Historical Evolution of

Management Theories
Jacob Fajardo & Ace Pablo
MGMT 201: Theory and Practice of Management
 ACTIVITY
ACTIVITY 1
1

Are you a New-Style or an

Old-Style Manager?

• Get Definition from Books Rate each one Mostly True or Mostly False

Add the total number of Mostly True answers

 What is Management?
Management is the attainment of organizational goals in an effective and efficient
manner through planning, organizing, leading, and controlling resources. - Daft

• Get Definition
The management process
fromis Books
planning, organizing, leading, and controlling the use of
resources to accomplish performance goals. - Schermerhorn

Management involves coordinating and overseeing the work activities of others so

that their activities are completed efficiently and effectively. - Robbins

Combined concepts:
Management is the attainment of organizational goals through the effective and
efficient utilization of the organization’s resources
 When did the concept
• Get Definition from Books

of “Management”” start?
 ANCIENT MANAGEMENT

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GREAT
EGYPTIAN WALL OF CITY OF
PYRAMIDS CHINA VENICE

Robbins, p28
 EARLY MANAGEMENT

• Get Definition from Books

DIVISION OF INDUSTRIAL
LABOR/JOB REVOLUTION
SPECIALIZATION

Robbins, p28
 MAJOR APPROACHES TO MANAGEMENT
THEORIES

• Get Definition from Books Modern Management

(1970s – present)
Quantitative Management
(1950s - present)
Behavioral
(1920s - 1950s)
Classical
(1900s - 1920s)

1900 1930 1950 1970

CLASSICAL APPROACH
1900-1920s
 CLASSICAL APPROACHES
Assumption: People are rational

Administrative Bureaucratic Organization

• Get Definition
Scientific from Books
Management
Principles
Frederick Taylor
Henri Fayol Max Weber

Schermerhorn, p35
 SCIENTIFIC MANAGEMENT

Scientific management emphasizes careful selection and training of

workers and supervisory support (Schermerhorn, p35)

Scientific Management is the the use of scientific methods to

• Get Definition from Books
define the “one best way” for a job to be done (Robbins, p29)

Principles of Scientific Management:

Frederick W. Taylor
“Father of Scientific Management”
1856-1915, Inventor / Engineer
1. Identification of “science” for every job to maximize
output
2. Selection of workers with the right abilities for the job.
3. Training of workers and granting of incentives to do the
job
4. Support to workers such as right scheduling.
 SCIENTIFIC MANAGEMENT
• Get Definition from Books
Henry Gantt (1861-1919)
Developed the Gantt chart—a bar graph
that measures planned and completed work
along each stage of production by time elapsed
(Daft, p27)
Frank Gilbreth (1868-1924) & Lilian Gilbreth (1878-
1972)
Pioneered “Time and Motion Study” to increase
efficiency of brick laying by 3 times; Identified 17
“Therbligs”–basic hand motions (Robbins, p30)
Fundamental Aim: “The elimination of waste, the
attainment of desired results with the least necessary
amount of time and effort.”
 SCIENTIFIC MANAGEMENT

Principle: Specialization

• Get Definition from Books

 SCIENTIFIC MANAGEMENT

Example:

• Get Definition from Books

• 164 seconds average time from customer’s order to taco on hand

• Company measures performance on time and accuracy criteria
• System order taking, money handling, food preparation, and delivery
• Heavy training on employees
Schermerhorn, p37
 SCIENTIFIC MANAGEMENT

Practical Insights

• Make
• Getresults-based compensation
Definition from Books a performance incentive.
• Carefully design jobs with efficient work methods.
• Carefully select workers with the abilities to do these jobs.
• Train workers to perform jobs to the best of their abilities.
• Train supervisors to support workers so they can perform to the best of their
abilities.

