Evolution of

Evolution of
Management
Thinking
KILAT, Kristal LIM, Gian
LARISMA, Arlene MANGAS, Sheeva
LAZALA, Dorothie
What is
“Management
Thinking” ?
What is
“Management
Thinking” ?
This is designed to help managers,
business students and researchers
perform better by providing access to the
latest thinking on management theory and
practice. It is structured around a number
of interest areas which reflect the most
talked about topics in business today.
CLASSICAL
MANAGEMENT
THINKING
Which Classic Manager are you?
 Which Classic Manager are you?
1. What is your overall outlook on management?
A. Managers should value efficiency above all else.
B. Managers should control and plan every process.
C. Managers should ensure organizational hierarchy is
respected and no lines are blurred.
D. Managers should always acknowledge and show
appreciation for their employees.
 Which Classic Manager are you?
2. An employee approaches you with a pitch. What is your
initial reaction?
A. To calculate the most efficient way to run with the pitch, if it's
a competent plan to begin with.
B. To take control of the plan and schedule out tasks
accordingly.
C. To scold the employee for crossing their designated role.
D. To praise your employee for thinking outside of the box and
having the courage to propose an original idea.
 Which Classic Manager are you?
3. What does an ideal employee look like to you?

A. Organized, resourceful and agile.

B. Cooperative, productive and eager to learn.

C. Humble, mindful and loyal.

D. Supportive, receptive and passionate.

 Which Classic Manager are you?
4. A worker calls in sick. What do you do?
A. Ask them when they think they will be back, and figure out
which of their projects need immediate attention while they're
away.
B. Send them any missed work and delegate any timely tasks
to other employees.
C. Check your records of their previous absences to keep tabs
on them.
D. Allow them the proper time to recover.
 Which Classic Manager are you?
5. How do you show appreciation to your team?
A. By rewarding them when they're most productive.
B. By scheduling and treating them to a team lunch.
C. By not firing them.
D. By vocalizing your gratitude for the little things.
 Which Classic Manager are you?
6. Someone interviews for a position at your company.
While they are a highly qualified, well-rounded candidate,
they lack the specific amount of experience that is
recommended for the role. What do you tell them?
A. That they must endure training so they can be as efficient as
the other employees.
B. That they must be willing to work on a tight schedule and
adjust quickly to any changes.
C. That they do not meet the exact qualifications.
D. That they would make a great addition to the team.
 Which Classic Manager are you?
7. An employee misses a deadline on a project. What do
you do?
A. Reprimand them and discuss the most effective solution.
B. Plan a meeting to discuss why they missed the deadline,
and how they can reach it in a timely manner.
C. Give them a warning and keep a record of how often this is
an issue for them.
D. Assure them that it's alright and you appreciate their effort.
 MOSTLY A’s:
SCIENTIFIC MANAGER

Scientific Management
You believe that the work
process should be broken down
into small subtasks to
determine the most efficient
method possible for completing
a particular job. You carefully
select and then train your
employees accordingly and
reward them for improved
productivity.
 MOSTLY A’s:
SCIENTIFIC MANAGER

Scientific Management
● Developed by Frederick
Taylor
● Focuses on two aspects:
○ Improving labor
productivity through
scientific changes
○ Adopting management
practices that are based
on fact and not
guesswork
 MOSTLY A’s:
SCIENTIFIC MANAGER

Scientific Management

● Other important
contributors:
○ Henri Gantt ➔ For measuring planned and
[Gantt Chart] completed work
○ Frank and Lillian ➔ For identifying and
Gilbreath [Time and measuring a worker’s
Motion Studies] physical movements when
performing a task and
analyzing the results
 MOSTLY A’s:
SCIENTIFIC MANAGER

KFC uses the Scientific

Management Style

KFC designed employees’

workstations in a way that could
ensure them to achieve an
average service time of 90
seconds
 MOSTLY B’s:
ADMINISTRATIVE
MANAGER

