a.

Evolution of Management

Early Management, organized endeavors directed by people responsible for planning,

organizing, leading, and controlling have existed for thousands of years. Some examples of early
management are the Ancient Management wherein the Egyptian pyramids and the Great Wall of China
are proof that projects of tremendous scope, employing tens of thousands of people, were completed in
ancient times. It took more than 100,000 workers some 20 years to construct a single pyramid. Another
example of early management can be found in the city of Venice, which was a major economic and trade
center in the 1400s. Adam Smith also published The Wealth of Nations. He advocated the division of
labor or job specification to increase the productivity of the workers. Then comes the Industrial
Revolution, wherein individuals then began substituting human power to machine power. It created
large organizations which resulted to a need of management.

There are major approaches to management, namely: Classical Approach, Behavioral Approach,
Quantitative Approach, and Contemporary Approach.

Classical Approach, the first formal study of management that has begun in the early 20th
century, which emphasized rationality and making organizations and workers as efficient as possible. Two
major theories comprise the classical approach: scientific management and general administrative
theory. The scientific management was from the book of Frederick Winslow Taylor’s Principles of
Scientific Management. Taylor’s book described the theory of scientific management: the use of
scientific methods to define the “one best way” for a job to be done. Two more pioneers in the field of
management theory were Frank and Lillian Gilbreth, who conducted research about the same time as
Taylor. Like Taylor, the Gilbreths were interested in worker productivity, specifically how movement and
motion affected efficiency. General Administrative theory, on the other hand, theory focused more on
what managers do and what constituted good management practice. The Administrative Theory of
Management was first generalized by Henri Fayol and was then contributed by Max Weber. Henri Fayol
believed that the practice of management was distinct from other organizational functions. Fayol also
developed principles of management that applied to all organizational situations, namely: division of
work, authority, discipline, unity of command, unity of direction, subordination of individual interests to
the general interests, remuneration, centralization, scalar chain, order, equity, stability of tenure of
personnel, initiative, and esprit de corps. Max Weber, on the other hand, emphasized rationality,
predictability, impersonality, technical competence, and authoritarianism.

Behavioral Approach, refers to managers get things done by working with people, and the field
of study that researches the actions (behavior) of people at work is called Organizational Behavior (OB).
Although a number of individuals in the early twentieth century recognized the importance of people to
an organization’s success, four stand out as early advocates of the OB approach: Robert Owen, Hugo
Munsterberg, Mary Parker Follett, and Chester Barnard. Their contributions were varied and distinct,
yet all believed that people were the most important asset of the organization and should be managed
accordingly. Their ideas provided the foundation for such management practices as employee selection
procedures, motivation programs, and work teams. The most important contribution to the OB field
came out of the Hawthorne Studies, a series of studies conducted at the Western Electric from 1924 to
1932. They found experimental findings wherein productivity unexpectedly increased under imposed
adverse working conditions. The effect of incentive plans was less than expected. The research
concluded that social norms, group standards and attitudes are strongly influence individual output and
work behavior than do monetary incentives.

Quantitative approach, is also called the operations research or management science. It was
evolved from mathematical and statistical methods and developed to solve WWII military logistics and
quality control problems. It focuses on improving managerial decisions making by applying statistics,
optimization models, information models, and computer simulations. The Total Quality Management
(TQM) is a management philosophy devoted to continual improvement and responding to customer
needs and expectations. The characteristics of a Quality Management has an intense focus on the
customer, concern for continual improvement, process focused, improvement in the quality of
everything the organization does, accurate measurement, and empowerment of employees.

Contemporary Approach, the earlier approaches focus more in the inside of the organization,
however, in the 1960s, management researches began to look at what was happening in the external
environment outside the organization’s boundaries. Two contemporary management approaches are the
systems and contingency approach. The Systems Approach is a set of interrelated and interdependent
parts arranged in a manner that produces a unified whole. The two basic types of systems are closed and
open. Closed systems are not influenced by and do not interact with their environment. In contrast, open
systems are influenced by and do interact with their environment.

The early management theorists came up with management principles that they generally
assumed to be universally applicable. Management is not (and cannot be) based on simplistic principles
to be applied in all situations. Different and changing situations require managers to use different
approaches and techniques. The contingency approach (sometimes called the situational approach) says
that organizations are different, face different situations (contingencies), and require different ways of
managing. A good way to describe contingency is “if, then.” If this is the way my situation is, then this is
the best way for me to manage in this situation. There are popular contingency variables, namely:
organization size, routineness of task technology, environmental uncertainty, and individual differences.

