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The Industrial Revolution (1760-1840)
Some forms of management have existed since the beginning of time. Ever since one human tried to direct another, ideas about management have been developing. The challenges facing business managers have not always been the same, however. Those challenges changed dramatically more than a century ago, during the industrial Revolution, and they continue to evolve. -
Scientific Management
1874 Frederick Taylor soon became foreperson. When he did he noticed that workers were not working as hard as they could have so he was trying to find a way to motivate them. He used a timewatch to figure out which work method was the most efficient, known as time and motion studies which enabled him to come up with scientific management. Scientific management seeks to increase productivity and make work easier. Companies today still use this method. -
Centralized Management
Founder of Ford Motors, Henry Ford, was widely known for his dictatorial style of management. Henry Ford kept tight control over his company. His management styles are still looked at today. -
Hawthorne Studies of Productivity
In 1924 researchers started exploring the Hawthorne plant of Western Electric in Cicero, Illinois. The lightning in the factory was lowered and expected to fall when the productivity increased. 5 years after more testing from Harvard, team productivity had increased. It is known as the “Hawthorne effect” they have also found effective supervision significantly affects both productivity and employee morale. -
Centralization VS Decentralization
In the early twentieth century, decisions at the largest American companies were made by a small group of senior managers. These companies had centralized management systems. -
Total Quality Management(TQM)
In the 1950s, W.Edward Deming created this system of management to involve all employees in the constant process of improving quality and productivity in the business by changing and improving how they work. This works to help satisfy both the customers and the employees. Deming wanted to make sure that the products that the companies were producing were not defective. He used mathematics to work on quality control which led to TQM. -
Theory X
Douglas McGregor identified theory X and Y in the 1960s. Theory X assumes people are lazy & avoid working. To make sure the employees work, Theory X managers impose strict rules and make sure that all the important decisions are made by them. -
Theory Y
Theory Y states that all employees are motivated not entirely by money but by the satisfaction of producing and be recognized by their company as a contributing member. -
Theory Z
The new theory of management was created in the 1980s by William Ouchi. This is a management theory that takes both Japanese and American business practices. They use the Japanese emphasis on collective decision making and concern for employees and the American emphasis on individual responsibility. -
Deming's 14 points
Adopting ideas on quality helped Japan transform itself into one of the most successful economies in the world.