Lesson 2 : The Evolution of Management Theories Objectives: At the end of this lesson, the students will be able to Trace the evolution of management theories, Enumerate and discuss the theories on management, and Differentiate management theories.

The Evolution of Management Thought The Chinese have been practicing the four management functions as early as 1100 B.C.. Meanwhile, the greeks have developed a scientific approach to management an the romans practiced decentralized management in managing their vast empire, During the medieval period, the Venetians standardized the assembly line.

The Evolution of Management Thought Scientific Management (Frederick W. Taylor) is a theory of management which studies the application of scientific methods and principles for the purpose of redesigning the work process to increase efficiency. Taylor was called the “Father of Scientific Management”

The Evolution of Management Thought Taylor introduced the four principles of scientific management: Replace the rule-of-thumb with those that are scientifically proven Select, train and develop each worker based on scientific methods Cooperate with the workers Divide work between managers and workers

The Evolution of Management Thought Time and motion study – a technique wherein a job is divided into component parts and the time consumed in performing each task is measured. Henry Ford – established the Ford Motor Company and sold the first commercially available automobile – the Ford Model T.

The Evolution of Management Thought Administrative Management (Henri Fayol) focuses on the overall management of an organization, emphasizing the role of managers as administrators of the organization. He identified the five functions & fourteen principles of management. Five functions: planning, organizing, communicating, coordinating, and controlling

The Evolution of Management Thought Fourteen principles Division of work Authority Discipline Unity of Command Unity of Direction Predominance of the general interest 7. Remuneration 8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability and Tenure of personnel 13. Initiative 14. Esprit de corps

The Evolution of Management Thought Max Weber, A German sociologist – contributed to the development of administrative management through this studies on public administration and bureaucracy. Weber considered bureaucracy as an important aspect of modern society, and its emergence is an indication of people adopting a more rational and law-based view on leadership.

The Evolution of Management Thought Chester Barnard wrote “The Functions of the Executive”, which highlights the major functions of the senior executive: To formulate the organization’s mission, To hire key employees, and To maintain organizational communication

The Evolution of Management Thought Mary Parker Follet wrote the “Dynamic Organization” which emphasizes the ever changing situations that managers have to deal with. She recognized the human element in management and emphasized collaboration and mutual cooperation in seeking solutions to problems

The Evolution of Management Thought The Human Relations Theory grew out of the human relations movement in the 1930’s . It focuses on the social element in the workplace and considers the influence of interpersonal relationships, social conditioning, and group norms in determining the performance of workers.

The Evolution of Management Thought The foundations of the human relations movement were established in the 1920’s with the pioneering studies of Elton Mayo, who used his expertise to implement improvements in the workplace. -introduction of set of number of work hours Implementation of break times Improvements in lighting Close supervision by managers

The Evolution of Management Thought Abraham Maslow (1954) – contributor to the field of human relations Individual behavior is primarily influenced by certain needs 1970, he revised his original pyramid and added two more essential needs: cognitive needs or the need to acquire knowledge; and aesthetic needs or the need to create and experience beauty, balance, and structure.

The Evolution of Management Thought Quantitative Management Theory Statistical analyses and computer simulations Two main branches Management science – uses mathematics in problem solving and decision making Operations management – seeks to apply ideas and models from management science to the actual workplace in dealing with managerial situations. Management Information systems – gathers past, present, and projected data from external and internal sources and transform them into usable information which managers use to select the best alternatives and make decisions easily

The Evolution of Management Thought The Systems Theory defines an organization as a system which is composed of four elements: Inputs (materials/human resources) Transformation processes (technology/managerial operations) Outputs (products/services) Feedback (reactions from the environment)

The Evolution of Management Thought The contemporary Systems Theory analyzes an organization according to the degree which it is open or closed. Open system- organization interacts closely to its environments Closed system – does not interact with its environment and pays little attention to changes in its surroundings.

The Evolution of Management Thought The Contingency Theory argues that universal theories cannot be applied to organizations because each organization has a unique characteristics and is confronted by varied problems or challenges. Considers the unique characteristics of managers, as well as the effect of environmental factors, in addressing management problems and situations.

The Evolution of Management Thought Quality Management Theory Emphasizes consistency in an organization and the production of high quality products and services. Quality must be continually maintained through regular evaluation, testing, and the implementation of improvements in the organization.