What is It

1.SCIENTIFIC MANAGEMENT THEORY

It is a theory of management that is focused on the scientific method of putting efficiency

and productivity in the workforce, and workers will be paid by their output or piece-rate
wages, which we call the “pakyaw” system.

The scientific management theory monitors the worker continuously, measures his work
output, and controls his actions leading to the efficient production of output.

If a worker does not maintain the required output, the worst case is his replacement or
removal from his job. This is such a stressful type of menial and routine task, and the
worker does not exercise autonomy.

Frederick W. Taylor is known as the Father of Scientific Management Theory. Henry

Gantt, and Frank and Lillian Gilbreth are among the other advocates of Scientific
Management. Frank and Lillian Gilbreth also introduced the Time and Motion method,
which is a technique to measure the time consumed in each task after the job is divided
into parts.

Ford Model T is another contribution of the Scientific Management Theory. Henry Ford
introduced the assembly line wherein the workers would concentrate on one task in the
entire process. There is a conveyor or a moving assembly line for a specific automobile
part.

This innovation reduced the assembly time for the Model T from 13 hours to 1½ hour.
Indeed, the cost of production of the Ford cars decreased, making it possible to mass-
produce the car. Employees can now afford to buy their cars.

2.ADMINISTRATIVE MANAGEMENT THEORY

This Administrative Management Theory concerns the role of managers in the

management of an organization. Max Weber added the importance of bureaucracy and
public administration. Mary Parker Follet emphasizes the human element of
collaboration and cooperation in finding solutions to problems.

Henri Fayol, a French industrialist, identified the fourteen (14) principles of

management, which are very useful today.

1. Division of work – specialization of tasks and skills

2. Authority and responsibility – with authority comes responsibility
3. Discipline – respect for agreements and violations are penalized
4. Unity of command – employee receives order from one superior only
 5. Unity of direction – each activity is directed to one plan
6. The predominance of the general interest of the organization over the individual
interests of employees – the general interest of the organization prevails,
however, the management emphasizes the welfare of employees
7. Remuneration of the efforts of the employees – salaries and wages are fair
8. Centralization – the authority of superiors and subordinate roles of rank and file
9. Scalar chain – a line of communication is open within the chain of command
10. Order– arrangement of materials or persons in an organization
11. Equity – fairness from employers and loyalty from employees
12. Stability and tenure – security in jobs and employee turn-over
13. Initiative – employees voluntarily act in support of the organization
14. Esprit de corps – teamwork and communication

3. HUMAN RELATION THEORY

The Human Relation Theory came to flourish when people grew weary of the inhuman
treatment in the industrialization period where a worker was a mere tool in the
production process.

This theory highlighted the person as an individual and is motivated in a workplace

where social relationships or interpersonal relationships are dignified.
Elton Mayo, an Australian psychologist, studied the Hawthorne Works Factory of the
Western Electronic Company with 30,000 employees. Though these employees enjoy
certain benefits, still productivity was not maximized.

This study resulted in setting the number of work hours; break times were also given to
employees, the improvement of lighting in work areas, and close supervision by
managers.

With the changes in this theory, productivity and commitment increased. With the
dramatic soar in production, the people over-performed beyond the management’s
expectation.

Abraham Maslow, an advocate of this theory, bridged the gaps of human needs to job
performance.

He introduced the pyramid of Maslow’s Hierarchy of Needs divided into five (5) levels.

He reiterated that only when the needs of a man are met, that he is ready to stand out
and excel.

The first level of needs is physiological needs like food, air, and water. When a man’s
belly is full, then he has time to think. And second level needs are security needs like
shelter, and then progress upward to the higher-level needs such as self-esteem and
self-actualization. He added two more essential needs: cognitive needs or the need to
acquire knowledge; and aesthetic needs or the need to create and experience beauty,
balance, and structure.
 Table 1. Abraham Maslow’s Hierarchy of Needs

Theory X and Theory Y

This was developed by Douglas McGregor, who is, in essence, has contradicting
concepts. Theory X is an authoritarian and pessimistic management style with
employees who are less passionate about their jobs. Also, this is found in big companies
with thousands of employees, in which the management of people is quite difficult.
Theory Y is a participative and optimistic management style with employees who are
willing to collaborate in the tasks. This is commonly found in small companies, with few
people whose working relationship is trust-based.

4.QUANTITATIVE MANAGEMENT THEORY

Quantitative Management Theory uses analytic, numeric data, and scheduling models
to monitor and improve management decisions.

It uses three (3) approaches: Management Science, Operations Management, and

Management Information System.

