Management I

3:00-4:00 P.M.
The Evolution of Management
Thought
Ancient Evidence

Sumeria Historical records of government

Egypt Army
Babylon Courts
Palestine Church
China
Greece
Rome
Ancient/Early Management Era
Ancient/Early Management Era
• Sumerian Civilization 5000 BC
Egyptian Civilization 5000 to 525 BC
Evidences
• Priest Recorded accounts of
transactions of tax collections, dues
and inventories of materials in
stock.
• Managerial Control over vast
holdings of the religious
corporation.
• Managerial Planning, Organizing,
Leadership and Control exhibited
in the construction of the great
Pyramid and New City.
• Government management also
exhibited managerial functions and
practices.
• Managerial Writings
Babylonian Civilization Codes of Hammurabi
Managerial Technique of
Nebuchadnezzar ( 604 B.C.)

Chinese Civilization • Ancient Record of Chow, 1100BC

which contains details about
planning, organizing, directing and
controlling of employees;
• Emperor Yao ( 2350 to 2256 BC )
uses staff, meet with them, seek
advice about communication
between court and empire.
• T’ang ( 1766-1754 B.C.) initiates
autonomy of staff.
• Mencius ( 500 BC ) emphasized on
system, methodology and models in
effective management.
• Sun Tzu ( 500 B.C.) in his book Art
of War, he mentioned Planning,
commanding.
• Greek Civilization • Greece develops a democratic
government with participatory
management.
• Socrates observes that managerial
skills are transferable
• Xenophon indicates management is
a distinct and separate art;
• Cyrus- a military leader and a ruler
of Greece ( 400 B.C.) learned from
his father to make a strategy
• Alexander the Great – used
decentralization of authority with
coordination and reporting system;
• Roman Civilization • Organized empires
• Established the Senate to decide
public issues;
• Farm management
• Cato’s duties for a overseer
• Varro – selection and placement of
farm hands
The Evolution of Management
Thought
 By 1860

 The beginning of the Industrial Revolution in the US, it was evident

that the energy, transportation and communication fields have
advanced to the point that they served as an incentive to the
entrepreneur.
 Contrary to what might appear to have been an ideal climate for
prosperity and productivity, the workers’ wages were low and
production methods were crude. They pscychological and physical
aspects of jobs were not seriously looked into.
The Evolution of Management
Thought
 1895
 Frederick W. Taylor who challenged the previous methods of
managing a business came up with Scientific Management.
 Scientific Management was a philosophy that dealt with the
relationship of people and work.
 The basis for this relationship was finding the “one best way” for
doing a job and finding the proper person for each job.
 The goal was maximum output with minimum effort through the
elimination of waste and inefficiency.
 Taylor believed that if both labor and management embrace this
philosophy they would become teammates rather than adversaries
The Evolution of Management
Thought
Contribution to the Scientific Movement
Henry L. Gantt
He devised what is known as the Gantt Chart.
Gantt Chart is a bar chart comparing schedule with
actual performance widely used in production control and
how in computer scheduling operations.
Gantt also was one of the first to recognize publicly the
social responsibility of business and management.
The Evolution of Management
Thought
 1916
 Henry Fayol, a Frenchman, drew up a blueprint for a cohesive doctrine of
management after investigating managerial behavior.
 He presented a breakdown of the functions of management which he
listed as:
 Planning
 Organizing
 Commanding
 Coordinating
 Controlling
This model of management as a series of functions remains a keystone of
management theory to this day.
The Evolution of Management Thought
 However, Fayol’s most significant contribution was his 14 Principles of Management, namely:
 Division of Labor
 Authority and Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Subordination of individual interest to the general interest
 Fair remuneration of personnel
 Centralization
 Scalar chain
 Order
 Equity
 Stability of Tenure
 Initiative
 Esprit de corps
The Evolution of Management
Thought
 The period from 1920 to 1930 saw the
emergence fo management as a
respectable discipline. Universities and
colleges began to offer management
courses. Professional management
societies, like the American Management
Association, were founded during this
period.
The Evolution of Management
Thought
 The Great Depression in the early 1930s shook
the entire business structure. During this
economic crisis, with widespread
unemployment and the collapse or near collapse
of major economic institutions, many
companies disappeared. Other companies
opted to reorganize, merge or radically improve
operations to survive in the financial climate
that followed it. By the mid 1930s, a new type
of manager began to emerge.
The Evolution of Management
Thought
 Elton Mayo Hawthorne studies began in 1927 to
determine the relationship between physical working
conditions and productivity emphasized the potential
impact of the behavioral sciences on management.
 Mayo and his team’s experiment confirmed that
management should regard work as a social as well as a
mechanical experience.
 Another major contribution at this stage of the
development of management thought was Chester I.
Barnard.
 In his famous “ The Functions of the Executive, he
recognized that the efficient operation and survival of
an organization depend on balancing the
organization’s goal and the aims and needs of the
individuals working for it.
The Evolution of Management
Thought
 Following the work of Mayo and Barnard, the behavioral sciences
were gradually incorporated into management thinking. This
period from 1931 to the late 1940s became known as the Human
Relations Movement.
 From the late 1940s to the early 1960s, the management process
or functional approach similar to that of Fayol was accepted as the
methodological approach to the study of management.
 The focus was on the management functions of planning,
organizing, staffing, motivating and controlling. The works of
Ralph Davis and George Terry were widely read and accepted
during this period.
The Evolution of Management
Thought
The Evolution of Management
Thought
The Evolution of Management
Thought
The Evolution of Management
Thought
 1970 Contingency Approach
 There is no single best way to manage in all
circumstances and that different situations and
conditions require different management approaches.
Late 70’s ushered in what is now know as the cost-saving
approach. Renewed interest in this approach was
brought about by the recent resources shortages. Its
proponents view this as the only way of maintaining and
increasing profits.
The Evolution of Management
Thought
 The late 1980s favored a unified operational approach.
 Harold Koontz: pointed out that this approach to management
recognizes that there is a core of knowledge about managing that
exists only in management. Such matters as:
 Line and staff
 Departmentation
 The limitations of the span of management
 Managerial appraisal
 Various managerial control techniques involve concepts and theory
found only where managing is involved.
The Evolution of Management
Thought
 1990s
 Prevailingbelief: No single approach or
school can be set apart as most
important. Rather, the complete manager
must be able to recognize each approach
or school as contributing insights,
perspectives and special tools toward the
accomplishment of this goal.