Evolution of

Management Theories
 From the time of the dawn of civilization, one of the biggest concerns of
an organization has been management. While we can trace organization and
management as far back as 530 BC, the systematic study and examination of
management is primarily the product of the last four decades of research. Various
management theories developed during this time and contributed to the way we
currently approach and understand management. In this lesson, we will explore
management theories of different authors or proponents.

The rise of the industry revolution has been evolving to a variety of

contemporary management theories including the classical, neo-classical, modern
management, and other new theories. Each theory is inclusive with a view on
specific time frames to meet the specific phenomenon and existing management
needs.

Management theories are collections of ideas that provide the

framework for effective management strategy that are implemented in modern
workplaces to motivate and bring out the best in employees.
Classical Management
Theories (1920s)
 1. Look at each job or task scientifically to
A. Classical Scientific determine the “one best way” to perform the
-is concerned on how to increase job. This is a change from the previous
production efficiency to lower cost, “rule of thumb” method where workers
devised their own ways to do the job.
raise profits, and increase workers’
pay through increased productivity
2. Hire the right workers for each job, and
train them to work at maximum efficiency.

3. Monitor worker’s performance and provide

instruction and training when needed.

Four Core Principles: 4. Divide the work between management and

labor so that management can plan and
train, and workers can execute the task
efficiently.
 CLASSICAL SCIENTIFIC MANAGEMENT
PROPONENTS
FREDERICK HENRY LAURENCE
WINSLOW TAYLOR GANTT
Gantt Chart for Programming
Father of Scientific Management Production
Piece rate system increased Task and Bonus System
productivity among factory
workers The Perspective of Worker
Philosophy known as Taylorism The Social Responsibility of
Business

FRANK GILBRETH LILIAN GILBRETH

Father of Time and Motion Worked with his husband, Frank
Studies Gilbreth about the Time and
Motion Studies
Advocate of Frederick W. Taylor
Advocate of Frederick W. Taylor
Emphasized method by focusing
on the identifying the elemental
motions in work
1. Principles of Scientific
Management
In 1909, this book published by Taylor suggested that productivity would
increase if jobs were optimized and simplified. He also proposed matching a
worker to a particular job that suited the person’s skill level and then training the
worker to do that job in a specific way. Taylor first developed the idea of
breaking down each job into component parts and timing each part to determine
the most efficient method of working.

Today, an updated version of Taylor’s original theory is used by some

companies and is called as “Digital Taylorism” -is based on maximizing
efficiency by standardizing the tools and techniques for completing each task
involved with a given job. Every task is broken down to the smallest motion and
translated into an exact procedure that must be followed to complete that task.
Because everyone is operating in the same mechanistic way, it increases
predictability and consistency while reducing errors.
2. Time and Motion Studies
Soon after Taylor, two management theorists, Frank and Lillian Gilbreth, created the
idea of filming workers to analyze their motions. Their ideas have since been combined
into one process (called time and motion studies) for analyzing the most productive way
to complete a task. Like Taylor, the Gilbreths were interested in worker productivity,
specifically how movement and motion affected efficiency.

They would break the tasks into separate elements and movements and record the time
it took to complete one element. In this way, they were able to predict the most efficient
workflow for a particular job. The films the Gilbreths made were also useful for
creating training videos to instruct employees in how to work productively. The
Gilbreths were also focused on worker welfare and motivation. They believed that by
reducing the amount of motions associated with a particular task, they could also
increase the worker’s well-being. Their research, along with Taylor’s, provided many
important principles later incorporated into quality assurance and quality control
programs begun in the 1920s and 1930s.
3. GANTT Chart
Henry Gantt who is also an associate of Taylor is probably best known for his two key
contributions to classical management theory: the Gantt chart and the task and bonus
system.

The Gantt chart is a tool that provides a visual (graphic) representation of what occurs
over the course of a project. The focus of the chart is the sequential performance of
tasks that make up a project. It identifies key tasks, assigns an estimated time to
complete the task, and determines a starting date for each element of a task.

The Gantt chart has multiple benefits for project management:

It aids in the breakdown of tasks into specific elements.
It allows for the monitoring of projected timelines.
It identifies which tasks are dependent upon a prior task or element and which are
independent and can be completed at any time.
Gantt also promoted the task and bonus plan that modified Taylor’s “a fair day’s pay
for a fair day’s work” premise. Gantt wanted to establish a standard (average) time for a
piece of work or task. Then, if a worker took more that the standard time, his pay was
docked. But if he took less time, he was paid for the additional pieces of work and a
bonus of up to 20 percent more. Also known as the progressive rate system, this plan
was preferred by workers who were willing to work harder for additional wages.

