THEORIES AND PIONEERING

IDEAS IN THE MANAGEMENT

Management theories are implemented to help
increase organizational productivity and service
quality. Not many managers use a singular theory or
concept when implementing strategies in the
workplace: They commonly use a combination of a
number of theories, depending on the workplace,
purpose and workforce.
MANAGEMENT THEORIES
Pre-classical Classical Behavioral Quantitative Contingency
contributors Viewpoint Viewpoint Viewpoint Viewpoint

Scientific Early Management System

management behaviorist science theories
Bureaucratic Hawthorne Operations Contingency
management studies management theories
Administrative Human Management Emerging
management Relations information View
Movement System
Behavioral
science
PRE-CLASSICAL CONTRIBUTORS

Robert Owen (1771 – 1858)

- Owen’s strength was that he saw his employees as
every bit as important to the success of his enterprise
as the machines he owned. By examining working
methods and conditions, and seeking to improve
these, he is justifiably claimed as a father of
personnel management.
PRE-CLASSICAL CONTRIBUTORS

Charles Babbage (1792 – 1871)

- Is an English Mathematician, he is known as father
of computer. Build the first practical mathematical
calculator and a prototype of modern computer,
predicted the specialization of metal work, suggested
profit sharing.
PRE-CLASSICAL CONTRIBUTORS

Charles Babbage (1792 – 1871)

- Babbage’s most successful book, On the Economy
of Machinery and Manufacturers, described the
tools and machinery used in English factories. It
discussed the economic principles of manufacturing,
and analyzed the operations; the skills used and
suggested improved practices.
PRE-CLASSICAL CONTRIBUTORS

Henry R. Twne (1844 – 1924)

- An American Mechanical Engineer and Business.
His contribution known as ealy systemize of
management or an Outline the importance of
management as a science and called for the
development management.
PRE-CLASSICAL CONTRIBUTORS

Henry R. Towne (1844 – 1924)

- Towne also published several papers and a book,
Evolution of Industrial Management, on the use of
“gain sharing” to increase worker productivity. In his
last book Towne contrasted the status of scientific
management in 1886 and in 1921, noting the
establishment of industrial management courses, and
crediting Frederick Taylor as the apostle of the
scientific movement.
PRE-CLASSICAL CONTRIBUTORS

SunTze 500 BC
- Chinese Military General, a strategist and
philosopher. He is author of The Art of War, a
widely influential work of military strategy that has
impacted both Western and Easter philosophy.
CLASSICAL VIEWPOINT

Frederick Winslow Taylor (1856 – 1915)

- Known as the Father of the Scientific Management.
His primary concern was to raise productivity and
increase for workers, by applying the scientific
methods. His principles emphasize using science,
creating group harmony and cooperation, achieving
maximum output.
CLASSICAL VIEWPOINT

Henry Laurence Gantt (1861 – 1919)

- An American Engineer and Management
Consultant. He is known for scientific selection of
workers and “harmonious cooperation” between
labor and management. Developed the Gantt chart.
CLASSICAL VIEWPOINT

Max Weber (1864 – 1920)

- A German sociologist, professor, consultant and
author. He contribute the Theory of Bureaucracy.
CLASSICAL VIEWPOINT

Max Weber (1864 – 1920)

- Weber’s ideas of Bureaucracy.
• Specialization of labor
• Formal rules and procedures
• Impersonality
• Well-defined hierarchy
• Career advancement based on merit
CLASSICAL VIEWPOINT

Henry Fayol (1841 – 1925)

- A French Industrialist, and also an Engineer. He is
knows as the Father of Modern Management Theory.
Recognized a widespread need for principles and
management and teaching.
CLASSICAL VIEWPOINT

Henry Fayol (1841 – 1925)

- Formulates 14 principles of management, such as
authority and responsibility, unity of command,
scalar chain, and spirit de corps and so on.
CLASSICAL VIEWPOINT

Chester Irving Barnard

- An American, business executive, public
administrator, and the author of pioneering work in
management theory and organizational studies.
CLASSICAL VIEWPOINT

Chester Irving Barnard

- The Functions of the Executive (1938): The task of
managers is maintain a system of cooperative
effort in a formal organization
CLASSICAL VIEWPOINT

Chester Irving Barnard

- He suggested a comprehensive social systems
approach to managing.
- Management theorist Chester Barnard believed
organizations need to be both effective and
efficient.
CLASSICAL VIEWPOINT

Hugo Munsterberg (1912)

- A German-American Psychologist. He was one of
the pioneers in application of psychology to
industry and management.
CLASSICAL VIEWPOINT

