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Scientific Management
The work process was broken down and standardized in hopes to improve output within a company. Employees were denied a sense of responsibility and could be punished or rewarded depending on the quality of their work. Managers' postions were raised in importance. This type of management worked well in assembly line type firms. -
Industrial Revolution
The Industrial Revolution required many skilled individuals, who would normally work for small businesses, to come together and work at large mass producing factories. This change into having a lot of workers on the floor at one time created the need for management postitions to make sure everything was going smoothly. -
Four Essential Managerial Tasks
Henri Fayol outlines the four essential managerial tasks in a book titled General and Industrial Managment. The four tasks are as followed: planning, organization, leading and controlling. This is important for other future managers to have access and be able to learn their practice. (Brief History of Management) -
Administrative Management Theory
This theory shows that effiecency and effectiveness are increased when an "organization structure and control structure" in a business. this theory were thought of and discussed by Max Weber and Henri Fayol. (George and Jones 45) -
14 Principles of management
As a CEO of Comambault Mining Henri Foyal had an opportunity to observe his business and came up with 14 principles of management. Some of these princples include order, line of authority, unity of command, discipline, and equity. These principles give an outline that could be used in any management situation, and be crucial in improviing effiecency. -
Henry Ford
Henry Ford was able to decrease the high turnover rate amongst his employees by implimenting a shorther work day (8hrs) and nearly doubling their pay rate. This gave his employees more motivation to stay working for him. He was also more famously known for introducing mass production and the assembly line into the world. -
Decentralized Bureaucracy
General Motors President, Alfred P. Sloan, created a "decentralized bureaucracy" within his company. This allowed for responsibilities to be divided amongst multiple Division Leaders. They were to focus on budgeting, price control, revenue and profit expectations. This allowed multiple people to focus on the few major aspects of a company and report to their President. -
Hawthorne Studies
With initial hopes on finding which physical changes can be made in the work place that may help with productivity the Hawthorne Studies concluded something entirely different. These studies concluded that physical conditions within the work place are less significant in effecting workers than human factors. Workers productivity was based more on the attitude and managing style of the managers than by the lighting or equipment being used. (George and Jones 52) -
Human Relations Movement
The human relations movement was initiated to make sure managers recieved training to help them effectively manage employees. If the training went well production and cooperation were set to increase. (George and Jones 52.) -
Mary Parker Follett
Mary Parker Follett was considered the "Mother of Management". She felt that workers should have more say in how to increase productivity and/or organization within the business. These workers were the ones with direct contact to the production of the product and should at least be able to work with the managers to make improvements within the company. (George and Jones 51) -
Wandering Management
Bill Hewlett and David Packard, of Hewlett and Packard and managers would wander around the work place and start conversations with their employees.This would give their employees direct contact, allowing for closer relationships, with the individuals that they were working for. Informality was emphasized in this organization creating a more open and innovative work environment. (A timeline of Management and Leadership) -
Theory X and Theory Y
Theory X and Theory Y were created by the man Douglas McGregor. Theory X basically says that workers are lazy and will not work unless closely supervised by managment. Henry Ford was a believer of this theory. Theory Y states that workers will work well for the company if given more freedom and a goal to complete. This decentralizes authority and creates a more equal working environment. Theory Y is how HP ran its business for years. (George and Jones 52) -
Contingency Theory
According to Tom Burns, G. M. Stalker, Paul Lawrence, and Jay Lorsch and the contingency theory, there is no best way to organize. The way to figure out which form of organization to follow depends on the characteristics of the environment. This is helpful to future managers who may be looking for "the best" way to run any business. In the end it depends on the nature of the business itself, whether it is stable or changing environments. -
Open System
This view was developed by Daniel Katz, James Thompson, and Robert Kahn in the 1960s. The Open-System view sees that a business produces its goods and services from rescources found in the "external environment". These goods and services were then pushed back out into the "external environment" for sale once they were formed. (George and Jones 56.) -
Mechanistic and Organic Structures
Structures of management are determined based on if the business is a stable more mechanized environment or a more changing or organic enviornment. Mechanized structure is used more frequently factories where the product or process doesn't frequently change. This form puts empasis on a hierarcy of management. A more organic form of management allows more free flowing and a decentralized management structure. -
Trader Joes
Joe Coulombe changes the product and managment styles in his few small stores do to heavy competition from 7/11. By changing the product to more profitable foods like wine, cheese, and gourmet foods. The argueably more important change he made was in the management style. He put a lot of responisibility on his sales people. This gave them the freedom to make more sales and not have to contact a superior if there were any issues. He also decided to make sure that his employees were paid well. -
Excellent Companies
Tom Peters and Robert Waterman took it upon themselves to find out which companies have the best performance. They discovered that a majority of the companies ranked at the top decentralize authority within the business giving everyone more of an opportunity to have their imput and ideas heard. These businesses also set goals for every branch and level to acheive.The top businesses also make an effort to have close relationships with many of their customers. (George and Jones 50) -
Management of Technology
In 1987 Management of Technology (MOT) was defined as, "engineering, science, and management disciplines to plan, develop, and implement technological capabilities to shape and accomplish the strategic and operational objectives of an organization" The use of technology in the workplace increased greatly in the 80s this postition makes sure that technology is used in the most efficient manner to help the business thrive. (Reference for Technology) -
Workers are Assets
Aaron Feuerstein CEO of Malden Mills kept 3,000 employees on the payroll for three months even after their factory was burned down. His response to such a tactic, “The fundamental difference is that I consider our workers an asset, not an expense.” This is a reminder to other companies that they have actual human beings working for them and that they should try to treat them as well as possible. (Brief History of Management) -
Technology in Banking
With the introduction of telephone banking,internet, and ATMs the costs of banking have gone down. A banking transaction with a bank teller costs around $2, telephone $1, ATMs $.50 and online $.10. This technology has greatly effected the costs of banking and amount of labor necessary at the bank. (Reference for Business)
