SENIOR

ORGANIZATION AND HIGH

SCHOOL
MANAGEMENT
Module
Management Theories:
Classical Management Theory 1
Quarter 2
ORGANIZATION AND MANAGEMENT
Quarter 2 – Module 1: Management Theories
First Edition, 2020

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Development Team of the Module

Writer: Emerson P. Agcaoili
Editors: Emerson P. Agcaoili
Reviewers: Teresita P. Tagulao, Ed. D., Mathematics
Layout Artist: Clifchard D. Valente
Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
Aurelio G. Alfonso, Ed. D.
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Chief - School Governance and Operations Division
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10. Teresita P. Tagulao, Ed. D., Mathematics

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ORGANIZATION AND SENIOR
HIGH
MANAGEMENT SCHOOL

Module

1
Quarter 2

Management Theories:
Classical Management Theory
Introductory Message

For the facilitator:

Welcome to the Organization and Management Module on Management Theories !

This module was collaboratively designed, developed and reviewed by educators

from Schools Division Office of Pasig City headed by its Officer-In-Charge Schools
Division Superintendent, Ma. Evalou Concepcion A. Agustin in partnership with
the Local Government of Pasig through its mayor, Honorable Victor Ma. Regis N.
Sotto.
The writers utilized the standards set by the K to 12 Curriculum using the Most
Essential Learning Competencies (MELC) while overcoming their personal, social,
and economic constraints in schooling.

This learning material hopes to engage the learners into guided and independent
learning activities at their own pace and time. Further, this also aims to help
learners acquire the needed 21st century skills especially the 5 Cs namely:
Communication, Collaboration, Creativity, Critical Thinking and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:

Welcome to the Organization and Management Module on Management Theories !

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectation - These are what you will be able to know after completing the
lessons in the module

Pre-test - This will measure your prior knowledge and the concepts to be
mastered throughout the lesson.

Recap - This section will measure what learnings and skills that you
understand from the previous lesson.

Lesson- This section will discuss the topic for this module.

Activities - This is a set of activities you will perform.

Wrap Up- This section summarizes the concepts and applications of the
lessons.

Valuing-this part will check the integration of values in the learning

competency.

Post-test - This will measure how much you have learned from the entire
module.
 EXPECTATION
This module is designed to familiarize the students with the basic concepts,
principles, and processes related to business organization, and the functional areas
of management. Particular emphasis will be given to the study of management
functions like planning, organizing, leading, and controlling, and orient the students
on the importance of these functions and the role of each area in entrepreneurship.
At the end of the lesson, the learners will have an understanding of the significance
of organization structures for effective business management. The learners will be
able to design an appropriate organization structure for a specific business

PRE–TEST
Direction: State if the following statements are correct by writing TRUE or FALSE.

1. ________ Management theories is a collection of ideas that recommend general rules for
how to manage an organization or business.
2. ________ Modern Management Theory focuses on operations and the creation of
standards to increase production output.
3. ________ Scientific Management Theory emphasizes minimizing waste and reducing
production times.
4. ________ Bureaucracy Management Theory considers management as a primary
business activity. This theory provides detailed guidelines for managers in managing the
business.
5. ________ Administrative Theory emphasizes formal authority systems. Unity and the
authority of organizational hierarchies are central to Bureaucracy Theory.
 REVIEW
Direction: Answer the following questions in complete sentence form.

1. What is Planning? __________________________________________________

__________________________________________________________________
2. What are the types of plans? __________________________________________
__________________________________________________________________
3. What is the use of SWOT analysis? ____________________________________
__________________________________________________________________
4. What is the use of PESTEL analysis? __________________________________
__________________________________________________________________
5. What are the major types of business operation? _________________________
__________________________________________________________________
6. What are the different forms of business ownership? _______________________
__________________________________________________________________
 LESSON

Management theories have been developed and used since management first
became a standard part of business practices. While older theories still hold relevant, new
theories continue to be developed to keep up with current trends in business.
The workplace has changed dramatically since the first management theories were
conceived. Modern management is not a one-size-fits-all practice. Therefore, it is helpful to
gain an understanding of management theories and their applications.

