EVOLUTION OF

MANAGEMENT
 OBJECTIVES:
At the end of the lesson, students will be able to:

▪ Differentiate the various schools of thought in management

▪ Describe the work of significant contributors to the field of management

▪ Explain the development of libraries in the perspective of management

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 MANAGEMENT
SCIENCE, THEORY,
AND PRACTICE
Management in Ancient History

Origins of many techniques

employed today can be traced back
to ancient times and civilizations

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 5000 BCE
Egyptian
construction of the pyramid was
accomplished by 100,000 people working for 20 years.

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 3000 BCE
Sumerians
Cuneiform was one of the
earliest writing systems,
kept records on wedge-shaped
marks clay tablets; records were
about Ur's priests' management practices.

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 ◦Early Babylonia – Codes of Akkadian and Hammurabi
(there are laws on strict control on business enterprises)

Hebrews - also called Hebrew

Scriptures, Old Testament, there
was mention in hierarchy and
the importance of delegation.

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 2250 BCE
Chinese dynasties established staff principle, later perfected by military organizations.
China had views of organization, functions, cooperation, procedures for efficiency and
various control techniques.

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 2000 BCE
The restructuring of authority in the states of
Egypt, later on, the Pharaoh established
central control overall.

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 218 BCE

Qin Shi Huang Di

1st emperor of China, organized hundreds
of thousands of slaves to create his burial complex
at Xian and connect a portion of the Great Wall.

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11
 THE INDUSTRIAL
AGE
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 • Agricultural societies became more industrialized and urban
interest in management.

• Industrial Revolution (end of the 19th century and beginning of the 20th
century).

• Started factory system; Management theory jungle - the complex relationship of

the various approaches or school management.

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 MAJOR SCHOOLS OF MANAGEMENT
THOUGHT

▪ Theoretical frameworks for the study of management generally

concern ways to manage work and organizations more efficiently.

▪ Each of the schools of management thought is based on somewhat

various assumptions about human beings and the organizations for
which they work.

•
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 MAJOR SCHOOLS OF MANAGEMENT
THOUGHT

▪ Contributors to this school of thought include Frederick Taylor, Henri

Fayol, Mary Parker Follett, Max Weber, and Chester I. Barnard.

▪ These management theorists studied the flow of information within an

organization. They emphasized the importance of understanding how an
organization operated, focused on what they believed to be important
aspects of good management practice.

•
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16
 CLASSICAL PERSPECTIVES
▪ One of the earliest management schools; emerged from the
Industrial Revolution
▪ Emphasized a rational, scientific approach to the study of
management.
▪ It sought to focus on the productivity, efficiency, and output of
employees and the organization as a whole. In general, it does not
focus on human or behavioral attributes or
▪ variation among employees.

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18
 SCIENTIFIC
MANAGEMENT
APPROACH

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 ▪ a theory of management that analyzes and
arranges workflows.
▪ This school of management's basic
assumption is that production and profits
will be maximized by finding the most
suitable way to perform a given job, hiring
the right workers for each job, and focusing
management on planning and training.
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 1. Frederick W. Taylor (1856-1915)
2. Frank (1868-1942, engineer) and Lillian
Gilbreth
3. Henry L. Gantt (1861-1919)

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 Frederick W. Taylor (1856-1915)
‒ American mechanical engineer
‒ Father of the Scientific Management;
‒ he was a manager of a steelworks company in
Philadelphia, Pennsylvania

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 Frederick W. Taylor (1856-1915)
▪ Basic assumption: workers are mostly economically motivated, and that they will
give their best efforts if they are rewarded financially.

▪ believed that managers should:

1. find one best way to help workers perform each task;
2. science not rule-of-thumb - use the scientific method to study work and
decide the most efficient way to accomplish particular tasks;
3. select scientifically, and then teach, train and develop worker and;
4. provide economic incentives to workers for increased output

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 Frederick W. Taylor (1856-1915)

▪ The central theme is efficiency

▪ Emphasis is on maximum output and eliminating waste and
inefficiency; for him, workers are naturally lazy, fostered by poor
management.

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 Frederick W. Taylor (1856-1915)

Four (4) principles of the Scientific Management

1. Science not the rule of thumb
2. The scientific method of selection of the individual to fill each job
3. The scientific education and development of each employee, so that
he/she would be able to do his or her job properly
4. Cooperation between management and workers

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 Frank (1868-1942, engineer) and Lillian Gilbreth
(1878-1972, held a doctorate in Psychology)

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 ▪ They followed the pioneering work in time and motion studies of
Frederick Taylor.
▪ Engineer-psychologist, where husband and wife team;
▪ known for time-and-motion study while focusing on human
aspects of works.
‒ less number of motions leads to an increase in work efficiency
‒ less fatigue to workers leads to improvement in worker satisfaction and
productivity
▪ Concerned with the human aspects of managing
▪ Fun Fact: Famous for being the efficiency experts in “Cheaper by the Dozen” – a
book written by two of their children

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 Henry L. Gantt (1861-1919)

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 Henry L. Gantt (1861-1919)
▪ task and bonus system and;

▪ Gantt chart for scheduling activities a simple and effective way

to allow managers to schedule workforces across a series of tasks.

