THEORIES

OF
MANAGEMENT
A. Scientific Theory

 Also called Taylorism, the

Taylor system, or the Classical
Perspective) Its a theory of
management that analyzes and
synthesizes workflow
processes, improving labor
productivity.
General Approach
 Develop a standard method for
performing each job
 Select workers with appropriate
abilities for each job
 Train workers in the standard
method previously developed
 Support workers by planning their
work and eliminating interruptions.
 Provide wage incentives to workers
for increased output
Contributions
 Scientific approach to
business management and
process improvement
 Importance of compensation
for performance
 Began the careful study of
tasks and jobs
 Importance of selection criteria
Elements
 Labor is defined and
authority/responsibility is
legitimised/official
 Positions placed in hierarchy and under
authority of higher level
 Selection is based upon technical
competence, training or experience
 Actions and decisions are recorded to
allow continuity and memory
 Management is different from ownership
of the organization
 Managers follow rules/procedures to
enable reliable/predictable behaviour
Frederick Winslow Taylor

Widely known as F. W. Taylor, was an
American mechanical engineer who sought
to improve industrial efficiency. Taylor is
regarded as the father of scientific
management, and was one of the first
management consultants. He was one of
the intellectual leaders of the Efficiency
Movement and his ideas, broadly
conceived, were highly influential in the
Progressive Era.
B. Bureaucratic Theory
 Type of Management ruled by
bureaucracy - is the structure and set
of regulations in place to control
activity, usually in large organizations &
government. As opposed to adhocracy,
it is represented by standardized
procedure (rule - following) that
dictates the execution of most or all
processes within the body, formal
division of powers, hierarchy, and
relationships. In practice the
interpretation and execution of policy
can lead to informal influence.
Characteristics of Bureaucracy
 Formality
 A climate of rules and conventionality
 Division of labor
 Specialization
 Written specifications
 Memoranda and minutes
 Centralization
 Controls
 Emphasis on a high level of efficiency
and production
Max Weber
 was one of the most profoundly
influential thinkers of the twentieth
century. Born in Germany, Weber
became a lawyer, politician, scholar,
political economist, and sociologist.
C. Human Relation Theory

 It refers to the integration of

people to work productively and
cooperatively and with economic,
psychological and social
satisfaction.
 "The hallmark of human-relation
theories is the primacy given to
organizations as human
cooperative systems rather than
mechanical contraptions."
Six Functions of Management
- Henry Fayol -

 planning
 organizing
 leading
 coordinating
 controlling
 staffing
 Proponents:
 Mary Parker Follett (1868–1933), who wrote on
the topic in the early twentieth century, defined
management as "the art of getting things done
through people".One can also think of
management functionally, as the action of
measuring a quantity on a regular basis and of
adjusting some initial plan; or as the actions taken
to reach one's intended goal.
 George Elton Mayo (December 26, 1880 -
September 7, 1949) was an Australian
psychologist, sociologist and organization
theorist.
 Fritz Jules Roethlisberger (1898 – 1974) was a
social scientist and management theorist.
D. Theory X
 Underlying the Theory X approach to
management are three assumptions
about human nature:

 Most people have an innate dislike for work

and will avoid it if they can.
 Most people must be “coerced, controlled,
directed, threatened with punishment” to get
them to work hard enough to satisfy the
organization’s goals.
 Most people prefer “to be directed,” wish “to
avoid responsibility,” have “relatively little
ambition,” and want “security above all.”
 E. Theory Y
Assumes that:
 “The expenditure of physical and mental effort in
work is as natural as play or rest.” Most people do
not have an innate dislikefor work. Indeed, work
may be a “source of satisfaction.”
 “External control and the threat of punishment are
not the only means for bringing about effort toward
organizational objectives.” Most people will display
self-discipline in working for goals for which they are
committed.
 “Commitment is a function of the rewards
associated with their achievement.” If self-
actualization needs can be satisfied through work,
employees will be highly motivated.
 Most people, under proper conditions, are capable
not only of accepting responsibility but of seeking it.
 “The capacity to exercise a relatively high degree of
imagination, ingenuity, and creativity in the solution
of organizational problem is widely distributed to the
population.”
 “Under the condition of modern industrial life, the
intellectual potentialities of the average human are
only partially utilized.”
 Proponent:

