In the early 1900s, Fredrick Taylor applied a scientific method to the management of workers in an effort to improve productivity. Known today as Theory X, its recommendations included a division of labor, similar to that used by Henry Ford in his assembly lines that separated tasks into discrete activities that could be handled by appropriately trained individuals and teams.
But Taylor’s approach, which was widely adopted by manufacturers, had a shortcoming: it ignores human complications, including ones related to workers’ personal needs and interpersonal reactions with other employees. Although they worked harder and with greater efficiency, worker dissatisfaction spread, and appears to have been a factor in the rise of labor unions.
After WWII, Theory Y, or the human relations movement was ushered in by psychologists and other professionals. This strategy emphasized a view of workers through a psychological prism, emphasizing their fit with their company, rather than as a commodity. That too, however, is being supplanted by a new school of thought.
Current organizational thought is focusing on Theory U, which seeks to empower employees through self-esteem and independence. Theory U, which itself is in an evolutionary stage, recognizes that companies today require innovative thinking and collaboration across traditional boundaries, ranging from organizations to cultures.
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