Management Theory 1
1
History of the Management Theory
The term management must be understood before the management theory can be understood or described. According to Charles Smeby Jr, (2014), the term management “is what enables an organization to achieve its goals, efficiently and effectively, with the necessary staff, equipment, and resources” (p. 29). He further goes on to say that there are four main points of responsibility of management. These include planning, organizing, directing, and controlling.
These four responsibilities that make up management are crucial pieces to running a successful business. Management theories are nothing new, and have been incorporated since the early Roman and Greek Empires. One of the earliest known works related to …show more content…
Henry knew that in order to build cars for a cheaper price, he was going to need to make a lot of them, and make them affordable to all. This is when he came up with the idea of the assembly line.
The assembly line caused Ford’s cars to be built at incredible speeds, and at a low cost.
What originally started off as a one car every 12.5 hours in 1908, turned into one car every five seconds by 1925. Ford had achieved his two goals of mass production and low production costs, which caused his product to be cheaper in cost compared to the competition, in turn giving the
Ford Motor Company a huge profit. Henry’s idea of the assembly line not only showed his willingness to take a chance on an idea, but he also showed that he valued his employees.
Grodsky said that “Ford simply decided to double wages in order to get the best people and motivate them to work even harder” (p. 2-3). Ford knew having underpaid employees would cause him to have a high turnover rate, and he needed his company to have a good reputation not only with the general public, but with his workers too.
In today’s world, we see some of the same ideas being used that were also used by
1
History of the Management Theory
The term management must be understood before the management theory can be understood or described. According to Charles Smeby Jr, (2014), the term management “is what enables an organization to achieve its goals, efficiently and effectively, with the necessary staff, equipment, and resources” (p. 29). He further goes on to say that there are four main points of responsibility of management. These include planning, organizing, directing, and controlling.
These four responsibilities that make up management are crucial pieces to running a successful business. Management theories are nothing new, and have been incorporated since the early Roman and Greek Empires. One of the earliest known works related to …show more content…
Henry knew that in order to build cars for a cheaper price, he was going to need to make a lot of them, and make them affordable to all. This is when he came up with the idea of the assembly line.
The assembly line caused Ford’s cars to be built at incredible speeds, and at a low cost.
What originally started off as a one car every 12.5 hours in 1908, turned into one car every five seconds by 1925. Ford had achieved his two goals of mass production and low production costs, which caused his product to be cheaper in cost compared to the competition, in turn giving the
Ford Motor Company a huge profit. Henry’s idea of the assembly line not only showed his willingness to take a chance on an idea, but he also showed that he valued his employees.
Grodsky said that “Ford simply decided to double wages in order to get the best people and motivate them to work even harder” (p. 2-3). Ford knew having underpaid employees would cause him to have a high turnover rate, and he needed his company to have a good reputation not only with the general public, but with his workers too.
In today’s world, we see some of the same ideas being used that were also used by