Management Theories

The understanding of the various management theories will able

to help business students to have a basis for the decision-
making as future managers.
Management Theories
• theories that helped the decision-
maker to have legal grounds or
basis for soundful decisions.
MANAGEMENT PROCESSES

• the process of managing and

supervision of work performance of
people working in an organization.
Scientific Management Theory

• The advocate of the theory is

Frederick W. Taylor (1865 – 1915)
and known as the Father of
Scienti c Management.
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Scientific Management Theory

• 1. Use scienti c approach in developing an element

for each worker not just a mere rule of thumb.

• 2. make the employees grow by training, teaching

and developing workers for e ciency.

• 3. Cooperation and not individualism

• 4. division of labor accordingly

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General Administrative Theory
• The General Administrative Theory
emphasizes departmentalization of
functions or activities to be performed for
achieving a common purpose. It also
focuses on the good management practice
or implementation. Henri Fayol (1841-1925)
and Max Weber (1864-1920) are the people
associated with such theory.
14 Management Principles of Henri Fayol
• 1. Division of labor – breaking of job into specialized tasks
for e ciency of productivity.

• 2. Authority – right given to a person to in uence by giving

orders or command to a person.

• 3. Discipline – the uniform application of rightful behavior.

• 4. Unity of Command – employees must have only one

supervisor.

• 5. Unity of Direction – e orts of every employee must be

aligned to organizational objectives.
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14 Management Principles of Henri Fayol
• 6. Subordination of the individual interest to the general interest –
employees must prioritize the welfare of the organization rather
than self-interest.

• 7. Remuneration – employees should be paid fairly and accordingly

with the prescribed labor laws.

• 8. Centralization – the concentration of control of an activity or

organization under a single authority. Decentralization is the
empowerment of sub-groups in organization due to complexity or
growth.

• 9. Scalar chain – employees should follow the o cial chain of

command and must not by-pass the authorities found in
organizational charts.

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14 Management Principles of Henri Fayol
• 10. Order – human and non-human resources should be in
proper places.

• 11. Equity – result of kindliness and justice in every

decision.

• 12. Stability of tenure – employees must be assured of

permanency of job position.

• 13. Initiative – management must let employees to act own

their own free-will or volition.

• 14. Esprit de Corps – teamwork by having harmony and

sense of unity.
Weber’s Bureaucracy

• 1. division of labor

• 2. hierarchical identi cation

• 3. detailed rules and regulations

• 4. impersonal connections with

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TOTAL QUALITY MANAGEMENT
• – is a management philosophy
developed by W. Edwards Deming and
Joseph M. Juran regarding the quality
imposition to products or services. It
was introduced in 1950’s but the idea
was not accepted immediately by the
United States due to market
dominance.
TOTAL QUALITY MANAGEMENT

• TQM is highly valued by

customers and businesses since
it produces more quality in the
products.
Deming 14 Points for Top Management
• 1.Createconstancyofpurposeforimprovingpro
ductsandservices.

• 2. Adopt the new philosophy.

• 3. Cease dependence on inspection to

achieve quality.

• 4. End the practice of awarding business on

price alone; instead, minimize total cost by
working with a single supplier.
Deming 14 Points for Top Management
• 5. Improve constantly and forever every
process for planning, production and
service.

• 6. Institute training on the job.

• 7. Adopt and institute leadership.

• 8. Drive out fear.

• 9. Break down barriers between sta areas.

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Deming 14 Points for Top Management
• 10.Eliminateslogans,exhortations
andtargetsfortheworkforce.

• 11. Eliminate numerical quotas

for the workforce and numerical
goals for management.
Deming 14 Points for Top Management
• 12. Remove barriers that rob people of
pride of workmanship, and eliminate
the annual rating or merit system.

• 13.Instituteavigorousprogramofeducati
onandself-improvement for everyone.

• 14. Put everybody in the company to

work accomplishing the transformation.
Juran’s Fitness to Quality
• 1. Quality of Design – design must be in relevance
to the usage or purpose of the product.

• 2. Quality of Conformance – must conform with

the standards set.

• 3. Availability – continuous supply of products to

customers

• 4. Full service – promptness, integrity, and

competence of products.
Organizational Behavior
• the process of studying on how
to understand and adjust to the
di erent people that comprises
an organization.
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Organizational Behavior
• With the understanding of it,
people who have di erent
behavior and attitude could able
to understand and harmonize the
actions within the group.
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Organizational Behavior
• This behavior theory helps
manager to carry out functions in
the leading, con ict resolution and
other instances in the organization.
It was supported by Robert Owen,
Mary Parker Follet, Hugo
Munsterberg and Chester Barnard.
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