EVOLUTION OF

MANAGEMENT SCHOOL OF THOUGHTS

I. Classical School
a. Scientific Management
b. Bureaucratic Model
c. Administrative Management
II. Behavioral School
a. Hawthorne experiment
III. The Modern School
a. Systems Theory
b. Contingency Approach

P.S.A.Mamucao
 CLASSICAL Source of
Experience / Concepts/Theories/Principles Limitations Comments
SCHOOL Influence

a. Scientific The Midvale 1. Value of hardwork, economic Layoffs of workers Opposition rise
Management Simonds and Steel rationality, individualism, and led to Growth of because of overhauling
Companies: time each person has the role to play Unionism after the of traditional practices
and motion study in the society. depression, and labor of managers.
Frederick W. 2. Differential rate system was shortage in the
Taylor (1856 – (Empirical introduced to encourage following years.
1915) Engineering and workers to produce more. If They opposed the
Mechanistic they if they surpasses the substitution of the
Approach at Shop standard, they will be given Overlooked the scientific method and
Level) incentives social need of man techniques for their
3. Philosophy: a.) the dev’t of a and tension created, own judgment and
true science of management, so as well as job discretion.
that for example, the best satisfaction
method of performing each task
could be determined; b.) the Man treated like
scientific selection of workers Feeling of machine not on
so that each worker would be importance and want humanistic
given responsibility for the task to say things that principles.
for which he or she was best matters to them
suited; c.) the scientific
education and development of
the worker; and d.) intimate,
friendly cooperation between
management and labor.
4. Motivated by desire for
material gain. They would act
to satisfy economic physical
need
P.S.A.Mamucao
CLASSICAL Source of
Experience / Concepts/Theories/Principles Limitations Comments
SCHOOL Influence

Herny Gantt  He abandoned differential rate

(1861 – 1919) as having too little motivational
impact. For him, workers who
finished a day’s assigned
workload would win 50
centavos bonus. Then he added,
supervisor would earn a bonus
for each worker who reached
the daily standard plus extra
bonus if all the workers reach it.
Task and Bonus System

 Motion and fatigue were

intertwined. Every motion that
Frank and was eliminated also reduced
Lilian Gilbreth fatigue.
(1868 – 1924  Find most economical motion
and 1878 – for each task, thus upgrading
1972) performance and reducing
fatigue. It would raise worker’s
morale because of its obvious
benefits and it demonstrated
management’s concern for the
worker.
Time and Motion Studies

P.S.A.Mamucao
 CLASSICAL Source of
Experience / Concepts/Theories/Principles Limitations Comments
SCHOOL Influence
 Not red tape and inefficiency,
rational – legal authority –
b. Bureaucratic Max Weber exercise of authority based on Merton, Selznick,
Model position Goulder, etc.
(1927 – 1932)  Most effective means for evaluated the
administration of large, complex bureaucratic model
organizations in industrial and indicates that it
society is influenced by
 6 Dimensions of bureaucracy: behavioral factor,
a. Division of labor based on which Weber did
functional specialization not consider.
b. A well-defined hierarchy of
authority
c. A system of rules covering Bureaucratic
the rights and duties of mechanisms develop
positional incumbents autocratic leadership
d. A system of procedures for and control that have
dealing with work situations dysfunctional
e. Impersonality of consequences.
interpersonal relations
f. Promotion and selection for
employment based on
technical competence
 In ideal type of bureaucracy, all
these dimension exist in highest
degree, while in less
bureaucratic organization, they
would be present to a smaller
degree.
P.S.A.Mamucao
 CLASSICAL Source of
Experience / Concepts/Theories/Principles Limitations Comments
SCHOOL Influence

c. Administrative Factories  Believed that managers were When organization is Too general for today’s
Management born, not made stable and complex organization
Theory  Defined administration as predictable
planning, organizing, environment,
Henry Fayol commanding, coordinating, and classical principles
(1841 – 1925) controlling. seemed valid
 Developed 14 principles of
management:
 Division of work But today is
 Authority characterized by
 Discipline turbulence and
 Unity of command unpredictable
 Unity of direction environment, thus
 Subordination of individual inappropriate
interest to the common
interest
 Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability of tenure
 Initiative
 Esprit de corps

