Diagnostic Enterprise Method

Management theory

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The diagnostic enterprise method is a management theory based on Frederick Winslow Taylor's principles, focusing on developing ways in which companies can change their internal structure without outside help.

## Method

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### Taylor's method

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Frederick Winslow Taylor (1856–1915) has been considered the father of scientific management. The methods Taylor developed began with his experiments counting the amount of time it took for a machine to produce an object, which he began when the economy and the efficiency of the enterprise were substandard.[1] Taylor established four principles to increase efficiency at the workplace:

* The first principle is to analyze the way in which every worker performs their assigned task to improvise a new plan of activities.
* The second principle consists of making a new method into a written rule to be used as a standard for working.
* The third principle is to choose the workers who have the necessary abilities and who can be trained to follow the standard rules.
* The fourth principle is to create a common goal between the workers and establish a pay system to reward the ones above the common goal.[2]

### Derivatives of Taylor's method

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#### Systematic method

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Labor analysis came from the prior techniques of Frederick Taylor. The main difference is that this technique focuses on how a job position is developed in order to work with precise instructions. As managers, they should identify and understand their workers to improve their abilities inside the enterprise.[3]

The short facts method begins with a case no longer than four paragraphs in which a simple problem is described. Later on, the case is analyzed by the group of employees and managers of the enterprise. After that, the group starts a discussion to find the possible solutions.[4]

The strategic analysis method is based on the subsystems.[5] In this method, the managers decide what they want as an enterprise to be accomplished. This step also includes the guide. Later, people create specific goals for the enterprise that are measurable. Finally, the managers create a strategy plan based on the steps before.[6]

#### Harvard's method

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The Harvard method was developed by the Harvard Business School and is used in the Management Business Academy course. The enterprises created their own case with the information of their company so every employee can understand the problems.[7]

The MIT method is influenced by the Harvard method but changed for engineers. For the session, they need to already do an analysis and a possible solution to compare it with the group. At the end of the session, the instructor tells the group the 'nearest correct solution', and then they give the intended solution. The people in the group have individual research about the case given after the group session.[4]

## References

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1. ^ Kanigel, Robert (1997). One Best Way: Frederick Taylor and the Enigma of Efficiency. Vol. 48\. Viking. pp. 295–297\. ISBN 978-0670864027.295-297&rft.pub=Viking&rft.date=1997&rft.isbn=978-0670864027&rft.aulast=Kanigel&rft.aufirst=Robert&rfr_id=info:sid/en.wikipedia.org:Diagnostic+Enterprise+Method" class="Z3988">
2. ^ Hernandez y Rodriguez (September 1994). Introducción a la Administración [Management Introduction] (in Spanish). Vol. 1\. México: McGraw Hill. pp. 67–70.67-70&rft.pub=McGraw+Hill&rft.date=1994-09&rft.au=Hernandez+y+Rodriguez&rfr_id=info:sid/en.wikipedia.org:Diagnostic+Enterprise+Method" class="Z3988">
3. ^ Mendez, Juan Nieto (March 1974). Las Artes de la Alta Dirección [The art of High Management] (in Spanish). Vol. 1\. México: McGraw Hill. pp. 94–105.94-105&rft.pub=McGraw+Hill&rft.date=1974-03&rft.aulast=Mendez&rft.aufirst=Juan+Nieto&rfr_id=info:sid/en.wikipedia.org:Diagnostic+Enterprise+Method" class="Z3988">
4. ^ a b Jones, Gareth (2010). "[Taking decisions learning, creativity, and entrepreneur spirit]". Administración Contemporanea [Contemporary Management] (in Spanish). Vol. 6\. México: McGraw Hill. pp. 236–240.236-240&rft.pub=McGraw+Hill&rft.date=2010&rft.aulast=Jones&rft.aufirst=Gareth&rfr_id=info:sid/en.wikipedia.org:Diagnostic+Enterprise+Method" class="Z3988">
5. ^ Contreras J. (2010). "Estrategia Empresarial" [Enterprise Strategy] (in Spanish). Retrieved October 15, 2010.[dead link‍]
6. ^ Mondy, Wayne (March 1991). "[The Planning Process]". In Peters, Jack (ed.). Management concepts, practices, and skills [Administracion conceptos, practicas y habilidades]. Vol. 5\. Massachusetts: Allyn and Bacon. pp. 134–195.134-195&rft.pub=Allyn+and+Bacon&rft.date=1991-03&rft.aulast=Mondy&rft.aufirst=Wayne&rfr_id=info:sid/en.wikipedia.org:Diagnostic+Enterprise+Method" class="Z3988">
7. ^ Eagan L. (1997). "The HBS Case in Action". Retrieved October 15, 2010.