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Job Specialization: Adam Smith
Smith was one of the first people to make a big impact on management. He studied the effects of factory workers completing 1-2 tasks in the production of a good vs. completing all of them. He found that specializing in certain tasks allows a worker to master the technique and make them faster with better quality. Workers were able to work together to increase output at a substantial rate. (Jones, 2014, p.39) -
Period: to
1775-Present
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Human Needs
Adam Smith again made a significant contribution to economic thinking. He recognized that human needs drive economic growth. He also stated that an individual acting in his self interest would make a decision which is better for for society than if he were trying to promote society when making his decison. It required motivation to satisfy those needs. (Pearson, 2009 p.8) -
Thinking Globally: John Astor
By 1809 Astor was selling American Furs in China, Chinese goods in Europe, and European goods in America. He became Americas first global trader. John Astor would pay attention to global markets until he realized he was getting deminishing returns. (Astory, 2006 Web) -
Industrial Company: Andrew Carnegie
Carnegie was one of the most hardnosed managers a person could have. People made real little money and would work 12 hour days for 6 days a week. Finding ways to reduce all production costs to yeild the biggest profit was Carnegie's style. He didn't try to improve the safety of his mills, found ways to produce steel very cheap, and didn't give worker very many rights. He paved the way for the need of administrative mangagement theory. (Jones, 2014 p. 44) -
Scientific Management: F.W.Taylor
Taylor defined the techniques of Scientific Management. This type of management studys the way people do tasks and how one can redesign the work process to become more efficient. He took a scientific way to specialization. He found the best way to produce a product then taught the most capable people those techniques to be as efficient as possible. (Jones, 2014 p.39,40) -
Refining Scientific Management: Gilbreths
The Gilbreths refined Taylor's Scientific Management idea by looking at specific tasks and breaking them down even further. They found ways to become more efficient in even the smaller tasks. They also looked at the idea of worker fatigue. The old idea of scientific management led to discruntled workers and monotonous job tasks. Things as simple as lighting, color, and temp of work place all contributed to this. (Jones, 2014 p.42,43) -
Theory of Bureaucracy: Max Weber
Weber came out with the five principles of Bureaucracy. He states that managers must create rules and that can be enforced to control company behavior. Weber states that managers must make a hierarchy of positions so employees know who to listen to and report to. This gives certain positions more authority and if they can perform those tasks better than other they deserve it. This allowed companies to become more efficient and effective. (Jones, 2014 p.46) -
Conveyor Belt: Henry Ford
Henry Ford initially took on the concept of Scientific Management and implimented that in his style of management. He and his production managers created the moving conveyor belt which helped him accomplish mass production. This created huge cost savings and dramatic output increases. (Jones, 2014 p.40,41) -
Fordism; Ethics
Henry Ford was a phenomenal entreprenuer. He was one of the most successful of his time. However he got too greedy which in the end hurt him. He got the most out of his employees by giving them double wages and decreased the work day by 1 hour. That however led to very strict rules and unethical management. Mangers would moniter behavior inside and outside of work which often times led to people getting fired if behavior wasn't appropriate. He became unethical. (Jones, 2014 p.41) -
Fayol's 14 principles
Henri Fayol, expanded on Weber's five theories and came up with 14 more precise ones. He added things such as employees being equal, ecouraged development of enthusiasm and comradeship and allowing employees to be creative and initiative. (Jones, 2014 p.47) -
Behavioral Management: Mary Follett
Follett focused on how managers should motivate employees. She thought that allowing employees to take initiative and solve problems in the work place or improve work routines and other such things would motivate employees since they have a sense of empowerment. Follett also believed that knowledge should decide who makes decisions not who is the manager and who is not. Instead the manager should act as a coach. (Jones, 2014 p.51) -
Hawthorne Studies
The Hawthorne Studies were studies that looked at how a managers behavior can affect a workers' level of performance. It was found that there was a direct relationship which then led to the human relations movement. This taught managers how to interact with employees to encourae productivity. After time a bond forms that allows everyone to work together productively. (Jones, 2014 p.52,53) -
"HP Way"
The "HP Way", took Theory Y and implimented it into their management. Dave Packard and Bill Hewlett, wanted to treat their employees with respect especially when it came to accomplishments and achievements. HP never laid off workers rather they just cut pay and hours which maintained loyalty to the company from workers. They created an informal and wandering environment so people could see what others were doing and provide positive feedback on projects. (Jones, 2014 p.54,56) -
Theory X
Douglas McGregor described Theory X as a set of negative assumptions about workers such as the average employee is lazy and will do as little as possible. To combat this Theory X states that managers should supervise employees very closely and create strict work rules and come up with rewards and punishments to control employees. (Jones, 2014 p. 53) -
Theory Y
McGregor also states that the opposite of Theory X can happen. In this instance employees will do whats good for the organization if given the chance. Managers allow workers to be creative and take initiative. It also states that mangers should give all the required resources to the employees to help them reach the organizational goals.
