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1. Organization and Management
General Academic Strand | Accountancy, Business, and Management
Lesson 1.2
Evolution of Management
Theories

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3. Organizations are
composed of people.
The management is
responsible for
coordinating the skills and
efforts of the employees for
them to achieve a common
goal.
3

4. “Management is the art of getting things done
through people.” - Mary Parker Follet, 2013
4
4
The concept of
management has
gone through
significant changes
over the years.

5. Learning
Competenc
y
5
Explain the various management theories
(ABM_AOM11-la-b-2).

6. Learning
Objectives
6
● Explain the various types of management
theories.
● Apply the concepts in solving a business
case.

7. Explore
Let’s
Connec
t Instructions:
1. Recall your experience of observing an
organization.
2. Illustrate or sketch your observation of the
manager and the working environment in
the organization.
3. Be ready to share your sketch and its
interpretation in class.
7
Sketch it, Share it

8. Explore
Let’s
Connec
t Guide Questions
1. What is the personality of the manager?
2. How did he or she respond to problems,
conflicts, or complaints by customers?
3. How did he or she treat his or her
subordinates?
4. What is your impression of the overall
working environment in the organization?
8
Sketch it, Share it

9. Explore
Let’s
Connec
t
9
1. What is the personality of the manager?

10. Explore
Let’s
Connec
t
10
2. How did he or she respond to problems,
conflicts, and complaints by customers ?

11. Explore
Let’s
Connec
t
11
3. How did he or she treat his or her
subordinates?

12. Explore
Let’s
Connec
t
12
4. What is your impression of the overall
working environment in the organization?

13. Essential
Question
13
Which among the the different management
theories are applicable to specific business
problems?

14. 14
Evolution of Management Theories
● Classical Management Theory
● Behavioral Management
Theory
● Quantitative Management
Theory
● Modern Management Theory
The Four Main Theories

15. 15
Evolution of Management Theories
● Developed during the 19th century
● Introduced as a result of the industrial revolution
● Focuses on managing work efficiently through
systematic work processes and division of labor
Classical Management Theories

16. 16
Classical Management Theories
Scientific Management Theory
● Created within the 1880s to the 1890s
● Frederick Taylor was the most well-
known proponent of this theory.
● He emphasized the need for a financial
rewards system to motivate the
workers.

17. 17
Classical Management Theories
Four Principles of Management
1. Conduct a scientific study of the task to replace the
rule-of-thumb method.
2. Conduct a Scientific selection, training, and
development of workers.

18. 18
Classical Management Theories
Four Principles of Management
3. Cultivate a culture of positive cooperation between
the management and the workers.
4. Create an equal sharing of work between the
management and the workers.

19. 19
Classical Management Theories
Frank and Lilian Gilbreths
● The Gilbreths suggested
that workers should
have definite days of
work, scheduled breaks,
& conducive working
conditions.

20. 20
Classical Management Theories
Henry Gantt
● He created the “Gantt Chart”
which is a visual scheduling of
tasks to be done to complete a
project or work.

21. 21
Classical Management Theories
Charles Bedaux
● Bedaux introduced
the rating system
to measure the
productivity of
workers. He also
suggested to give
workers a rest
allowance.

22. 22
Evolution of Management Theories
● An approach developed by Max
Weber in 1905
● Focused on a hierarchical system
● Was deemed effective with
organizations that operate on a
large scale.
Bureaucratic Management Theory

23. 23
Bureaucratic Management Theories
Five Characteristics
1. Task Specialization - each of the employees has a
responsibility to fulfill.
2. Hierarchical Structure - those with lower positions are
subject to the orders of those with higher positions.
3. Formal Selection - skills and credentials are necessary in
deciding who is up for the position.
4. Rules and Requirements - ensures uniformity and unity.
5. Impersonality - creates detached relationships which
promotes objective decision making.

24. 24
Bureaucratic Management Theories
Administrative Management Theory
● Henry Fayol created this theory in
1916.
● This theory is concerned with how
the management effectively
organizes and directs the employees.

25. 25
Administrative Management Theory
Henry Fayol’s 14 Principles:
1. Division of Work -
specialization of workers can
increase the output.
2. Authority - superiors have
the right to give orders, but
they must also be responsible
for the consequences.

26. 26
Administrative Management Theory
Henry Fayol’s 14 Principles:
3. Discipline - individuals
must display proper
conduct.
4. Unity of Command - an
employee must receive
orders from one
supervisor only to avoid
conflict.

27. 27
Administrative Management Theory
Henry Fayol’s 14 Principles:
5. Unity of Direction -
employees must follow a
common objective.
6. Subordination of
Individual Interests -
common interest first
before personal interest.

28. 28
Administrative Management Theory
Henry Fayol’s 14 Principles:
7. Remuneration -
compensation must be fair
and proper.
8. Degree of Centralization -
refers to the balance on who
should be making decision
in terms of company size.

29. 29
Administrative Management Theory
Henry Fayol’s 14 Principles:
9. Scalar Chain - there must
be a clear chain of
command.
10.Order - a workplace must
be clean and tidy.

30. 30
Administrative Management Theory
Henry Fayol’s 14 Principles:
11.Equity - all employees must
be treated fairly.
12.Stability of Tenure of
Personnel - employee
replacement must be limited
and should instead keep
their employees longer.

31. 31
Administrative Management Theory
Henry Fayol’s 14 Principles:
13.Initiative - superiors must
encourage subordinates to
take initiative.
14.Esprit de Corps - managers
must boost employees’
morale to and promote team
spirit.