P.S.A.Mamucao
 THE Source of
BEHAVIORAL Experience / Concepts/Theories/Principles Limitations Comments
SCHOOL Influence

 Studies on fatigue, rest period and

physical surrounding Closed Overemphasized the
Elton Mayo Hawthorne Plant  Determining the relationship between system psychosocial aspects
of the Western the intensity of illumination and the
Electric productivity of workers – no Not considering
Company (1927 relationship economic, political,
and 1932)  3 phases of study by Mayo and and other
associated in 5 year period: environmental factors
1. Relay assembly test room
experiment Not considered
2. Interviewing program unionism, he thought
3. Bank wiring observation room this is unnecessary
 Relay Assembly Test Room
Experiment – prolonged observation To some, Mayo is
of 6 women making telephone authoritarian and was
assemblies. Series of studies was bent to maintenance of
undertaken to determine the effects on hierarchical structure
output of working conditions, length of
working day, frequency and length of
rest periods, and other factors relating
to the physical environment.
 Results: regardless of variations in
these conditions, production increased.
It even continued despite conditions
were returned to the original with
longer working days, without rest
pauses, and with poor surrounding.
They hypothesized that this is
because of changes in social relations,
motivation and supervision of
P.S.A.Mamucao
workers
 THE Source of
BEHAVIORAL Experience / Concepts/Theories/Principles Limitations Comments
SCHOOL Influence

Elton Mayo Hawthorne Plant  Bank Wiring was an intensive

of the Western observation of work group of 14 male
Electric operators for 6 months. the informal
Company (1927 work group established production
and 1932) norms that were often in conflict with
those set forth by management. In spite
workers were paid of piecework
incentive, each worker restricted
output, thereby reducing possible
earnings.
 Work group determined output of
individual workers, indicating that
production was more determined by
social rather than aptitude and
physiological factors.
 Showed the strength of social
organization based on sentiments and
feelings, status roles, and social
interaction.
 Concern for people in the organization
also called Industrial Humanism.

P.S.A.Mamucao
THE MODERN Source of
Experience / Concepts/Theories/Principles Limitations Comments
SCHOOL Influence

 Open system approach

a. System  Organization comprised of external
Approach environment and internal environment
that is mutually interdependent
Churchman and  Open system is in continual interaction
associates with its environment and achieves a
“steady state” or dynamic equilibrium
Chester Bernard while still retaining the capacity for
work or energy transformation.
 Survival of system would not be
possible without continuous inflow of
transformation. System must receive
sufficient input of resources to man its
operations and also to export the
transformed resources to the
environment in sufficient quantity to
continue the cycle.
 Organizational System:
 Goals and values subsystem
 Technical subsystem
 Structural subsystem
 Psychosocial subsystem
 Managerial subsystem (plans for
overall direction)

P.S.A.Mamucao
 THE MODERN Source of
Experience / Concepts/Theories/Principles Limitations Comments
SCHOOL Influence

b. Contingency Developed by  The task of manager is to identify Does not

View of managers, which techniques will, in a incorporate all
Organization consultants and particular situation, under aspects of systems
researchers particular circumstances, and at a theory, and they
particular time, best contribute to hold that it has not
the attainment of management yet developed to
goals the point at which
it can be
 There is no such thing as best considered a true
management or leadership for that theory.
matter; it depends on the
environment and situation

References:
Kast, Fremont E. and James E. Rosenzweig
1979 Organization and Management: A System and Contingency Approach
(3rd ed.), New York: McGraw-Hill Book Company
Stoner, James A. F. and Charles Wankel
1987 Management (3rd ed.), Prentice – Hall Incorporated.
P.S.A.Mamucao
Supra System (External Environment)

Managerial Subsystem

Goals and values Structural

subsystem subsystem

Technical
Psycho- sub- Delivery of goods and
Social system services
subsystem

Internal environment

P.S.A.Mamucao