Lesson THE EVOLUTION OF

2 MANAGEMENT THEORIES
OBJECTIVES:

At the end of this lesson, the students will be able to

1. trace the evolution of management,
2. enumerate and discuss the theories on management, and
3. differentiate management theories.
THE DEVELOPMENT OF MANAGEMENT
• Management principles have been practiced since ancient times. The Chinese
have been practicing the four management functions as early as 1100 BC.
Meanwhile, the Greeks have developed a scientific approach to management
and the Roman practiced decentralized management in managing their vast
empire. During the Medieval Period, the Venetians standardized the assembly
line.

• Developments during the Industrial Revolution led to the emergence of

manufacturing as the primary industry for majority of US companies. Business
school soon opened and contributed to the development of modern
managements.
SCIENTIFIC MANAGEMENT THEORY

• Emphasized the application of scientific principles in improving labor

efficiency. Advocates of this view included Frederick W. Taylor, Henry Gantt,
and Frank and Lillian Gilbreth.
• Taylor emphasized efficiency in improving the production process. He believed
that analyzing the work process will enable the manager to identify the best
way of doing things. His work, combined with the research of Frank and Lillian
Gilbreth on the same topic, led to the development of time and motion study.
• Taylor is called the “Father of Scientific Management” because of his
contributions to the development of management.
ADMINISTRATIVE MANAGEMENT THEORY

•Focuses on the role of managers as administrators of the organization.

•Henri Fayol proposed fourteen principles of management which consisted the
following:
1. Division of work 8. Centralization
2. Authority 9. Scalar chain
3. Discipline 10. Order
4. Unity of command 11. Equity
5. Unity of direction 12. Stability and tenure of personnel
6. Predominance of the general interest 13. Initiative
7. Remuneration 14. Esprit de corps
HUMAN RELATIONS THEORY

• Focusedon the social element in the workplace and encourage

managers to foster close social relations with their workers.

• Contributors to this field include Elton Mayo and Abraham Maslow:

QUANTITATIVE MANAGEMENT THEORY

• Uses quantitative approaches in arriving at management decisions.

• Management science applies mathematics problem solving and decision making,

while operations management applies ideas and models to the actual workplace.

• Management information systems organize and present data to aid managers in

making decision.
SYSTEMS THEORY

• Describes the organization as composed of various interrelated parts that work

together top achieve a common goal.
• It defines an organization as a system which is composed of four elements:
1. Inputs (materials/human resources)
2. Transformation process (technology/managerial operations)
3. Outputs (goods/services)
4. Feedback (reactions from the environment)
• It categorizes business organizations as either open or closed systems.
CONTINGENCY THEORY

• Consider the unique characteristics of managers, as well as the effect of

environmental factors, in addressing management problems and situations.

• This perspective believes that a single management method or leadership style

cannot address all concerns regarding management. (Fred Fiedler)
QUALITY MANAGEMENT THEORY

• Emphasizes consistency in an organization and the production of

high quality products (goods and services).

• Quality must be continually maintained through regular evaluation,

testing, and the implementation of improvements in the organization.