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Scientific Management Theory
The theory which beleives in increasing the efficiency and effectiveness of the organizations through scientific management practices. This theory attempts to present the solutions for tackling the management of modern organizations which were developing in the 19th century Europe and America. It was needed for the new modes of production by a diverse group of economic, political and educational leaders. -
Manager as a Person
Andrew Carnegie 1835 discovered ways to use resources more productively and reduce costs of living. He had noticed U.S' railroads increasing demand for steel rails as they expanded rapidly across the country. He searched for ways to reduce the cost of steel making and made different companies performa each of the different operations rather than workers working in small sections to make the small products. -
Fordism
Henry Ford's theory changed the manufacturing management practices in his time. He owned a car manufacturing company where workers used to make machines in the assembly lines. His workers could afford his cars and they were not just his workers but also his customers too. -
The Gilbreths
Frank Gilbreth (1868-1924) and Lillian Gilbreth (1878-1972) followed and developed Taylor's management practices and focused more on how each component is being manufactured by each individual worker. They divided the whole car manufacturing into the manufacturing of different components and tried to improve the practices with which each component would be made. They used to film the individual workers' performances and rewarded them as per their performances. -
The Theory of Bureaucracy
Max Weber (1864-1920) developed the principles of bureaucracy to help Germany manage its growing industrial enterprises. He introduced a formal system of efficiency and administration designed to increase the productivity and the efficacy of the organizations. -
Fayol's Principles of Management
Henry Fayol (1841-1925) introduced the 14 principles of management and that includes division of labor, authority and responsibility, unity of command, line of authority, centralization, unity of direction, equity, order, initiative, discipline, remuneration, stability and subordination. -
Behavioral Management Theory
Mary Parker Follett introduced the idea of managers behaving to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. This is opposite to what Taylor said because he was ignoring the human side of the organization. -
Contingency Theory
This theory was presented by Tomy Burns and G.M. Stalker and they basically said that there are no best management practices but the operations of management depend on the conditions under which managers make decisions. It depends on the characteristics of the external environment in which the organization operates. -
Organizational Environmental Theory
It explains why the study of external environment and its impact on an organization has become a central issue in management thought. It explains the set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources. -
Supply Chain Management
This theory was developed to combine both the arts and science to make the products available to the customers from manufacturing units. -
Chaos Theory
This theory explores chaotic nature of world and explains it from that lense. They say that the chaotic conditions should be controlled by the implementations of decisions by managers depending on the conditions of that time. -
Ethics
The theory of ethics in business which regards the company's workers as assets not as expense. The founder of the theory Aaron Feuerstein had given health insurances and health protection to 3000 of his workers and he was one of the leading ideals for this business model -
Socialization
The organizational socialization model is about socializing all the workers and managers into a "brand" color of the company. For example, the new comers should be introduced and made part of the overall organizational culture. For example, in Texas A&M, all students are required to go fishing in order to be part of the "Aggie" culture and Disney workers attend Disney University. -
SWOT Analysis
This is a model to evaluate and improve the business practices adopted by the companies. The word basically stands for analyzing the strengths, weaknesses, opportunities and threats of the business practices and entrepreneurial initiatives. -
Jeffrey Immelt
He was the CEO of the general electric and he changed the culture and the enviornment of the company after 9/11. He intreduced new management practices to reduce the effect of external envirnment 9/11. -
Steven Reinemund
He made Pepsi co Ink to $27 billion food and beverage giant as Pepsico added 200 variations of products by his time. He worked for making potato chips and soda. He made one of the marvelous successes in the contemporary corporate world. -
Management Science Theory
Management Science Theory explains the contributions of management science to the efficient use of organizational resources. It is an approach to management that uses rigorous quantitative techniques to help managers make maximum use of organizational resources. -
Systems Theory
This theory is considered as one of the contemporary theories of management which focuses on the components of management and the manufacturing of goods. It says that the "system" is composed of many parts and it is important to get information from the human resources of the organization like the customers, officers etc. This information should be used to increase the motivation and efficiency of the organization. -
Emotional Intelligence
The ability to understand and control one's moods and emotions and control the emotions in order to maximize the utility and profits of the company. This is about making the workers operate under their comfortable emotional environments. The idea is to make the managers more emotionally intelligent. -
Theory X and Y
Perhaps the most influential approach on these theories were developed by Douglas McGregor. The set of negative assumptions that the job of manager is to supervise the work is called as X-theory and the set of assumptions that the job of manager is to guide and help is called as Y-Theory.