How today’s managers use general administrative theory:

- Fayol’s 14 principles serve as a frame of reference from which many current managements concept
have evolved.

- In flexible organizations of creative professional, some bureaucratic mechanisms are necessary to

ensure that resources are used efficiently and effectively.

How today’s managers use the behavioral approach:

- The behavioral approach has largely shaped how today’s organizations are managed. From the way that
managers design jobs to the way that they work with employee teams to the way that they
communicate, we see elements of the behavioral approach.
How today’s managers use the quantitative approach:

- The quantitative approach contributes directly to management decision making in the areas of planning
and control. instance, when managers make budgeting, queuing, scheduling, quality control, and similar
decisions, they typically rely on quantitative techniques.

b. Functions, roles, levels of management

Functions

Henri Fayol, a French businessman, proposed that all managers perform four (4) functions: planning,
organizing, leading, and controlling.

Planning – defining goals, establishing strategies to achieve goals, developing plans to integrate and
coordinate activities.

Organizing – arranging and structuring work to accomplish organizational goals. It determines what
needs to be done, how it will be done, and who is to do it.

Leading – working with and through people to accomplish goals. Motivating, leading, and any other
actions involved in dealing with people.

Controlling – monitoring, comparing, and correcting work. It monitors activities to ensure that they are
accomplished as planned.

When the 4 functions are accomplished by a manager, it will lead to achieving the organization’s stated
purposes.

Roles

Henry Mintzberg, a well-known management researcher, identified 10 roles grouped around

interpersonal relationships, the transfer of information, and decision making.

The interpersonal roles are ones that involve people (subordinates and persons out-
side the organization) and other duties that are ceremonial and symbolic in nature. The three
interpersonal roles include figurehead, leader, and liaison.

The informational roles involve collecting, receiving, and disseminating information. The three
informational roles include monitor, disseminator, and spokesperson.

Finally, the decisional roles entail making decisions or choices. The four decisional roles include
entrepreneur, disturbance handler, resource allocator, and negotiator.
Levels of Management

Robert L. Katz proposed that managers need three critical skills in managing: technical, human, and
conceptual.

Technical skills are the job- specific knowledge and techniques needed to proficiently perform work
tasks. Knowledge and proficiency is required in a specific field.

Human Skills – the ability to work well with other people.

Conceptual Skills – the ability to think and conceptualize about abstract and complex situations
concerning the organization.

Nonmanagerial employees – are people who work directly on a job or task and have no responsibility
for overseeing the work of others.

First – line Managers – individuals who manage the work of non-managerial employees.

Middle Managers – individuals who manage the work of first – line managers.

Top Mangers – individuals who are responsible for making organization-wide decisions and establishing
plans and goals that affect the entire organization.

c. Management & organizations

Management involves coordinating and overseeing the work activities of others so that their activities
are completed efficiently and effectively.

Managers are someone who coordinates and oversees the work of other people so that organizational
goals can be accomplished.

Organizations is a deliberate arrangement of people to accomplish some specific purpose (that

individuals independently could not accomplish alone)

Characteristics of Organizations:

• Have a distinct purpose (goal)

• Composed of people
• Have a deliberate structure
d. Quality

Quality is the ability of a product or service to consistently meet or exceed customer

expectations.

e. Deming’s 14 points

W. Edwards Deming offered 14 key points for management to follow to improve the effectiveness of a
business or organization significantly. These 14 points are:

1. Create constancy of purpose toward improvement of product and service.

- Create constancy of purpose for continual improvement of products and service to society,
allocating resources to provide for long range needs rather than only short-term profitability,
with a plan to become competitive, to stay in business, and to provide jobs.

2. Reduce levels of delays, mistakes, defective materials, and defective workmanship.

- We can no longer live with commonly accepted levels of delays, mistakes, defective materials
and defective workmanship. Transformation of Western management style is necessary to halt
the continued decline of business and industry.

3. Cease dependence on mass inspection. (Prevent defects rather than detect defects.)
- Eliminate the need for mass inspection as the way of life to achieve quality by building quality
into the product in the first place. Require statistical evidence of built in quality in both
manufacturing and purchasing functions.

