SENIOR HIGH SCHOOL

Organization
and
Management
1st Quarter Module
Lesson 2-
The Evolution of Management
Theories
Organization and Management – Grade 11
Alternative Delivery Mode
1st Quarter – Lesson 2: The Evolution of Management Theories
First Edition, 2020

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 11
Organization
and
Management
1st Quarter Module
Lesson 2
The Evolution of Management
Theories
Introductory Message
For the facilitator:

Welcome to Organization and Management Alternative Delivery Mode (ADM)

Module.

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body
of the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing
them to manage their own learning. Furthermore, you are expected to encourage
and assist the learners as they do the tasks included in the module.

2
For the learner:

Welcome to the Organization and Management Alternative Delivery Mode (ADM)

Module.

The hand is one of the most symbolized part of the human body. It is often used
to depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies
in your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to This will give you an idea of the skills or

Know competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as
a story, a song, a poem, a problem opener,
an activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
What I Have This includes questions or blank
Learned sentence/paragraph to be filled in to
process what you learned from the lesson.

What I Can Do This section provides an activity which will

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 help you transfer your new knowledge or
skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.
Additional In this portion, another activity will be
Activities given to you to enrich your knowledge or
skill of the lesson learned. This also tends
retention of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References Organization and Management for Senior

High School -Revised Edition; Cynthia A
Zarate; 2019; C & E Publishing, Inc.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.

2. Don’t forget to answer What I Know before moving on to the other

activities included in the module.

3. Read the instruction carefully before doing each task.

4. Observe honesty and integrity in doing the tasks and checking your
answers.

5. Finish the task at hand before proceeding to the next.

6. Return this module to your teacher/facilitator once you are through with it.

If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you
are not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

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 What I Need to Know

“The true measure of the value of any business leader and manager is
performance”

- Brian Tracy

This module aims to familiarize the students with the problems and issues that
confronted business people and leaders many years ago. Management skills
have been utilized since ancient times, when tribal leaders organized hunting
and gathering groups to acquire resources from nature.

The rise of civilizations have led leaders to organize communities and implement
more complex tasks such as the construction of infrastructure, the administration
of governments, and even the conduct of war. The emergence of capitalism
during the 17th century inspired entrepreneurs to establish guiding principles
and develop means to ensure the success of any business venture. Theories and
views regarding management soon developed and grew into an organized field
of study whose ideas are applied not only in business but also in other aspects of
life.

After going through this module, you are expected to:

1. trace the evolution of management theories;
2. enumerate and discuss the theories on management; and
3. differentiate management theories.

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 What I Know

Instruction: Read the article and answer the questions that follow:

The ancient pyramids of Egypt have long been an object of wonder.

Numerous studies have been conducted to understand how the ancient
Egyptians were able to build such massive structures with the simplest
technology. The Great Pyramid of Giza is the oldest and largest of the pyramids
and is one of the Seven Wonders of the ancient world. It was built with about
2.3 million limestone blocks that weigh from 25 to 80 tons each. The
limestone blocks were taken from quarries 800 kilometers away from the plain
of Giza. Modern archaeological excavations and estimates using construction
models allowed experts to propose possible ways that the Great Pyramid was
build.

Scientists believe that the construction of the Great Pyramid required the
participation of about 15,000 to 40,000 laborers. They were initially thought to
be slaves, but recent evidence suggests that majority of them were skilled
workers and many volunteered to participate in the project. Workers cut the
limestone from the quarries and shaped them into blocks using copper, chisels,
saws, and drills. Then groups of about sixty to a hundred men dragged the
stones into barges which transported the blocks along the Nile River. Scientists

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also believe that the workers used rollers to easily transport the blocks, and
constructed large ramps to stack the limestone blocks to form the pyramid.
Given that the Egyptians did not use pulleys and wheels, and lacked iron tools,
experts estimate that the construction took about 10 to 15 years.

Discussion Questions:

1. What challenges did the Egyptians face in constructing the Great Pyramid of
Giza?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

2. What methods did the ancient Egyptians employ in construction the Great
Pyramid?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

3. What do you think were the characteristics, skills, and abilities of the Egyptian
leaders who oversaw the building of the Great Pyramid?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

4. What do you thinks were the skills or abilities required of the laborers who
participated in the construction of the Great Pyramid?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

http://noisebreak.com/remarkable-ruins-great-pyramid-giza-egypt/

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Is not What’s New

Lesso
n The Evolution of
2 Management Theories

The Development of Management

Ancient civilizations practiced management in organizing and

implementing various activities vital to their communities. In 1100 BC, the
Chinese used the four basic management functions of planning, organizing,
leading, and controlling to carry out vast infrastructure projects and manage
various parts of the expanding Chinese empire. The Greeks developed a
scientific approach to work, and the Greek philosophers Socrates and Plato
discussed management concepts such as leadership and job specialization. The
ancient Romans, meanwhile, practiced decentralized management to effectively
manage their vast empire. During the medieval period, Venetians improved
production by standardizing the assembly line, using an inventory system, and
building warehouses. Leaders and managers often utilized trial and error in
dealing with management problems before they could perfect operations.

