Evolution of Management

Objectives:

At the end of this topic, you should be able to:

1. Describe the different theories of management.

2. To understand how management theories develop.
3.
4. and approaches in the history
5. Recognize who managers are and where they work.
6. Explain why managers are important to organizations.
7. Describe the functions, roles, and skills of managers.
8. Describe the factors that are reshaping and redefining the manager’s job.
9. Explain the value of studying management.
Evolution of Management
(where did it all started, then progress that happened)
HISTORICAL BACKGROUND
CLASSICAL APROACHES
BEHAVIORAL APPROACH
QUANTITATIVE APPROACH
CONTEMPORARY APPROACHES
1. EARLY MANAGEMENT
-Egyptian pyramid and Great Wall of China
Management was practiced a long time ago by our ancestors.
An Inquiry into the nature and caufes on the WEALTH of NATIONS by ADAM SMITH
Division of labor (job specialization)
The breakdown of jobs into narrow and repetitive tasks.
Industrial revolution:
A period during the late eighteenth century when machine power substituted for human power, making
it more economical to manufacture goods in factories than at home.
2. CLASSICAL APPROACH
-First studies of management, which emphasized rationality and making organizations and workers as
efficient as possible.
-Two major theories compose the classical approach: Scientific Management and General Administrative
Theory.
Scientific Management
-An approach that involves using the scientific method to find “one best way” for a job to be done.
-It was introduces by Frederick Winslow Taylor thus he was known as the Father of Scientific
Management. How do we find the best way to do the job?
-By putting the right person on the job with the correct tools and equipment, having the worker follow
his instructions exactly, and motivating the worker with an economic incentive of a significantly higher
daily wage.
-Another scientific management proponents, are Frank and Lilian Gilbreth. Their primary contribution
was finding efficient hand-and-body motions and designing proper tools and equipment for optimizing
work performance.
-They pioneered the Time and Motion Study. It aims to break and analyze every individual action
necessary to perform a particular task into each of its component actions, find better ways to perform
each component actions and reorganize each component action so that it is more efficient-less cost of
time and effort.
General Administrative Theory
-Focused more on what managers do and what constituted good management practice. Henri Fayol,
because he first identified five functions that managers perform: planning, organizing, commanding,
coordinating and controlling.
He also introduced the 14 Principles of Management
1. Division of work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of individual interests to the general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps
-The study of how to create an organizational structure that leads to high efficiency and effectiveness.
MAX WEBER developed the Principles of Bureaucracy –a formal system of organization and
administration designed to ensure efficiency and effectiveness.
Bureaucracy is a form of organization characterized by division of labor, a clearly defined hierarchy,

detailed rules and regulations, and impersonal relationships.
3. Behavioral Approach
-Behavioral management is the study of how managers should behave to motivate employees and
encourage them to perform at high levels and be committed to the achievement of organizational goals.
-Hawthorne Studies gave major contribution in the field of organizational behavior. This gave rise to
hawthorne effect which is that a manager’s behavior of leadership approach can affect worker’s level of
performance.
Mary Parker Follett advocated for human relations emphasis. Her work contrasted with the “scientific
management” of Frederick W. Taylor. Mary Parker Follett stressed the interactions of management and
workers.
Follet was one of the first to integrate the idea of organizational conflict into management theory, and is
sometimes considered the “mother of conflict resolution”. She coined the words “power- over” and
“power-with” to differentiate coercive power from participative decision-making.
4. Quantitative Approach
-The use of quantitative techniques to improve decision making
Total Quality Management (TQM): A philosophy of management that is driven by continuous

improvement and responsiveness to customer needs and expectations.
5. Contemporary Approach
-The systems approach says that an organization takes in inputs (resources) from the environment and
transforms or processes these resources into output that are distributed into the environment.
Contingency Approach: a management approach that recognizes organizations as different situations

(contingencies) and require different ways of managing.
System Theory (LUDWIG VON BERTALANFFY)
System-wide coordination between every department
The System Theory is one widely used across different fields of study (philosophy, economy,
mathematics, social sciences, etc.) which tries to look at the nature of complex systems. For example,
many different subsystems form together in the human body to form one system. In business terms, an
organization is a system because it is formed by many different subsystems, such as the stakeholders,
initiatives, departments, etc. This theory essentially explains how the bigger picture functions by looking
every small element which makes up the bigger picture.
Proposes that businesses like human body, consist of multiple components that work harmoniously so
that the larger system can function optimally.
Division Theory (Herbert A. Simon)
A general approach to decision making that is suitable to wide range of operations management
decisions including capacity planning, product and service design, equipment selection, and location
planning.
Analysis of decision-making process. It seeks to evaluate how choices are made. Decision Theory is a
logical study of how decisions are made in a structure or system where the decision environment is
uncertain and the decision variables unknown.
Decision Theory draws tools from mathematics, philosophy, statistics and psychology in analyzing how
decisions are made. This theory also has to do with how choices are logically made based on
probabilities and uncertain consequences.

Evolution of Management

Uploaded by

Copyright:

Available Formats

Evolution of Management

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Evolution of Management

Uploaded by

Copyright:

Available Formats

Objectives:

At the end of this topic, you should be able to:

1. Describe the different theories of management.

(where did it all started, then progress that happened)

-Egyptian pyramid and Great Wall of China

Management was practiced a long time ago by our ancestors.

Division of labor (job specialization)

The breakdown of jobs into narrow and repetitive tasks.

General Administrative Theory

He also introduced the 14 Principles of Management

Bureaucracy is a form of organization characterized by division of labor, a clearly defined hierarchy,

-The use of quantitative techniques to improve decision making

Total Quality Management (TQM): A philosophy of management that is driven by continuous

Contingency Approach: a management approach that recognizes organizations as different situations

System-wide coordination between every department

Division Theory (Herbert A. Simon)

You might also like