Evolution of Management Theories

Calculating Era (1950-1970)

Emphasis on Planning
Values and Belief Era (1970-1990)
Emphasis on Controlling
Evolution of Management Theories

Reconsidering Era 1990-present

Emphasis on Multi Stream
Calculating Era ( 1950- 1970)
Emphasis of Planning
 Teams made up of mathematicians
and physicists analyzed and
planned routes for World War II
submarines. This lead to the
development of an approach
called systems analysis.
 Systems analysis – used to analyze
complex problems that could not
be solved by intuition,
straightforward mathematics, or
simple experience.
Calculating Era ( 1950- 1970)
Emphasis on Planning
Management Science
Systems Theory
Contingency Theory
 Management Science
 Two Subfields
  operations research –  Includes of :
emphasizes mathematical
model building Break –even analysis
  operations
management – uses Forecasting
quantitative techniques to
help managers make
Inventory modeling
decisions that allow Linear programming
organizations to produce
goods and services more Simulations
efficiently
Break-even Analysis – is to determine the sales volume and
prices required to earn a profit , decides which product lines to
keep and which to drop and also set prices of products and
services
Forecasting – projections that help to plan for production targets,
whether and when to expand production facilities
Inventory Modeling – helps the managers decide on the timing and
quantity for ordering supplies and how much end product inventory to
keep on hand
Linear Programming –how to allocate little resources
among competing uses
Simulations – mathematical models that test the
outcomes associated with making different decisions
System Theory
– it is an approach where in it
suggests a manager to look beyond
their organizational boundaries
It prefers a manager to look at the
organization as an open
system rather than close system
Open System
– emphasizes the organizational place within
the larger environment
Close System
looks at the organization as a self-contained and
self-sufficient unit.
The manager focuses the
activities within the
organization (i.e., technology,
personnel, equipment, and
materials) and tends to exclude
competitors, suppliers,
distributors, and governmental
regulators.
Contingency Theory
The contingency management theory is an
organizational theory that claims that there is no
best way to organize a corporation, to lead a
company, or to make decisions. Instead, the optimal
course of action is contingent (dependent) on the
internal and external situation.
Values and Beliefs Era( 1970-
1990) Emphasis on Controlling
• Social Era of questioning the current status and
the role of values and belief in the organization

Institutionalization - Occurs when practices or

rules have become ”valued” in and of themselves
even though they may no longer be useful
• Control and the social construction of reality

According to Peter Berger and Thomas Luckmann wrote a

book called The Social Construction of Reality. In it, they
argued that society is created by humans and human
interaction, which they call habitualization. In other words,
society is, in fact, “habit.”

The Thomas theorem states that people’s behavior can be

determined by their subjective construction of reality rather
than by objective reality.
Organizational Culture - it is a “ symbolic” role that
creates meaning in the organization
Reconsidering Era (1990- present )
Emphasis on MULTI STREAM

Ecological Sustainability
Social Justice
Physical well being
Aesthetic cost
Spiritual Interest
Thank you !
Jenelyn Araos Nacional
 References :
https://wp.me/p38PwY-2
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By Habaradas' Angels, MANAORG K32
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metrics-and-finance/contingency-theory
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Dyck B. and Neubert M.J., (1976).Management.Philippine
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City, Philippines 1605
Cengage G.(2006).Encyclopedia of Management. Retrieved
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http://www.enotes.com/open-closed-systems-reference/open-clo
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