An example of a simple Gantt chart

B. Classical
1. Task specialization – Weber stressed the
Bureaucratic importance of each employee fulfilling a
specific role within a company.
- a hierarchical structure adhering to strict 2. Hierarchy – Weber wanted each company to
rules
have a clear hierarchy within the organization.
Bureaucracy- is the exercise of control 3. Formal selection – When selecting leaders,
based on knowledge, expertise, and/or businesses view a person's qualifications.
experience. They should be appointed to certain roles
based on qualifications, which means they
won't be elected by vote.
4. Rules and requirements – These ensure
everyone knows what's expected of them.
Weber wanted business to have uniform
Five Core Principles: standards, and rules are essential to achieve
this goal.
5. Impersonality – The rules and regulations
make a business structure impersonal.
Promotions aren't about emotions or personal
ties, but rather performance.
 Weber thought bureaucracy would result
in the highest level of efficiency, rationality, and
worker satisfaction. In fact, he felt that
bureaucracy was so logical that it would transform
all of society. Unfortunately, Weber did not
anticipate that each of the bureaucratic
characteristics could also have a negative result.
For example, division of labor leads to specialized
and highly skilled workers, but it also can lead to
tedium and boredom. Formal rules and regulations
lead to uniformity and predictability, but they also
can lead to excessive procedures and “red tape.”
Despite its potential problems, some form of
bureaucracy is the dominant form of most large
organizations today. The “pyramid” organizational
structure, with responsibility split into divisions,
Max Weber departments, and teams, is based on principles of
• Proposed that Bureaucracy as the optimum form of organization. bureaucracy. It is used by nearly all large
corporations. Weber’s idea that hiring and
• Weber was convinced that organizations based on rational authority,
where authority was given to the most competent and qualified promotion should be based on qualifications, not
people, would be more efficient than those based on who you knew social standing, is built into U.S. labor laws.
C. Classical FAYOL’S FIVE DUTIES OF
Administrative MANAGEMENT

-emphasize more on management 1.Foresight: Create a plan of action for the

principles that on work methods future.
2.Organization: Provide resources to
implement the plan.
3.Command: Select and lead the best workers
through clear instructions and orders.
4.Coordinate: Make sure the diverse efforts fit
together through clear communication.
5.Control: Verify whether things are going
according to plan and make corrections where
Core Principles: needed.

These duties evolved into the four functions of

management: planning (foresight), organizing
(organization), leading (command and
coordinate), and controlling (control).
 Fayol wanted managers to be responsible
for more than just increasing production. The
story goes that he came to this insight when a
mine was shut down after a horse broke a leg and
no one at the mine had authority to purchase
another. Fayol saw this as a direct failure of
management to plan and organize the work.
Following this, Fayol began experimenting with
different management structures.
He condensed his ideas and experiences
into a set of management duties and principles,
which he published in 1916 in the book General
and Industrial Management. Fayol incorporated
some of Weber’s ideas in his theories. However,
unlike Weber, Fayol was concerned with how
workers were managed and how they contributed
to the organization. He felt that successful
Henri
organizations, and therefore successful Fayol
management, were linked to satisfied and  Proponent of the Classical Administrative
motivated employees.  Four functions of Management
 14 Principles of Management
1. Division of Work: to ensure optimum performance
with minimal effort.
2. Authority and Responsibility: Every authority
comes with certain responsibilities.
3. Discipline: Employees must respect and obey their
superiors. 14
4. Unity of Command: Every employee must receive
orders from only one senior. PRINCIPLE
5. Unity of Direction: If there are a group of tasks with OF
S
a common objective, then there must be a single
head and a single plan.
MANAGEMENT
6. Subordination: Individual interest is secondary to
the general interest.
7. Remuneration: Wages must afford maximum
satisfaction to the employees and the firm.
8. Centralization: The organization must decide about
the amount of authority that the higher levels would
retain or dispersed in the organization.
9. Scalar Chain: The relations between the superiors and
subordinates should be short-circuited and not
detrimental to the business.
10. Order: All employees and process must have an 14
appointed place.
11. Equity: Managers must strive for equity and equality PRINCIPLE
of treatment while dealing with the employees. They OF
S
must display a combination of kindness and justice. MANAGEMENT
12. Stability of Tenure of Personnel: Managers must try
to reduce employee turnover.
13. Initiative: Managers must take initiatives.
14. Esprit de Corps: There must be an emphasis on
teamwork and effective communication for achieving
it.
Neo Classical
Management Theories