Administrative Principles

Like Henri Fayol, you believe

that a manager should plan,
organize, lead, coordinate, and
control every part of their team's
processes. You make sure all the
necessary resources are
available and you encourage
teamwork under management's
commands.
 MOSTLY B’s:
ADMINISTRATIVE
MANAGER
Evident Principles of Management:

● Unity of command : Each subordinate

receives orders from one—and only one—
superior.
● Division of work : Managerial work and
technical work are amenable to
specialization to produce more and better
work with the same amount of effort.
● Unity of direction : Similar activities in an
organization should be grouped together
under one manager.
● Scalar chain : A chain of authority extends
from the top to the bottom of the
organization and should include every
employee.
 MOSTLY B’s:
ADMINISTRATIVE
MANAGER

McDonald’s

They follow Henri Fayol’s

Administrative Principles,
resulting to McDonald’s being
one of the most famous fast
food restaurants in the globe
 MOSTLY C’s:
BUREAUCRATIC
MANAGER
Bureaucratic Organizations
You don't have time for
nonsense, much like Max
Max Weber
Weber. You think that
employees are assigned roles for
a reason and that they should
never cross boundaries. As a
manager, you believe you're
responsible for keeping tabs on
your workers and everything
they do, and that only the most
qualified employees should be
 MOSTLY C’s:
BUREAUCRATIC
MANAGER
Bureaucratic Organizations
The 6 desirable characteristics:
● Rules as guidelines for employee behavior
● Administrative acts and decisions are to be
recorded in writing
● Employee selection is based on
competence and technical qualifications
● Clear division of labor, with clear definitions
of authority and responsibility
● Positions are in a hierarchy of authority
● Management separates from the
ownership of the organization (placing the
management of the firm under the
responsibility of professionals who are not
its owners)
 MOSTLY C’s:
BUREAUCRATIC
MANAGER
USC is a Bureaucratic
Organization

USC checks all 6 of the desirable

characteristics of a Bureaucratic
Organization
 MOSTLY C’s:
BUREAUCRATIC
MANAGER
USC is a Bureaucratic
Organization

USC checks all 6 of the desirable

characteristics of a Bureaucratic
Organization
 MOSTLY D’s:
NOT A CLASSIC
MANAGER!
You believe that employees are
more motivated by social rewards
than monetary rewards, and you
make certain to vocalize your
appreciation. You don't let any of
your workers feel undervalued, even
in just the little things they do to
help the company. If any employees
share traits, you leverage their
strengths by grouping them
together to encourage collaboration
and individual success.
 Humanistic EARLY ADVOCATES

Perspective
➢ Mary Parker Follett (1868-1933)
➔ Her ideas served as a contrast to scientific
management.
PEOPLE > engineering techniques
● Understanding human ➔ Concepts of Empowerment,
behavior, needs, and FACILITATING rather than CONTROLLING
employees
attitudes in the workplace
➢ Chester I. Barnard (1886-1961)
➔ Concept of Informal Organization,
organizations are not machines and informal
relationships are powerful forces that can
help the organization
➔ Acceptance theory of authority, people have
free will and can choose whether to follow
management orders
 THREE PRIMARY SUBFIELDS

★ HUMAN RELATIONS MOVEMENT

★ HUMAN RESOURCES PERSPECTIVE

★ BEHAVIORAL SCIENCES APPROACH

HUMAN RELATIONS MOVEMENT
➔ truly effective control comes from within
the individual worker rather than from
strict, authoritarian control.
➔ shaped management theory and the
best area of focus for increasing
productivity

HAWTHORNE STUDIES
● Took place at the Hawthorne plant of the Western Electric
Company
● Investigated the effect of illumination on worker
productivity
● However, five different tests were conducted that pointed
to the importance of factors other than illumination in
affecting productivity
RELAY ASSEMBLY TEST ROOM EXPERIMENT
CONCLUSIONS on HAWTHORNE STUDIES
➔ Money was not the cause of the increased output but it was human relations
➔ Employees performed better when managers treated them in a positive manner
➔ Worker productivity increased partly as a result of the increased feelings of
importance
➔ One unintended contribution, “HAWTHORNE EFFECT”
 HUMAN RESOURCES PERSPECTIVE

➔ emphasis to considering the daily tasks

that people perform
➔ jobs should be designed so that tasks
are not perceived as dehumanizing or
demeaning but instead allow workers to
use their full potential.
 BEST-KNOWN CONTRIBUTORS
ABRAHAM MASLOW (1908–1970)

● a practicing psychologist, observed that his patients’ problems

usually stemmed from an inability to satisfy their needs.

