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Scientific Management Theory Established
On a quest for increased efficiency in the workplace, Frederick W. Taylor observed, experimented, and studied people while they worked. His four main goals include: study workers to gather the knowledge they possess to better improve how they perform tasks, codify these methods into written rules, match skills and abilities of the worker with the task at hand, establish an acceptable level of performance and develop a pay system (Jones & George, 2014). -
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History of Managment
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Ford Corporation Founded
Henry Ford is still known today as a solid example of charismatic leadership in managment. He considered issues from multiple points of view and was a firm believer in the power of enthusiasm. Ford focused on the "good of the whole" as he concentrated his efforts on designing an inexpensive vehicle rather than luxurious. Ford knew significance of a company to have unity of direction, and set the bar for future businesses (Novicevic, Williams, Abraham, Gibson, Smothers, & Crawford, 2011). -
Railroads go Scientific
The Santa Fe railroad hired Harrington Emerson to restructure their Topeka, Kansas city shops. The company specifically asked him to “increase output without increasing shop equipment". Before his arrival, the railroad primarily focused on high quality materials and machinery power. The company encouraged its employees to work faster but gave them no tools with which to increase their efficiency. Emerson enforced policies of specialization, standardization and centralization (Aldrich, 2010). -
Theory of Bureaucracy
The German sociology professor, Max Weber, developed this control system theory to ensure efficiency and effectiveness in an organization. His five main principles include: clearly specified hierarchy of authority, specific system of tasks and role relationships, implementing a selection and evaluation system to reward employees justly, and specific written rules and standard operating procedures to direct employee's behavior and actions (Jones & George, 2014). -
Carnegie's Principles of Leadership
Dale Carnegie was a man with a strong conviction about the importance of teaching people how to interact with one other in business and throughout everyday life. He developed leadership principles which have now evolved into worldwide training and consulting programs. Some of his principles include: authenticity, effective communication, motivation, sincerity, teamwork and listening (Novicevic, Williams, Abraham, Gibson, Smothers, & Crawford, 2011). -
Frank and Lillian Gilbreth
Frank and Lillian Gilbreth were followers of Frederick Taylor and his Scientific Management methods. Their research contributed to the time-and-motion study with the goal of maximizing efficiency in an organization. Eventually the Gilbreth's research allowed them to uncover the idea that certain physical characteristics in the workplace, such as lighting, color, and heating, will effect worker fatigue (Jones & George 2014). -
Administrative Management Theory
Henri Fayol was a French CEO of Comambault Mining. Along with Max Weber, he developed one of the two theories that administrative management is built upon. Fayol came up with 14 principles that he believed were key to running a successful organization. He agreed with Weber's principles but also emphasized the importance of the informal role of authority in a business. Fayol was also an advocate of employees being treated with justice and respect (Jones & George, 2014). -
Behavioral Management Theory
Mary Parker Follett made radical contributions to the more human behavioral aspects of an organization. She believed that a manager's behavior in the workplace can have a strong effect on an employee's performance. Follett was an advocator for employee empowerment and self- managed teams. She stated that "authority should go with knowledge" and argued that a worker's opinions and experience should be taken into account when developing work processes (Jones & George, 2014). -
Myers-Briggs Indicator
This psychological instrument was developed to indicate and measure preference differences in individuals. Personality preference can been seen by how a person acts and thinks. This tool can be constructively used to organize and match up the differences in people with their personality type. It has been valuable in the business industry to explain leadership behavior and help organizations chose appropriate managerial personalities (Krumwiede, Sheu, & Lavelle, 1998). -
Human Relations Movement
The human relations movement is based on the concept that when supervisors receive proper managerial behavior training, it will result in increased productivity and cooperation from their subordinates. It is also important that managers understand the workings of informal organizations and their behaviors. This approach emerged from the research that came to be known as the Hawthorne studies (Jones & George, 2014). -
"HP Way"
Dave Packard and Bill Hewlett built their electronics company on the principles of theory Y. They were one of the first companies to model a people orientated approach to management emphasizing the importance of treating their employees with consideration and respect, as well as offering recognition for achievements. These policies resulted in low turnover, increased creativity and loyalty to the organization among their workers (Jones & George, 2014). -
Theory X