Mary Parker Follet

- An American, Social worker, Management
Consultant, Philosopher and pioneer in the fields of
organizational theory and organizational behavior.
CLASSICAL VIEWPOINT

Mary Parker Follet

- She advocated a “pull” rather than “push”
approach to employee motivation, differentiated
between “power over” and “power with” and
postulated insightful ideas on negotiation, conflict
resolution and power sharing which helped shape
modern management theory.
BEHAVIORAL VIEWPOINT

Elton Mayo and F.J. Roethlishberger (1927-1932)

- The Hawthorne studies are a group of studies
conducted at the Hawthorne plant of the Western
Electric Com. 1920s-1930s
- A behavioral approach concerned for the workers.
- To seeking greater efficiently: tool & methods
BEHAVIORAL VIEWPOINT

Abraham Maslow
- An American, his ideas knows as Maslow’s
Hierarchy of Needs.
BEHAVIORAL VIEWPOINT

Abraham Maslow
• Self-actualization: truth, justice, wisdom,
meaning
• Esteem: self-respect, achievement, attention,
recognition, reputation
• Social needs: friends, belonging, love
• Safety: living in safe area, medical insurance, job
security, financial reserve
BEHAVIORAL VIEWPOINT

Abraham Maslow
• Physiological needs: food, shelter, air, water,
nourishment, sleep, etc.
BEHAVIORAL VIEWPOINT

Douglas Mac Gregor (1906-1964)

- Theory X and Theory Y
- Theory X: the assumption that employees dislike
work, are lazy, dislike responsibility, and must be
coerced to performed.
- Theory Y: the assumption that employees like
work, are creative, seek responsibility, and can
exercise self-direction.
BEHAVIORAL VIEWPOINT

Behavioral Science Approach

• Behavioral Science Approach is an extension of the
Human Relations Approach.
• It gave importance to attitudes, behavior and
performance of individuals and groups in the
organizations.
 BEHAVIORAL VIEWPOINT

Assumptions of Behavioral Science Approach

1. Organizations are socio-technical systems. The
management must integrate both the systems.
2. Work and interpersonal behavior of people in the
organization is influenced by many factors.
3. Employees are motivated not only by physiological
needs but also by social and psychological needs.
 BEHAVIORAL VIEWPOINT

Assumptions of Behavioral Science Approach

4. Different people have different perceptions,
attitudes, needs and values. These differences must be
found out and recognized by management.
5. In an organization conflicts are unavoidable.
6. Personal goals and Organizational goals must be
joined together.
 QUANTITATIVE VIEWPOINT

The quantitative approach involves the use of

quantitative techniques to improve decision making.
This approach has also been labeled operations
research of management science. It includes
applications of statistics, optimization models,
information models, and computer simulations.
 QUANTITATIVE VIEWPOINT

Management Science (or Operational Research)

Management science (operational research) is an
approach aimed at increasing decision effectiveness
through the use of sophisticated mathematical and
statistical methods.
 QUANTITATIVE VIEWPOINT

Operations Management
Operations Management is the function or field of
expertise that is primarily responsible for production
and delivery of an organization’s product and services.
 QUANTITATIVE VIEWPOINT

Management Information System (MIS)

• It described as ‘lives’ in the space that intersects
technology and business.
• MIS combines tech with business to get people the
information they need to do their jobs
better/faster/smarter.
• MIS professionals work as systems analysts, project
managers, systems administrators, etc.
 CONTEMPORARY VIEWPOINT

This school of thought or view about management

includes those major ideas about managing and
organizations that have emerged since the 1950s. Some
of the ideas, systems theory for example, are rooted in
experience gained during World War II.
 CONTEMPORARY VIEWPOINT

The system theory

The system theory approach is based on the notion
that organizations can be visualized as systems of
interrelated parts or subsystems that operate as a whole
in pursuit of common goals.
 CONTEMPORARY VIEWPOINT

Contingency Approach
Contingency approach managerial practice depends
on circumstances. Contingency theory recognizes the
influence of given solutions on organizational behavior
patterns.
 CONTEMPORARY VIEWPOINT

Emerging View
Concepts and practices are shaping today’s
management and changing the way that manager do
their jobs:
1. Globalization
2. Entrepreneurship
3. Managing in an E-Business World
 CONTEMPORARY VIEWPOINT

Emerging View
4. Need for Innovation and Flexibility
5. Quality Management Systems
6. Learning Organization and knowledge management
7. Theory Z: William Ouchi’s
 CONTEMPORARY VIEWPOINT

A. Globalization
Organizational operations no longer stop at geographic
borders. Managers in all types and sizes of
organizations are faced with the opportunities and
challenges of globalization.
 CONTEMPORARY VIEWPOINT

