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Scientific Management Theory
Frederick W. Taylor is most associated with the theory, which was a systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. The four principles are:
1) Study the way workers perform their tasks.
2) Codify the new methods of performing tasks into written rules and standard operating procedures.
3) Select workers that possess skills matching needs of task.
4) Establish fair level of performance.
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Job Specialization
This is the process by which a division of labor occurs as different workers specialize in different tasks over time. This is one way to maximize efficiency.
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Andrew Carnegie
Andrew Carnegie improved the railroad industry in the states as a result creating the cheapest steal, paying lowest wage rate and maximizing his profits. Carnegie's "hardnosed management" consisted of lengthening already long work days from 10 hours to 12 while also having a 6 day work week. Carnegie crushed any attempt for his employees to unionize which pushed a need for Administrative Management towards the end of the 19th Century. (Jones & George, 2014) -
Administrative Management
Administrative Management was the study of how to create an organizational structure (system of task and authority relationship that controls how employees use resources to achieve organizational goals) and control system that leads to high efficiency and effectiveness. (Jones & George, 2014) -
Bureaucracy
During Germany's industrial revolution, Max Weber created bureaucracy, a formal system of organization and administration designed to ensure efficiency and effectiveness. the 5 principle are:
1)Manager's authority derives from position he holds
2)People occupy positions based on their performance
3)Tasks should be clearly specified
4)Authority can be exercised effectively so employees know who to report to
5)Managers create well-defined system of rules and norms.
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Henri Fayol's 14 Principles
Fayol, CEO of Comambault Mining developed these 14 principles of management:
1) Division of Labor
2) Authority and Responsibility
3) Unity of Command
4) Line of Authority
5) Centralization
6) Unity of Direction
7) Equity
8) Order
9) Initiative
10) Discipline
11) Remuneration of Personnel
12) Stability of Tenure of Personnel
13) Subordination of individual interests to the common interest
14) Esprit de Corps
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Behavioral Management Theory
Behavioral management theory is the study of how managers should behave to motivate their employees and to encourage them to perform at the highest levels possible while being committed to the achievement of organizational goals.
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Mary Parker Follet
Mary Parker Follet advocated for "cross-functioning" which was where members of different departments worked together in cross-departmental teams to accomplish projects. This is increasingly being used today.
"Authority should go with knowledge....whether it is up the line or down"-Mary Parker Follet
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Fordism
In 1913, Henry Ford changed the production of automobiles and shaped the way the future car would be made. He introduced an assembly line that increased efficiency. This assembly line was the best way to organize and control the process. Each worker performed one task along the production line. This was coined as "Fordism." (Jones & George, 2014) -
Hawthorne Effect
The Hawthorne studies took place from 1924-1932. This was an attempt to investigate how characteristics of the work setting (lighting or illumination) affected working fatigue and performance. All the attention researcher were giving the workers increased productivity. This turned into the Hawthorne Effect (manager's behavior or leadership approach can affect workers' level of performance). This brought on the Human Relations Movement. (Jones & George, 2014) -
Human Relations Movement
The human relations movement advocated the idea that supervisors should receive behavioral training to manage subordinates in ways that elicit their cooperation and increase their productivity. This fed off of the Hawthorne effect. (Jones & George, 2014) -
Theory X
After World War II, Douglas McGregor developed two sets of assumptions about employees. Theory X stated that the average employee is lazy and dislikes to work, trying to do as little work as possible. To ensure that employees work hard, McGregor believed managers should closely supervise employees and that managers should create strict work rules and implement a well-defined system of rewards and punishments to control employees. Theory X is the contrary of Theory Y. (Jones & George, 2014) -
Theory Y
Following WW 2, Douglas McGregor proposed two assumptions about the average employee. Theory Y stated that employees are not inherently lazy. Given the chance, employees will do what is good for the organization. Theory Y allows employees to work in the organization's interest, and managers must create a work setting that provides opportunities for workers to exercise initiative and self-direction. Contrary to Theory X, managers should decentralize authority to employees. (Jones & George) -
POSDCORB
POSDCORB is a popular acronym associated with management. It was used first by Luther Gulick. It stands for planning, organizing, staffing, directing, coordination, reporting and budgeting. This extended and built on what Fayol had already built for management. A major difference of Gulick’s model was eliminating the number or workers a supervisor would be responsible for.
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Operations Management
Part of Management science theory, operations management gives managers a set of techniques they can use to analyze any aspect of an organization's production system to increase efficiency.
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Quantative Management
Part of Management Science Theory, Quantative Management dealt with mathematical techniques, such as linear and nonlinear programming, modeling, simulation, queuing theory and chaos theory, to help managers make decisions. An example would be how much inventory to hold at different times of the year and where to locate a new factory and how best to invest an organization's financial capital.
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Total Quality Management
Also part of the management science theory, Total Quality Management (TQM) focuses on analyzing an organization's input, conversion, and output activities to increase product quality. Managers focus on making sure all products produced are of the highest quality before sold.
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Management Information Systems
The final part of management science theory is Management Information Systems (MISs). These give managers information about events happening inside of their organization as well as what is occurring externally. This helps managers of all levels make decisions because they are being better informed. (Jones & George, 2014) -
Lewin's change management model
Kurt Lewin, a psychologist, proposed a change management model in the 1950’s that noted three stages of change.
1) Unfreeze – Most people will resist change. To overcome this, an “unfreezing” must be initiated to move forward through motivation.
2) Transition – Once change has occurred, the company enters a long transition period. Good leadership and reassurance is necessary for this to run smoothly.
3) Refreeze – Accept the new change and implement it.
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Organizational Envirnment
The set of forces and conditions that operate beyond an organization's boundaries, but affect a managers ability to acquire and utilize resources. These include raw materials and skilled people that an organization requires to produce goods and services as well as the support groups, including customers.
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Lean Manufacturing
Japanese producer Ohno Taiichi visited Ford's assembly line and found ways to improve it. Lean manufacturing stated if workers have input and can participate in decision making process, their knowledge can be used to increase efficiency.
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Contingency Theory
The contingency theory is the idea that the organizational structures and control systems managers choose depend on characteristics of the external environment in which the organization operates. The characteristics, according to this theory, affect an organizations ability to obtain resources, and maximize the likelihood of gaining access to resources.
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McKinsey 7-S Model
Robert Waterman and Tom Peters designed a model that is used to monitor changes of an organization. For an organization to perform well, these seven elements need to be aligned. The seven independents include 3 hard elements and 4 soft elements.
Hard Elements:
-Strategy
-Structure
-Systems
Soft Elements:
-Shared Values
-Skills
-Style
-Staff
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John Kotter's 8 Step Change Model
Kotter believed these were the best 8 steps in order to create change.
Step 1: Create Urgency
Step 2: Form a Powerful Coalition
Step 3: Create a Vision for Change
Step 4: Communicate the Vision
Step 5: Remove Obstacles
Step 6: Create Short-Term Wins
Step 7: Build on the Change
Step 8: Anchor the Changes in Corporate Culture
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Change Management VS. Change Leadership
Change management is a set of processes and a set of tools and mechanisms that are designed to make sure changes do not get out of control and problems do not occur through the changes. Basically, making a big change but keeping it under control. Change leadership is making the change go faster, smarter and more efficiently. Change management is with smaller changes, change leadership is for larger changes.
(Kotter, 2011)
