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F.W Taylor
Taylor came up with four principles of scientific management which was groundbreaking at the time. His four principles read:
-Study the way workers perform their tasks, what can be improved.
-Carefully select workers who possess skills and abilities to match the needs of the task.
-Codify the new methods of perfroming tasks into written rules and SOP's.
-Establish a fair level of performance for a task and develop a pay system. -
Scientific Management
Introduced by F.W Taylor, his principles of scientific management stuck with the automobile industry right away. Henry Ford relied heavily on the third principle of Taylor's findings by creating a conveyor belt that shot his workers' performance through the roof. -
Andrew Carnegie- New Industrial Co.
Carnegie recognized the downside of specialization in the process of making railroad materials. He also recognized that British mills produced a higher quality of railroad materials than U.S mills. The technology he discovered led him to the U.S to implement what he'd discovered. His low cost of production, high productivity strategy led him to being one of the richest men in the world. He did not practice reasonable wages, safety, hours, etc. for his employees even as their skills increased. -
Theory of Bureaucracy
First put into practice by Max Weber, he stated that to ensure efficiency and effectiveness there must be a formal system of organization and administration in place. This idea led to companies to implement standard operating procedures, or, instructions of how to act in standard situations to increase performance. -
Fayol's Principles of Management
Fayol worked at the same time as Weber, however, they worked independently. Weber came up with 14 principles of management. Though these principles were developed so long ago, many are firmly intact at the core of management operations still today. They include things such as: Division of labor, Authority and responsibility, Centralization, Equity, Order, and Discipline, just to highlight a few. -
Mary Parker Follett
Her work was in response that Taylor was not addressing the human side of an organization. Follett argued that since workers know the most about their jobs, they should be included in the job analysis and managers should encourage this. Believed that power is fluid and should flow to who can best help the organization. This idea is a widely agreed upon view in management still today. -
Fordism
Fordism is a term that stemmed from Henry Ford recognizing a problem within his company and what he did to assertively end the problem. Workers were being worked long hours for low pay in a very monotuous environment due to the conveyor belt. Ford wanted to eliminate the high turnover rate of employees so he doubled pay and cut their hours from 9 to 8 per day. This style of management was termed "Fordism". -
Behavioral Management Movement
In the 1920's many became convinced that there was more than scientific management that should be taken into consideration. Many felt human aspects were ignored and that behavioral management was as or more important. This practice eventually took over the scientific management method in the 1930's and 1940's. -
Hawthorne Studies
Was originally an expirement on how illumination of the lights at Hawthorne Works of the Electric Co. affected worker productivity. Once the research was concluded it was realized that only once the environment was too dark to see productivity dropped. This led to the Hawthorne effect- which stated that managers' personal behavior and leadership can affect workers' performance. If supervisors could relate to their subordinates, productivity could be increased. -
POSDCORB
POSDCORB is a popular acronym through management, it was first used by Luther Gulick. POSDCORB stands for planning, organizing, staffing, directing, co-ordinating, reporting and budgeting. This was an extension on what Fayol had already built for management. One big change Gulick's model had was a limiting the number of workers a supervisor would be responsible for. -
Theory X
Introduced by Douglas McGregor, Theory X is an assumption that a manager has lazy, unproductive workers. In response to this laziness and unproductivity, managers feel the need to essentially micro-manage to control the workers' behavior. Rewards and punishment systems are likely to be implemented to help regulate productive and positive behavior -
Theory Y
Introduced by Douglas McGregor, Theory Y suggests that an organizations employees are not lazy, and will do what is best for the company in their decision making. To achieve this, managers must convey trust in the employees to allow them to independently make decisions. Managers must have the resources available for workers to make such decisions. -
Game Theory
This theory from a management standpoint deals with businesses that are in the same market and the strategic decision making they must make to gain advantage on one another. This theory was founded by Von Neumann in 1950. The decisions faced by businesses include advertising, machinery, product expansion, and potentially merging. The goal, as expected, is to earn a large profit or pay off in some way. -
Charles A. Lindblom
Charles A. Lindblom wrote The Science of Muddling. His idea stated that rational models were not entirely effective, and with that being said, decision makers relied on making many much smaller decisions. Lindblom viewed the decision making process as very important and stressed each individual decision be viewed in that light. -
Contingency Theory
Developed in the U.S by Paul Lawrence and Jay Lorsch in the 1960's. This theory states that there is no one best way to organize. The organization put into place by management is contigent to the outside enviornment. Esentially, what has to be done to obtain essential resources, and then use these resources effectively. On a smaller scale, it can be used to motivate workers to meet certain goals inside the organization. -
Strategic Management
Strategic Management focuses on minimizing potential threats and maximizing potential opportunities. This management style is concerned with the decision making process organizations go through from upper management. Upper management incorporates the policies implemented by a business and emphasizes the environment and strategies put in place. Mission, vision, goals, and objectives can be found in this system of management. -
Koontz- Management Jungle
In 1961, Koontz concluded in an article there existed a “management jungle theory”. This states that the quantitative and human resources “approaches” were tools rather than approaches. Management in this sense is a continuous loop. As we know, the flow chart goes: planning, organizing, leading, and controlling. Koontz does not argue this necessarily, but says that controlling leads back to planning (thus the continuous flow). -
Equity Theory
Equity Theory was developed by Stacey Adams, Adams stated that employees make comparisons of what they perceive as their equity in relation to others, and based on how that employee percieves their equity in the company determines their performance. External equity occurs when pay is based off of similar jobs in other companies. Internal equity occurs when pay is pay based on relative importance to the compnay. -
The Open-Systems View
An open system is a system that takes in resources from its external environment and converts or transforms tem into goods and services that are sent back to that environment, then bought by customers. This system must be open because it relies on the outside environment to succeed. A closed system would be just the opposite, they do not rely on the outside environment whatsoever, and it has no affect on the company. Many car manufacturers rely on an open systems view. -
Ansoff- Diversification
In 1965, Ansoff reached for a more rational approach in Corporate Strategy. Ansoff focused on a decision making strategy that emphasized diversification. Ansoff defined this as "a rule for making decisions which are determined by the product and market, the growth vector, the competitive advantage and synergy". This led to organizations looking outside of the organization and developing long-range plansof action to gain an advantage. -
Maslow's Hierarchy of Needs
In the 1970's Maslow established his Hierarchy of Needs which focused on the needs of people. His hierarchy of needs model is as follows (read from bottom to top):
-Self Actualization
-Self Esteem
-Belonging (Social)
-Safety/Securtiy
-Belonging -
Simon Herbert
Herbert developed a theory that when an employee makes a rational decision, it cannot be optimal. It cannot be optimal because you are dependent on making that decision based onoutside factors, therefore, decision makers made satisficing decisions. Herbert believed in finding that optimal decision. -
Hofer and Schendel
Hofer and Schendel analyzed business strategy concepts written by authors and realized that there were three major areas of disagreement. They were: The breadth of the concept of business strategy, the components of strategy, and the inclusiveness of the strategy formulation process. Hofer and Schendel went on to define 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." -
Peters and Waterman's Excellent Companies
Peters and Waterman identified 62 U.S companies they considered were superior to their competitors. They researched what set these companies apart and they concluded:
-Top managers encourage managerial autonomy and risk taking
-Managers increase performance by creating one central plan for organizational success
-Excellent companies establish a division of work and a division of authority to the common interest.