B. Entrepreneurship
Refers to the process whereby an individual or a group
of individuals uses organized efforts and means to
pursue opportunities to create value and grow by
fulfilling wants and needs through innovation and
uniqueness.
 CONTEMPORARY VIEWPOINT

C. Managing in an E-Business World.

1. E-business (electronic business): a comprehensive
term describing the way an organization does its
work by using electronic (Internet-based) linkages
with key constituencies in order to efficiently and
effectively achieve its goals.
 CONTEMPORARY VIEWPOINT

C. Managing in an E-Business World.

2. E-commerce (electronic commerce): is any form of
business exchange or transaction in which the parties
interact electronically.
 CONTEMPORARY VIEWPOINT

D. Need for Innovation and flexibility

• The constant flow of new ideas is crucial for an
organization to avoid obsolescence or failure.
• Flexibility is valuable in a context where customers
needs may change overnight, where new competitors
come and go, and where employees and their skills
are shifted as need from project to project.
 CONTEMPORARY VIEWPOINT

E. Quality Management System

• Total Quality Management is a philosophy of
management that is driven by customer needs and
expectations and focuses on continual improvement in
work processes.
• TQM was inspired by a small group of quality experts,
of whom W. Edwards Deming was one of the chief
proponents. He has also developed and presented his
quality and theory of profound knowledge.
 CONTEMPORARY VIEWPOINT

E. Quality Management System

• TQM represents a counterpoint to earlier management
theorists who believed that low costs were the only
road to increased productivity.
• The objective of TQM is to create organization
committed to continuous improvement.
 CONTEMPORARY VIEWPOINT

F. Learning organizations and knowledge

management.
Managers now must deal with an environment that is
continually changing. The successful organizations of
the 21th century will be flexible, able to learn and
respond quickly,, and be led by managers who can
effectively challenge conventional wisdom, manager
the organization’s knowledge base, and make needed
changes.
 CONTEMPORARY VIEWPOINT

F. Learning organizations and knowledge

management.
1. A learning organization is one that has developed
the capacity to continuously adapt and change.
2. Knowledge management involves cultivating a
learning where organizational members
systematically gather knowledge and share it with
others to achieve better performance.
 CONTEMPORARY VIEWPOINT

G. Theory Z: William Ouchi’s

Theory A combines positive aspects of American and
Japanese management into a modified approach aimed
at increasing managerial effectiveness while remaining
compatible with the norms and values of society and
culture.
1. Which of the following is not an assumption of
Theory X?
Answer: Employees are creative
2. The application of scientific principles to
management is called:
Answer: Scientific management
3. Which of the following is not an assumption of
Theory Y?
Answer: Primary motivators are fear and money
4. The five needs expressed in Maslow's hierarchy
are:
Answer: Physiological, safety, social, esteem and self-
actualization
5. What are the major functions Henry Fayol
delineated for managers?
Answer: Planning, Organizing, Commanding,
Coordinating & Controlling
6. Behavioral Science Approach is an extension of the
______.
Answer: Human Relations Approach
7. Which of the following best describes Maslow’s
hierarchy of needs?
Answer: It is a highly flawed model, although it does
recognize that people are motivated differently.
8. Which approach to the study of organizational
behavior emphasizes the formal structure, hierarchy of
management, the technical requirements and the
assumption of rational behavior?
Answer: The classical approach
9. Systems theory holds that:
Answer: The whole is greater than the sum of the
parts.
10. Fayol's functions of management include:
Answer: Planning, commanding, organizing,
coordinating, controlling.
11. Which of the following is not a feature of a
bureaucracy?
Answer: Generalism
12. Humanistic realities were originally advocated by:
Answer: Maslow
13. Which one of the following is not a characteristic
of a bureaucratic organization?
Answer: Change
14. Scientific management is based on the assumption
that:
Answer: The scientific observation of people at work
would reveal the one best way to do the task.
15. The systems approach _____
Answer: Encourages managers to view the
organization both as a whole and as part of a larger
environment.
16. The main schools of management thought are:
Answer: Classical, human relations, systems,
contingency.
17. The study of management theory is important for
which of the following reasons:
Answer: Management theories are interpretive and
evolve with organizational changes.
18. What characteristics is not a key feature of the
‘Open System’ model of management?
Answer: Morale
19. Which of the following is not an example of
bureaucratic functioning in organizations?
Answer: Advertising and marketing brochures
20. Which of the following are sub-groupings of the
classical approach?
Answer: Scientific management and bureaucracy
21. Which of the following is an example of the
Hawthorne experiments?
Answer: All of the given options are correct.