PROGRESSIVE MANAGEMENT MINDS:

EXPLORING EVOLUTIONARY THEORIES

 BES 16b: Engineering Management

EVOLUTION OF
MANAGEMENT
THEORY
Presented by:
Bragais Navarrete
Esquilona Rasco
Guinoo Sanchez
Fortin Satuito
Mayor BS-ChE 4A&B

PROGRESSIVE MANAGEMENT MINDS: EXPLORING EVOLUTIONARY THEORIES

What is Management?
It is the discipline which has not evolved out of
“magic box”

It is the act of supervising and directing people,

tasks, and things.

The approaches of management approaches of

management are theoretical frameworks for the
study of leadership.

Many people from different backgrounds

ranging from engineers to psychologists and
from academicians to practitioners have
contributed to the field of management.
 Why Study Management?

Enable us to
Coherent group of It provide a stable communicate
assumptions put forth to focus for efficiently and thus
explain the relationship understanding move into more
between two or more what we and more complex
observable facts experience relationships with
other people
 What is Management
Theory?
Management theory (also known as "Transactional theory") focus
on the role of supervision, organization, and group performance.

It is the set of general rules that guide the managers to manage an

organization.
Early Management Thought

Early ideas about management theory

Sun Tzu (770-476 B.C.), The Art of War

Early ideas about leadership

Nicolo Machiavelli, The Prince

Early ideas about design and work

organization
Adam Smith, The Wealth of Nations
Art of War by Sun Tzu
”Shang Chang Ru Zhan Chang”
“The marketplace is a battlefield.”

Sun Tzu, 4th century BC

 Nicolo Machiavelli
New science of management lies in
the old art of government.

“to be great pretender and

dissembler”

“cunning and intrigue, the triumph of

force over reason”

“A Prince” ought to have no other aim

or thought, nor select anything else
for his study, than war and its rules
and discipline.”
Evolution of Management Theory
Management Approaches and the
Environment
Classical Approach

The classical approach to management is

a management approach that
emphasizes organizational efficiency to
increase organizational success.

Environment in Classical Approach

- Industrial revolution
- Autocratic management was the norm
- “Science” as a solution to the
inefficiencies and injustices of the period
- Idea of interchangeable parts
Classical Approach
Scientific Management (Micro Approach)
1. Frederick W. Taylor
2. Frank and Lilian Gilbreth
3. Henry Gantt

Bureaucratic Management (Macro Approach)

1. Max Weber

Administrative Management
1. Henri Fayol
Taylor’s Four Principle of Scientific
Management
1. Scientifically study each part of a task and
develop the best method of performing the
task.
2. Carefully select workers and train them to
perform the task by using the scientifically
developed method.
3. Cooperate fully with workers to ensure that
they use the proper method.
4. Divide work and responsibility so that
management is responsible for planning work
methods using scientific principles and
workers are responsible for executing the work The Principle of
accordingly. Scientific Management
 Frederick Taylor

“Now one of the first

requirements for a man who is
fit to handle pig iron as a
regular occupation is that he
shall be so stupid and so
phlegmatic that he more
nearly resembles in his mental
makeup the ox than any other
type.”
 Max Weber’s Ideal
Bureeaucracy

Specialization of labor
Formal rules and
procedures
Impersonality
Well-defined hierarchy
Career advancement based
on merit
 1. Planning
2. Organizing
Five Functions of
3. Commanding
Management 4. Coordinating
5. Controlling

Henry Fayol’s 14 Principles of

Administrative Management
1. Division of Work 8. Centralization
2. Authority 9. Scalar Chain
3. Discipline 10. Order
4. Unity of Command 11. Equity
5. Unity of Direction
12. Stability
6. Subordination of
13. Initiative
Individual Interest
14. Esprit de Corps
to the General
Interest
7. Renumeration
WHAT ARE THE LIMITATIONS OF THE
CLASSICAL APPROACH?
The Behavioral Approach
The behavioral approach to management is a
management approach that emphasizes
increasing organizational success by focusing
on human variables within the organization.

Environment in ca. 1910

- The Newtonian science that supported “the one best
way” of doing things was being strongly challenged
by the “new physics” results of Rutherford and Einstein.

- In workplace, there were strong pressures for shorter

hours and employee stock ownership.

- As the effects of the 1929 stock market crash and

following depression were felt, employee unions
started to form.
Behavioral Perspective
The Hawthorne Studies

Human Relations Approach

- Employee motivation
Abraham Maslow

- Leadership style
Douglas McGregor
 Hawthorne Effect

The discovery that paying

special attention to
employees motivates them
to put greater effort into
their jobs.
It originated from the
Hawthorne management
studies, performed from
1924-1932.
Maslow’s Hierarchy of Needs
McGregor’s Theory X and
Theory Y

Leaders and managers who hold Theory X

assumptions believe that employees are
inherently lazy and lack ambition.
- A negative perspective on human behavior.

