Name: JESSA MAE L.

CRUZ Grade & Section: XI-ABM ALPHA Date: 2/22/24

EVOLUTION OF MANAGEMENT THEORIES

I. Classical Management Theories- The oldest management theory.
First coined in the industrial age, this theory seeks to create standards
to increase production output. It can be categorized into three main
branches: bureaucratic management, administrative management, and
scientific management, administrative management, and bureaucratic
management. All three management concepts emerged around the same
period around the late 1890s to early 1990s.
A. Scientific Management Theory by Frederick Taylor (1856-1915)
i. It is the systematic study of relationships between people and tasks
for the purpose of redesigning the work process to increase efficiency. It
employs a scientific method that can significantly increase staff
productivity.
ii. The principles of scientific management are task supervision,
thorough training, commitment delegation, mathematical analysis,
specialization, and standardization.
B. Administrative Management Theory by Henry Fayol (1841-1925)
i. It is the study of how to create an organizational structure that
leads to high efficiency and effectiveness. Each employee had just one
direct management and a positive manager-employee connection.
ii. Fayol’s 14 principles of management are division of labor,
authority and responsibility, unity of command, line of authority,
centralization, unity of direction, equity, order, initiative, discipline,
remuneration of personnel, stability of tenure of personnel, subordination
of individual interests to the common interest, and esprit de corps.
C. Bureaucratic Management Theory by Max Weber (1864-1920)
i. It emphasizes that a business should be structured or formed in
a hierarchy with clearly defined roles and responsibilities and a well-
designed management framework should be in place. Personnel should
be hired or promoted based on their abilities and past performance.
ii. The principles of this theory include job specialization, authority
hierarchy, formal selections, formal rules and regulations, impersonality,
and career orientation.
II. Behavioral Management Theories- After the industrial revolution,
management theories moved from an output-centric approach to a more
people-oriented strategy. It gave rise to behavioral management theories
that were concerned with addressing the interpersonal needs of
professionals. Leaders shifted their focus from external to internal
rewards, such as promoting a collaborative atmosphere or encouraging
employees to take on projects that fit their personal development goals.
A. Human Relations Theory by Elton Mayo (1924-1932)
i. It was created through studies on productivity improvement. The
human relations theory suggests that no matter the working conditions,
professionals are more likely to feel satisfied and perform better if their
supervisors value their effort. It states that people respond more to social
factors, than environmental factors.
B. Behavioral Science Theory (1950s)
i. It focuses on the psychological and sociological processes that
influence employee performance. It explains how three concepts
(information processing, relationships, and organizational development)
interact in a socially charged work environment.
C. Management Theory X and Y by Douglas McGregor (1960s)
i. Theory X, says managers have a poor opinion of their workers
and think they must be coerced or forced to work. It shows their lack of
trust in their co-workers, explaining how toxic culture takes hold in
workplaces. On the other hand, Theory Y, says managers think that
employees are driven to do their duties by innate motivation. Managers
with this approach believe their team members are responsible and can
contribute to the decision-making process.
III. Modern Management Theories- It aims to combine traditional and
human management theories so that they are relevant in the workplace
today. It uses mathematical techniques to analyze the relationship
between managers and employees. This theory recognizes that employees
do not work for money alone; instead, they work for happiness and a
desire to grow.
A. Quantitative Theory
i. The quantitative theory to management uses statistics, models and
computer simulations to inform the managerial decision-making process.
The three major branches of the qualitative approach are management
science which refers to the mathematical methods of decision-making,
operations management which ensures the timely delivery of an
organization’s products and services, and management information
system which refers to the tools that help with the coordination, control,
analysis, and visualization of information in an organization.
B. Systems Theory by Ludwig von Bertalanffy and Ross Ashby
(1940-1968)
i. The systems theory suggests that businesses function as a system
with elements that interact and respond to their environment. It
encourages you to view a business like any other biological system because
it is governed by the same principles. This theory is classified into two
types: Open system- a system that takes in resources from its external
environment and converts them into goods and services that are then sent
back to that environment for purchase by customers. Closed system- a
system that is self-contained and thus not affected by changes that
occurred in its external environment.
C. Contingency Theory by Fred Edward Fiedler (1964)
i. It is the idea that the organizational structures and control
systems managers choose to depend on are contingent on characteristics
of the external environment in which the organization operates. It
believes that a leader's effectiveness depends on the skills and traits they
draw upon in a situation. It recognizes that different circumstances
require a different leadership approach.