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Scientific Management Theory
- Scientific management is used to increase productivity by looking at how people perform tasks. Scientific management theory occurred when crafts production was replaced by large factories. The engineers that were managing these factories were unprepared to manage many workers including the problems of people working together. F.W. Taylor was known for outlining the four principles of the scientific management. (Gareth R. Jones, 2014)
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Carnegie
Carnegie is a rags to riches story because he implemented scientific management strategies. He revolutionized the way iron ore was turned into steel. He was the first company in the U.S. to do every step of the process in one place. By turning iron ore into steel in one place and simplify the process he brought the price of steel from $135 a ton to $12 a ton. (Pg. 44) (Gareth R. Jones, 2014) -
Ford Cars
Although Henry Ford had some unethical control issues with his employees he did several things that advanced his company’s production. The conveyer belt increased production by making the assembly more streamline. Ford also reached out to his employees in a positive way. When his turnover was high due to unhappy employees, Ford shorten the shifts they had to work and doubled their raises. (Gareth R. Jones, 2014) -
The Gilbreths
The Gilbreth’s studied workers movements and efficiency. Their goal was to film a task and break it down to view how the task was being achieved and to see if there would be an easier way to do it. Later they focused their research on fatigue and stress and how that slows down efficiency. Their research gave insight on workers and new ideas in management. (Gareth R. Jones, 2014) -
Management Science
Management Science theory is a modern approach to scientific management (which studied the relationship between people and tasks). Management Science theory produces the goods and services of the company by using multiple techniques that help with organization. There are several branches of Management Science theory such as Quantitative management, Operations management, Total quality management, and Management information systems (Pg. 55). (Gareth R. Jones, 2014) -
Theory of Bureaucracy
Max Weber defined the principles for the Theory of Bureaucracy. This theory was used in Germany to help industries find a method of organization.
Principle 1: In a bureaucracy, a manager’s formal authority derives from the position he or she holds in the organization.
Principle 2: In a bureaucracy, people should occupy positions because of their performance, not because of their social standing or personal contacts.
etc. etc.
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Fayol's Principles
Henri Fayol developed 14 principles of management in 1890. They have been critical tools in helping modern managers and are a foundation for management research. The fourteen principles are:
Division of Labor, Authority and responsibility, Unity of command, Line of authority, Centralization, Unity of direction, Equity, Order, Initiative, Discipline, Remuneration of personnel, Subordination of individual interests to the common interest, Esprit de corps (Pg. 47)
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Hawthorne
The Hawthorne studies are a very interesting study. Managers conducted a two year test to see what could increase productivity or lower it. In the study there was no clear answer. It was concluded that the workers were happy to have the attention from the test and were therefore more productive. This means that the attitudes of the managers and how the workers feel about them changes the output. This is known as the Hawthorne effect
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Mary Follett
Mary Follett is called the mother of management. She noticed that management in previous years didn't look at the emotional or human aspect of work. She wanted to empower the worker. Follett thought the worker knows most about the internal details of their job they should be the ones to analyze and critique it, not the managers. She said “Authority should go with knowledge (Pg. 51)” She also developed the concept of “cross-functioning”
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Theory X
Theory X: employees are lazy and will not self-motivate for the good of the company. This requires the managers to have heavy controls in place and their job is to monitor employees. Henry Ford was an example of this kind of management (Gareth R. Jones, 2014) -
Theory Y
Theory Y: employees are self-motivated and will work for the good of the company. This means managers focus not on control, but on the workers needs and helps give them the resources they need to achieve. The HP company was an example of this kind of management. (Gareth R. Jones, 2014) -
W. Edwards Deming
W. Edwards Deming created the concept of quality first in 1950 where it was successful in Japan. His whole concept was that quality in product should be the major priority for the company and it should start within management. He had fourteen principles describing his philosophy. The second philosophy from W. Edwards Deming Quality Culture Mini-Paper by Dr. Stephen B. Vardeman states “2) Adopting the New Philosophy: Becoming a quality-driven organization requires everyone.
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Open System
Open-systems view came about in the 1960’s. The concept is that the organization of the company is said to be open to their environment. They take resources from the environment, transform them via machinery, and then they have the goods to sell. The cycle goes round and round taking and giving back to the “external environment” (Pg. 56). This view allows the organization to relate and work closely with its environment. (Gareth R. Jones, 2014) -
Contingency Theory
Contingency Theory is the interesting concept that “there is no one best way to organize” (Pg. 57). In this train of thought, organization needs to be different for each department depending on their external factors and environment. It is all about being efficient and productive, but the managers let the individual departments decide on which organization will yield the best results. (Gareth R. Jones, 2014) -
Affirmative action
Affirmative action is a policy that was put in place in the 1960’s in the U.S. It effected businesses, colleges, and politics. This is a vital policy for the U.S. to have in order to work towards amending inequalities in our society. According to American Civil Liberties Union.org “In 1993, black and Latino men were half as likely as whites to be employed as managers or professionals and much more likely to be employed as machine operators and laborers.”
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Mechanic Stucture
Mechanistic structure is used when the environment is stable. The leadership is focused at the top of the chain. For all other employees there are rules, guidelines, and procedures to follow. There is no room for leeway. McDonald’s is an example of this kind of management style. (Pg. 58) (Gareth R. Jones, 2014) -
Organic Structure
Organic Style is very much related to Mary Follett’s idea of authority in the individual and cross-functioning teams. This style of management is used when the market or environment are unpredictable. For example technology is changing so quickly that companies making products in this field often use an organic style. (Gareth R. Jones, 2014) -
Servant Leadership
Robert K. Greenleaf first coined the phrase “servant leadership” in 1970 according to Greenleaf.org. Greenleaf was dissatisfied with the top to bottom pyramid of power that was currently trending in the U.S. His train of thought was that the servant, a position typically considered at the bottom, could be a great leader. Servant leadership distributes the authority out and tries to do business in a caring and loving manner. (Robert K. Greenleaf Center for Servant Leadership, 2014) -
Transformational Leadership
James MacGregor Burns wrote about transformational leadership in his 1978 book Leadership. The concept of transformational leadership is about bettering all the people involved from management, to employee, to consumer by using morals. It was a team based method of leadership. Burns was considered a revolutionary figure in leadership. (The Transformational Leadership Publications, 2014) -
Steve Jobs
Steve Jobs was the leader and creator of Apple products. He has a reputation for being a mean spirited man and an egotistical employer. (In fact, he reminds me of a modern day Ford.) However, according to the article Faculty Insight: The Leadership of Steve Jobs by Ramon Henson Steve Jobs had “three qualities that great executive leaders have: a clear vision, a passion for the company and its people, and an ability to inspire trust.” (Henson, 2014)