DOUGLAS MCGREGOR (1906–1964)

● challenged both the classical

perspective and the early human
relations assumptions about
human behavior
● formulated Theory X and Theory Y
ARE YOU A THEORY X MANAGER? OR A
THEORY Y MANAGER?

THEORY-X THEORY-Y
DOUGLAS MCGREGOR’S THEORY X AND
THEORY Y
BEHAVIORAL SCIENCES APPROACH
➔ uses scientific methods and draws from sociology, psychology,
anthropology, economics, and other disciplines to develop
theories about human behavior and interaction in an
organizational setting
ORGANIZATION DEVELOPMENT
➔ separate field that applied the behavioral sciences to improve
the organization’s health and effectiveness through its ability to
cope with change, improve internal relationships, and increase
problem-solving capabilities.
Management Science
Perspective
Quantitative Perspective

● application of mathematics, statistics and other

quantitative techniques to management decision
making and problem solving.
Walt Disney Company
● used quantitative techniques to develop
FastPass
Subsets of Management
Science
Operations Research

Operations Management

Information Technology (IT)

Operations Research

● mathematical model building and other

applications of quantitative techniques to
managerial problems
Operations Management

● a field of management that specializes in the

physical production of goods or services
Information Technology

● most recent subfield of management science

● designed to provide relevant information to
managers in a timely and cost-efficient manner
Quants

● refer to financial managers and others who

base their decisions on complex quantitative
analysis
Recent Historical
Trends
Humanistic
> Management
Science
Perspective
Two concepts that arised during the Post-
World War II period:

● System Thinking
● Contingency view
 Systems Thinking

Is the ability to see both the distinct elements

of a system or situation and the complex and
changing interaction among those elements.
A system is a set of interrelated parts that function as a whole to
achieve a common purpose.

Subsystems are part of a system that depend on one another to

achieve the common goal.

Synergy means that the whole is greater than the sum of its
parts.
Example:
Circles of Causality
Contingency View
Universal View - Management concepts were thought to be universal.

Case View - Each situation is thought to be unique.

Contingency View - Management depends on situation.

Top Quality Management

Total Quality Management (TQM) is the continual process of

detecting and reducing or eliminating errors in manufacturing,
streamlining supply chain management, improving the customer
experience, and ensuring that employees are up to speed with their
training.
 Seven Principles of Top Quality
Management
● Quality can and must be managed
● Processes, not people, are the problem
● Don’t treat symptoms, look for the cure
● Every employee is responsible for quality
● Quality must be measurable
● Quality improvements must be continuous
● Quality is a long-term investment
 LEARNING
ORGANIZATION
An organization which facilitates the learning of its employees so that the
organization can continuously transform itself.

● Peter Senge has defined the learning organization as the organization “in which you cannot not
learn because learning is so insinuated into the fabric of life.” According to him the learning
organizations are “ …organizations where people continually expand their capacity to create the
results they truly desire, where new and expansive patterns of thinking are nurtured, where
collective aspiration is set free, and where people are continually learning to see the whole
together”.

● Learning organization can also be defined as an “Organization with an ingrained philosophy for
anticipating, reacting and responding to change, complexity and uncertainty.”

● A learning organization is an organization that actively creates, captures, transfers, and mobilizes
knowledge to enable it to adapt to a changing environment.
Five Disciplines
Systems
Thinking

Team Personal
Learning Mastery

The Learning
Organization

Building
Mental
Shared
Models
Vision
Systems Thinking - the ability to see the big picture, and to distinguish patterns
instead of conceptualizing change as isolated events. Systems thinking needs the
other four disciplines to enable a learning organization to be realized. There must be a
paradigm shift - from being unconnected to interconnected to the whole, and from
blaming our problems on something external to a realization that how we operate,
our actions, can create problems (Senge 1990,10).

