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Andrew Carnegie's Steel Empire. Administrative Management.
Andrew Carnegie is considered the founder of the administrative management concept. His approach to business demonstrated that given the same labor and resources, a knowledgeable manager can achieve more effective and effecient productivity through structurization and planning. -
Henry Ford. Fordism
Ford's approach to business based on satisfying employees while achieveing company's goals. He reduced the workday down to 8 hours and doubled daily waige to 5 dollars. This strategy helped Ford increase employee's retainment and significantly increased productivity. -
Frederik Taylor. Scientific Management Theory/Taylorism
Taylor based his theory on four basic principles:
1. Thoughtful information management helps improving task performance.
2. Efficiency- and effectiveness-proven methods should be documented and introduced into code of conduct/rules.
3. Selection of workers should be based on demanded skills and abilities that mactch needs of a business.
4. Performance that exceeds minimul level/expectations should be rewarded accordingly. -
Frank B. and Lillian M. Gilbreth
Frank and Lillian Gilbreth are known for their studies related to composition of effective and effecient labor and the motion-fatigue component of it. With the help of motion picture cameras Frank and Lillian approached the process of working from the perspective of unnecessary actions that reduce performance. -
Henri Fayol. Classical School of Management. 14 Principles of Management
Henri Fayol was among the first who recognized basic components of effective and effecient management. Even though many of his ideas were described long before, Fayol was the first to organize and systemaze numerous theories into 14 main principles. "While Taylor was basically concerned with organizational functions, however Fayol was interested in the total" (History of Management Thought) organization and focused on management, which he felt had been the most neglected of business operations -
Logistics and Supply Chain Management.
Shortly after Henry Ford launched mass production, the concept of logistics and supply chain management became a hot topic. Need for transporting parts and components for the car manufacturer gave birth to the first educational program in those fields at Syracuse University.
no author, 2012. History Of Logistics And Supply Chain Management. Retrieved October 24, 2013. from http://www.manufacturing.net/articles/2012/05/history-of-logistics-and-supply-chain-management -
Henry Gantt. Gantt Chart
Started as an assistant for Taylor, Gantt continued his research on his own, and developed a system production schedule that is known as "Gantt Chart." It is known to be very helpful in planning and monitoring projects. It also assists in determining key points of a project and resource planning. (University of Oklahoma) -
Max Weber's Bureaucracy Theory.
The Weber's principles of bureaucracy were developed when centrally planned economy was dominating in west Europe and Eastern part of the Eurasian continent. According to Jones and George (2013), Bureaucracy is "a formal system of organization and administration designed to ensure efficiency and effectiveness" (p. 45).
Jones, G., & George, J. (2013). Contemporary management. McGraw-Hill -
The Hawthorne Studies
This event was among the first calls to look at business management in details. The Hawthorne Studies looked at correlation of the degree of illumination on productivity. It was also recognized that "workers' attitude toward their managers affect the level of the workers' performance" (Jones and George, p 53). -
Chester I. Barnard. Zone of Indifference
Barnard stated that organizations help people accomplish goals that they can't achieve on their own. "An enterprise can operate efficiently and survive only when the organization’s goals are kept in balance with the aims and needs of the individuals working for it." Barnard also recognized the concept of zone of indifference - a range of activities that go along with workers' ethical views. (Western Washington University) -
Mary Follett. Behavioral Management.
Mary Follett was among the first who recognized the importance of self-management at workplace. She stated that Taylor disregard a crucial aspect of production - the employee itself. According to Follett, workers know technical side of their profession much better than managers, so they should be granted with a certain degree of authority to manage their labor in order to achieve better efficiency and effectiveness.
(Mele, 2006) -
Wandering Around Management
This approach recognized the value and effectiveness of personal formal and informal communication between upper-level managers and first-line employees. "MBWA also works to configure views, opinions and beliefs of individuals about their organizations and motivate them towards productive work" (AlRawashdeh 2012. p. 2).
AlRawashdeh E. "The Impact of Management by Walking Around (MBWA) On Achieving Organizational Excellence among Employees in Arab Potash Company." Retrieved October 24, 2013 from -
Behavioural Science
The theory of needs hierarchy was introduced by Abraham Maslow. He believed that people's needs may vary from lower-level, being physiological needs, to higher-level needs, being self-actualization. However, it was later proved that this theory is not universal because values vary across the cultures. (Griffin, 2011) -
Just-In-Time Approach
The approach was invented by Toyota not long after the World War II. The concept completely changed operational management and inventory management. -
Theory X and Y.
Douglas McGregor, who introduced the two theories, looked at managemers through the prism of their opinion of workers. He believed that that managers' behaviour and attitude varies depending on how high they think of their subordinates. -
Management Science
The school of management science was based on quantitative analysis of business and pursued efficiency as its main goal. Robert McNamara is among the key persons when it comes to the management science approach as he proved it at Ford Company's factories.
Harvard Business Review, 2010. Retrieved October 24, 2013 from http://hbr.org/2010/12/robert-s-mcnamara-and-the-evolution-of-modern-management/ar/1 -
Organizational Environment Theory
This approach looked at business as a part of the bigger environment rather than an independent entity. Thus, interaction between businesses and external envrionment was recognized, and new conceptus such as open and closed system, synergy, enthropy and other were introduced. (George and Jones, 2013) -
The Contingency Theory
"According to the contingency approach the manager's task is to Identify which technique will, in a particular situation, under particular circumstances, and at particular time, best contribute to the attainment of management goals." (Western Washington University). In other words, there is no single approach for all situations. Thus, managers should act accordingly with a specific situation conditions. -
Peter Principle
The principle states that "workers are promoted to their level of incompetence." The idea of the theory was that the employee's performance falls as he or she gets promoted. The concept embraces short- and long-term promotion benefits and the way companies should look at it. -
Reverse Logistics
The concept of reverse logistics was introduced by William Zikmund and William Stanton. This concept had a significant impact on the managing segment of businesses and caused notable structural transformations. -
William Ouchi. Theory Z
Also known as the Japanese management approach, Theory Z states that employees are motivated by high goals and desire to learn. "Theory Z emphasises things such as job rotation, broadening of skills, generalisation versus specialisation, and the need for continuous training of workers" (Aydin, 2013. p. 25).
Aydin O. 2012. The Impact of Theory X, Theory Y and Theory Z on Research Performance: An Empirical Study from A Turkish University. Retrieved October 24, 2013 from www.managementjournal.info -
Peter Senge. Systemic Thinking.
Senge's approach recognized five fundamental blocks of an successful organization: Systems thinking, personal mastery, mental models, shared vision, and team learning.
Senge P. 1990. The Fifth Discipline. Retrieved October 24, 2013. from http://www.vedpuriswar.org/book_review/the_fifth_discipline.PDF -
Process Optimization
"Benchmarking and business process reengineering became popular in the 1990’s, and by the middle of the decade, 60% of Fortune 500 companies claimed to have plans for or have already initiated such projects. "
Kinal T. 2013. The Evolution of Management. Business Matters Magazine. Retrieved October 24, 2013 from http://www.bmmagazine.co.uk/in-business/advice/18436/the-evolution-of-management/ -
Management Information Systems
Wide spread of computers entailed mass integration of them into business industry. Management began to slowly flow from labor-focused ideology to computer-based ideology. Robotization and automatization of many processes symbolized a new era of management. -
Social Networks
Smooth integration of social network into people's lives changed the way human resources management worked. Later appearance of professional social networks such as LinkedIn, CoFoundr and the likes initiated a new wave of management reformations.
