Management Theory

Management Theory 

A collection of ideas which set forth general rules on how to manage a business or organization. 

Management theory addresses how managers and supervisors relate to their organizations in the knowledge of its goals, the implementation of effective means to get the goals accomplished and how to motivate employees to perform to the highest standard.

History

The Ford Motor Company was one of the earliest of many automobile manufacturers between the 1890 and 1910.

Ford introduced the Model T after five years of production. The model T was simple and light yet strong enough to be driven in the country road. The mass production of the model T enable it to lowered its unit price, hence making it affordable for the average consumer.

Fordism

In 1913, Henry Ford had an assembly line build in Detroit plant where the model T was manufactured. This marked the beginning of a new era in production called Fordism.

Fordism is based on the system of mass production and mass consumption. The main idea of Fordism was standardisation which means standardised components and standardised manufacturing process.

However, it wasn't long till Fordism as a method for the industrial organisation of production failed. For instance:

1. Workers did not move during their shift
2. Workers performed repetitive movements
3. There was not any prospect of going up the hierarchy therefore lead to no motivation


Post-Fordism

Post Fordism was seen as a direct confrontation with principles of Fordism. It involved the introduction of an increasingly skilled, highly motivated and extremely flexible workforce

The aim was to engender flexibility and innovation through the decentralisation of power.

Post Fordism can be characterised by the the following attributes:

1. Small batch production
2. Economies of scope
3. Specialised products and jobs

Although the implementation of Post Fordism, i believe that some business still uses Fordism with practices of adapting to suit the changing consumer and demand. The important factors to consider when deciding whether business should or not pursue fordist practises should take in consideration of the economy, industry, product, consumer and competitors.