2
 HUMAN RELATIONS BEHAVIORAL
George Elton Mayo MANAGEMENT
-Psychologist Mary Parker Follet
-Industrial researcher Social worker and Philosopher
THEORY Organization
X ANDtheory
Y and
behavior
Douglas Mc Gregor
Management Professor

Fritz Roethlisberger
-Social scientist
-Management theorist
HAWTHORNE STUDIES

Robert Owen
-Father of Personnel Management
-Reformed the factory system by
improving worker’s working &
living conditions
-Informal workers participation to
management
-the first person who paid
attention to labor welfare.
 Elton Mayo
A. Human Relations Fritz Roethlisberger
Management Theory - conducted the Hawthorne studies on workers that
took place at the Hawthorne plant of the Western Electric
-emphasizes on strong Company near Chicago during the late 1920s and early 1930s.
The Hawthorne studies were part of a refocus on managerial
interpersonal relationships. strategy incorporating the socio-psychological aspects of human
behavior in organizations.

The original experiment was designed to isolate factors

in the workplace that affected productivity. The researchers
alternatively offered and then took away benefits such as better
lighting, breaks, shortened work schedules, meals, and savings and
stock plans. But regardless of whether the change was positive or
negative, the productivity of the test subjects increased. The results
were surprising: Mayo and Roethlisberger found that workers were
more responsive to social factors—such as the people they worked
The Hawthorne Experiment with on a team and the amount of interest their manager had in their
work—than the factors (lighting, etc.)

The Hawthorne studies discovered that workers

were highly responsive to additional attention from their managers
and the feeling that their managers cared about, and were interested
in, their work. The studies also found that although financial
motives are important, social issues are equally important
factors in worker productivity.
B. Behavioral 1. Need-Based Motivation Theories
Abraham Maslow’s Hierarchy of Needs
Management Theory -Maslow’s theory is based on a simple premise:
Human beings have needs that are hierarchically
-focuses on the employees' well- ranked. Some needs are basic to all human
being and better understanding beings, and in their absence, nothing else matters.
of human behavior at work such As we satisfy these basic needs, we start looking
as motivation, conflicts, and to satisfy higher-order needs. Once a lower-level
expectations need is satisfied, it no longer serves as a
motivator.
2. Two-factor Theory (Hygiene Factors and Motivator Factors)
Frederick Herzberg concluded that aspects of work environment that satisfies employees are very
different from aspects that dissatisfy them. He labeled dissatisfying factors as “hygiene” because these
factors were part of the context in which the job was performed, as opposed to the job itself. While
“motivators” are factors that are intrinsic to the job. These motivators are conditions that truly
encourage employees to try harder.

3. Theory X and Y
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human
behavior at work, or in other words, two different views of individuals (employees): one of which is
negative, called as Theory X and the other is positive, so called as Theory Y. According to McGregor,
the perception of managers on the nature of individuals is based on various assumptions.
Theory X - assumed that average person dislikes work, thus, they must be lead, coerced, directed or
threatened to make them work towards the realization of organization’s goal.
Theory Y - assumed that people view work as part of their lives and are therefore internally motivated and
committed to realize goal especially if it will give them rewards.
4.Acquired-Needs Theory/Human Motivation Theory/Three Needs Theory (Need for Achievement, Need for
Affiliation
and Need for Power Theory)

David McClelland’s theory states that individual acquire three types of needs that he believed we all have, as a result of
our life experiences. These needs are the need for achievement, need for affiliation and need for power. People will have
different characteristics depending on their dominant motivator.

McClelland says that, regardless of our gender, culture, or age, we all have three motivating drivers, and one of these will
be our dominant motivating driver. This dominant motivator is largely dependent on our culture and life experiences.
Dominant Motivator Characteristics of This Person
•Has a strong need to set and accomplish challenging goals.
•Takes calculated risks to accomplish their goals.
Achievement
•Likes to receive regular feedback on their progress and achievements.
•Often likes to work alone.
•Wants to belong to the group.
•Wants to be liked and will often go along with whatever the rest of the group wants to
Affiliation do.
•Favors collaboration over competition.
•Doesn't like high risk or uncertainty.
•Wants to control and influence others.
•Likes to win arguments.
Power
•Enjoys competition and winning.
•Enjoys status and recognition.
Management Theory:
Mary Parker Follett, the Mother of Modern Management believed that
management was “the art of getting things done through people”.