32. 32
Evolution of Management Theories
● Focused on the interests and needs of employees
● Gives importance to human behavioral factors to
strengthen unity and teamwork
Behavioral Management Theories

33. 33
Behavioral Management Theories
Human Relations Theory
● Elton Mayo developed this theory between 1924 and
1933.
● This theory states that individuals perform better when
they feel that they are valued and belong to the group.

34. 34
Human Relations Theory
Hawthorne Effect
● This states that workers
collaborate with their
colleagues and perform
their tasks better when
they are given special
attention.

35. 35
Behavioral Management Theories
Theory X and Y
● Proposed by Douglas McGregor in the 1950s
● Theory X perceives workers as lazy and needs to be
controlled.
● Theory Y perceives workers as having a natural drive
to work and do not need to be ordered around.

36. 36
Evolution of Management Theories
● Was introduced to improve
management’s decision-
making during the World
War II
● Makes use of computers,
mathematical models, and
statistical tools
Quantitative Theory

37. 37
Evolution of Management Theories
● Takes advantage of technology and incorporates it with
classical approaches
● Utilizes statistical techniques to analyze, understand,
and compare the relationship between the management
and the workers
Modern Management Theories

38. 38
Modern Management Theories
Systems Theory
● Proposed by Ludwig von Bertalanffy
● An idea that all departments are parts of an open
system which needs to interact with each other

39. 39
Modern Management Theories
Contingency Theory
● Developed by Fred Fiedler
● Managers must be able to adapt to the changing
environments of the organization and must make
better decisions depending on the given situation.

40. Check
Your
Progress
What management theory introduced the use
of hierarchy in an organization?
40

41. Try This!
Try
This!
41
True or False. Read each statement carefully. Write
true if the statement is correct. Otherwise, write
false.
1. The industrial revolution led to the
evolution of the management
theories.
2. The systems and processes used by
the organizations before the
industrial revolution were also
used after this period.
____________
____________

42. Try This!
Try
This!
42
True or False. Read each statement carefully. Write
true if the statement is correct. Otherwise, write
false.
3. The welfare of the workers was
promoted in classical management
theory.
4. The bureaucratic management theory
focused on an authoritative system.
5. The behavioral management theory is
more focused on the interest of the
organization.
____________
____________
____________

43. Wrap-
Up ● The evolution of the Management Theories
started during the industrial revolution.
● Four major categories:
○ Classical Management Theory
○ Behavioral Management Theory
○ Quantitative Management Theory
○ Modern Management Theory.
43

44. Wrap-
Up
● The Classical Management Theories:
○ Scientific Management Theory - emphasized
the scientific study of work methods to make
the worker more efficient.
○ Bureaucratic Management Theory - focused
on an authoritative system.
○ Administrative Management Theory -
concerned with how the management
organizes and directs the employees. 44

45. Wrap-
Up
● The Behavioral Management Theories
○ Human Relations Theory - highlighted the
idea that individuals perform better when
they feel that they belong to and are valued in
the team.
○ Theory X and Y - assumed that there are two
distinct types of workers in an organization.
One is the lazy type who needs to be
controlled while the other does his or her
work willingly.
45

46. Wrap-
Up
● Quantitative Management Theory promotes the
use of sophisticated mathematical models and
statistical tools in enhancing management skills.
● The Modern Management Theory integrates
technology with management techniques.
○ Systems Theory promotes management as an
interrelated component of an organization.
○ Contingency Theory asserts that the
management must be adaptable and must
make decisions according to the given
situation. 46

47. 47
Challeng
e
Yourself
Read the business case found in study guide
and answer the question concisely.

48. 48
Challeng
e
Yourself
What is the theory implemented by the
management? Explain your answer.

49. Photo Credits
49
● Slide no. 16: Frederick Winslow Taylor by Beyond My Ken is licensed under Wikipedia via Wikimedia Commons
● Slide no. 19: Lilian Gilbreths by Smithsonian Institution is licensed under Commons:Licensing via
Wikimedia Commons
● Slide no. 19: Frank Gilbreths by Verne Equinox is licensed under Wikipedia via Wikimedia Commons
● Slide no. 20: Henry Gantt, by John R. Dunlap is licensed under Wikipedia via Wikimedia Commons
● Slide no. 21: Charles Bedaux by Ras67 is licensed under Wikipedia via Wikimedia Commons
● Slide no. 22: Max Weber by Unknown is licensed under Wikipedia via Wikimedia Commons
● Slide no. 24: Henry Fayol by Mdd is licensed under Wikipedia via Wikimedia Commons

50. Bibliography
50
Angos, Kwok C.P. 2014. The Evolution of Management Theories: A Literature Review. Accessed on August 18, 2020, Retrieved
at: https://www.researchgate.net/publication/307760441_The_Evolution_of_Management_Theories_A_Literature_Revi
ew
Follett, Mary P. Dynamic Administration: The Collected Papers of Mary Parker Follet. UK:Martino Fine Books, 2013.
Mintzberg, Henry. Mintzberg on Management: Inside our Strange World of Organizations. New York: Free Press, 1989.
Payos, Ranulfo P., et. al. Organization and Management. Sta. Mesa Heights, QC: Rex
Bookstore, 2016.
Wren, Daniel, et. al. The Evolution of Management Thought. Eighth Edition. Hoboken:Wiley, 2020.