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The New World
Since the United States was founded and was separated from Britain the population grew immensely. This then lead to economic success and people started finding the best solutions to effectively manage a group of people to get the best results possible. (Pearson p. 83) They were able to find a successful way in their new industrial world. -
British Companies Act
The British Companies Act was the first legal identification sharing what the responsibilities were for the management and the supervisors. (Pearson p. 94) It specifically laid out what jobs what needed to be done by whom so they would legally be correct. This way they avoided having to go through the shareholders. -
F.W. Taylor and Scientific Management.
The systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency or otherwise known as scientific management is thanks to F.W. Taylor. (Jones p. 39) He went on to say that specializing and dividing up the labor will increase the productivity. -
New Industrial Company
Andrew Carnegie was a Scottish man that immigrated to the United States with his family Having to work as a young boy there were many different job opportunities. (Carnegie) His big break came as a telegrapher. He then moved along in his career and eventually made it into the steal making industry, became very successful, and created the new industrial company. -
Gilbreths
Frank and Lillian Gilberth had a big part in the movement in the time-and-motion study. They wanted to accomplish three things. (1) Analyze every individual to perform a task and with component actions. (2) Find a better way to perform the action. (3) Recognize that action so is can be completed effifeintly. (Jones p. 42) One other important study they did was how physical characteristics and job stress added to performance. -
Fayols Principles of Management
Henri Fayol was the CEO of Comambault Mining when he identified 14 different principles to encourage effective management. (Jones p. 47) They were a huge part of the turn of the 20th century and are still prevalent in our business world today. Some examples are, division of labor, discipline, order, etc. -
Canal Transportation
The progress in the canal system was considered “the nations first big business.” (Pearson p. 88) By 1880 there were around 4,000 miles of canals through some rough terrain. This large new business required organization along with strong leaders to encourage their workers to get the job done right and fast. -
Henry Ford
Henry Ford was born into a large in Dearborn, Michigan Ever since he was a young boy he had an interest in mechanics especially cars. (Management) He then became a engineer and got a job with Edison Illuminating Company. He then continued on and found many very successful management techniques to create the most productive business possible. -
Business Colleges
As business became more of a necessity to everyday life there were more and more people that were going to get a business degree. By 1895 there were about 130,000 business colleges teaching people how to be effective managers. (Pearson p. 96) It was a ‘mental training’ that gave the students a advantage for what to expect in the business world. -
Fordism
The name comes from Henry Ford as he lead his team to the development of the conveyer belt. This helped production moved so much faster especially in cars. (Jones p. 41) By the year 1914 the conveyer belts had huge employee turnover somewhere between 300 and 400%. This however did lead to overworked employees. Ford found a way to even it our and received huge gains throughout the company. -
Technology
The world would not be where it is today without technology, the same goes for management as well. They needed to stay on top of technology so they could also keep up with the economic growth and technological innovations. (Pearson p. 158) Started with the steam engine and it has continued to develop from there. -
Administrative Management
Administrative Management is the study of how to create an organizational structure and control system that leads to high efficiency and effectiveness. (Jones p. 45) Carnegie and other scientific managers focused on this because for the person-technology mix so they could be as efficient as possible. -
Human Relations Movement
Following behind Taylor and the Gilbreths Follett’s work continued in the Hawthorne Studies and Human Relations. They wanted to increase efficiency in the workplace. For this study they looked into how the lighting and other tools could affect the employee and how fast they get tired. (Jones 52) This lead to the Human Relations Movement, that trains supervisors to create the best environment for their employees so they can expect the best production. -
Hawthrone Studies
The Hawthorne Effect goes along with the Human Relations Effect because not only was it also done by Follett was discovered through the same study. This effect however speaks more towards the attitude of the workers to their supervisors. (Jones p. 52) It states that if the worker has a good a attitude they will have a higher productivity. -
Berle and Means
According to “The Rise and Fall of Management” these two men had a strong interest in business. They looked into three specifics, ‘business ownership’, ‘business control’ and ‘participation in action on behalf of the business’. (Pearson p.94) They also stated that has the company grew the owners had less responsibility and the managers had more. -
Behavorial Management
After Taylor was done the next came the behavioral management, which is the study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to achieving organizational goals. (Jones p. 51) -
Concept of Corporation
Peter Drucker called his Concept of the Corporation the “warm-and-fuzzy” approach to management. (The Great Management Debate) They used the Hawthorne experiments as a guide but put his own spin on it. He treated his employees with care and throughout they all had the greatest potential. He thought that if he did this he and the company would be rewarded in the end. -
Theory Y
Theory Y I the opposite of Theory X. The employees will do good things for the company there for the managers will allow them to help with other parts of the job along with decision making (Jones p. 54) The higher the satisfaction of the employees the higher the production. This is something that managers what in their business. -
Theory X
Theory X is when an activity is done by an individual for their own benefit. (Ellerman p. 38) Because this it is also known as the lazy method. Employees who participate in this are only concerned about their own well-being and not the betterment of the company. Also known as the lazy way to go about completing the job. -
Portfolio History
Developed by Markowitz-“The father of the Modern Portfolio Theory” This theory speaks about how people are suppose to act. (Markowitz p. 5) There are two rules that are followed so they have the right amount of security. This gave people the most efficient portfolio. -
Contingency Theory
4 men developed the Contingency Theory: Ton Burns, G.M. Stalker, Paul Lawrence, and Jay Lorsch. The message that they wanted to send was that there is no one best way to organize. (Jones 57) That way supervisors have the freedom to control their activities how they would like in a way to get the most productivity out of their employees. -
Theory of Bureaucracy
The Theory of Bureaucracy came during the time of the German industrial revolution. Max Weber was the mastermind behind this theory and he stated that we have made formal systems of organization and administration to create a more efficient and effective workplace. (Jones p. 45) He also shared 5 different principles that reinforce the theory. -
Mary Parker Follett
Mary Parker Follett is considered the mother of management. Through her work she wrote numerous books statins how managers should treat and behave towards their workers. (Jones p. 51) She said that the key was communication and that no matter the status of the worker they should always be asked how things are going to improvements can be made. -
Management Training
As time went on they started to realize and appreciate a good manager. They then wanted to encourage their employees to be excellent workers and managers. There for that started training for the positions, otherwise known at The Practice of Management. (Pearson p. 156) This movement started at the larger companies then moved to small businesses. -
Michael Porter
Michael Porter is a professor at a business school and he had a different approach than many other theorists in the past. He was the author of Competitive Strategy and put a focus on stakeholders and pleasing them. (The Great Management Debate) They wanted to reward the stock shareholders to get the most profit. This turned out to be a risk and the greatest plan.
