Saint Anthony Academy

Batuan, Bohol, Philippines

Member: Bohol Association of Catholic Schools ( BACS)
Catholic Education Association of the Philippines (CEAP)
ORGANIZATION AND MANAGEMENT 12

Name:___________________________ Year & Section:___________________________

Date:______________________________ Score: __________________
Teacher: Ms. Anabel A. Bahinting, LPT
ACTIVITY NO. 2
(Week 2)
Topic: The Evolution of Management Theories
Competency: Explain the various types of management theories
Objectives: 1. Trace the evolution of management theories
2. Enumerate the theories on management
3. Differentiate management theories
Concept Notes:
The Development of Management
(1100 BC)
 Practice of the four managerial functions by the Chinese
(400-350 BC)
 Development of a scientific approach to work by the Greeks
 Practice of management decentralization by the Romans
(Medieval Period)
 Venetians improved production by standardizing assembly lines, using an inventory system, and
building warehouses.
(1780-1840)
 Emergence of economies of scale which reduced manufacturing costs during the Industrial
Revolution.
(Early 20th Century)
 Business schools flourished. Some notable schools established at that time were Wharton School and
Amos Tuck School.
th
(20 Century to Present)
 US companies engage in manufacturing as the core business.
The Evolution of Management Theories
SCIENTIFIC MANAGEMENT THEORY
Scientific management is a theory of management which studies the application of scientific
methods and principles for the purpose of redesigning the work process to increase efficiency. It emphasizes
the importance of labor in the production process and focuses on improving the efficiency of workers in
production. Among its important advocates were Frederick W. Taylor, Henry Gantt, and Frank and Lillian
Gilbreth.
 Frederick W. Taylor – am American engineer, was the first to advocate scientific management. He
pioneered several innovations during his tenure as foreman at Midvale Steel Company in
Philadelphia. Taylor discussed in depth the scientific management theory on hid book The
Principles of Scientific Management. He 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 Lilian Gilbreth on the same
topic, led to the development of the time and motion study. Taylor is called the “Father of
Scientific Management” because of his contributions to the development of management.
 Another example of scientific management is Henry Ford’s improvement of the assembly line.
Henry Ford was an industrialist who established the Ford Motor Company and sold the first
commercially available automobile – the Ford Model T. Ford applied scientific principles in
improving the process of assembling parts for the Model T.
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 20 th 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 7. Remuneration
2. Authority 8. Centralization
3. Discipline 9. Scalar chain
4. Unity of command 10. Order
5. Unity of direction 11. Stability and tenure of personnel
6. Predominance of the general interest 12. Equity
7. Remuneration 13. Esprit de corps
  Max Weber – a German sociologist, contributed to the development of administrative management
through his studies on public administration and bureaucracy.
 Other contributors to the development of the administrative management theory were Chester
Bernard and Mary Parker Follet. Barnard, a former president of the New Jersey Bell Telephone
Co., wrote The Functions of the Executive. Meanwhile, Follet wrote the Dynamic Organization,
which emphasizes the ever-changing situations that managers have to deal with.
HUMAN RELATIONS THEORY
The human relations theory grew out of the human relations movement in the 1930s. It focuses on
the social element in the workplace and considers the influence of interpersonal relationships, social
conditioning, and group norms in determining the performance of workers.
 Elton Mayo – an Australian psychologist who used his expertise to implement improvements in the
workplace. He and his colleagues embarked on a series of studies on workers in the Hawthorne
Works factory of the Western Electric Company.
 Another noted contributor to the field of human relations is Abraham Maslow. Maslow argued that
individual behavior is primarily influenced by certain needs. He described these needs according to a
hierarchy where people try to satisfy first their lower-level or basic needs, such as food, clothing,
and shelter, and then progress upward to the higher-level needs such as self-esteem and self-
actualization.

QUANTITATIVE MANAGEMENT THEORY

Quantitative management uses quantitative approaches such as statistical analyses and computer
simulations to arrive at a management decision. The two main branches of quantitative management are
management science and operations management.
Management science uses mathematics in problem solving and decision making. It seeks to create
ideal models that will be the basis for improved business operations and processes. On the other hand,
operations management seeks to apply ideas and models from management science to the actual workplace
in dealing with managerial situations.
Management information system, meanwhile, is a most recent subfield of quantitative
management. It gathers past, present, and projected data from external and internal sources and
transforms then into usable information which managers use to select the best alternatives and make
decisions easily. The information is usually provided in easily accessible formats such as
spreadsheets.
SYSTEMS THEORY
The systems theory explains how interrelated parts operate together to achieve a common purpose.
With the advent of the Industrial Revolution and the increasing requirements for increased efficiency and
greater precision in production and operations, the systems approach became the preferred model of business
organization and management. It defines an organization as a system which is composed of four elements:
1. Inputs (materials/human resources) 3. Outputs (products/services)
2. Transformation (technology/managerial operation 4. Feedback (reactions from the environment)
The contemporary systems theory analyzes an organization according to the degree to which
is it open or closed. An open system refers to an organization that interacts closely with its environment and
is fully aware of what is going on in the environment as well as the changes it experiences. A closed system,
on the other hand, does not interact with its environment and pays little attention to changes in its
surroundings.
CONTINGENCY THEORY
The contingency theory argues that universal theories cannot be applied to organizations because
each 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.
Other experts such as Paul Lawrence, Jay Lorsch, and James Thompson studied the impact of
contingency factors on the on the organizational structure.
QUALITY MANAGEMENT THEORY
Quality management emphasizes consistency in an organization and minimal to no errors or
defects in production. This ensures quality products and services that result to high customer satisfaction and
increased revenue. Managers and employees are both closely involved in quality management.
The quality management perspective emerged after the Second World War, primarily through the
work of William Edwards Deming.
The Japanese concept of kaizen, introduced in 1986, focuses on the continuous improvement of
people, processes, and products. Kaizen is a Japanese word which means “change for the better”, and
requires the implementation of gradual changes in an industry or organization over a certain period. The
Japanese automotive manufacturer, Toyota, has been using kaizen to implement small improvements geared
toward overall improvement in production and operations.
EXERCISES
A. Instruction: Match each concept or example to its corresponding management theory. Write the letter of
your answer in the blank. (10 pts)
_____1. Assembly line of Ford’s Model T a. Administrative Management Theory
_____2. Hawthorne studies b. Human Relations Theory
_____3. Equal division of work among managers and workers c. Quantitative Management Theory
_____4. Kaizen d. Systems Theory
_____5. Input, transformation process, output, and feedback e. Contingency Theory
_____6. Maslow’s hierarchy of needs f. Quality Management Theory
_____7. Esprit de corps g. Scientific Management Theory
_____8. Mathematics in problem solving and decision making
_____9. Fiedler’s contingency model
_____10. Open and closed system

B. Question: What are the four elements of a system under the systems theory? Discuss them briefly. (20
pts)