The Industrial Revolution of the 18 th century introduced great changes in

management practices. The emphasis on production brought about by improved
industry generated a demand for new ways of ensuring efficiency and
effectiveness in factories and workplaces. By the 19 th century, management has
become an established discipline and many entrepreneurs and academics sought
new ideas and approaches in improving the workplace. Manufacturing and
industry soon become a core business in Europe and the United States, and
many individuals sought to enter the commercial world. By the 20 th century,
educational institutions were established to focus on the study of business and
management. The first business school in the United States, the Wharton
School, was founded in Pennsylvania in 1881. In 1990, the Amos Tuck School
was founded in New Hampshire and became distinguished as the first school to
offer a master’s degree in business administration.

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

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, an American engineer, was the first to advocate scientific

management. He pioneered several innovations during his tenure as foreman at
Midvale Steel Company in Philadephia. Taylor discussed in depth the scientific
management in his book, the Principle of Scientific Management. He introduced
the four principles of scientific management as follows:

1. Replace rule-of-thumb methods with those that are scientifically

proven.

2. Select, train, and develop each worker based on scientific methods.

3. Cooperate with the workers to ensure that scientific methods are being
observed and implemented in their work.

4. Divide work between managers and workers to ensure the scientific

management principles are applied by the managers in planning tasks and by
the workers in performing their tasks.

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

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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.

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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

ever-changing situations that managers have to deal with, In particular, Follet
recognized the human element in management and emphasized collaboration
and mutual cooperation in seeking solutions to problems.

The views on administrative management acknowledged the need for

flexibility among managers and for them to recognize various ways of motivating

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groups and individuals. Also, the development of administrative management
further improved management methods and recognized management and
business administration as significant and essential professions along with law
and medicine.

Human Relations Theory

The human relations theory grew out of

the human relations movement in the 1930s. If
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.

The foundations of the human relations

movement were established in the 1920s with
the pioneering studies of 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. Among
innovative outcomes of the Hawthorne studies were the introduction of a set
number of work hours, the implementation of break times for workers,
improvements in lighting in work areas, and close supervision by managers.
Managers were encouraged to be supportive of their workers and to actively
involve them in management decisions. Mayo observed that the introduction of
these changes resulted in increased satisfaction among workers which also
resulted in their increased overall productivity.

Another contributor of the field of

human relations is Abraham Maslow.

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 Maslow argued that individual behavior is
primarily influenced by certain needs. He
described these needs according to an
hierarchy where people try to satisfy their
lower-level or basic needs first, such as
food, clothing, and shelter, and then
progress upward to the higher-level needs
such as self-esteem and self-actualization.
In 1970, Maslow revised his original
1954 pyramid and added two more
essential needs: cognitive needs or the
need to acquire knowledge; and aesthetic
needs or the need to create and
experience beauty, balance and structure.
The application of Marlow’s theory in management requires managers to ensure
that the essential needs of their workers are being met in the workplace to
guarantee their maximum performance.

What Is It
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 subfield of

quantitative management. It gathers past, present, and projected data
from external and internal 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 easily accessible
formats such as spreadsheets.

Systems Theory

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 The systems theory
explains how interrelated
parts operate 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 system 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 resoures)

2. Transformation processes (technology/managerial operations)

3. Outputs (products/services)

4. Feedback (reaction from the environment)

The contemporary systems theory analyzes an organization

according to the degree to which it is 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 systems, 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.

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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

Quality management emphasizes

consistency in an organization and
minimal to no errors or defects in
production. This ensures quality products
and services that result in 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. Deming conducted his
work in the 1950s in post-war Japan, as he
helped Japanese Industries improve
production.

What Is In

Activity 1

Name of Learner: _____________________________________________ Date: ________

Section: __________
Activity Sheet No. 1 - Developing a Concept Map

Instruction: Make your own concept map of “theory of management”

and provide it’s corresponding concept/ideas that had been evolved in
the development of management. Follow the examples below: Use
Activity Sheet No. 1

Example No. 1:

Head (The Evolution of

Management)

Bubbles (theories of management)

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 concept/ideas of each theories/
sub ideas or other ideas

Example No. 2 Example No. 3

Activity Sheet No. 1- Concept Map

Name of Learner: _____________________________________________ Date: ____

Section: ________

Learning Activity 1 - Evolution of Management Theory

Background Information for Learners:

It is about the development of management theory from the 1100 BC, the Chinese used the
four basic management functions of planning, organizing, leading and controlling to carry out vast
infrastructure projects and manage various parts of expanding Chinese empire up to the 20 th century
which businessman sought to establish the most efficient means of utilizing resources and production
processes to manufacture the greatest number of products in the shortest possible time.

