processes to manufacture the greatest number of products in the shortest possible

JC Excellente Christian Academy Inc. time.

ACADEMIC EXCELLENCE.LEADERSHIP POTENTIAL. CHRISTIAN VALUES
Blk. 40 Lot 73 Road 1 Minuyan II, CSJDM Bulacan Scientific Management Theory

Organization and Management

2nd Semester – Week 4 & 5 Scientific management is a theory of
management which studies the
TOPIC: The Evolution of Management Theories application of scientific methods and
principles for the purpose of redesigning
The Development of Management
the work process to increase efficiency.
Ancient civilizations practiced management in organizing and implementing
various activities vital to their communities. In 1100 BC, the Chinese used the four It emphasizes the importance of labor in
basic management functions of planning, organizing, leading, and controlling to the production process and focuses on
carry out vast infrastructure projects and manage various parts of the expanding improving the efficiency of workers in
Chinese empire. The Greeks developed a scientific approach to work, and the Greek production. Among its important
philosophers Socrates and Plato discussed management concepts such as leadership advocates were Frederick W. Taylor,
and job specialization. The ancient Romans, meanwhile, practiced decentralized Henry Gantt, and Frank and Lillian
management to effectively manage their vast empire. During the medieval period,
Gilbreth.
Venetians improved production by standardizing the assembly line, using an
inventory system, and building warehouses. Leaders and managers often utilized trial Frederick W. Taylor, an American engineer, was the first to advocate scientific
and error in dealing with management problems before they could perfect operations. management. He pioneered several innovations during his tenure as foreman at
The Industrial Revolution of the 18th century introduced great changes in
management practices. The emphasis on production brought about by improved Midvale Steel Company in Philadephia. Taylor discussed in depth the scientific
industry generated a demand for new ways of ensuring efficiency and effectiveness in management in his book, the Principle of Scientific Management. He introduced the
factories and workplaces. By the 19th century, management has become an four principles of scientific management as follows:
established discipline and many entrepreneurs and academics sought new ideas and
approaches in improving the workplace. Manufacturing and industry soon become a 1. Replace rule-of-thumb methods with those that are scientifically proven.
core business in Europe and the United States, and many individuals sought to enter 2. Select, train, and develop each worker based on scientific methods.
the commercial world. By the 20th century, educational institutions were established 3. Cooperate with the workers to ensure that scientific methods are being
to focus on the study of business and management. The first business school in the observed and implemented in their work.
United States, the Wharton School, was founded in Pennsylvania in 1881. In 1990, 4. Divide work between managers and workers to ensure the scientific
the Amos Tuck School was founded in New Hampshire and became distinguished as management principles are applied by the managers in planning tasks and by the
the first school to offer a master’s degree in business administration.
workers in performing their tasks.
The 20th century saw the development of modern management theories and
innovative methods that transformed production and led to the development of
modern industry and commerce. Various entrepreneurs applied scientific principles
in improving the level of productivity of their respective businesses. Businessmen
sought to establish the most efficient means of utilizing resources and production
 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. His ideas were also considered an
important cornerstone of the Efficiency Movement, which improved industry and
production in Europe and the United States in the early 20th century.
Administrative Management Theory.
Administrative management focuses on
the overall management of an organization,
emphasizing the role of managers as
administrators of the organization. This was
introduced in the early 20th century by Henri
Fayol, a French industrialist.
Fayol identified five functions and fourteen
principles of management.
The five functions are planning, organizing, communicating, coordinating, and
controlling. On the other hand, the fourteen principles of management are as follows:
1. Division of work into specialized tasks, with specific duties and responsibilities
given to individuals.
2. Authority of managers to delegate work and tasks to the employees. The
employees, in turn, are expected to comply and exercise their tasks responsibly.
3. Discipline where expectations should be clearly set and violators of rules must be
punished.
4. Unity of Command where an employee should only report to one supervisor.
5. Unity of Direction which means that the efforts of the employees are guided
toward the attainment of organizational objectives.
6. Predominance of general interest of the organization over the individual
interests of employees.
7. Renumeration of the efforts of the employees which should be systematically
rewarded in line with the organization’s vision and mission.
8. Centralization where the roles of all employees are clarified, with emphasis on
the distinction between superior and subordinate roles.
9. Scalar Chain which means that communications should be open within the chain
of command.
10. Order where the organization of jobs and materials must be done in an orderly
fashion.
11. Equity which means that fairness and order must be practiced to maintain
employee commitment.
12. Stability and tenure of personnel to actively promote employee loyalty to the
organization.
13. Initiative to encourage employees to act on their own in support of the
organization’s objectives.
14. Esprit de corps to promote teamwork and the unity of interest between the
employees and the management.
Max Weber, German sociologist, contributed to
the development of administrative management
through his studies on public administration and
bureaucracy. Weber considered bureaucracy as
an important aspect of modern society, and its
emergence is an indication of people adopting a
more rational and law-based view on leadership.
Weber believed that bureaucratic structures
allow for specialization of skills and enable
workers with different traits, skills, and goals to
work together and contribute toward performing
a common task.
Other contributors to the development of the administrative management
theory were Chester Barnard and Mary Parker Follet Barnard, a former president of
the New Jersey Bell Telephone Co., wrote The Functions of the Executive, which
highlights the major functions of the senior executive, namely,
1. to formulate the organization’s mission
2. to hire key employees, and
3. to maintain organizational communication
 Meanwhile, Follet wrote the Dynamic Organization, which emphasizes the described these needs according to an hierarchy where people try to satisfy their
ever-changing situations that managers have to deal with, In particular, Follet lower-level or basic needs first, such as food, clothing, and shelter, and then progress
recognized the human element in management and emphasized collaboration and upward to the higher-
level needs such as self-esteem
mutual cooperation in seeking solutions to problems.
and self-actualization. In 1970,
The views on administrative management acknowledged the need for Maslow revised his original
flexibility among managers and for them to recognize various ways of motivating 1954 pyramid and added two
groups and individuals. Also, the development of administrative management further more essential needs: cognitive
improved management methods and recognized management and business needs or the need to acquire
administration as significant and essential professions along with law and medicine. knowledge; and aesthetic needs
or the need to create and
Human Relations Theory experience beauty, balance and
structure.
The human relations theory grew out of
The application of Marlow’s
the human relations movement in the 1930s. If
theory in management requires
focuses on the social element in the workplace
managers to ensure that the
and considers the influence of interpersonal
essential needs of their workers
relationships, social conditioning, and group are being met in the workplace to
norms in determining the performance of guarantee their maximum
workers. performance.
The foundations of the human relations
movement were established in the 1920s with Quantitative Management Theory
the pioneering studies of Elton Mayo, an Quantitative management uses quantitative approaches such as statistical
Australian analyses and computer simulations to arrive at a management decision. The two main
psychologist who used his expertise to implement improvements in the workplace. branches of quantitative management are management science and operations
He and his colleagues embarked on a series of studies on workers in the Hawthorne management.
Works factory of the Western Electric Company. Among innovative outcomes of the Management science uses mathematics in problem solving and decision
Hawthorne studies were the introduction of a set number of work hours, the making. It seeks to create ideal models that will be the basis for improved business
implementation of break times for workers, improvements in lighting in work areas, operations and processes. On the other hand, operations management seeks to apply
and close supervision by managers. Managers were encouraged to be supportive of ideas and models from management science to the actual workplace in dealing with
managerial situations.
their workers and to actively involve them in management decisions. Mayo observed
Management information system, meanwhile, is a subfield of quantitative
that the introduction of these changes resulted in increased satisfaction among
management. It gathers past, present, and projected data from external and internal
workers which also resulted in their increased overall productivity.
sources and transforms them into usable information which managers use to select the
best alternatives and make decisions easily. The information is usually provided in
Another contributor of the field of human relations is Abraham Maslow. Maslow
easily accessible formats such as spreadsheets.
argued that individual behavior is primarily influenced by certain needs. He
 closed systems, on the other hand, does not interact with its environment and
pays little attention to changes in its surroundings.
Systems Theory
The systems theory explains how interrelated parts operate to achieve a common Contingency Theory
purpose. With the advent of the Industrial Revolution and the increasing The contingency theory
requirements for increased efficiency and greater precision in production and argues that universal theories
operations, the system approach became the preferred model of business organization cannot be applied to
and management. It defines an organization as a system which is composed of organizations because each
four elements: organization has unique
characteristics and is confronted
by varied problems or
challenges. An organization’s
performance is also affected by
internal and external factors.
This perspective was introduced
in 1967 by Fred Fiedler, an
industrial and organizational
psychologist who studied the
relationship between leadership
and group effectiveness.
Fiedler’s contingency model states that the personality of the leader determines how
well he or she addresses situations in the workplace.

