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After the industrial revolution, steam power and development of sophisticated machinery and equipment were introduced, and large factories gradually replaced the crafts productions. Adam Smith had was one of the first writers to investigate the advantage of big factories production. The two main theories from him are job specialization and the division of labor (Jones & George, 2010).
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This theory can be described as “the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency”. Taylor discovered the way to study the workers’ performance on their tasks, and believed only if the works are assigned with the most suitable tasks, the most efficient the production will be (Jones & George, 2010).
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Max Weber developed the principles of bureaucracy, which is a system of organization and administration designed to ensure efficiency and effectiveness. The system is based on managers’ authority, specified system of tasks and role relationships and system of rules (Jones & George, 2010).
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The study of creating an organizational structure and control system that leads to high efficiency and effectiveness. It focuses on the system of task and authority relationships. Two main figures are Max Weber and Henri Fayol (Jones & George, 2010).
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Henri Fayol identified 14 principles of management that believed to be crucial to increase the efficacy of the management process. It maintained Weber’s principles of formal authority, but added the importance of informal authority (Jones & George, 2010).
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Henry Ford’s team invented the moving conveyor belt and assembly line, which greatly increased the manufacturing efficiency. Due to the work’s hate towards the moving conveyor belt, Ford then shortened the works’ working hours and doubled their wage to motivated the workers. Fordism has a great impact on management of production system (Jones & George, 2010).
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Mary Parker Follett is considered the mother of management thought. She studied of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goal. She also believed that the power should belong to people who have knowledge and ability, not the managers’ formal authority (Jones & George, 2010).
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This research was started to investigate how characteristic of the work setting affect workers’ fatigue and performance, but later discovered that workers are more productive while being observed. Also the researchers found the worker’s attitude toward their mangers affect the workers performance (Jones & George, 2010).
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Chester Barnard believed organizations need to be both effective and efficient, which means the organizational goals need to be accomplished and authority need to be accepted when workers feel satisfied that their individual needs are being met (Rasmussen, 2003).
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Total quality management began initially as a term to describe the Japanese-style management approach to quality improvement. W. Edwards Deming taught methods for statistical analysis and control of quality to Japanese engineers and executives. Joseph M. Juran developed the concepts of controlling quality and managerial breakthrough (Milosan, 2014)
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Systems Theory provides general analytical framework and perspective for viewing an organization. It allows the managers to widen lens through which they examine and understand organizational behavior.
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Abraham Maslow pointed out that every person is capable and has the desire to move up the hierarchy toward a level of self-actualization. When people are satisfied at the current stage, they will move on to the next stage. It is a useful theory for the managers to create incentives and motivations for the workers (Jones & George, 2010).
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Douglas McGregor proposed two assumptions about how work attitudes and behaviors affect how managers think and behave. Managers’ negative attitude towards the workers lead to supervision and control of the workers; positive attitude leads to opportunities and encouragement (Jones & George, 2010).
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Daniel Katz, Robert Kahn, and James Thompson developed this influential view of how an organization is affected by its external environment. During the process of converting the raw materials into the final goods, managers need to make the best decision to maximize the efficiency and effectiveness (Jones & George, 2010).
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Contingency theory indicates that the organizational structure and control systems are contingent to the organizations’ external environments. It means since the organizations have different characteristics of organizational environment, the managers should choose different manage strategies which best fit the organizations (Jones & George, 2010).
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Title VII of the Civil Rights Act of 1964 prohibits discrimination against employees on the basis of "race, color, religion, sex, or national origin. Managers are required to treat the workers fair and equally.
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About 1.8 billion servings of Coca-Cola products are sold around the world every day. During the years Coca-Cola developed a complex global supply chain management structure of plants, bottlers, warehouses and customers, along with multiple product lines following multiple supply chains with differing objectives.
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Six Sigma is a management philosophy developed by Motorola Company that emphasizes on reducing defects in production and services. It is a displined and data-driven approach (Yan, 2014).
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Steve Jobs has been considered an anomaly in management. His management style was something to admire or to criticize, but definitely not to replicate. Jobs showed that business and culture are not in contradiction, but rather they sustain each other.
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The Fair Labor Standards Act establishes the amount of the federal minimum wage, which is revised on a periodic basis. Because some states have a minimum wage higher than the federal minimum, managers should continuously verify the wages and can't require workers to work overtime without extra payings.
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