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Industrial Revolution
The industrial revolution began in the 1870s in the US and rised to it peak at the change of the century. In this time the whole economy changed completly from manufacturies to industrial mass production. This change also lead to an enormous change in the concept and need of management. Before there were a lot of skilled and self managing workers employed in small businesses. But now the unskilled workers in the factorys performed a lot simpler tasks but the whole production became more complex. -
Analysing the work tasks - Gilbreths
At the turn of the century the Gilbreths started to analyse every single task of a workers performance and tried to optimize each step to be the most efficent. As well they studied which characteristics of the workplace had influence on fatigue of the worker. Their results were copied in a lot of companies to optimize the performance. (Contemporary Management p.42) -
Scientific Management (Taylor)
The approach of scientifc management was a consequence of the many unskilled workers. If you analyse the tasks exactly enough you can find ways to increase the efficency and give each worker only a small very specific task. One of the founders of these theory was Frederick Taylor. But he also demanded a good and personal connection between the employee and employeer to improve the efficency an aspect that wasn't really popular at that time. (WWU p. 5) -
Theory of Bureaucracy - Max Weber
At the beginng of the 20 century Max Weber developed his ideas of a bureaucratic system. His main principles where authority by position in the organization, position shall result by skill not by social status, clearly specified responisibility and a hierachically organized structure. This system was and is still used in a lot of public bureaucracys like the German state bureaucracy. (Contemporary Management p.45-46) -
Ford - Moving conveyor belt
Ford implemented the principles of scientific management in a really efficent way. He was the first who used the moving conveyor belt in a large factory to let his workers focus only on one specific task. Which lead to an enormous increase in efficency of building cars. Because of that Ford grew to one of the biggest car producers in that time. But this new method of producing also lead to a lot of disadvantages for the workers like monotonie and a lot of pressure -
Fayols 14 principles of management
In 1916 Fayol developed a new point of view on management, the classical organization therory. He was the first who systemized it and tried to identify and analyse the tasks of managerial work. Which he summarized in his 14 principles:
Divison of Labor, Authority, Discipline, Unity of Command and Direction, Subordination of individual interest, Remuneration, Centralization, Hierarchy, Order, Equity, Stability of Staff, Initative, Espirit de Corps (WWU p.8) -
Hawthorne Studies
The Hawthorne Effect was discoverd by these studies. It means that a group of workers will perform better if they believe that the management cares for their welfare and the manager cares for them personally. But also if there is just supervision because then the pressure to perform well is higher. (WWU p.12) -
Human realations movement (Follett)
One of Folletts central thesises was that authority should go with knowledge. Which means that a manager should not be able to control each part of the work of his subordinates but should coordinate the work and skills of this workers. This aspect got more important as the specific tasks of the workers got more specific. By implying the new function of a manager as a coordinator expect a supervisor Follett first described an aspect that is often seen today in many companys in self-managed teams -
WW II - Total Quality Management
That date is the beginning of the second world war an event that had an impact on nearly everything on the world. Also on the theory and practice of management. Nearly all companies had to change their production to war equipment or supplies. In this time the total quality management rised because it was important to know what was needed for the production and how much output could be produced in a specific time (German Historical Museum) -
Management Science School
After the second world war is over there are some war practices that found it way into the after war business and management process like the operational research teams. By letting experts from different fields working together in one team the British Army was able to achieve a lot of technological and scientific breakthroughs. After the war it became popular to consult a lot of experts from different field to help managers to find the best solutions for upcoming problems. (WWU p.15) -
Chester Banard - Organization and Management
The central thesis of Banard was that the goals of an organization has to be in balance with the individual aims of the workers to be the most efficent. So he called to give the employes more responsibility. If a worker has the chance to develop his potential the company can only profit by that. (WWU p.9-10) -
European Economic Community
In the 1950s the European Integration started to form a big European domestic market which had a lot impact on the management in Europe as well as world wide. Out of that followed free movement of labor which lead to a lot of cheap unskilled laborers in North Europe that helped to improve the efficency of the companies. As well it lead to a lot of amalgamation of companies like Airbus or other German and French companies. So the management had to care more for cultural diversity. -
Theory X&Y - Mc Gregor
Mc Gregor provided another point of view on the worker. As the distinguished two theories that took opposite views of the worker. Therory X describes the worker as uninteressted to reached the companies goals and have to be supervised, this theory is comparable to the days of scientifc management. In contrast Therory Y says that the workers try to develop their potential and try to help the company to reach their goals. -
First personal computer
At the end of the 1970s the first personal computers were released. These new technology had a huge impact on the management practice all over the world. As the efficency of many task like accounting was highly increased. Also the statistical evaluation of information could be done much more efficent. By that there were more possibilites to analyse and optimize specific working tasks. -
The visible hand - Alfred Chandler
Chandler tries to explain the high efficency of managerial firms. His assumption is that the coordination of companies by managers replaced the invisible hand of the market, a concept developed by Adam Smith in the 18th century, The modern multi-national companys can control the market and prices better than a small company that has to accept the given market prices and mechanisms. ( Don Mathews) -
Economic liberalization of China
One of the most important political events for the world economy in the after war time was the liberalization of the Chinese economy, In 1979 China started to install special economic zones so foreign companys were allowed to invest in China. The beginning of the outsourcing of production to low wage countries. A managerial decision that lead to a lot of lost jobs in the western countries. (chinaseite.de) -
Commercial use of the Internet
In 1993 the commercial use of the Internet started and changed the communication worldwide in private as well as in the economy. It became possible to communicate more efficent across the whole world. Which made it easier to manage departments in other countries without face to face communicaton. -
Kyoto Protocol - Organizational Environment
At the world climate meeting in Kyoto the world agreed one goals to reduce the CO2-emission. That forced the companys to care more for the environment but even if there was no legal enforcment. A lot of customers began to became aware of that topic and changed their consumation habits. So managers had to adopt that worldwide trend which lead to a lot of "green"-products. -
Work-Life-Balance - Downshifting
A development in the last years is that for many people the work is not anymore the central aspect in their life. They try to get more time for personal activities. This development is challenging the managers to find solutins that keep the employees happy and as well help the company to reach their goals. Some of the concepts to improve the work-life balance are home office, flexible working times and better child care organized by companies. (Zeit) -
World Economic Crisis
The world economic crisis started with the bankrupt of the Lehman Brothers Holding. As a consequence of the crisis a lot of companies like big banks got enforced by law to act more sustainable today. Which affects the managerial behaviour espacially to take less risk. For example some high risk investments are more regulated and investment companies have to make more provisions for losses. (Global Issues)