LEC#2

LESSON 2: Where with the emphasis on MECHANIZATION of the

process of production, everything changed and turned
VARIOUS TYPES OF MANAGEMENT THEORIES the whole world of work into large scale
Learning Objectives manufacturing.

•Explain the evolution of Management and be able to

relate it to the present.

•Identify the different pioneers in Management and

Organization
3 STAGES OF THE DEVELOPMENT OF BUSINESS
•Recognize the importance of understanding the ideas
behind the Management ✓CLASSICAL MANAGEMENT THEORY

(For example, a cassette tape, if you wanted to rewind a

past transaction you have to flip around, you can add,
The formalization of Management Theories started in rewind)
19th century

(In Philippines, the Management started in 19th century

also. In the occupation of spaniards, lead by Queen ✓NEO-CLASSICAL MANAGEMENT THEORY
Isabel II. She started to study the different kind of
economic status of different country all over the world. (Devices were invented, like disk memory card)
She saw that the Philippines is a tropical country whose ✓MODERN MANAGEMENT THEORY
rich in resources. She gain an idea to go to Philippines.
Spices is one of her reason. Barter change started. (Save by the flash drive, downloaded applies
Queen Isabel let the biggest ship of spaniards go to technology)
Philippines, and it became a gallion trade theory, with
-continuous discovery
the lead of Napoleon Gallion (bcs of spices). He let the
Filipinos to get what they want from the ship but with 1.)CLASSICAL MANAGEMENT THEORY
the condition that he can do or get what he want in the
Philippines, and it started the barter change. -The oldest formal school of thought which begun
around 1900 and continued until 1920's
Queen Isabel also came up with an idea to get all the
resources she wants from the country, like mines. She -This theory evolved in response to the shift form
goes to the Philippines to check it's economy. She came handicraft to industrial production.
up with the idea for the people to use coins, gold or
-The emphasis was the economic rationality of people
bronze. Filipino also learned the use of saving money.
motivated by economic incentives l, monetary benefits
And that's when queen Isabel came up with an idea to
and income to increase the efficiency of the workers.
have a financial intermediaries (banks) BPI, banko
espanyol pilipino queen Isabel II, the first bank in the Inkind incentives.
Philippines. That's when the reproduction of money
started. And that's when the idea of business also
started. Bank of the Philippines Island (BPI).
CONTRIBUTORS
Mechanization=Merchandising
PETER DRUCKER- Father of Management.
 -employees are not robots

MAX WEBER (1905)

(The theory of Social and Economic Organization) HENRY GANTT (1910-1915)

The Bureaucratic School of Management (malayang PROJECT SCHEDULING

kalakaran)
-The protégé and associate of Frederick Taylor, he
1. Formal hierarchical structure designed a project scheduling model for increasing the
efficiency of project execution and completion.
2. Management by rules
-Father of Gantt Chart
3. Organized by task competency
-to avoid more workload by schedules.
4. Impersonal Relationship

5. A focused mission
HENRY FAYOL (1916)
6. Employment based on technical qualification
Administration Industrielle et Generale

The Administrative School of Management

FREDERICK TAYLOR (1911)
14 Principles
Principles of Scientific Management
1. Division of work (divide the task accordingly)
-Propose an in objective and systematic method to
identify "the one best way" to do a job using scientific 2. Authority (applying the rights of authority)
selection and training methods; co-operation and clear
3. Discipline
division of responsibility between managers and
workers; pay for performance. 4. Unity of command (one employee one command)
Right people for the right job. 5. Unity of Direction (one unity of command leads to
Training development selection one unity of direction)

6. Subordination of interest (you must accept the idea

Pay for their right performance.
of middle or the lower level of Management if you are
the higher management)

FRANK and LILIAN GILBERTH (1912-1924) 7. Remuneration (compensation)

Time and Motion Studies 8. Centralization (ideas must be centralize, the idea of
the one is the idea of the many)
-experiment of gravity
9. Scalar Chain (there's a degree of command, or chain
-The expected results are employee satisfaction, of command)
productivity and efficiency.
10. Equity
-one job for one person
11. Order
-sakto lang sa competencies ng isang employee ang
task. 12. Stability of tenure
13. Initiative

14. Esprit De Corp (the good relationship)

2.) NEO-CLASSICAL MANAGEMENT THEORY ELTON MAYO (1933)

-It came about as a reaction against the scientific Human Relationship

approach with emphasized standardization of work
-People are social beings, motivated by social needs. A
processes in a job and whose ultimate goal is to attain
maximum economic return. sense of identity is derived from interpersonal
relationship.
-Focus turned to the human Sid of organization. It
believed that the best way towards gaining maximum -Workers are more receptive to social forces of peer
groups than monetary incentives and management
productivity from workers is through motivation,
structure and supporting employees, intrinsic value in control.
their jobs.

-focused on the human seed of organization or Yung

kakayanan ng employee at kung paano maiimprove o
madedevelop Yung kakayanan ng isang empleyado. ABRAHAM MASLOW (1954)

-quality of work HEIRARCHY OF NEEDS THEORY

HAWTHRONE

(Effects of the Study, on the past classical management

theory)

1. Productivity increases when workers believe that

they're being observed closely.

2. Employee performed better when managers and

coworkers make them feel value.

3. Financial rewards are not necessarily conductive to

increase worker productivity.
4. Workers care about self-fulfillment, autonomy,
empowerment social status and personal relationship
with co-workers.
DOUGLAS MCGREGOR (1960)
THEORY OF X AND Y
-Theory of X explains the importance of heightened
supervision, external rewards, and penalties.

-If you believe that your team members dislike their

work and have little motivation, then according to
McGregor, you'll likely use an authoritarian style of
Management. This approach is very "hands-on" and
usually involves micromanaging people's work to
ensure that it gets done properly. McGregor called this
theory Y.

Masipag vs Tamad

Edgar sia- mang inasal, ilo-ilo

Franchise- buy the product

Sulit pinoy

Done activity by Christopher correa ex

Swot- cross over analysis

Strength for treaths

Opportunity for weakness

S and w inside

0 and t outside

Kung tao ang problema hired new employee

Nov 3 exactly 6 pm due of activity

Advance reading on planning and decision making

Exam thurs and fri

Nov 4-6

Multiple choice and true or flse