History of Management

  • Techniques of Scientific

    Principle three: Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures.
    Principle four: Establish a fair or acceptable level of performance for a task and then develop a pay system that rewards a performance above the acceptable level
  • Techniques of Scientific Management

    F.W. Taylor comes up with four principles of scientific management and essentially begins the study of how to manage.
    Principle one: Study the way workers perform their tasks, gather all the informal job knowledge that workers possess, and experiment with ways of improving how to tasks are performed.
    Principle two: Codify the new methods of performing tasks into written rules and standard operating procedures.
    Principle three: Carefully select workers who possess skills and abilities that match
  • Carnegie and Steel Inovations

    After noticing that British steel was much better than steel made in America Carnegie made adjustments to ensure that instead of steel being manufactured in separate processes at different locations it was made very efficiently at one location. Brought price of steel from 135$ down to 12$. Other managing styles of his were to cut cost any way possible. He gradually raised work hours to 12 hours a day and 6 days a week as well as underpaying his workers tremendously.
  • Webers Priciples of Buraucracy

    Webers Priciples of Buraucracy
    At the turn of the century Max Weber wrote his principles of Bureaucracy to help manage Germany’s industrial revolution.
    Principle 1: A manager’s formal authority derives from the position he or she holds in the organization.
    Principle 2: People should occupy positions because of their performance not because of their social standing or personal contacts.
    Principle 3: the extent of each position formal authority and task responsibilities and its relationship to other positions in an organization
  • Webers Priciples of Buraucracy (continued)

    Principle 3: the extent of each position formal authority and task responsibilities and its relationship to other positions in an organization, should be clearly specified.
    Principle 4: Authority can be exercised effectively in an organization when positions are arranged hierarchy, so employees know whom to report to land who reports to them.
  • Fayol's 14 Principles

    Fayol's 14 Principles
    Working at the same time as Weber, Fayol came up with his 14 principles of management. These were deemed essential to management and are still used as the foundation of management practices today.
  • Henery Ford Starts to Use Conveyer Belt

    The scientific principles had spread to the car industry. Henry Ford took advantage of principle three especially and created a moving conveyer belt and a specialized work force to increase the level of output his factory could produce. His conveyer belt pushed workers to rates of work that they themselves did not know that they could achieve.
  • Mother of Management

    Mother of Management
    Mary Parker Follett wrote a lot about the way managers should behave toward workers and was a response concerning Taylor’s lack of acknowledging the human side of the organization. Follet proposed that "Authority should go with knowledge wither it is up the line or down.” Follet’s behavioral approach to management was very radical for its time.
  • Ford Deals With Large Employee Turnover

    Ford was producing a massive amount of cars but at the same time was driving away employees due to the hard work necessary to keep up with the conveyer belt. Employee turnover reached as high as 400%. To encourage workers Ford doubled pay and shortened the daily hours from 8 to 9. The term Fordism was coined for his new approach.
  • Folowers of Taylor

    Frank and Lillian Gilbreth who further refined Taylor’s study had three major aims:
    1. Analyze every individual action necessary to perform a particular task and break it into each of its component actions.
    2. Find better ways to perform each components action.
    3. Reorganize each of the component actions so that the action as a whole could be performed more efficiently.
  • Behavioral Management Movement

    This theory thought that the scientific theory of management was incomplete. The behavioral management movement is primarily concerned with psychology, motivational and leadership. This led to better managing practices and more efficient work environments.
  • Hawthorne Studies

    The goal of these studies was ultimately to increase productivity. The first results of the study, provided that productivity only decreased when the amount of light let in was dropped to a moonlight level were workers could not see what they were doing. What the studies ultimately lead to is the Hawthorne Effect. This is that workers’ attitudes toward their managers affect the level of workers’ performance. From this derived the human relations movement, which advocated management training.
  • 1934 Charlie Chaplin Movie

    1934 Charlie Chaplin Movie
    In Chaplin’s film “Modern Times” a scene features a worker at a factory trying to keep up with the fast pace of the machine. The character eventually loses the battle to the machine. The complex machinery was meant to represent the power that machinery has over the worker in the new work system.

