Essay on Evolution of Management

14745 Words Oct 17th, 2010 59 Pages
Chapter two
The Evolution of Management Theory
Learning Objectives
1. Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory. 2. Explain the principle of job specialization and division of labour, and tell why the study of person–task relationships is central to the pursuit of increased efficiency. 3. Identify the principles of administration and organization that underlie effective organizations. 4. Trace the changes that have occurred in theories about how managers should behave in order to motivate and control employees. 5. Explain the contributions of management science to the efficient use of organizational resources. 6. Explain why the study of the external
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Ford experimented to discover the most efficient way for each individual worker to perform an assigned task. The result was that each worker performed one

This photo, taken in 1904 inside Daimler Motor Co., is an example of the use of small-batch production, a production system in which small groups of people work together and perform all the tasks needed to assemble a product.

In 1913, Henry Ford revolutionized the production process of a car by pioneering mass-production manufacturing, a production system in which a conveyor belt brings each car to the workers, and each individual worker performs a single task along the production line. Even today, cars are built using this system, as shown in this photo of workers along a computerized automobile assembly line.

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Chapter Two

Canadian Auto Workers www.caw.ca/

specialized task, such as bolting on the door or attaching the door handle, and jobs in the Ford car plant became very repetitive.1 Ford’s management approach increased efficiency and reduced costs so much that by 1920 he was able to reduce the price of a car by two-thirds and sell over two million cars a year.2 Ford Motor Company (www.ford.com) became the leading car company in the world, and many competitors rushed to adopt the new mass-production techniques. Two of these companies, General Motors (GM) (www.gm.com) and Chrysler (www.chryslercorp.com), eventually emerged as Ford’s major competitors. The CEOs

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