Quality Management Theory

1. Inputs (materials/human resources) Quality management emphasizes

2. Transformation processes (technology/managerial operations) consistency in an organization and
3. Outputs (products/services) minimal to no errors or defects in
production. This ensures quality products
4. Feedback (reaction from the environment)
and services that result in high customer
The contemporary systems theory analyses an organization according to
satisfaction and increased revenue.
the degree to which it is open or closed. An open system refers to an Managers and employees are both closely
organization that interacts closely with its environment and is fully aware of involved in quality management. The
what is going on in the environment as well as the changes it experiences. A quality management perspective emerged
after the Second World War, primarily
through the work of William Edwards
Deming. Deming conducted his work in
the 1950s in post-war Japan, as he helped
Japanese Industries improve production.
EVALUATION:
(Note: Write your answers in a separate sheet of paper. Write your FULL
NAME and SECTION at the top of the paper. USE AN INDIVIDUAL SHEET
OF PAPER PER SUBJECT.)

Instruction: Match each concept or example to its corresponding management

theory. Write the letter of your answer in the blank.
_____ 1. Assembly line of Ford’s Model
T
_____ 2. Hawthorne studies
_____ 3. Equal division of work among
managers and workers
_____4. Kaizen
_____5. Input, transformation process,
output, and feedback
_____ 6. Maslow’s hierarchy of needs
____ 7. Esprit de corps
a. Administrative Management Theory
b. Human Relations Theory
c. Quantitative Management Theory
d. Systems Theory
e. Contingency Theory
f. Quality Management Theory
g. Scientific Management Theory
Identify the management principle by Fayol described by each statement. Write
you answer in the blank.
_______________________ 1. Expectations and sanctions for violations are clearly
set.
_______________________ 2. Efforts are systematically rewarded in line with the
organization’s vision and mission.
_______________________ 3. An employee is assigned to only one supervisor.
_______________________ 4. Importance of superior and subordinate roles is
determined.
_______________________ 5. Communication is kept open within the chain of
command.
_______________________ 6. The practice of fairness and order promotes
employee commitment.
_______________________ 7. Employees are encouraged to act independently in
support of the company’s objectives.

_______________________ 8. The company must promote teamwork and the unity

_____ 8. Mathematics in problem of interest between employees and management.
solving and decision making
_______________________ 9. Loyalty is promoted in the organization.
_____9. Fiedler’s contingency model _______________________ 10. Individual interests are set aside and the general
interest of the company are prioritized.
____ 10. Open and closed system