    Luther Gulick first used this still popular acronym. It stands for planning, organizing, staffing, directing, coordinating, reporting and budgeting. It was basically an extension of what Fayol had already set up but this model focused on limiting the amount of workers per manager.
  • Theory X

    Theory X
    Theory X is the theory that an employee is typically lazy, dislikes work, and will try doing as little as possible. This theory assumes that managers will have to keep a close eye on employees at all times and should closely supervise at all times. Rules and regulations are also a must while this theory is in place in an organization.
  • Theory Y

    Theory Y
    This theory, essentially the opposite of theory X, views employees as not inherently lazy. The theory states that, given the chance, the employee will do what is best for the company. Managers must create an open work environment to allow workers to flourish and exercise self-direction. All managers must really do is give employees the necessary tools to succeed and the rest becomes the responsibilities of his or her subordinates.
  • Administrative Behaivor

    Simon Herbert developed a theory that questions thinking process of an individual. Herbert thought that an employee making a rational decision is not thought to be optimal. A rational decision was dictated by the external environment and Herbert thought this to be satisficing the decision. He believed in coming up with an optimal decision rather than a suitable one.
  • Game Theory

    Game Theory
    Game theory is the study of strategic decision making. It studies conflict and cooperation between intelligent rational decision makers. It applies to a wide range of behavioral relations. Modern game theory began with the idea about mixed strategy equilibrium in two-person zero-sum games. Von Neumann’s original proof used fixed-point theorem which became a standard method in game theory and mathematical economics.
  • The Science of Muddling Through

    The Science of Muddling Through
    The science of muddling through was written by Charles A. Lindblom. “He criticized the rational models of decision making. He argued that, in reality, the rational models did not work and, therefore, decision makers depended on small, incremental decisions” This made decision making even more important because it stressed that each individual decision was very important.
  • Open Systems View

    The definition of the open system states a system that takes in resources from its external environment and converts or transforms them in to goods and services that are sent back to that environment, where they are bought by customers. Manufacturing companies that use this process are companies like Ford and General Electric. They buy parts and pay for labor and computer skill to produce a product and add their own technology into the inputs and outputs of cars and appliances.
  • management jungle theory

    management jungle theory
    In this theory Kootz wanted to identify that human resources and the quantitative approaches were tools rather than management approaches. His theory wanted to incorporate the best parts of both approaches. It basically says that that the process a manager goes through is circular and is repeated many times over time. Managers continually plan organize, lead and control and once finished, start the process over again.
  • Equity Theory

    Stacey Adams developed this in 1963. It is a theory that looks at the employees thoughts on how fairly they are being treated compared to others in the same field of work. It consists of two parts; external equity and internal equity. “External equity exists when employees performing jobs within a firm are paid at a level comparable with those paid for similar jobs in other firms. Internal equity exists when employees are paid according to the relative value of their jobs within the organization
  • Contingency Theory

    The most important part of the Contingency Theory is that there is no best way to organize. The theory is simply that the managing style is different for every situation and is contingent on the external environment of the organization.

    Maslow’s theory focused entirely on the need of the people. Managers used this in order to try to keep subordinates happy and keep an organized functioning organization. His five needs were as follows:
    * Self-actualization
    * Self-esteem
    * Belongingness needs
    * Safety needs
    * Physiological needs
  • Hofer and Schendel

    Hofer and Schendel realized that there was three major areas of disagreement; the concept of business strategy, the components of strategy, and the inclusiveness of the strategy formulation process. The area they failed in was to examine the common pieces of each concept. The defined strategy as a means to provide direction to the organization which allows it to achieve its objectives while responding to both environmental opportunities and threats.
  • Success of Peters and Waterman

    Success of Peters and Waterman
    Peters and Watermen, when asked about the success of their companies came up with three sets of principles that were very similar to Fayol’s 14. One was, top managers create principles and guidelines that emphasize managerial autonomy and entrepreneurship and encourage risk taking and initiative. Another strategy of top managers is to create one main centralized goal for the whole company. The third set of principles pertains to organizations and how top companies establish quality organization
  • Focus Shifts to Brand Heritage

    The emergence of consumers needing a company that they can familiarize with and be a part of has also brought changes into management theory. Managers now have to organize to show that their organization can be unique and customers can identify with them. Research shows that consumers are now looking to be a part of the brand rather than searching each one for the optimal product. Establishing brand heritage and managing around that heritage has been crucial to an organizations success.