Leaders and managers who hold Theory Y

assumptions believe that most employees do
not dislike work and want to make useful
contributions to the organization.
- A positive perspective on human behavior.
WHAT ARE THE LIMITATIONS OF THE
BEHAVIORAL APPROACH?
Management Science
Approach (Calculating Era)
The management science approach is a
management approach that emphasizes
the use of the scientific method and
quantitative techniques to increase
organization success.

The general recognized steps in

management science approach
observation
definition of the problem
model construction and solution
implementation of the solutions
results.
The System Approach
The system approach to management is
a management approach based on
general system theory --the theory that
to understand fully the operation of an
entity, the entity must be viewed as a
system. This requires understanding the
interdependence of its parts.

Environment in ca (1980's)
- Growing quality consciousness
- Total Quality Management
Management Approaches and the
Environment
Contingency
Approach
The contingency approach (CA 70's) to
management is a management approach
that emphasizes that what managers do in
practice depends on a given set of
circumstances - a situation.

Environment in CA1970's
Emergence of new companies, “Apple”
Emergence of new products, “IBM PC”
Triangular Management

The triangular management

is a management approach
that emphasizes using
information from the
classical, behavioral, and
management science
schools of thought to
manage the open
management system. Triangular
Management Model
 Theory Z by Ouchi 1981
Theory Z suggests that involved
workers are the key to an
increase in productivity and it
offers ways to manage
(collective decision making,
slow evaluation and promotion,
and holistic concern for people)
so that they can work together
more effectively.

Environment in ca (1980's)
1. Slow American productivity
improvement “Involved workers are the key to an increase in
2. Rise of Japanese companies productivity.”
3. Japanese management may
offer solutions to this problem
Chaordic Theory
"chaordic" is a combination of "chaos" and
"order"

suggests that in certain situations, especially

in organizations, a balance between chaos
and order can lead to more effective and
innovative outcomes.

Environment in Chaordic Theory (1990)

- Start of Internet Age
- ·Highly competitive environment
- ·Emergence of communication
technologies
- Emergence of new work practices
(virtual teams, network organizations)
 Dee Hock
founder and former CEO of VISA
International
concept coined the “Chaordic
Theory”

“Simple, clear purpose

and principles give rise to
complex intelligent
behavior. Complex rules
and regulations give rise
to simple stupid
behavior.“
CHAORDIC ORGANIZATIONS

Purpose

Principle, People, Concept

Structure, Practice
Simplified Overview of Relative Emphases in
Management Research
Learning Organization Approach

The learning organization approach

acknowledges that in today’s fast-paced and
complex world, the necessity for organizations
to engage in continuous learning,
adaptability, and the ability to update their
knowledge to remain pertinent and achieve
success.

Environment in the Millenium

- Information and/or technological advances
- Globalization and International trends
- Requirement to comprehend systems will be
the dominant force in the future.
 Peter Senge
American Systems Scientist
popularized “Learning
Organization Approach” in
his book, “The Fifth
Discipline”

“Organizations learn
only through
individuals who learn.”
Learning Organization Approach
Business Management
THE ASIAN WAY
Business management in Asia is influenced by
a variety of cultural, social, and economic
factors that shape the way companies
operate and make decisions.

Small Scale Operation

Collectivism and Autocratic Management
Morality and Social Acceptability
Avoidance of Confrontation
Consideration of Other’s Perspectives
Less Formal Performance Control
Guanxi and Relationship Building
 What is Pinoy Management
Theory
“No one Management Theory or Style”

Under the formal organization are:

“Informal organization”
Battlefield of behavioral styles among
managers and employees
Unknown cultural ambience among
peoples and systems
 Pinoy Management Approaches
MANAGEMENT BY “LUSOT” MANAGEMENT BY “KAYOD”
(Opportunist Manager) (Realist Manager)
Galawgaw Wants quick action
Walang konsensiya Has gut feel
Mahilig sa lusot Knows how to use people
Mahilig sa ayusan Sigurista

UGNAYAN-MANAGEMENT MANAGEMENT BY “LIBRO”

(The Hybrid) (Idealist Manager)
Has balance A thinker
Contingency management style Technocrat
Chooses well Mabusisi
Exceptionally gifted Matigas ang ulo
 Are Western Theories Applicable
in Philippine Setting?
“The model and ideal types taught in Western-oriented MBA programs are
based on certain assumptions, many of which are invalid in the Philippines.

Although organizations here have most of the structures and formal

procedures of Western business, actual day-to-day processes and
interactions necessarily proceed within the matrix of Filipino culture and
values.

Thus, the need for the Westerner to go “the extra mile” to understand what’s
really going on and adapt a culturally sensitive style of doing business.
THANK YOU FOR LISTENING!