Where Did Management Theories Originate?

Mass production and the Industrial Revolution brought about new requirements for
managing people and processes. As companies began to grow in size and production,
business owners increasingly needed managers to run their daily operations. As a result of
expanding industry, the practice of management became a major theoretical consideration
in the study of business.

How Are Management Theories Classified?

There are three major classifications for management theories: Classical
Management Theory, Behavioral Management Theory and Modern Management Theory.
These classifications represents a different era in the evolution for management theories.
1. Classical Management Theory centers around execution and maximizing
production.
2. Behavioral Management Theory focuses increasingly on human elements
and viewing the workplace as a social environment.
3. Modern Management Theory builds on the previous two theories, while
incorporating modern scientific methods and systems thinking.
Each of the classifications above further contain multiple sub-theories.

Classical Management Theory

Classical Management Theory focuses on operations and the creation of standards
to increase production output. In Classical Management Theory, compensation is
considered the primary motivation for employees. A manager practicing Classical
Management Theory would be focused on improving output and rewarding high-performing
employees through wages or bonuses.
There are three primary theories that comprise the Classical Management Theory:
1. Scientific Management Theory is a very early management theory focused on
minimizing waste and reducing production times. It was developed by Frederick
Taylor, who attempted using a scientific approach for improving operations. Taylor’s
theory emphasizes rewarding employee performance and reducing “trial and error”
practices.
Taylor's approach to management can be summed up into his four principles of
scientific management.

a. Management should provide employees with an accurate, scientific approach

for how to accomplish individualized tasks.
b. Management should carefully select and train each employee on one specific
task.
c. Management should communicate with employees to ensure the method used
to accomplish the task is the most productive and efficient.
d. Management should design a suitable division of labor.

2. Administrative Management Theory was developed by Henri Fayol, who is

considered to be a founder of management theory. This theory considers all of the
many activities that a business must conduct and considers management a primary
business activity. This theory provides detailed guidelines for managers in
managing business activities.
Back around 1860, Henri Fayol began as a young engineer working at a coal
mine in France. Fayol noticed that managing the miners was not an easy job.
Managers had few resources and tools to better manage people.
Unlike Taylor's scientific management theory, Fayol believed that it was more
than just work and workers. Managers needed specific roles in order to manage work
and workers. This became known as the administrative school of management. The
administrative management theory was founded on the six functions (or roles) of
managers:
a. Forecasting is a technique that uses historical data as inputs to make informed
estimates that are predictive in determining the direction of future trends.
b. Planning is concerned with defining goals for a future direction.
c. Organizing is coordinating and allocating a firm's resources in order to carry out
its plans.
d. Commanding is about instructing the members of the organization and ensuring
that they are motivated to complete the tasks that the manager have set them.
e. Coordinating is concerned with integrating activities to ensure resources of an
organization are used most efficiently to succeed in achieving the set goal
f. Controlling is a process which measures the actual performance against the
planned goals of the organization.

The roles enumerated above are used together as a process. It focused on

the entire organization rather than just the work. Once broken down into smaller parts,
the six functions evolved into Fayol's 14 Principles of Management.
In this lesson, we will focus on the first seven Principles of Management:
a. Division of Labor is the separation of tasks in an organization so that
employees may develop and use their specialization to increase productivity.
b. Authority is the power or right to give orders, make decisions, and enforce
obedience among employees.
c. Discipline is the practice of training employees to obey rules or a code of
behavior.
 d. Unity of Command is getting orders/ command from only one supervisor.
e. Unity of Direction is making all team members involved in the same activities
share the same objective.
f. Subordination of Individual Interests to the General Interest means that any
individual interests that antagonize the organizational interest must be
subordinate to the interests of the organization.
g. Remuneration is the payment or compensation received for services or
employment.
3. Bureaucracy Theory promotes reason to guide management decisions, rather
than charisma or nepotism. Developed by sociologist Max Weber, this theory
emphasizes formal authority systems. Unity and the authority of organizational
hierarchies are central to Bureaucracy Theory.
Characteristics of Bureaucratic Organizations
a. Well-defined formal hierarchy and chain of command - distinguishes the level of
authority within an organization.
b. Management by rules and regulations - provides a set of standard operating
procedures that facilitate consistency in both organizational and management
practices.
c. Division of labor and work specialization - are used to align employees with
their organizational tasks.

