2. TODAY’S OBJECTIVE:
AT THE END OF
THIS LESSON,
THE STUDENTS
WILL BE ABLE TO
01
TRACE THE
EVOLUTION OF
MANAGEMENT
THEORIES.
02
ENUMERATE AND
DISCUSS THE
THEORIES ON
MANAGEMENT ,
AND
03
DIFFERENTIATE
MANAGEMENT
THEORIES.
04
3. LET’S REVIEW FIRST
MANAGEMENT- is the process of PLANNING,
ORGANIZING, LEADING and CONTROLLING the
activities of the organization.
It is a science because it contains a body of knowledge
that becomes the organizational framework.
Management plays an important role in laying out the
foundation of a profitable company strategy.
6. Ancient Civilization 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 (
example: Chinese empire)
7. • The Greeks developed a scientific approach to work
such as LEADERSHIP and JOB SPECIFICATIONS.
• Two Greek philosophers: SOCRATES and PLATO.
9. SCIENTIFIC MANAGEMENT
THEORY
• Theory of management which studies the
application of scientific methods and principles
for the purpose of redesigning the work process
to increase EFFICIENCY.
• Created by FREDERICK W. TAYLOR, the
American engineer.
• He worked at MIDVALE STEEL COMPANY IN
PHILADELPHIA.
• He introduced the four principles of scientific
management as follows:
• 1. Replace the RULE-OF-THUMB METHOD
a general rule based on practice or experience
rather than facts or scientific evidence.
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
that the managers apply scientific management principles.
10. ADMINISTRATIVE
MANAGEMENT THEORY
•Focuses on the OVERALL MANAGEMENT
of an organization, emphasizing the role
of the managers as administrators of the
organization.
•Introduced by HENRI FAYOL in the 20th
century.
• Henri Fayol (29 July 1841 – 19 November 1925)
was a French mining engineer, mining executive,
author and director of mines who developed a
general theory of business administration that is
often called FAYOLISM
Fayol identified five functions of management.
PLANNING
ORGANIZING
COMMUNICATING
CONTROLLING
FAYOL IDENTIFIED 14 MANAGEMENT PRINCIPLES
1. Division of work- into specialized task, with specific
duties
2. AUTHORITY- of managers to delegate work and task
to the employees.
FAYOL IDENTIFIED 14 MANAGEMENT PRINCIPLES
3. Discipline- where expectation should be clearly set and
violators of rule must be punished.
4. Unity of command- where the employee should only
report to one supervisor.
FAYOL IDENTIFIED 14 MANAGEMENT PRINCIPLES
5. Unity of direction- which means the effort of the
employees are guided towards the attainment of
organization objectives,
6. Predominance of the general interest- of the
organization over the individual interest of employees.
FAYOL IDENTIFIED 14 MANAGEMENT
PRINCIPLES
7. Remuneration- the efforts of the employees
should be systematically rewarded in line with the
organization’s vision and mission.
8. Centralization- where the roles of the
employees are clarified, with emphasis on the
9. Scalar chain- which means the communication
should be open within the chain of command.
10. Order- where the organization of jobs and
materials must be done in order.
11. Equity- which means the fairness and order
must be practiced.
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
11. HUMAN RELATIONS THEORY
They grew out of the human relations movement in the
1930’s.
Focuses on the social element in the workplace and
considers the influence of INTERPERSONAL
RELATIONSHIP.
Founded by ELTON MAYO, an Australian psychologist
who used his expertise to implement improvements in the
workplace.
Managers were encouraged to be supportive of their
workers and to actively involve them in management
decisions.
Another contributor was Abraham Maslow. He stated
that individual behavior is primarily influenced by certain
needs.
SELF ACTUALIZATION
SELF-ESTEEM
LOVE/ BELONGING
SAFETY
PHYSIOLOGICAL
12. QUANTITATIVE MANAGEMENT
THEORY
QUANTITATIVE MANAGEMENT- uses quantitative
approaches such as statistical analyses and computer
simulations to arrive at a management decision.
MANAGEMENT SCIENCE- uses mathematical problem
solving and decision making. It seeks to create ideal
models that will be the basis for management
improvements.
MANAGEMENT INFORMATION
SYSTEM- it gathers past, present, and
projected data from external and internal
sources and transforms them into usable
information.
13. SYSTEM THEORY
Explains how interrelated parts operate
together to achieve a common purpose. With
the advent of the Industrial Revolution and the
increasing requirements for increased
efficiency and greater production.
14. CONTINGENCY THEORY
Considers the unique characteristics of the
managers, as well as the effect of
environmental factors, in addressing
management problems and situations.
15. QUALITY MANAGEMENT THEORY
Emphasizes consistency in an organization and
the production of high-quality products and
services.
The quality management perspective emerged
after the second world war, through the work
of William Edwards Deming.