Schermerhorn, p36
 SCIENTIFIC MANAGEMENT
APPLICABILITY
• Highly applicable in manufacturing and
production industries where repetitive tasks can
be analyzed and optimized for efficiency and
productivity.
• Get Definition from Books
•Time-sensitive industries such as logistics and
assembly lines can benefit from time and motion
studies to identify inefficiencies and streamline
workflows.
• Scientific management supports the
implementation of performance-based
compensation systems, where employees are
incentivized based on measurable output and
results.
LIMITATIONS
• Primarily focus on efficiency and productivity
improvements, overlooking other important
aspects such as employee satisfaction, creativity,
and innovation.
•Employees may resist scientific management
approaches due to feeling dehumanized or
reduced to mere cogs in the machine, leading to
decreased job satisfaction and motivation.
• Assumes that all employees are motivated
primarily by monetary incentives, disregarding
individual differences and other motivating
factors such as personal growth and job
satisfaction.
 ADMINISTRATIVE PRINCIPLES

• Published book in 1915, identifying 5 functions

managers perform: Planning, Organizing,
Commanding, Coordinating and Controlling
• Get Definition from Books
Which is foundation of the 4 functions of
Management :POLC

• He believed managers can be trained

• He set forth 14 Principles of Management
Henri Fayol
“Father of Modern Management”
1841-1925, French Mining Engineer
 ADMINISTRATIVE PRINCIPLES

Henri Fayol: “Management is conduct of affairs

of business, moving towards its objective
through a continuous process of improvement
and optimization of resources”.
 Henri Fayol’s 14 Principles of Management

• Get Definition from Books

Robbins, p31
 Henri Fayol’s 14 Principles of Management

APPLICABILITY LIMITATIONS

• They serve as a basic guide for management • Principles like unity of command and scalar
and organizational structure. chain may not align with modern, flat or
matrix organizational structures.
• Principles
• Get like division from
Definition of work,
Booksunity of
command and direction, and scalar chain are • The principles might not resonate well with
often implemented in large corporations and dynamic or knowledge-based organizations
structured organizations. like tech startups.

• Principles like equity, initiative, and esprit de • The rigidity of these principles might not suit
corps resonate with modern HR practices the complexity and diversity of modern
focusing on fairness, innovation, and team organizations.
morale.
 BUREAUCRATIC ORGANIZATIONS

• Bureaucratic Theory of
Management

• Get Definition from— elaborated distinction between authority and

Books
power.

Max Weber
“Father of Modern Management”
1841-1925, French Mining
Engineer
 Characteristics of Weberian F

• Get Definition from Books

Robbins, p32
 Characteristics of Weberian Bureaucracy

• Get Definition from Books

Why does “Bureaucracy” now carry a very negative impression?

 Key Elements of the “Ideal Structure”

• Characterized by division of labor

• Clear authority hierarchy,
• Get Definition from Books
• Formal selection procedures,
• Detailed rules and regulations and
• Impersonal relationship
 Characteristics of Weberian Bureaucracy
Why does “Bureaucracy” now carry a very negative impression?
Is this attributable to the original concept espoused by Weber?

• Bureaucratic Inefficiency – red tape

• Get Definition from Books
• Lack of flexibility - stifle innovation
• Impersonal and dehumanizing – lack of empathy
• Bureaucratic power and corruption – abuse of power
• Negative experiences and anecdotes – long wait times
 BUREAUCRATIC ORGANIZATIONS

APPLICABILITY LIMITATIONS

• Principles like clear hierarchy, • Excessive paperwork

division of labor, and well-defined rules
are • still prevalent
Get Definition in
from Books large • Slowness in handling problems and
organizations like government rigidity in the face of shifting client
bodies, hospitals, and multinational needs
corporations.
• Resistance to change
• These principles ensure
predictability, consistency, and • Employee apathy
fairness, which are critical for
organizational operations.
 How do today’s managers
• Get Definition from Books

use these classical theories?

