After the industrial revolution, managers from all business sectors were trying to find better ways to meet there customers' needs. Steam power and the development of machinery and equipment were changing the way goods were produced. Owners and managers were unprepared for the transition from small to large factories and work forces. (Jones, 2013)
Theory of Bureaucracy
Max Weber developed the principles of bureaucracy. It was a formal system of organization and administration designed to ensure efficiency and effectiveness. These principles include authority, standing based on performance, clearly specified positions, positions are arranged hierarchially, and managers must create a well defined system of rules. (Jones, 2013)
Fayol's Principles of Management
Henri Foyal also took a shot at creating principles that he believed essential to increase the efficiency of the manage process. They are more in depth and cover more area than Max Weber's similar principles. Some unique principles are Centralization, Equity, Initiative, and Remuneration of personnel. (Jones, 2013)
Carnegie sells to J.P. Morgan
1901 was the year that Andrew Carnegie sold his business, Carnegie Steal Co, to J.P. Morgan. This marked the end of his management career as he devoted himself to philanthropies. His approach to management was to continuously find ways to procude more goods at a cheaper rate. His biggest accomplishment came when he saw Sir Henry Bessemer's "hot blasting" techniques and took it over to the U.S. Critics of his approach will note how he treated his workers.(West Chiltington:Crystal Semantics, 2005)
F.W. Taylor's Principles
F.W. Taylor is best known for the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. He developed four principles, study the way workers perform their tasks, codify new methods, carefully select workers, and establish a fair and acceptable level of performance. By 1910, his system was nationally known and was being faithfully practiced. (Jones, 2013)
National Progressive Movement
Jane Addams played a prominent part in the formation of the National Progressive Movement. In 1912, when Theodore Roosevelt ran for President of the United States, Addams empathically declared her support for his progressive ideas. As a pioneer of the progressive movement, Jane Addams campaigned for new laws to support the rights of children. I feel like this is when the reformers started to gain traction in the fight against child labor. (Solomon-McCarthy, 2008)
With the turnover rate of his factories reaching rates of 300-400% per year, Ford needed to find a way to give his workers incentive to deal with the monotony and stress of the job. He found the solution by shortening the work day by one hour, for a total of 8 hours a day and by doubling the basic wage from 2.50 to 5.00 dollars per day. His generosity was matched by an intense effort. (Jones, 2013)
The Work of Mary Parker Follett
Mary Parker can be called the mother of management thought. Her writing about how managers should behave toward their workers was a response to her concern that other pioneers of management seemed to ingore the human side of the equation. Follet believed that if the workers had better knowledge, they should be in control of the process. A position termed manager shouldn't mean that they are always in control. (Jones, 2013)
This act marks the first time the Supreme Court makes a decision involving child labor. The act prohibited the sale in interstate commerce of goods produced by factories that employed children under fourteen, mines that employed children younger than sixteen, and any facility where children under sixteen worked at night or more than eight hours daily.(Solomon-McCarthy, 2008)
Attempts to Outlaw Child Labor
During the timespan, there were multiple court cases and attempts to fight child labor in the United States. They ranged from taxing businesses that use child labor all the way to outlawing it within the country. All of them were struck down by the Supreme Court. (Solomon-McCarthy, 2008)
Fair Labor Standards Act of 1938
The act applied to industries whose combined employment represented only about one-fifth of the labor force. In these industries, it banned oppressive child labor and set the minimum hourly wage at 25 cents, and the maximum workweek at 44 hours. (Grossman, 1978)
U.S. v Darby
It was not until 1941, U.S. v. Darby, upheld the Fair Labor Standards Act and reversed the case of Hammer v. Dagenhart. As a result of the many laws that were deemed as unconstitutional, children today can look back at history and be thankful for the road that was paved on their behalf. As it remains the Fair Labor Standards Act still exist and is recognized by highest ranking judicial body which for so long refused to establish them- the United States Supreme Court.(Soloman- McCarthy, 2008)
Theory X and Theory Y
Douglas McGregor developed an and approach to behavioral management after WW2. The two theories are named X and Y. Theory X assumes that the average worker is lazy and doesn't enjoy working. Theory Y says that employee are not inherently lazy and given the chance they will do what is right for the organization. Depending on which theory you subscribe to determines how you will manage your employees. (Jones, 2013)
Open Systems View
Part of Management Science Theory and the Organizational Environment Theory, Daniel Katz, Robert Kahn, and James Thompson viewed an organization as an open system. That means that it is a system that takes in resources from the outside environment and converts or transforms them into goods and services that are then sent back into the original environment. The three stages are Input, Conversion, and Output. (Jones, 2013)
Equal Pay Act
This act requires that a company pays men and women equal amounts if they are performing equal work. There has been improvements in the difference of amounts men and women make, but there is still almost a 200$ difference per week which is still too great.
Title VII of the CIvil RIghts Act
This portion of the Civil Rights Act makes discrimination within employment decisions based on race, religion, sex, color, or national origin illegal. The decisions include hiring, firing, pay, promotion, and working conditions.
In the United States, Paul Lawrence and Jay Lorsch developed the contingency theory that says there is no one best way to organize. The structures and the control systems that are chosen are contingent on characteristics of the external environment in which the organization operates. The environment affects the organization's ability to obtain resources and to maximize the likelyhood of gaining access to resources. (Jones, 2013)
Age Discrimination in Employment Act
Companies are no longer able to discriminate against people that are over the age of 40. The act also restricts mandatory retirement.
Pregnancy Discrimination Act
This act amended part of the Title VII of the Civil Rights Act of 1964. It prohibits discrimination against women in employement decisions based on pregnancy, childbirth, and other medical conditions.
Americans with Disabilities Act
This act not only prohibits the discrimination against disabled individuals in employment decisions, but it also requires that the employers make accommodations for disabled workers that will enable them to perform their job to the best of their ability.
Civil Rights Act
Expands on Title VII by allowing awards of punitive and compensatory damages, in addition to back pay, in cases of intentional discrimination.
Family and Medical Leave Act
Requires that employers provide 12 weeks of unpaid leave for medical and family reasons, including paternity and illness of a family member.
Ronald Heifetz's Research
Ronald Heifetz was researching the myths of the "Lone Ranger." The kind of success stories that say one person can bring a business from the bottom to the top through individual hard work. What he discovered throughout history was that, relatively simple (technical problems) are easy to deal with and top down leadership can solve them. More complex problems (adaptive problems) require a large amount of stakeholders to be involved. (Burns, 2004)
Fair Pay Act
This is an amendment to the Civil RIghts Act of 1964. This act says that the 180 day statute of limitations resets every time there is a paycheck with pay discrimination. This law directly adressed the Ledbetter vs. Goodyear Tire and Rubber Co. It was also the first bill signed into law by President Obama. (Brittan, 2009)
Development on Theory X and Theory Y
Richard Kopelman is attempting to delve into the theories created by Douglas McGregor. The two theories are hard to measure and results from them are not conclusive. Before Kopelman's research they were measured by only 4 items relating to each theory. He has developed 10 items to help determine which workers and managers fall into each category in an attempt to increase the practical implications of theories X and Y. (Kopelman, 2012)