Theory X was the first set of assumptions designed by Douglas McGregor. In an attempt to describe how attitudes and behaviors at work can affect how managers treat others. Theory x is a set of negative assumptions that, when accepted by managers, will influence them to maximize control over their workers. The assumption that workers are lazy will lead managers to supervise workers closely and implement strict rules and systems (Jones & George, 2014). -
Theory Y
Theory Y is the second series of assumptions developed by Douglas McGregor. Unlike theory x, these managerial attitudes are based on positive assumptions about workers in an organization. A managerial style based on this theory will encourage workers to be imaginative, self-directed, and to show personal initiative while in the work place. A manager's role is to not control their employees, but to provide support and encouragement (Jones & George, 2014). -
Management Science Theory
This contemporary approach to management makes use of quantitative techniques to aid managers in maximizing their organizational resources. It is made up of four subset branches that individually addresses a different issue that managers face on a day to day basis. These four branches are: quantitative managment, operations managment, total quality management, and managment information systems (Jones & George, 2014). -
Organizational Environment Theory
This theory focuses on an organization's external environment and how it impacts a manager to make decisions regarding how to effectively utilize resources. Certain forces and conditions can make it difficult for a manager to acquire resources such as raw material and skilled workers, thus increasing the effort needed to provide for a company financially (Jones & George, 2014). -
Open Systems Theory
Developed by Daniel Katz, Robert Kahn, and James Thompson, these theorists looked closely at how an open system organization takes external resources and converts them into goods and services that are then bought by customers and returned to the environment. The revenue a company obtains from this system is used to acquire more external resources and hence continues the cycle (Jones & George, 2014). -
Contingency Theory
This theory was developed by Tom Burns, G.M. Stalker, Paul Lawrence and Jay Lorsch. Based upon the principle " there is no one best way to organize", this idea teaches managers that the control system they choose to use is dependent on each unique individual organization (Jones & George, 2014). -
Civil Rights Act
This law was passed as an ethical guide for managers to rely on when making employment decisions. This act prohibits discrimination on the basis of race, religion, sex, color, or national origin. It also provided a list of regulations to follow when making decisions such as hiring, firing, and promoting. The type of working conditions that an organization should have is also clearly laid out (Jones & George, 2014). -
Mechanistic Structure
This principle of organization and management based on theory x was further identified by Tom Burns and G.M Stalker. The characteristics of a mechanistic structure can be identified in the centralization of authority, clearly specified tasks and rules, emphasis on strict discipline and order, and the close supervision of employees within a company (Jones & George, 2014). -
Organic Structure
This is a type of organizational structure that has a decentralized chain of authority leaving more responsibility to the middle and first-line managers. In this type of structure, tasks and roles are left ambiguous to encourage employees to cooperate with each other. A positive outcome of this type of structure is that workers learn how to actively respond to unexpected events (Jones & George, 2014). -
The Servant as Leader
This concept was developed by Robert Greenleaf with the intent of creating a more harmonious and thriving workplace atmosphere. Greenleaf believed that effective leaders are ones who listen and strive to serve the needs of their followers. This idea claims that by being a servant leader your subordinates will willingly choose to follow you and thus benefit the organizational society as a whole (Quatro, 2004). -
Visible Hand of Managers
This is a published theory of the well-known management historian Alfred D. Chandler Jr. His philosophies emphasized the importance of communication and the use of managerial hierarchy as an information network. He greatly impacted the business world and unveiled how studying management is important to society (Chopin, 2007). -
Theory Z
William Ouchi's theory Z is known to the U.S as Japanese management theory. The focus is to build trusting communal relationships that will help develop in-tune sensitivity to one other within an organization. This is a mixed model in which individual freedom and group cohesion co exists. Companies using this management theory can be identified by their low turnover and the high loyalty and morale found among their employees (Sullivan, 1992). -
Proactive Environmental Management
Viewed by some as the new industrial revolution, Proactive Environmental Management is a result of society's demand on the government and corporations for pollution control and environmental cleanup. This system is a combination of five major approaches which include: waste minimization and prevention, demand-side management, design for environment, product stewardship, and full-cost accounting (Berry & Rondinelli, 1998). -
New United Motor Manufacturing Inc.
This was a joint venture done by General Motors and Toyota in which management used the time and motion concepts from Fredrick Taylor to increase their productivity and quality while still adhering to worker satisfaction and motivation. During this process workers learned how to analyze their work and participated in decision making which resulted in increased efficiency (Kulesza, Weaver, & Friedman, 2011).