 How do today’s managers use these classical theories?
Scientific Management Administrative Principles Bureaucratic Organizations

•Industrial engineers use time and • Employees in a retail store • Large corporations:
motion studies to analyze assembly report to a store manager who Multinational corporations often
line processes in manufacturing provides clear instructions and have complex organizational
plants, identifying bottlenecks, guidance, ensuring effective structures with clear lines of
reducing• unnecessary
Get Definition from
movements, Books
supervision and coordination. authority and specialization.
and optimizing workflows for
increased efficiency. • In a software development
company, programmers, testers, • Universities and schools operate
• Fast food chains implement and designers are assigned specific using bureaucratic principles, with
standardized procedures for food roles and tasks based on their skills defined roles and responsibilities
preparation and service to ensure and expertise, allowing for for faculty, staff, and
consistent quality and efficiency specialization and efficient administrators.
across their locations. collaboration.
BEHAVIORAL APPROACH
1920s-1950s
EARLY ADVOCATES OF ORGANIZATIONAL BEHAVIOR

• Get Definition from Books

Forerunner of the
cooperative systems
theory

2 WAYS (Incentive
Methods and Persuasive
Methods)

Robbins, p33
 BEHAVIORAL MANAGEMENT
APROACHES
Assumption: People are social and self-actualizing

Organizations as Hawthorne Studies Theory X & Theory Y

• Get Definition
Communities
from Books Theory of Human
Needs
Personality &
Organization

Mary Parker Follet Elton Mayo Abraham Maslow Douglas McGregor Chris Argyris
(1868-1933) (1880-1949) (1908-1970) (1906-1964) (1923-2013)
 ORGANIZATIONS AS COMMUNITIES

• The work of Mary Parker Follett was part of an important transition from classical
thinking into behavioral management.

• Follett described organizations as “communities” in which managers and workers

• Get Definition from Books
should labor in harmony without one party dominating the other, and with the
freedom to talk over and truly reconcile conflicts and differences.

• She believed it was the manager’s job to help people in organizations cooperate
with one another and achieve an integration of interests.

Schermerhorn, p39
 HAWTHORNE STUDIES

ELTON MAYO A series of studies during the 1920s and

1930s that provided new insights into
forerunner of behavioral movement individual and group behavior
in management

• Get Definition from Books Mayo concluded that people’s behavior

and attitudes are closely related, that
group factors significantly affect individual
behavior, that group standards establish
individual worker output, and that money is
less a factor in determining output than are
group standards, group attitudes, and
security.
 McGREGOR’S THEORY X AND Y

Theory X Theory Y
Dislike work, find it boring, will ATTITUDE Need to work, want to take an interest,
avoid if we can we can enjoy it
Must be forced or coerced into DIRECTION Direct ourselves towards an accepted
compliance target
• Need to, avoid be directed,
Get Definition from avoid
Books
responsibility
RESPONSIBILITY Thrive on responsibility

Motivated by fear, relatively little MOTIVATION Motivated by the desire of self-

ambition, lack of job security development
Little creativity, except when getting CREATIVITY Highly creative when given recognition
around rules and opportunity

An important aspect of McGregor’s ideas is his belief that managers who hold either set of assumptions
can create self-fulfilling prophecies - occur when a person acts in ways that confirm another’s
expectations

Daft, p43
 McGREGOR’S THEORY X AND Y

ACTIVITY 1 Are you a New-Style or an

Old-Style Manager?
Rate each one Mostly True or Mostly False
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Assessment Key:
 THEORY OF HUMAN NEEDS

ABRAHAM HAROLD
• GetMASLOW
Definition from Books
Father of Theory on Hierarchy of
Human Needs

Schermerhorn, p42
 THEORY OF HUMAN NEEDS

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 PERSONALITY AND ORGANIZATIONS

CHRIS ARGYRIS - Developer of the theory of Adult Personality

Argyris contrasted the management practices found in traditional and

• Get Definition
hierarchical from Books
organizations with the needs and capabilities of mature adults.