▪ If rates were exceeded, bonuses were paid

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 BUREAUCRATIC
SCHOOL

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 ▪ It was taking form in Europe at the time that Scientific
Management was developing in the US.

▪ Bureaucracy is an administrative or social system

characterizes by a hierarchy of authority, a clear division
of labor, explicit rules, and impersonal interactions
between its members.

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 Max Weber (1864-1920), German sociologist

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 ▪ Father of Bureaucratic Management Theory.

▪ First to highlight a theory of organizational structure.

▪ He believed that the division of labor could create an efficient

organization.

▪ Differentiated between power and authority; between

compelling action and voluntary response.

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 Major characteristics of Weber's ideal bureaucracy
• Work specialization and division of labor
• Abstract rules and regulation
• The principle of hierarchy exists
• Selection and promotion of employees was made based on
technical expertise
• Rules and procedures ensure reliable and predictable behavior

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 ADMINISTRATIVE
PRINCIPLES (CLASSICAL
OR GENERALIST
MOVEMENT

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 • Developed in France concurrently with the scientific management in
the US

• Seeks to find a rational way to design an organization as a whole.

• The theory generally calls for a formalized administrative structure, a

clear division of labor, and authorization to delegate power and
authority to administrators relevant to their responsibilities.

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 Henri Fayol (1841-1925)

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 ▪ Father of the classical (or generalist) movement; also referred
to as Administrative Principles Movement/ modern
management; an industrialist.
▪ Looked at administration from top down.
▪ Concentrated on the roles that managers should perform as
planners, organizers, coordinators and controllers.
▪ Analyzed and first to write about the functions of
management (i.e., planning, organizing, command,
coordination, and control).
▪ Formulated the 14 Principles of Management.
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 Devised the 14 Principles of Management
1. Division of work – clear division of duties; breaking jobs into
smaller pieces will result in specialization

2. Authority – authority to give orders to the employees and

authority and responsibility go together

3. Discipline – clear rules, respectful interactions and complete

obedience to behavior in the best interest of the organization

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 4. Unity of command – an individual employee should receive
orders from only one superior to avoid confusion and conflict

5. Unity of direction – it is all about focus and unity; each group of

activities having some objectives one head and one plan to ensure
unified effort

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 6. Subordination of individual interest to the general interest
– indicates that personal interests are not the priority instead the
interest of the organization is the primary focus

7. Remuneration of personnel – can be monetary or non-

monetary; pay should be fair

8. Centralization – – implies the concentration of decision-making

authority at the top management

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 9. Scalar chain – each position is part of a line of authority;
hierarchy steps should be from the top to the lowest;
communication should move up and down this chain;

10. Order – a systematic arrangement of things and people in the

organization; everything should be in its place and there should be
a place for every material

11. Equity – all people in the organization must be treated equally;

justice should be tempered with kindness

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 12. Stability of tenure of personnel – employee shouldn't be
removed from that position frequently and long-term stability for
employee is good for an organization

13. Initiative – support, motivation and encouragement from

management to let its employee to be initiatives must be provided
to stimulate production

14. Esprit de corps – these means "unity is strength" a strong sense of

morale and unity
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 THE HUMANISTIC
APPROACH

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 • 1930s – management studies began to give attention to
the concerns of the individuals in the organization

• Emphasized the individual's personal importance, the

centrality of human values, and the creative, active nature
of human beings. The approach is positive and focuses
on the noble human capacity to overcome hardship,
pain, and despair.

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46
 Human Relations Movement

◦Focused on the behavior of the individual and his

quality of life in the organization – needs,
aspiration, motivation

◦Major assumption: if management can make

employees happy, result is maximum performance
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 Chester Barnard (1886-1961)

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 ▪ Influential work: famous for his classic book “The
Functions of the Executive” (1938).

▪ Dwelled on the contribution-satisfaction equilibrium.