4. Eliminate suppliers that cannot qualify with statistical evidence of quality.

- End the practice of awarding business solely on the basis of price tag. Instead, require
meaningful measures of quality along with price. Reduce the number of suppliers for the same
item by eliminating those that do not qualify with statistical and other evidence of quality. The
aim is to minimize total cost, not merely initial cost, by minimizing variation. This may be
achieved by moving toward a single supplier for any one item, on a long-term relationship of
loyalty and trust. Purchasing managers have a new job, and must learn it.

5. Find problems. It is management's job to work continually on system improvement.

- Improve constantly and forever every process for planning, production, and service. Search
continually for problems in order to improve every activity in the company, to improve quality
and productivity, and thus to constantly decrease costs. Institute innovation and constant
improvement of product, service, and process. It is management's job to work continually on the
system (design, incoming materials, maintenance, improvement of machines, supervision,
training, retraining).
6. Institute modern methods of training on the job.
- Institute modern methods of training on the job for all, including management, to make better
use of every employee. New skills are required to keep up with changes in materials, methods,
product and service design, machinery, techniques, and service.

7. Emphasize quality instead of volume alone. Management must prepare to take immediate
action on reports from foremen concerning barriers such as inherent defects, machines not
maintained, poor tools, and fuzzy operational definitions.
- Adopt and institute leadership aimed at helping people do a better job. The responsibility of
managers and supervisors must be changed from sheer numbers to quality. Improvement of
quality will automatically improve productivity. Management must ensure that immediate action
is taken on reports of inherited defects, maintenance requirements, poor tools, fuzzy operational
definitions, and all conditions detrimental to quality.

8. Drive out fear, so that everyone may work effectively for the company.
- Encourage effective two-way communication and other means to drive out fear throughout the
organization so that everybody may work effectively and more productively for the company.

9. Break down barriers between departments. People in research, design, sales, and production
must work as a team.
- Break down barriers between departments and staff areas. People in different areas, such as
Leasing, Maintenance, Administration, must work in teams to tackle problems that may be
encountered with products or service.

10. Eliminate goals and slogans asking for new levels of productivity without providing methods.
- Eliminate the use of slogans, posters and exhortations for the work force, demanding Zero
Defects and new levels of productivity, without providing methods. Such exhortations only
create adversarial relationships; the bulk of the causes of low quality and low productivity
belong to the system, and thus lie beyond the power of the work force.

11. Eliminate work standards that prescribe numerical quotas.

- Eliminate work standards that prescribe quotas for the work force and numerical goals for
people in management. Substitute aids and helpful leadership in order to achieve continual
improvement of quality and productivity.

12. Remove barriers that stand between the hourly worker and his right to pride of workmanship.
- Remove the barriers that rob hourly workers, and people in management, of their right to pride
of workmanship. This implies, among other things, abolition of the annual merit rating (appraisal
of performance) and of Management by Objective. Again, the responsibility of managers,
supervisors, foremen must be changed from sheer numbers to quality.
 13. Institute a vigorous program of education and retraining.
- Institute a vigorous program of education, and encourage self-improvement for everyone.
What an organization needs are not just good people; it needs people that are improving with
education. Advances in competitive position will have their roots in knowledge.

14. Create a structure in top management that will push every day on the above 13 points.
1. Management in authority will struggle over every one of the above 13 points, the deadly
diseases, and obstacles. They will agree on their meaning and on the direction to take. They will
agree to carry out the new philosophy.
2. Management will take pride in their adoption of the new philosophy and in their new
responsibilities. They will have courage to break with tradition, even to the point of exile among
their peers.
3. Management will explain by seminars and other means to a critical mass of people in the
company why change is necessary, and the change will involve everyone.

f. Gurus of TQM

1. Walter Shewhart – was a genuine pioneer in the field of quality control, and he became known as the
"father of statistical quality control”. Shewhart also introduced the idea of "control charts," which are
graphical tools used to monitor process performance over time and identify when a process is out of
control.

2. W. Edwards Deming – One of the pioneers of quality management, Deming is known for his work in
Japan after World War II, where he helped Japanese companies improve their quality and productivity.
He is best known for his "14 Points for Management," which outline the key principles of quality
management, and his emphasis on the importance of statistical process control and continuous
improvement.

3. Joseph M. Juran – He is considered one of the pioneers of the modern quality management
movement and is known for his development of the "Juran Trilogy," which consists of three critical
components of quality management: quality planning, quality control, and quality improvement. Like
Deming, taught Japanese manufacturers how to improve the quality of their goods, and he, too, can be
regarded as a major force in Japan's success in quality. Juran viewed quality as fitness-for-use.

