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Andrew Carnegie and the New Industrial Company
Carnegie was an expert at cost reduction and profit increase due to his skills at utilizing resources efficiently. He invested in cost-saving and time-saving technologies and practices and managed to dominate his market in Steel. He also made great profits at the expense of his employees by paying minimal wages and increasing labor hours. (Jones, 43) -
Scinetific Management Theory Begins
F.W Taylor is the founder of Scientific Management, which is based on designing the process for effciency between the workers and the tasks. It is based on 4 principles:
Study the workers to simplify
Codify methods to rules
(Jones, 39)
Select workers with specialized skills
Establish the expected performance measure -
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Scientific Management Theory
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Administrative Management Theory
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Assembly Line Efficiency
In 1908, Henry Ford used Taylor's theory and prinicples to create a conveyor belt assembly line. His success was proved with the sale of 10,000 cars with a lower price.
(Jones, 41) -
Scientific Management as a Standard
Scientific Management became known at a national level. Most employers used Scientific management to some degree, but workers found themselves having to work more for the same wages.
(Jones, 40) -
Human Resources Initial Endeavor
The Chartered Institute of Personnel Development was founded in 1913 as the first Human Resource provider servicing private and public markets. The first endeavor was the Welfare Workers Association.
(Web, 2014) -
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Behavioral Management Theory
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Henry Ford raises wages
Henry Ford gave birth to the assembly line via conveyor belt. Ford followed Taylor, but he was one of many that only implemented increased output. Thus, the turnover rates were 300-400% because workers were not satisfied with the long days and repitition of their work activites as well as the increased production standards. Ford reacted. He shortened the work day to 8 hours and doubled the wages to maintain employees and reduce turnover. (Jones, 41) -
Gantt Chart
Gantt designed a project schedule that is still used today in Six Sigma initiaves to chart project efficiency from start to finish.
(Web, 2014) -
Fayolism
Henri Fayol developed the 14 principles and 6 general functions of management which outlined the comprehensive foundation for building management. Those principles and functions are still refered to today.
(Jones, 47) -
Theory of Bureaucracy
Max Weber created what we observe in the standard workplace environment. Bureaucracy includes 4 Principles:
- SOPs (Standard Operating Procedures)
- Task and Role Relationships
- Hierarchy of Authority
- Evaluation and Rewards System
The basic structure follows 5 keys: Rules, Specialization , Hierarchy of Authority, Qualified Employees, Separate Position, and Written Communication.
(Jones, 45-46) -
The Mother of Behavioral Management
Mary looked at organizations as groups rather than a hierarchy. She built her theory from the perspective of human relations.
“A large organization is a collection of local communities. Individual and institutional growth are maximized when those communities are self-governing to the maximum extent possible.” (Mary Parker Follett 1924)
(Jones, 51) -
Gilbreths input to workplace environment
Frank and Lillian Gilbreth studied Taylor and created what we would call today, policies and procedures. They would analyze, interpret and implement more efficient practices in creating these P&P's. After this, they moved to study the environment of the workplace and it's effect on the workers performance.
(Jones, 42) -
Behavioral Science of Mayo
Based on the Hawthorne Studies, Mayo identified that human relations and social needs of workers are important aspects of management and that employees need positive motivation.
(Jones, 42) -
Dale Carnegie Approach
Dale Carnegie authored a current best-selling book titled "How To Win Friends and Influence People." His teachings are based around positive human interaction and how to build positive relationships based on communication skills. Dale Carnegie Institute has expanded on these practices and offers teachings online and jobs as a teacher in these studies for Universitiy Professors. (Web, 2014) -
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Management Science Theory
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Organizational Environment Theory
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Organizational Environment Theory
This theory takes into consideration things that influence from outside of the organization via input, conversion and output.
(Jones, 56) -
McGregor and X:Y Theory
McGregor developed two types of assumptions about workers.
Type X doesn't like to work and is lazy
Type Y likes to work and is motivated to do a good job
Type X manager must micromanage to ensure work is completed
Type Y manager allows freedom to express skills and encourages
(Jones, 53) -
Katz, Kahn and Thompson's Open System
Spawned from Organizational Environment Theory, Open-Systems takes information from external sources, converts the data, and releases outputs for consumers to purchase.
(Jones, 53) -
Contingency Theory by Britian and the United States
Brits, Burn and Stalker along with Americans, Lawrence and Lorsch came up with the idea that "there is no one best way to organize." This doesn't mean that there shouldn't be strategy, but that the business should be flexible to environmental and external changes.
(Jones, 57) -
Greenleaf and Servant Leadership
This began as an essay by Greenleaf in which he explains the employee wants to serve. First the employee is a servant and then becomes a leader.
(Web, 2014) -
Japanese Theory Z
Ouchi developed Management Theory Z: How American Business can meet the Japanese Challenge in 1981 and lower turnover, increase job commitment, and increase productivity. Ouchi follows McGregors theory Y and builds that employers need to focus on employee well-being and build a job for life.
(Web, 2014) -
Chaos Theory
This theory claims that business follows the laws of nature in that management of business cannot be controlled. As systems become more complex they become more volatile until the break and diverge in an attempt to remain stable. The parts either converge with a better system or fall apart completely.
(Web, 2014) -
SWOT Matrix
SWOT Matrix is a method to identify strengths, weakness, opportunity and threats in any project or business venture.
(Jones, 237-240) -
Bill Gates Management Theory
BIll Gates has 9 Aspects outlined that attribute to his management style.
- Create the correct culture
- Develop a Clear Vision
- Hire Action-oriented employees
- Relax and feel at home
- Image is everything
- Success may be built on failure
- Keep the team on it's toes
- Ruthlessly protect your budget
- Stop the mad bureaucracy
(Web 2014) -
Radical Management
Radical Management practices were followed by the likes of Steve Jobs from Apple. The principles include:
- Delight Customers
- Managers Enable self-organizing teams
- Dynamic Linking
- From value to values
(Web 2014)
- Communications: Conversation -
Management Science Theory
Management Science Theory identifies the maximum use of resources with quantitative data via 4 branches. Overall, in this mathematical approach, management is shown as a logical and rational process.
-Quantitative Management using mathematical techniques
-Operations Management to use techniques to analyze
-Total Quality Management to increase product quality from the inside out
- Management Information Systems to provide managers
information about internal operations
(Jones, 55) -
Lean Practices of Six Sigma
Six Sigma is a quality initiative put in place initially by Motorola in 1986. Six Sigma uses statistical analysis of both qualitative and quantitative data to determine how to makes processes more efficient to the Sixth Sigma Degree (which is 100% improvement).
(Jones, 276)