Learning Competency: Describe the concept of evolution of management theories.

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RUBRIC FOR ACTIVITY No. 1 – CONCEPT MAP

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 What’s More

Activity No. 2

Name of Learner: _____________________________________________ Date: ________

Section: __________
Activity Sheet No. 2 - Management Theorists

Instruction: Identify the pictures of the management theory experts

below and their corresponding contributions to the development of the
evolution of management, write your answer on the space
corresponding the image.

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 A. Fiedler’s contingency model states
that the personality of the leader
1._____
determines how well he or she
addresses situations in the workplace.

B. An Australian psychologist who

used his expertise to implement
improvements in the workplace. He
and his colleagues embarked on a
2._____
series of studies on workers in the
Hawthorne Works factory of the
Western Electric Company.

C. He pioneered several innovations

during his tenure as foreman at
3. _____ Midvale Steel Company in
Philadelphia.

D. He identified the five functions are

planning, organizing, communicating,
coordinating, and controlling. On the
other hand, the fourteen principles of
management
4. _____ E. German sociologist, contributed to
the development of administrative
management through his studies on
public administration and bureaucracy
5. _____

What I Can Do

Activity No. 3

Name of Learner: _____________________________________________ Date: ________

Section: __________
Activity Sheet No. 3

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 Instruction: Answer briefly the following questions: (See the Rubrics
on the next page)

1. According to the human relations theory, why is it important to nurture

employee welfare?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

2. Give at least two competitive companies for example; Jollibee versus

McDonalds; Nestle Inc. versus Nissin Corporation, Cabalen versus Vikings, GMA
versus ABS-CBN, etc. then, a) compare the four principles of scientific
management (chose only one principle) you think they are imposing at present.
b) Is it important? Why?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

RUBRICS FOR ACTIVITY NO. 3

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 What I Have Learned

1. 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 Romans practiced decentralized management in managing

21
their vast empire. During the Medieval Period, the Venetians standardized the
assembly line.

2. Developments during the Industrial Revolution led to the emergence of

manufacturing as the primary industry for majority of US companies. Business
schools soon opened and contributed to the development of modern
management theories.

3. The 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 Lilian Gilbreth.

4. The administrative management theory focuses on the role of managers as

administrators of the organization. Henri Fayol proposed fourteen principles of
management which consisted of the following:

1, Division of Work

2. Authority

3. Discipline

4. Unity of Command

5. Unity of direction

6. Predominance of the general interest

7. Remuneration

8. Centralization

9. Scalar Chain

10. Order

11. Equity

12. Stability and tenure of personnel

13. Initiative

14. Esprit de corps

5. The human relations theory focused on the social element in the workplace
and encouraged managers to foster close social relations with their workers.
Contributors to this field include Elton Mayo and Abraham Maslow.

6. The quantitative management theory used quantitative approaches in

arriving at management decisions. Management science applies mathematics in
problem solving and decision making, while operations management applies

22
ideas and models to the actual workplace. Management information systems
organize and present data to aid managers in making decisions.

7. The systems theory describes the organization as composed of various

interrelated parts that work together to achieve a common goal. It categorizes
business organizations as either open or closed systems.

8. The contingency theory considers 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.

9. The quality management theory emphasizes consistency in an organization

and the production of high quality products and services. Quality must be
continually maintained through regular evaluation, testing, and the
implementation of improvements in the organization.

What I Can Achieved

Assessment

Quiz 1

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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 a. Administrative Management

T Theory

_____ 2. Hawthorne studies b. Human Relations Theory

_____ 3. Equal division of work among c. Quantitative Management Theory

managers and workers

d. Systems Theory
_____4. Kaizen

e. Contingency Theory
_____5. Input, transformation process,
output, and feedback
f. Quality Management Theory

_____ 6. Maslow’s hierarchy of needs

g. Scientific Management Theory

____ 7. Esprit de corps

_____ 8. Mathematics in problem

solving and decision making

_____9. Fiedler’s contingency model

____ 10. Open and closed system

Quiz 2

Instruction: Identify the management principle by Fayol described by

each statement. Write you answer in the blank.

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_______________________ 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 superisor.
_______________________ 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
of interest between employees and management.
_______________________ 9. Loyalty is promoted in the organization.
_______________________ 10. Individual interests are set aside and the general
interest of the company are prioritized.

Answer Key

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Activity No. 2
1. C 2. A 3. B 4. D 5. E

Quiz 1

1. B 2. B 3. G 4. F 5. D 6. B 7. A 8. C 9. E 10. D

Quiz 2

1. discipline

2. remuneration

3. unity of command

4. centralization

5. scalar chain

6. equity

7. initiative

8. esprit de corps

9. stability of tenure of personnel

10. predominance of general interest

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