FEBRUARY 15, 2022

EVALUTION OF
MANAGEMENT
THEORY
MANAGEMENT
 Management History Module

Henry Ford once said, “History is more or less bunk.” Well, he was wrong! History
is important because it can put current activities in perspective. In this module, we’re
going to take a trip back in time to see how the field of study called management has
evolved. What you’re going to see is that today’s managers still use many elements
of the historical approaches to management. Only through reflection can we fully
appreciate the effects of the past on present thought and action. Use this knowledge
to become effective managers by learning from past mistakes and successes. For now,
focus on the following learning objectives as you read and study this module
 TOPICS
3000 BEFORE CHRIST-1776 : EARLY MANAGEMENT
1911-1947 : CLASSICAL APPROACH
LATE 1700S-1950: BEHAVIORAL APPROACH
1940-1950 : QUANTITATIVE APPROACH
1960S-PRESENT : CONTEMPORARY
 EARLY MANAGEMENT

Management has been practiced a long time. Organized endeavors directed by people
responsible for planning, organizing, leading, and controlling activities have existed for
thousands of years. Let’s look at some of the most interesting examples.

Management
Management has been practiEarly Management Theory/ Administrative Management school of
thought:
Today's managers have access to an amazing array of resources which they can use to improve
their skills. But what about those managers who were leading the way forward 100 years ago?
Managers in the early 1900s had very few external resources to draw upon to guide and develop
their management practice. But early theorists like Henri Fayol (1841-1925), managers began to
get the tools they needed to lead and manage more effectively. Fayol, and others like him, are
responsible for building the foundations of modern management theory. Through the years,
Fayol began to develop what he considered to be the 14 most important principles of
management.
ced a long time. Organized endeavors directed by people responsible for planning, organizing,
leading, and controlling activities have existed for thousands of years. Let’s look at some of the
most interesting examples.

Management
Division of Work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of Individual Interests to the General Interest
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of Tenure of Personnel
Initiative
Esprit de Corps

Management
 Classical Approach

Principles of classical management theory. This management science first existed because there
had been an industrial revolution in England around the 18th century. These thinkers address the
existing management problems, both from industry, business and society.

Management
 Robert Owen (1771-1858)
Robert Owen is a person who opposes the practice of employing children aged around 5 to 6
years and a standard work of 13 hours per day.
Very concerned about the very deplorable working conditions, he proposed an improvement to
the working conditions.

Henry Fayol (1841-1925)

Fayol has confidence in the success of the manager not only determined by his personal
qualities, but because there is a very appropriate use of management methods

Management
Fayol divides the company's operations and activities into 6 sections, namely:

Technical (production)
Trade (exchange, buy and sell)
Finance
Security
Accounting

Management
 Behavioral Approach
The behavioral approach has been divided into two branches: the Human relations approach and
the behavioral science approach. In the human relations approach managers should know why
their subordinates behave as they do and what psychological and social factors have an impact
on them. Supporters of this approach make an effort to show how the process and functions of
management are influenced by differences in individual behavior and the influence of groups in
the office.
Human Relations Approach
Behavioral Science Approach

Management
 Quantitative Approach
The quantitative approach is the use of a number of quantitative techniques such as:

Statistics
Optimization model
Information model
Computer simulation

This quantitative development stems from the development of mathematical and

statistical solutions to military problems during World War II. After the war ended,
the statistical and mathematical techniques used to solve military problems were
applied to the business sector.

Management
The steps in the management science approach are:

Tormulation of a problem.
Development of a mathematical model.
Closer to the completion of the model.
Test the model and the results obtained from the model.
Determination of supervision of a result.
-Implementation of results in an implementation activity.

Management
 Quantitative Approach

Definition
Contemporary approach means new, recent or current approaches in the field of
management.
Example
The way a steel company was running 100 years ago is different from today.
However one steel company today might say they use contemporary management"
meaning, they use the same type of management that other steel companies use
today.

Management
 Definition
A set of interrelated and interdependent parts arranged in a manner that produces a
unified whole.
Example
The system approach recopnizes that, no matter howefficient the production
department might be ,the marketing department better anticipate changes in
customer tastes and work with the product development department in creating
products Customers want ,or the organisation's

Management
 OPEN SYSTEM
CLOSE SYSTEM

Definition
Definition
Systems that interact with their
Systems that are not influenced
environment.
by and do not interact with their
Example
environment.
A corporation needs to gather
Example
resources and
A production line is an example
information from its environment
of a closed system within an
such as capital, employees,
organisation. workers on an
natural resources, and
assembly line are generally only
information from the market,
responsible for completing their
government regulators and
tasks on the line, depending on
customers in order to function
what type of line it is.
and grow.
 MEMBER OF GROUP 1

ADAM MASYHURI MUHAMMAD IRFAN STANISLAUS LIM

AKBAR

THANKYOU