ACTIVITIES
Read carefully the items below and answer in complete sentence what are
being asked.
1. What are the three major classifications of Management Theories?
______________________________________________________________________
2. How can management theories help managers in achieving business goals?
______________________________________________________________________
3. What is the focus of Classical Management Theory?
______________________________________________________________________
4. What Classical Management Theory focuses on how the manager will perform his
duties?
______________________________________________________________________
5. What Classical Management Theory focuses on increasing productivity by reducing
waste of time and materials?
______________________________________________________________________
6. What Classical Management Theory focuses on the exercise of authority in the
organizational system?
______________________________________________________________________
Observe a Jollibee branch near you. Describe how they practice the following management
principles:
7. Division of Labor : _______________________________________________________
______________________________________________________________________
8. Discipline : ____________________________________________________________
______________________________________________________________________
9. Unity of Command : _____________________________________________________
______________________________________________________________________
10. Briefly explain how important is an organizational chart in laying out a well-defined
formal hierarchy and chain of command.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

WRAP–UP

⚫ Management theories is a collection of ideas that recommend general rules for how to
manage an organization or business whether in motivating employees, making decisions,
allocating resources or negotiating deals.
⚫ There are three major classifications for management theories: Classical Management
Theory, Behavioral Management Theory and Modern Management Theory.
⚫ Classical Management Theory centers around execution and maximizing production.
⚫ The three primary theories that comprise the Classical Management Theory are:
a. Scientific Management Theory is a very early management theory focused on
minimizing waste and reducing production times.
b. Administrative Management Theory considers managing as a primary business
activity and this theory provides detailed guidelines for managers.
c. Bureaucracy Theory emphasizes formal authority systems. This theory focuses on
unity and the authority of organizational hierarchies.
 VALUING

MAKAKALIKASAN - Scientific Management Theory is a very early management

theory focused on minimizing waste and reducing production times. Minimizing waste
shows respect for the environment.
Give 3 concrete situations as to how we can minimize waste at home by completing the
sentences below:
1. I can help reducing kitchen wastes at home by _________________________________
__________________________________________________________________.
2. I can help conserving electricity at home by ___________________________________
__________________________________________________________________.
3. I can help conserving water at home by ______________________________________
__________________________________________________________________.

POST TEST
Direction: Read and understand the following statements. Encircle the word
that made the statement wrong then write the correct word on the space
provided.
1. Classical Management Theory focuses on operations and the creation of standards to
increase production output. A manager practicing Classical Management Theory
would be focused on increasing input and rewarding high-performing employees
through wages or bonuses. _____________________
2. Bureaucracy Management Theory focuses on minimizing waste and reducing
production times. This theory states that management should communicate with
employees to ensure the method used to accomplish the task is the most productive
and efficient.__________________________
3. Fayol’s behavioral management theory states that managers needed specific roles in
order to manage work and workers. The administrative management theory was
founded on the six functions (or roles) of managers. ______________________
4. Scientific Management Theory, developed by sociologist Max Weber, promotes
reason to guide management decisions, rather than charisma or nepotism. This theory
emphasizes formal authority systems. ________________________
KEY TO CORRECTION
 R E F E R E N CE S

⚫ https://www.mindtools.com/pages/article/newTMM_Taylor.htm

⚫ https://courses.lumenlearning.com/wm-
organizationalbehavior/chapter/different-management-theories/

⚫ https://study.com/academy/lesson/classical-scientific-school-of-
management.html