▪ One of the first to give insights that organizations must

not only be effective but efficient

▪ First to initiate the issue of social responsibility of

management, especially concerning fair wages, security,
49 and the design of an atmosphere conducive to work.
 Mary Parker Follet (1868-1933)

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 ❑ coordination was the most important principle

❑ recognized the interdependence between the

individual, the work, and the environment

❑ emphasized worker participation and importance

of shared goals

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 Elton Mayo, F.J. Roethlisberger and the Hawthorne
studies

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 ▪ Conducted the famous Hawthorne Experiments -
"Hawthorne Effect"
1. worker productivity increased because attention was paid to
the workers in the experiment
2. human behavior factors influenced the individual or group
performance

▪ His work represents the transition of scientific

management to the early human relations movement

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 ▪ Found out that the explanation to the increased
productivity was due to the changes in the way the
workers felt about themselves

▪ By lavishing the employee’s attention, the experiment

made them feel important

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 SELF-ACTUALIZING MOVEMENT

◦Emphasis is on designing jobs that would satisfy the

higher-level needs of the workers and utilize more
of their potential

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 Abraham Maslow
Maslow’s Hierarchy of Needs or Needs Theory

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 Douglas McGregor (1906-1964)

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 Put forth two influential sets of assumptions
▪ Theory X
▪ Theory Y

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 Theory X
• assumes that workers are lazy, dislike work and
responsibility, and must be coerced to perform.

Theory Y
• assumes that workers are creative and like work and
responsibility and they can exercise self-direction.

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 William Ouchi

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 • Japanese Management Style

• Wrote the best-selling book, Theory Z, showed how selected

Japanese management practices may be adapted in the United States

• 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

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 • Tends to promote stable employment, high
productivity, and high employee morale and
satisfaction.

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 Peter Drucker (1919-2005)
‒ Father of Modern Managament
‒ Introduced in the 1950s, Management by Objectives

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 ▪ advocates replacing a more participative approach for that of
authoritarianism;

▪ stressed the procedure of objectives and monitoring the progress

towards them should penetrate the entire organization top to
bottom.

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 Other proponents were:
‒ Chris Argyris - suggested that organizational structure can curtail
self fulfillment; single-loop and double-loop learning;
maturity/immaturity continuum
‒ Rensis Likert, Warren Bennis, Robert Blake, Jane Mouton

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⬗ THE QUANTITATIVE
APPROACH
⬗

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 ▪ After WW2 , there was a movement in the US and
other countries to develop better and more
sophisticated tools to use in management
▪ During WW2, scientists, mathematicians and
statisticians were extensively used to solve
problems.

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 ▪ This management approach makes use of
sophisticated mathematical, statistical, and
economic methods to improve managerial decision
making
▪ Subfields include: management science, decision
theory, and operations research.

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 ▪ Management Science - apply scientific analysis to managerial
problems, improve the manager’s decision-making ability, high
regard for economic effectiveness criteria, rely on mathematical
models, and the use of computers.

▪ Decision Theory - concerned with the study of rational decision-

making procedures and the way managers reach a decision.
‒ use game theory, simulation, and linear programming in
decision making

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 ▪ Operations Research - applied form of management science that
helps organizations develop techniques to produce their products
and services more efficiently.
‒ TECHNIQUES - cost-benefit analyses, linear programming,
systems analysis, simulation, Monte Carlo techniques, and
game theory, MIS (Management Information Systems)

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⬗ THE SYSTEMS APPROACH

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 ▪ A widely accepted theoretical bases for modern
management

▪ Often used in Organization development, ensure that

when change happens in one part of a system, other
factors are aligned with that change to ensure effective
implementation.

▪ Integrates knowledge from the biological, physical, and

behavioral sciences
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 ▪ Organizations are regarded as systems that function as a
whole

▪ Envisions organizations as porous entities that are greatly

affected by the outside environment

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 Ludwig Von Bertalanffy (1901-1972)

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 ▪ Wrote about the General System Theory

▪ Defined the system as “a set of elements standing

in interrelation (interaction) among themselves
with the environment”

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 THE
CONTINGENCY
APPROACH

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 ▪ 1970s – became one of the most influential thinking
about management

▪ Also sometimes called the situational approach.

▪ Believes that there is no one best way to manage

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 ▪ A concept in management that is based on the idea that
the most appropriate management style is dependent on
the circumstances of the situation and that adopting a
single, rigid style is inefficient in the long term.

▪ Believes that there could not be "one best way" for

leadership or organization.

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 ▪ Takes the situational approach, considers the
circumstances of each situation and then decides which
response has the greatest change of success.

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 Asserts that:
• No best management technique
• No best way to manage
• No technique or managerial principle is
effective all the time
• What works best? It all depends on the situation
• Each organization is unique

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 THE LEARNING
ORGANIZATION

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 ▪ The 1990s - came into being
▪ Peter Senge - One in which all employees are
constantly learning; where all focus on identifying
and solving problems confronting the organization
▪ All employees are continually learning.
▪ Characterized by open communication, decentralized
decision making, and a flattened organizational
structure
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Basic principles are:
• Personal mastery – with people identifying what is
important in the process

• Mental models – with the organization continuously

challenging members in order to improve their mental
models

• Shared vision – requiring an imagining of what the

organization should be
Basic principles are:
• Team learning – through cooperation, communication,
and compatibility

• Systems thinking – recognizing the organization as a

whole