Evolution of Management Theories

Evolution of Management Theories

1. Evolution of Management Theories

2. “Management is the art of getting things done through people.” - Mary Parker Follet, 2013 2 2 The concept of management has gone through significant changes over the years.

3. Organizations are composed of people. The management is responsible for coordinating the skills and efforts of the employees for them to achieve a common goal. 3

4. 4 Evolution of Management Theories Classical Management Theory Behavioral Management Theory Quantitative Management Theory Modern Management Theory The Four Main Theories

5. 5 Evolution of Management Theories Developed during the 19th century Introduced as a result of the industrial revolution Focuses on managing work efficiently through systematic work processes and division of labor Classical Management Theories

6. 6 Classical Management Theories Scientific Management Theory Created within the 1880s to the 1890s Frederick Taylor was the most well-known proponent of this theory. He emphasized the need for a financial rewards system to motivate the workers.

7. 7 Classical Management Theories Four Principles of Management Conduct a scientific study of the task to replace the rule-of-thumb method. Conduct a Scientific selection, training, and development of workers.

8. 8 Classical Management Theories Four Principles of Management Cultivate a culture of positive cooperation between the management and the workers. Create an equal sharing of work between the management and the workers.

9. 9 Classical Management Theories Frank and Lilian Gilbreths The Gilbreths suggested that workers should have definite days of work, scheduled breaks, & conducive working conditions.

10. 10 Classical Management Theories Henry Gantt He created the “Gantt Chart” which is a visual scheduling of tasks to be done to complete a project or work.

11. 11 Classical Management Theories Charles Bedaux Bedaux introduced the rating system to measure the productivity of workers. He also suggested to give workers a rest allowance.

12. 12 Evolution of Management Theories An approach developed by Max Weber in 1905 Focused on a hierarchical system Was deemed effective with organizations that operate on a large scale. Bureaucratic Management Theory

13. 13 Bureaucratic Management Theories Five Characteristics Task Specialization - each of the employees has a responsibility to fulfill. Hierarchical Structure - those with lower positions are subject to the orders of those with higher positions. Formal Selection - skills and credentials are necessary in deciding who is up for the position. Rules and Requirements - ensures uniformity and unity. Impersonality - creates detached relationships which promotes objective decision making.

14. 14 Bureaucratic Management Theories Administrative Management Theory Henry Fayol created this theory in 1916. This theory is concerned with how the management effectively organizes and directs the employees.

15. 15 Administrative Management Theory Henry Fayol’s 14 Principles: Division of Work - specialization of workers can increase the output. Authority - superiors have the right to give orders, but they must also be responsible for the consequences.

16. 16 Administrative Management Theory Henry Fayol’s 14 Principles: Discipline - individuals must display proper conduct. Unity of Command - an employee must receive orders from one supervisor only to avoid conflict.

17. 17 Administrative Management Theory Henry Fayol’s 14 Principles: Unity of Direction - employees must follow a common objective. Subordination of Individual Interests - common interest first before personal interest.

18. 18 Administrative Management Theory Henry Fayol’s 14 Principles: Remuneration - compensation must be fair and proper. Degree of Centralization - refers to the balance on who should be making decision in terms of company size.

19. 19 Administrative Management Theory Henry Fayol’s 14 Principles: Scalar Chain - there must be a clear chain of command. Order - a workplace must be clean and tidy.

20. 20 Administrative Management Theory Henry Fayol’s 14 Principles: Equity - all employees must be treated fairly. Stability of Tenure of Personnel - employee replacement must be limited and should instead keep their employees longer.

21. 21 Administrative Management Theory Henry Fayol’s 14 Principles: Initiative - superiors must encourage subordinates to take initiative. Esprit de Corps - managers must boost employees’ morale to and promote team spirit.

22. 22 Evolution of Management Theories Focused on the interests and needs of employees Gives importance to human behavioral factors to strengthen unity and teamwork Behavioral Management Theories

23. 23 Behavioral Management Theories Human Relations Theory Elton Mayo developed this theory between 1924 and 1933. This theory states that individuals perform better when they feel that they are valued and belong to the group.

24. 24 Human Relations Theory Hawthorne Effect This states that workers collaborate with their colleagues and perform their tasks better when they are given special attention.

25. 25 Behavioral Management Theories Theory X and Y Proposed by Douglas McGregor in the 1950s Theory X perceives workers as lazy and needs to be controlled. Theory Y perceives workers as having a natural drive to work and do not need to be ordered around.

26. 26 Evolution of Management Theories Was introduced to improve management’s decision-making during the World War II Makes use of computers, mathematical models, and statistical tools Quantitative Theory

27. 27 Evolution of Management Theories Takes advantage of technology and incorporates it with classical approaches Utilizes statistical techniques to analyze, understand, and compare the relationship between the management and the workers Modern Management Theories

28. 28 Modern Management Theories Systems Theory Proposed by Ludwig von Bertalanffy An idea that all departments are parts of an open system which needs to interact with each other

29. 29 Modern Management Theories Contingency Theory Developed by Fred Fiedler Managers must be able to adapt to the changing environments of the organization and must make better decisions depending on the given situation.

30. 30 What management theory introduced the use of hierarchy in an organization?

31. 31 True or False. Read each statement carefully. Write true if the statement is correct. Otherwise, write false . The industrial revolution led to the evolution of the management theories. The systems and processes used by the organizations before the industrial revolution were also used after this period. ____________ ____________

32. 32 True or False. Read each statement carefully. Write true if the statement is correct. Otherwise, write false . The welfare of the workers was promoted in classical management theory. The bureaucratic management theory focused on an authoritative system. The behavioral management theory is more focused on the interest of the organization. ____________ ____________ ____________

33. 33 The evolution of the Management Theories started during the industrial revolution. Four major categories: Classical Management Theory Behavioral Management Theory Quantitative Management Theory Modern Management Theory.

34. 34 The Classical Management Theories: Scientific Management Theory - emphasized the scientific study of work methods to make the worker more efficient. Bureaucratic Management Theory - focused on an authoritative system. Administrative Management Theory - concerned with how the management organizes and directs the employees.

35. 35 The Behavioral Management Theories Human Relations Theory - highlighted the idea that individuals perform better when they feel that they belong to and are valued in the team. Theory X and Y - assumed that there are two distinct types of workers in an organization. One is the lazy type who needs to be controlled while the other does his or her work willingly.

36. 36 Quantitative Management Theory promotes the use of sophisticated mathematical models and statistical tools in enhancing management skills. The Modern Management Theory integrates technology with management techniques. Systems Theory promotes management as an interrelated component of an organization. Contingency Theory asserts that the management must be adaptable and must make decisions according to the given situation.