Chapter 2

Industrial Revolution
1860
O Energy, transportation and
communication fields were
evident.
O Workers’ wages were low and
production methods were
crude (simple).
O Psychological and physical
aspects of jobs were not
seriously looked into.
 1895
O Frederick Taylor
- challenging the previous
methods of managing a business
came up with a Scientific
Management.
 1895
Scientific Management
- a philosophy that dealt with
the relationship of people and
work. The basis of this relationship
was finding the “one best way” for
doing a job and finding the proper
person for each job.
Goal: maximum output with
minimum effort through the
elimination of waste and efficiency.
 1895
O Henry L. Gantt
- a major contributor of
the Scientific
- devised what is known
as the Gantt chart, a bar chart
comparing schedule with
actual performance which is
widely used in production
and control and now in
computer scheduling
operations.
 1895
Gantt Chart
 1916
O Henry Fayol
- a Frenchman who
drew up a blueprint for a
cohesive doctrine of
management after
investigating managerial
behavior.
- breakdown of the
functions of
management.
 1916
14 PRINCIPLES OF MANAGEMENT
BY HENRY FAYOL
1. Division of labor
2. Authority and Responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to the
general interest
7. Fair remuneration of personnel
 1916
14 PRINCIPLES OF MANAGEMENT
BY HENRY FAYOL
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
13. Initiative
14. “esprit de corps”
 1920 - 1930
O Emergence of management as a respectable
discipline.
O Universities and colleges began to offer
management course.
O Professional management societies, like the
American Management Association were
founded.
 1920 - 1930
The emergence of the new type of manager was
founded after the Great Depression in the early 30’s.
The economic crisis resulted to 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.
 1920 - 1930
Elton Mayo
George Elton Mayo (1880–1949) was an
Australian born psychologist,industrial
researcher, and organizational theorist.[4][5]
Mayo was formally trained at the University
of Adelaide, acquiring a Bachelor of Arts
Degree graduating with First Class Honours,
majoring in philosophy and psychology,[4]
and was later awarded an honorary Master
of Arts Degree from the University of
Queensland (UQ).
 1920 - 1930
Elton Mayo’s 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 experiments

confirmed that management should
regard work as a social as well as a
mechanical experience.
 1920 - 1930
Chester I. Barnard
Chester Irving Barnard was an American
business executive, public administrator, and
the author of pioneering work in management
theory and organizational studies. His
landmark 1938 book, The Functions of the
Executive, sets out a theory of organization
and of the functions of executives in
organizations. The book has been widely
assigned in university courses in management
theory and organizational sociology.
 1920 - 1930
The famous contribution of
Barnard is “The Functions of
the Executive” where he
recognize that the efficient
operations and survival of an
organization depend on
balancing the organizational
goals and aims and needs of
the individuals working for it.
 1940’s to the early 1960’s
The famous contribution of
Barnard is “The Functions of
the Executive” where he
recognize that the efficient
operations and survival of an
organization depend on
balancing the organizational’s
goals and aims and needs of
the individuals working for it.
 1940’s to the early 1960’s
 The management process of functional approach
similar to that Fayol was accepted as the
methodological approach to the study of
management.
 The focus was on the functions of planning,
organizing, staffing, motivating and controlling.
 The works of Ralph Davis and George Terry were
widely read and accepted during this period.
 From the early to the late 1960’s
Harold Koontz
an American organizational theorist, professor
of business management at the University of
California, Los Angeles and a consultant for many of
America's largest business organizations. He co-
authored the book Principles of Management with
Cyril J. O'Donnell; the book has sold around two
million copies and has been translated into 15
languages.
 From the early to the late 1960’s
 He coined the term
Management Theory Jungle. He
created the term because many
schools of and approaches to
management theory and
knowledge surfaced.
 From the early to the late 1960’s
Production management scholars attempted to
quantify management which they viewed as a system
of mathematical relationships.
Decision theorists concentrated on rational decision
making as the core of managerial task.
Behavioral scientists relying heavily on psychology and
sociology viewed management as a system of cultural
interrelationships.
 From the early to the late 1960’s
Empiricists using the case method studied the
successes and failures of managers believing that
effective management could be learned from these.

Their case method came under attack because by studying

cases all the time, we tend to be following business practice
instead of leading it. This is inadequacy because it is not a
static world. Attempts to come up with a unified theory of
management, however failed.
 Late 1960s to the early 1970s
Systems approach
- the practice of considering the
environmental, psychological, physical and
informational facets of a manager’s job as a
whole system rather than a collection of
unrelated parts.

The basic idea during this period

was to integrate the other schools of
management into functional approach
(This approach he reasoned that the
mental act of consciousness must be an
important biological function)
 Late 1960s to the early 1970s
Contingency approach
- the dominant
approach in the 1970s
which emphasizes the fact
that there is no single best
way to manage in all
circumstances and that the
different situations and
conditions require different
management approaches.
 Late 1970s
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.
 Late 1980s
Unified approach
According to Harold Koontz in his article he
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, and various managerial
control and techniques.
 Late 1980s
Unified approach
It also includes the clinical study of management
activities, problems and solutions, applications of
systems theory, decision making, motivation and
leadership findings theory, individual and group theory
and the application of mathematical modelling and
techniques.
 1990s
The prevailing belief in this era is that
there is 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, perspective and
special tools toward the accomplishment
of his goal.
Class Activity
OBegin by closing your eyes for one minute and consider
the best moments of your lives. This can include
moments you’ve had alone, you’ve shared with family or
friends; these moments can pertain to personal
revelations, or exciting life adventures. After you have
had a moment to run through highlights of your lives.
Keeping your eyes closed, take a moment to decide what
30 seconds of your life you would want to relive if you
only had thirty seconds left in your life.