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The Shermann Anti-Trust Law was the first measure passed by the US Congress to prohibit trusts. Trusts were used to destroy competition, the Shermann Law puts such acts illegal.
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formal system for organization and administration to increase efficiency and effectivness.
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When Henry Ford and his managers came up with the idea of a convayer belt for manufacturing which greatly improving the speed of production.
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The use of Tolors systmes scientific management was nationally used and it was working. However, instead of giving workers bonuses like stated, workers were given more work to do and others were laid off. Dissatisfaction in jobs rose. Workers became distrustful of managers.
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Fayol, CEO of Comambault Mining, identified 14 principle, he believed, essential for an increase in efficiency of management process.
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Taylor turned management from an art to science by developing the four principles of scientific management. It is the foundation for management today.
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Mary Parker Follett was concerned about the human side of the organization. About letting emplayee's participate and exercise initiative may benefit the company.
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Elton Mayo questioned the behavioral assumptions of scientific management. It was decided that the human factor at the work place was more impartant then the conditions to motivate imployee's.
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Supervisors should be trained(behaviorly) to manage subordinates to elicit coorperation for better productivity.
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Managers using quatitative techniques to maximize the use of resources to produce goods and services.
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How managers should behave to motivate their employee'sand encourage them to perform at a higher level.
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Kurt Lewin researched organized development and studied group dynamics. He discovered that learning is best used when there is a conflict between experience and detached analysis or a person.
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Sociotechnical Systems Theory considers social and technical aspects when designing jobs. There are four basic components to sociotechnical theory:
◦environment subsystem
◦social subsystem
◦technical subsystem
◦organizational design.
(research led by Eric Trist) -
First company to make steel fast. Carnigie invested in new technology as he set up his businessand using new methods to make steel faster then any other company.
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From Maslow's hierarchy of needs theory, the hierarchy of needs says that higher needs, such as self-actualization, is expressed only after lower needs are fulfilled first.
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Douglas McGregor's Theory X and Theory Y principles influence the design and implementation of personnel policies and practices.
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There is no one way to organize. The organizational structure chosen depends on the external enviroment of the company.
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The same people who wrost about the contingency theory also spoke of these two structures.
Mechanical structure-authority is centralized at the top with a vertical hiarchy.
Organic structure-authority is more near the middle with loxer manageres encouraged to take responsibilty. -
It values teams and leadership throughout the ranks. He called for five disciplines:
◦System Thinking
◦Personal Mastery
◦Mental Models
◦Shared Vision
◦Team Learning -
On December 11, 1995 a fire burned most of Malden Mills to the ground and put 3,000 people out of work. Most of the 3,000 thought they were out of work permanently. CEO Aaron Feuerstein says, “This is not the end” — he spent millions keeping all 3,000 employees on the payroll with full benefits for 3 months until he could get another factory up and running. Why? He answers, “The fundamental difference is that I consider our workers an asset, not an expense.”
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This is actually a slow advance in process management that has the following roots:
◦Record Management
◦Workflow - 1970
◦Business Process Re-engineering (BPR) - 1990
◦Business Process Management (BPM) - 2000 -
They refinced Taylors analysis of work monments even taping workers and breaking the process down. They noticed how stress, fatigue and other small factorscould effect the performance.