He believed that managers who treat people positively and as responsible

adults will achieve the highest productivity.
 PERSONALITY AND ORGANIZATIONS
CLASSICAL APPROACHES ARYGYRIS
SCIENTIFIC MANAGEMENT
Believed that this limits opportunities for
- the principle of specialization assumes that people self-actualization
will work more efficiently as tasks become simpler
and better defined.
WEBERIAN BUREAUCRACY
• Get Definition from Books Worried that this creates dependent,
- people work in a clear hierarchy of authority, with passive workers who feel they have little
higher levels directing and controlling lower levels. control over their work environments.

ADMINISTRATIVE PRINCIPLES
Suggested that this may create conditions
- the concept of unity of direction assumes that for psychological failure; conversely,
efficiency will increase when a person’s work is psychological success occurs when people
planned and directed by a supervisor.
define their own goals.

Schermerhorn, p44
 BEHAVIORAL APPROACHES

APPLICABILITY LIMITATIONS

Human Resource departments often prioritize
employee motivation and job satisfaction,
emphasizing the human element in organizational
management.
• Get Definition from Books
• It may neglect the organizational goals in favor of
employee satisfaction.
•Overemphasis on groups may overlook individual
motivations and aspirations.

Companies that provides trainings, seminars and •It may fail to consider wider environmental or
incentives/rewards that motivates employee to contextual factors impacting the organization.
increase productivity
Ex. Call centers, real estate brokers
San Miguel Corporation – they motivate
employees with trainings and seminars, career
development. They provide good benefits that
satisfy employees. They always look after
employees needs and satisfaction.
QUANTITATIVE APPROACH

MANAGEMENT
THIS APPROACH IS ALSO
KNOWN AS?

SCIENCE
 World War II military logistics
and quality control problems

MANAGEMENT
THIS APPROACH IS ALSO
KNOWN AS?
Unsafe military equipment is unacceptable…
SCIENCE
Every unit produced was checked by the U.S. military…
 Evolved from MATHEMATICAL and
STATISTICAL methods developed to solve WWII
military logistics and quality control problems.

Involves applications of statistics, optimization

QUANTITATIVE models, information models, and computer
APPROACH simulations to management activities.
Robbins, p39

THIS APPROACH IS ALSO KNOWN

AS? MANAGEMENT
SCIENCE
 QUANTITATIVE ANALYSIS AND TOOLS Q
U
A typical quantitative approach to managerial problem solving proceeds as follows: A
N
• Problem is encountered T
I
• Systematically analyzed T
A
• Appropriate mathematical models and
computations are applied T
I
• Optimum solution is identified
V
E
Schermerhorn, p45
 QUANTITATIVE ANALYSIS AND TOOLS Q
QUANTITATIVE
PROBLEM APPROACH
OUTPUT U
OIL EXPLORATION
A
COMPANY Mathematical Future projections for reserve sizes N
Forecasting
Future petroleum reserves in various and depletion rates T
parts of the world
I
BIG BOX RETAILER
Inventory
Control inventories by T
Pressures on profit margins by
minimizing costs of inventories while analysis
mathematically determining how
much to automatically order and when
A
avoiding going out of stock T
GROCERY STORE Allocates service personnel and
workstations based on alternative
I
Complaints from customers that
waiting times are too long for Queuing theory
workload demands and in a way that V
minimizes both customer waiting
checkouts during certain times of the
times and cost of service workers
E
day
Q Total Quality Management
U ▪ a management philosophy devoted to continual improvement and responding to
A customer needs and expectations also makes use of quantitative methods to meet
N its goals.
Robbins, p35

