees hated the monotony. Ford saw this, and the high employee turnover, and increased wages, and checked on employees in and out of work. His controlling attitude gave us a good example that today seems unethical and unacceptable (Jones, 2013). -
The Gilbreths
The Gilbreths were followers of Taylor who analyzed every action necessary to perform a task, find better ways to perform each component, and reorganize the components to make the process more efficient. This awareness in the workplace has shaped our thought process in how we analyze task performance (Jones, 2013). -
Behavioral Management Theory
This 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. One of Fayol's 14 Principles, esprit de corps, seems very similar. Managers were given direction to not just lead employees, but to do so in an enjoyable and effective way (Jones, 2013). -
Fayol's Principles of Management
Fayol introduced 14 principles of management that he thought were essential to increase the efficiency of the management process. Again, like Max Weber, he gave managers goals and objectives that made them more confident in what they were doing to manage successfully (Jones, 2013). -
Human Relations Movement
This advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity. Nowadays, HR is more personal that this definition shows. With this movement, managers are less slave-drivers and more friendly towards employees (Jones, 2013). -
Management Science Theory
This is a contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services. This is something that is widely used today and is seen in the movement to go "green" for the Earth. Resources cost money, and managers need to be aware of this with a means to improve resource use (Jones, 2013). -
HP Way
The "HP Way" was a people-oriented approach to management. They stressed treating everybody with consideration and respect. They also gave recognition for achievements. This form of management is usual these days, but HP brought this our society and gave us a new standard for how to treat employees (Jones, 2013). -
Organizational Environment Theory
This is the set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources. This is something like the raw materials and skilled people that an organization requires to produce goods and services. This is out of the organization's immediate control. However, it is essential to be aware of when managing. The problems within the company could be coming from outside the company (Jones, 2013). -
The Open-Systems View
This is a system that takes in resources from its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers. This gave managers an understanding as to the operations behind the end product. There are three stages: Input, Conversion, and Output Stage. This gave an objective understanding to how the environment can affect a company's goals (Jones, 2013). -
Contingency Theory
The message of the contingency theory is: There is no one best way to organize. The organization is to be based on the external environment. The organizational environment dictates the organizational hierarchy, the control system, and how to lead and motivate employees. This was a milestone in management theory that showed how important it is to be aware of the enviornment surrounding the company (Jones, 2013). -
The Fair Labor Standards Act
This establishes the amount of minimum wage. Something that HR professionals need to always be aware of, as it is against the law to pay less than this act states. This is something that is always revised, but extremely important for managers to realize (Jones, 2013). -
Anti-Discrimination
This prohibits discrimination against employees on the basis of race, color, religion, sex, or national origin. All employees are to be treated equal. This was a turning point for management and another thing they have to be aware of when hiring and firing employees (Jones, 2013). -
Mechanistic and Organic Structures
This is an extension of contingency theory to show how organizational structure can be different based on the environment. Mechanistic structure is when authority is centralized and employees are closely supervised. Organic structure is when authority is decentralized and tasks are left ambiguous to encourage employees to cooperate and respond quickly to the unexpected. These two are distinct opposites and show just how different structure can be (Jones, 2013). -
Dell
The vision of Michael Dell has been compared to that of Henry Ford. Dell was one of the most profitable and innovative companies in the world. The success of Dell has motivated management to examine their strategies. Many of the techniques that Dell used have reshaped the way management operates in this age (Ralston, Reilly & Hemmendinger, 2003). -
Pepsi and Coca-Cola
This is an example of brand loyalty. Culture, advertisement, and consumer behavior are something that many companies have to deal with nowadays. It is something that has always been around, but the Coke and Pepsi battle is a prime example of how customers choose to act. Management on both sides are continually attempting to appeal to more customers and keeping current ones loyal. A companies' success is totally dependent on their consumer, and brand loyalty is a major focus (Tucker, 1964). -
Glass Ceiling Act
This destroys barriers companies create in the advancement of women in the workplace based on their sex. This also concerns minorities' advancement. There is also a national award for "diversity and excellence in American executive management." All employees are to be given equal opportunity to advance with their given field (Jones, 2013). -
Apple
One of the most innovative brands to come to America, they introduced a style and norm that far exceeded the standards before the company was created. Steve Jobs and his ambition for excellence reshaped how creativity is encouraged in the workplace (Yoffie, 1992). -
Nike
Nike is an example of brand image on quality and attitudes of consumers. Nike customers expect a certain product and Nike is continually attempting to create innovative and satisfactory products for their customers. Nike produces a clean, quality, popular product that keep customers attracted to their brand (Martinez & Chernatony, 2004). -
Facebook
Facebook showed how something could be recreated (MySpace) to be more innovative. The level of appeal of Facebook is looked at on the level of aestethics, code, culture, and appeal to marketers. Facebook changes the marketplace to bring social networking one of the most important aspects to business awareness. As with Apple, creativity is something that is continually seen to make successful businesses in this age (Gehl, 2012).