4. Armand V. Feigenbaum – According to Feigenbaum, it is the customer who defines quality.

Feigenbaum is known for developing the concept of total quality control, which focuses on integrating all
aspects of an organization's operations to achieve quality. He recognized that quality was not simply a
collection of tools and techniques, but a "total field”.

5. Philip B. Crosby – Crosby introduced the concept of "zero defects," and popularized the phrase "Do it
right the first time." which aims to eliminate defects and errors in a process or product. Crosby also
introduced the idea of "quality is free," which is the notion that the costs of poor quality are much
greater than traditionally defined.

6. Kaoru Ishikawa – Ishikawa is a Japanese quality management expert known for developing the cause-
and-effect diagram, also known as the "Ishikawa diagram" or "fishbone diagram." This development of
his is for problem solving and the implementation of quality circles, which involve workers in quality
improvement.

7. Genichi Taguchi - Taguchi was a Japanese engineer and quality control expert is best known for the
Taguchi loss function, which involves a formula for determining the cost of poor quality. An important
part of his philosophy is the cost to society of poor quality.

8. Taiichi Ohno and Shigeo Shingo – Both developed the philosophy and methods of kaizen, a Japanese
term for continuous improvement (defined more fully later in this chapter), at Toyota. Continuous
improvement is one of the hallmarks of successful quality management.

g. Dimensions of Product & Service Quality

Product Quality is often judged on nine dimensions of quality. The dimensions of product quality is
described below:

1. Performance – refers to the main characteristics of the product.

2. Aesthetics- it is the appearance, feel, smell, taste of a product.
3. Special features- defines as the extra characteristics of a certain product.
4. Conformance- refers to how well a product corresponds to design specifications.
5. Reliability- refers to the dependable performance of a product.
6. Durability- refers to the ability of a product to perform over time.
7. Perceived quality- it defines the indirect evaluation of quality (e.g., reputation) of a product.
8. Serviceability- refers to the handling of complaints or repairs of a specific product.
9. Consistency – refers to the quality of product that doesn't vary.

Service Quality. The dimensions of product quality don't adequately describe service quality. Instead,
service quality is often described using the following dimensions:

1. Convenience- it defines as the availability and accessibility of the service.

2. Reliability- refers to the ability to perform a service dependably, consistently, and accurately.

3. Responsiveness- refers to the willingness of service providers to help customers in unusual

situations and to deal with problems.

4. Time- it is the speed with which service is delivered.

5. Assurance- it is the knowledge exhibited by personnel who come into contact with a customer
and their ability to convey trust and confidence.

6. Courtesy-it is the way customers are treated by employees who come into contact with

7. Tangibles – refers to the physical appearance of facilities, equipment, personnel, and

communication materials.

8. Consistency- it is the ability to provide the same level of good quality repeatedly.

9. Expectations- defines as a need to meet (or exceed) customer expectations.

h. Tools & Techniques

Quality Tools

- It is used for problem solving and process involvement. It aids in data collection and interpretation, and
provide the basis for decision making. There are eight (8) basic quality tools; namely: Flowcharts, Check
sheets, Histograms, Pareto Analysis, Scatter Diagrams, Controls Charts, Cause-and-Effect Diagrams, and
Run Charts.

Flowcharts – A diagram of the steps in a process. Ex: flowchart of catalog call.

Check Sheets – A tools for organizing and collecting data; a tally of problems or other events by category.

Histogram – A chart that shows an empirical frequency distribution.

Pareto Chart – A diagram that arranges categories from highest to lowest frequency of occurrence.

Scatter Diagram – A graph that shows the degree and direction of relationship between two variables.

Control Charts – A statistical chart of time-ordered values of a sample statistic (e.g., sample means).

Cause-and Effect Diagram – A diagram used to organize a search for the cause(s) of a problem; also
known as a fishbone diagram.

Run Charts – it is a tool for tracking results over a period of time.

Techniques

- In a management, there are techniques that could aid in the process of generating ideas or in terms of
decision making, namely: Brainstorming, Quality Circles, and Benchmarking.

Brainstorming – it is a technique for generating a free flow of ideas in a group of people.

Quality Circles – refers to a group of workers who meet to discuss ways of improving products or
processes.

Benchmarking – it is a process of measuring performance against the best in the same or another
industry.