T Walter Shewhart
I  FATHER OF STATISTICAL QUALITY CONTROL
T • A statistical chart is used for
controlling manufacturing
A processes.
T
I • The control chart is a graph used
to study how a process changes
V over time. Data are plotted in time
E order.
Q Total Quality Management
U ▪ a management philosophy devoted to continual improvement and responding to
A customer needs and expectations also makes use of quantitative methods to meet
its goals.
Robbins, p35
N
T
William Edwards Deming
I
• statistical methods
T • commitment to training in
A the fundamentals of quality
T assurance
I • constant innovation
V
E
Q Total Quality Management
U ▪ a management philosophy devoted to continual improvement and responding to
A customer needs and expectations also makes use of quantitative methods to meet
its goals.
Robbins, p35
N
T Joseph M. Juran
I  FATHER OF MODERN DAY QUALITY
T MANAGEMENT
A Three key principles:
T 1. Application of Pareto principle – identifying the vital
few and the trivial many
I 2. Management theory – wider examination of the human
V dimension of quality management
E 3. Juran trilogy – quality planning, quality control and
quality improvement
What Is Total Quality Management?

Robbins, p35
Companies Successfully Implemented TQMs
 QUANTITATIVE ANALYSIS AND TOOLS Q
U
In our world of vast computing power and the easy collection and storage of
data, there is renewed emphasis on how to use quantitative analysis to mine A
available data and make management decisions. N
T
The systematic analysis of large databases to solve problems and I
make informed decisions is… T
A
T
I
“Analytics”
V
The core job of analytics is to help companies E
gain insight into their customers.
 QUANTITATIVE APPROACH

APPLICABILITY LIMITATIONS

Decision Making - The quantitative approach Quantitative management theories heavily rely on
provides managers with tools and techniques to data and mathematical models, which may
analyze data and make rational decisions. oversimplify complex real-world situations. They
assume rationality and certainty in decision-making,
• Getlike
Techniques Definition
queuingfrom Books
theory, inventory disregarding the influence of human behavior,
management models, and optimization algorithms emotions, and organizational dynamics. Critics argue
help in designing production schedules, managing that these theories may overlook the qualitative
inventory levels, and minimizing costs while aspects of management and fail to account for the
maximizing output. unpredictable nature of human systems.

Quantitative techniques are employed in quality

management to measure, control, and improve
processes. Statistical process control (SPC), Six
Sigma, and Total Quality Management (TQM) rely
on quantitative analysis to monitor and analyze
variations, identify quality issues, and implement
corrective actions.
CONTEMPORARY APPROACH
 1960s: What was happening in the external
CONTEMPRARY environment OUTSIDE the boundaries of the
APPROACH organization. Robbins, p36

TWO CONTEMPORARY
Management Perspectives

SYSTEMS CONTINGENCY
 SYSTEMS THEORY
A system is a set of interrelated and interdependent parts
arranged in a manner that produces
Robbins,ap36
unified whole.
CO
NT Basic Types of Systems
EM
PO Open Systems Closed Systems
RA
RY • Influenced by and do • Not influenced by
interact with their and do not interact
environment. with their
environment.
 ORGANIZATION AS AN OPEN SYSTEM

CO
NT
EM
PO
RA
RY

Robbins, p36
 CLOSED SYSTEMS IN ORGANIZATIONS
Research and Development Division

CO
NT
EM
PO
RA
RY • Work without consulting other divisions in the company
• R&D workers are insulated from external influences
• Helps business owners protect valuable intellectual property
that could be worth millions in the life cycle of a new product or service
 CONTINGENCY THEORY
• It is also known as situational
CO approach
CO
NT
NTE •
EM This is a management approach
MP that recognizes organizations as
PO
OR different, which means they
RA
ARY face different situations
RY
(contingencies), and require
different ways of managing.
“if, then.”
Robbins, p37
 CONTEMPORARY APPROACH