Management Science or Operations Research presents mathematical models and

statistical techniques and concepts. A good example is a study on inventory delays and
critical paths to prevent future delays in production. It also includes the calculation of
the percentage of errors, types of errors done, which makes the manager able to revisit
the reports and reduce repetitive mistakes.

Operations Management improves the timing of delivery and streamlines the production
process. A good example is forecasting inventory and raw material needs and comparing
those available in the warehouse. This will avoid money tied up to unused materials.
Also, it determines the best location for a distribution center.

Management Information System is a computer-based information system that

generates information useful in decision making. Examples are the reports on trends on
sales and reports on production defect rates. This is shown through spreadsheets for
easy tracking and reference by managers.
5.SYSTEMS THEORY

Systems Theory Management manages the organization as a system. Meaning it acts as

a whole group, with inter-related parts, which are the different departments or resources
like the assets, employees, information to attain the organization’s goals.

It also uses organizational behavior to evaluate the people whereby management will
learn how to motivate and lead the employees.

It is a dominant theory wherein the management has typically four (4) major functions
in an open environment: the inputs which are the materials or people, the throughputs,
which is the process or technology applied, then the outputs which are the products
and services, and the feedback which may be positive or negative.

The systems theory may be an open or closed system. An excellent example of an open
system is when the Human Resources Department, Procurement Department have to
work closely with the Accounting Department because HR has to give the records of
employees for proper compensation by the Accounting Department. The Procurement
Department has to connect with the Accounting Department for the needed cash to
purchase raw materials and other supplies. The connection between the HR to
Accounting and Procurement to Accounting Department is called a network.

An example of a closed system is when a department has no connection with another

department. An example is when the Engineering Department does not have anything
to do with the Auditing Office.

6.CONTINGENCY THEORY

The Contingency Theory tells us that due to the contingency factors like the uniqueness
of organizations, no hard and fast rule applies to every company in solving problems.

It also puts heavy weight on organizational behavior, which helps companies

understand employees in a work environment.

This is used to evaluate the group behavior and its effectiveness in the leadership style
of the management.

The many differences in the organizations can affect the direct relationships between
the independent and dependent variables.

The Independent variables are the causes of the change, like motivation and leadership.
Dependent variables are the responses affected by the independent variables like the
productivity, absenteeism of employees.

In a contingency model, Fred Fiedler said that it relies heavily on the skills of the
manager to handle its structure and make its approaches, combat the unique situations
the company is in.
A typical example is when a company experiences that its employees are leaving the
company, absenteeism, and low productivity. These are the responses or effects of poor
management. Let us go back to our company goals and processes. That is to increase
production and to maintain good employees. Knowing fully well your unique structure
of people and resources, then you must act by your individual needs. The universal
processes or laws or methods of management may not apply to a particular situation.
Solutions must be tailored fit according to the circumstances in the environment.

7.QUALITY MANAGEMENT THEORY

Quality Management Theory focuses on producing quality goods and services that will
satisfy customers; likewise, employees are willing to deliver in coordination with
suppliers for materials needed in the manufacturing. Ultimately, the company earns a
profit.

After World War II, most countries were in ruins, and Japan was leading the competition
by producing quality goods and services. There were three (3) leading stalwarts of this
theory, namely: William Edwards Deming, Joseph Moses Juran, and Philip B. Crosby.

Deming introduced the fourteen (14) principles of Total Quality Management, which is
summarized into designing quality products and services for customer satisfaction,
developing systems that reduce waste, increase quality and decrease cost in production.

Juran’s quality management involves everyone from the top management down to all
the employees. It contains quality planning, quality control, and quality improvement.

Crosby’s quality management focused on the conformity to standards, preventive

measures, and the Zero-Defect system.

This led to Japan’s rise as Asia’s leader in industrialization.

One excellent example of this is KAIZEN in Japan. It means continuous improvement

or change for the better. That employees have the right tools to work effectively and not
to clutter, safety precautions in the workplace, elimination of waste, and improvement
process is gradual. It follows the 5S principles of 1) Seiri meaning to Sort 2) Seiton
means to Set in Order, 3) Seiso to shine, 4) Siketsu or to standardize, and 5) Shitsuke
or to sustain.

How do you do the 5S? For example, in your own house, you see things cluttered
around. Seiri or to sort means, to group things or classify them accordingly like pepper,
salt, sugar are all condiments should be grouped. Seiton or to set in order means to
keep them where they rightfully belong. Seiso or to shine means to clean the area where
you keep the condiments. Siketsu or to standardize indicates an acceptable level of
activity. In this case, you agree with all the members of the family that these sugar, salt
pepper should be kept together in a specific place. When somebody uses them, they
must return these three (3) into the agreed place of storage—Shitsuke or to sustain
means to follow steps 1-4 consistently from day 1 onwards.