Personal Mastery - begins "by becoming committed to lifelong learning," and is the
spiritual cornerstone of a learning organization. Personal Mastery involves being more
realistic, focusing on becoming the best person possible, and striving for a sense of
commitment and excitement in our careers to facilitate the realization of potential
(Senge 1990,11).

Mental Models - must be managed because they do prevent new powerful insights
and organizational practices from becoming implemented. The process begins with
self-reflection; unearthing deeply held belief structures and generalizations, and
understanding how they dramatically influence the way we operate in our own lives.
Until there is realization and a focus on openness, real change can never take place
(Senge 1990,12).
Building Shared Visions - visions cannot be dictated because they always begin
with the personal visions of individual employees, who may not agree with the
leader's vision. What is needed is a genuine vision that elicits commitment in
good times and bad, and has the power to bind an organization together. As
Peter Senge contends, "[b]uilding shared vision fosters a commitment to the long
term" (Senge 1990,12).

Team Learning - is important because modern organizations operate on the

basis of teamwork, which means that organizations cannot learn if team
members do not come together and learn. It is a process of developing the ability
to create desired results; to have a goal in mind and work together to attain it
(Senge 1990,13).
Benefits of a Learning Organization

● Maintaining levels of innovation and remaining

competitive.
● Being better placed to respond to external pressures
● Having the knowledge to better link resources to
customer needs
● Improving quality of outputs at all the levels
● Improving the corporate image of the organization by
becoming more people oriented
● Increasing the pace of change within the organization
Managing the
Technology-Driven
Workplace
Supply Chain Management
-refers to managing the sequence of suppliers and
purchasers, covering all stages of processing from
obtaining raw materials to distributing finished goods to
consumers.

Supply chain is a network of multiple businesses and

individuals that are connected through the flow of products
and services.
 Customer Relationship Management

Customer Relationship Management describes how a business

interacts with the customers. CRM is a system to capture information
about the customers. However, that is only part of the picture. CRM
involves using technology to gather the intelligence you need to
provide improved support and services to the customers.
 Building Blocks of CRM

● A database that collects information about your customers.

● A way to analyze the information in the database.
● A strategy for applying the analysis to better meet your
clients’ needs and identify potential customers.
● Collecting data to ensure your strategy is effective.
 Benefits of CRM
You know and recognize them.
• You understand them.
• You care about their needs, questions and concerns.
• You want to deliver services and products
they need the most.
• You appreciate their business.
CRM will also benefit your company by allowing you to:
Who are my customers?
• Develop superior services and products that meet your
customers’ identified needs. How can I serve them better?
• Enhance marketing towards the most profitable
customers to improve your bottom line.
• Improve efficiency by providing support and services to
customers online (through frequently asked questions,
for example).
• Anticipate future business needs based on data on
historic sale and service trends.
• Increase your customer base as you develop new ways
to engage in business online.
Outsourcing
-the process of contracting with the most suitable expert third party service provider

-the outsourced tasks can be performed on-site or off-site

-the big shift has been to outsource intellectually based service activities like research,
product development, logistics, human relations, accounting, legal work, marketing,
logistics, and market research
Advantages

It allows the organization to focus on its core and value adding activities without the
distraction of having to run support services.

It results into cost savings.

It helps in the achievement of cost certainty.

It leads to access to cutting edge expertise and talent.

It assists in the transference of risk.

Disadvantages

There is dependence of the organization on the supplier

On-time delivery performance and end customer satisfaction levels can decline because of
delays at third parties.

There are hidden costs or unexpected costs.

There is a loss of know-how within the organization.

There is loss of long-run research and development (R&D) competitiveness.

Communication and coordination difficulties can be there.

The process of outsourcing is difficult to reverse.

THANK YOU