APPLICABILITY LIMITATIONS

• Applicable to organizations operating in dynamic • One-size-fits-all solution and requires

and rapidly changing business environments. customization to fit specific organizational
• It is relevant for organizations seeking to foster contexts.
innovation, adaptability, and a customer-centric
• Get Definition from Books
approach. • The contemporary approach can be complex,
• Suitable for organizations focused on requiring resources, expertise, and time for
sustainability, social responsibility, and ethical successful implementation.
practices.
• Not all organizations may have the necessary
resources or capabilities to fully adopt and
implement contemporary management practices.
MODERN MANAGEMENT
 KNOWLEDGE MANAGEMENT AND
ORGANIZATIONAL LEARNING
Knowledge Management – a process for developing, organizing, sharing and using
knowledge to facilitate organizational performance and create an environment for
ongoing organizational learning. Schermerhorn, p51
MO
Peter Drucker Peter Senge
DE
A learning organization is one that
“Knowledge “by virtue of people, values, and RN
constantly systems is able to continuously
makes itself change and improve its
obsolete” performance based upon the
lessons of experience”
– The Fifth Discipline
KNOWLEDGE MANAGEMENT AND
ORGANIZATIONAL LEARNING

MO
DE
RN
 KNOWLEDGE MANAGEMENT AND
ORGANIZATIONAL LEARNING

CKO Chief Knowledge Officer

Assets MO
Responsible for energizing learning
• Patents DE
• Intellectual property rights
processes and making sure that an
• Trade secrets
RN
organization’s intellectual assets are well
managed and continually enhanced. • Special processes and methods
• Accumulated knowledge
• Understanding of the entire workforce

Schermerhorn, p49
 EVIDENCE – BASED MANAGEMENT

MO
DE
RN
Jeffrey Robert
Pfeffer Sutton

“hard facts” > “dangerous half-truths”

 EVIDENCE – BASED MANAGEMENT
“making decisions through the
conscientious, explicit, and judicious
use of four sources of information
MO
(1) practitioner expertise and judgment;
(2) evidence from the local context;
DE
(3) a critical evaluation of the best
RN
available research evidence
(4) the perspectives of those people
who might be affected by the
decision.”
Schermerhorn, p50
 EVIDENCE-BASED MANAGEMENT
Evidence-based management uses findings from rigorous scientific
research to identify management practices for high performance.

1
• A research question or problem is clearly identified.
MO
The following criteria are a
helpful first-test in • One of more hypotheses is stated to describe possible explanations. DE
2
determining whether or not
good scientific methods have
RN
• The research design provides for a good test of the hypotheses.
been used by the 3
researchers.
• Data are rigorously gathered, analyzed, and interpreted
4
• Hypotheses are accepted or rejected and conclusions made based on the
5 evidence

Schermerhorn, p50
 MODERN MANAGEMENT APPROACH

APPLICABILITY LIMITATIONS

• It can be applied by organizations seeking to • It may require significant investment in

leverage technology for improved efficiency and
competitive advantage.
• The •modern
Get Definition from Books
management approach is suitable for
organizations that value employee empowerment,
collaboration, and continuous learning.
• The modern management approach is suitable for
organizations that value employee empowerment,
collaboration, and continuous learning.
technology infrastructure and resources, which
can be a limitation for smaller organizations with
limited budgets.
• The fast-paced nature of the modern management
approach can create pressure and stress for
employees, affecting work-life balance and well-
being.
• The modern management approach may not be
suitable for all organizations, especially those
operating in more traditional or regulated
industries.
 The challenge for today’s managers, is to know when
these certain management strategies would work and what
are the available alternatives if they don’t.
“ Future success will be earned only by those who continually build and
used knowledge to the fullest extent possible.”

- Peter Drucker
 Key Words / Concepts
• Management
• New-Style Manager or Old-Style Manager
• Evolution of Management
• Major categories of Management Theories: Classical, Behavioral,
Quantitative, Modern Management
o Primary Contributors
o Differences
o Science behind these Theories
o Strengths and Limitations
o Applicability in our time now
 Reference Materials

Robbins, et al, (Module, Chapter 1, p27 - 37)

Schermerhorn, (Chapter 2, p34 – 54)
Daft, (Chapter 2, p32 – 61)
 Case Study

General Motors; Daft, p60