 Douglas Mcgregor (1906 –

1964) was a Management
professor at the MIT Sloan
School of Management and
president of Antioch College
from 1948 to 1954.
F. Theory M
 The Theory M style of leadership is one
that recognizes that it is necessary to
employ a variety of tactics for varying
management situations. This type
manager / leader is confident in his
leadership abilities and understands
both the scientific and artistic sides of
management. This style recognizes the
absolute need for power and the fact
that it consists of separate components.
The selection of the right type of power,
or combination of power, for the proper
situation is critical.
 Proponent:
 Niccolò Machiavelli (1469–
1527) was born in Florence as
a lawyer’s son.
 G. Theory Z
 So-called "Japanese
Management" style popularized
during the Asian economic boom
of the 1980s. Theory Z focused on
increasing employee loyalty to the
company by providing a job for life
with a strong focus on the well-
being of the employee, both on
and off the job. This management
tends to promote stable
employment, high productivity,
and high employee morale and
satisfaction.
Characteristics of the Theory Z

 Long-term employment and job

security
 Collective responsibility
 Implicit, informal control with
explicit, formalized measures
 Collective decision-making
 Slow evaluation and promotion
 Moderately specialized careers
 Concern for a total person,
including their family
 Proponent:

 William G. Ouchi (born 1943) is

an American professor and
author in the field of business
management.
 H. TQM Theory

 Total Quality Management (TQM)

is a business management
strategy aimed at embedding
awareness of quality in all
organizational processes. TQM
has been widely used in
manufacturing, education, call
centers, government, and service
industries, as well as NASA space
and science programs.
TQM is composed of
three paradigms:
 Total: Involving the entire organization,
supply chain, and/or product life cycle

 Quality: With its usual definitions, with all

its complexities

 Management: The system of managing

with steps like Plan, Organize,Control,
Lead, Staff, provisioning and organizing
 In Japan, TQM comprises four
process steps, namely:
 Kaizen – Focuses on "Continuous
Process Improvement", to make
processes visible, repeatable and
measurable.
 Atarimae Hinshitsu – The idea that
"things will work as they are supposed
to" (for example, a pen will write).
 Kansei – Examining the way the user
applies the product leads to
improvement in the product itself.
 Miryokuteki Hinshitsu – The idea that
"things should have an aesthetic
quality" (for example, a pen will write in
a way that is pleasing to the writer).
Proponent:
 William Edward Deming (October 14, 1900 –
December 20, 1993) was an American
statistician, professor, author, lecturer, and
consultant. Deming is widely credited with
improving production in the United States
during World War II, although he is perhaps
best known for his work in Japan. There,
from 1950 onward he taught top
management how to improve design (and
thus service), product quality, testing and
sales (the last through global markets)
through various methods, including the
application of statistical methods.
5S + 1 Activities
 SEIRI – SORT – SURIIN
 Clear out. Sort out unnecessary items and
discard/remove from work areas.
 SEITON - SYSTEMATIZE – SINUPIN
 A place for everything and everything in it’s place.
 SEISO – SWEEP – SIMUTIN ANG DUMI
 Sweep out all dirt, trash, waste, etc. to keep work
area clean.
 SEIKETSU – SANITIZE – SIGURUHIN
ANG KALIGTASAN
 Hygienic Surroundings. Sanitize work
area and surroundings to maintain
health of team members.
 SHITSUKE – SELF-DISCIPLINE – SARILING KUSA
 Self-discipline of team members in performing the
above 4S+1.

 SHIKKARI – SUSTAIN – SIKAPING MAPANATILI

ANG 5S
 Steadily or persistently sustain the 5S activities. Do
not stop, Continue in order to achieve good results.
I. Management By Objective
Managers are urged to give specific goals
and objectives and then measure whether
workers achieved those.

Example of an objective:

 The vice-president will write three

funded proposals each year.
 The president will obtain three
commercial contracts for consulting
services.
 The research administrator will insure
that time sheets are completed and
forwarded to the accountant and
project director in time for funds to be
drawn down for payroll (three days in
advance of payday).