Follett practiced these principles of coordination that helped develop her theory of
management as follows:

•Direct contact. Direct contact between employees and managers helps organizations avoid
conflict and misunderstandings. Holding regular meetings or discussing assignments in
person is a simple way to practice this principle.
•Early stages. Coordination should be learned and mastered straight away. No employee
should feel less important than the next; each has a significant role that compliments the
roles of others.
•Reciprocal relationship. Every worker, regardless of their level in hierarchy, is responsible
for pulling their weight and integrating with the rest of the organization. No one person
should be trying less or more than another – it's a team effort.
•Continuous process. Coordination must be maintained. Don't just learn it and forget about
it; channel it in everything you do.
MAIN PRINCIPLES OF THE MANAGEMENT THEORY INCLUDES:
Integration
Follett thought that workers of all levels should integrate to reach the organization's goals. If
conflict arises, there should be a conscious effort to pull instead of push, and to work together
as a team. Because each member is doing their part, overall, they'll be more likely to be content
with result.

Power with
Rather than establishing a strict hierarchy and delegating power to certain individuals over
others, Follett believed that workers should practice co-active power. Powering with their team
is better than powering over them; this way, each member feels just as valued as the next.
This is not to say that hierarchy should be eliminated entirely, however. Structure is still
crucial, but employees should not feel like they are less valuable than their managers.

Group power
Group power should be valued over personal power. Organizations do not exist for one
person's benefit, but rather the entire company of workers. If this selfless mindset prevails, then
all workers will feel like they're on the same team, rather than in competition with each other.
Personnel Management Theory;
Robert Owen, father of Personnel Management, believed that the quantity and quality
of worker’s output were influenced by his total by his total environment, by his conditions both
on and off job.

Personnel management is not a one-man responsibility, nor can it ever be achieved by

one individual. It is corporate. cooperative endeavor that should stem from a common feeling
and concept and should progress in a unified, coordinate manner. In other words, personnel
management is concerned with getting better results with the collaboration of people.

Throughout his life, he worked for building up of a spirit of cooperation between the workers
and the management.
He believed and practiced the idea that workers should be treated as human beings.
He made provision for reduced working hours, housing facilities, education of workers and
their children, and a system of discipline combined with justice in the factories being managed
by him.
He also took active part in the introduction of British Factory Act, 1819.
He was greatly admired for giving human treatment to the workers.
He preached that personnel management pays dividends to the employer and is an essential
part of every manager's job.
Modern / New
Management Theories

3
 MODERN / NEW
MANAGEMENT
PROPONENTS
LUDWIG VON BERTALANFFY
SYSTEMS APPROACH
MANAGEMENT THEORY

FRED EDWARD FIEDLER

CONTINGENCY MANAGEMENT
THEORY
A. Systems Approach Systems are of two types :

Management Theory Open system - recognizes the dynamic interaction

-defines a system as a set of interdependent with the environment (suppliers, labor unions,
and inter-related parts arranged meticulously customers, etc.).
to produce a unified whole. Closed system - the environment has no influence on
it.

The systems approach to management focuses on

performance of the whole production process,
including the customers’ process. The process is
usually split by specialties within the company, and
each specialist tries to optimize his contribution. But
more efficiency for one function may cause delays or
bottlenecks elsewhere in the process, hurting overall
production. The systems approach analyzes these
interactions and makes decisions to improve overall
production
A systems approach to management recognizes that organizations are open systems that
interact with and are dependent on their environment. In a continual process, they obtain
necessary inputs, transform the inputs into finished goods and services, and deliver their outputs
to the market. The organization gets feedback from the market in two forms. First, it receives
revenue. The revenue provides finances to support the organization and to acquire additional
inputs needed for production. Revenue can also finance organizational improvements, such as
upgraded equipment, development of new or improved products and services, or expansion of
facilities. Any revenue that is not reinvested in supporting or improving the organization can be
disbursed to owners as dividends.
B. Contingency A contingency approach to management is
based on the theory that management effectiveness is
Management Theory contingent, or dependent, upon the interplay between the
application of management behaviors and specific
-is a general approach to management practice situations. In other words, the way you manage should
that basically says there is no one best way to change depending on the circumstances. One size does not
manage. fit all.
The contingency approach to management finds
its foundation in the contingency theory of leadership
effectiveness developed by management psychologist
Fred Fielder. The theory states that leadership
effectiveness, as it relates to group effectiveness, is a
component of two factors: task motivation, or relation
motivation, and circumstances. You measure task
motivation, or relation motivation, by the least preferred
co-worker (LPC) scale.
The LPC scale asks the manager to think of the
person they least like working with and then rate that
person on a set of questions, each involving an 8-point
scale. Fielder believed that people with a higher LPC
score try to maintain harmony in their work relationships,
while people with a lower LPC score are motivated to
C. Quantitative Branches of Quantitative Management:
a.Management science specifically deals with the
Management Theory development of mathematical models to aid in decision
making and problem solving.
focused on applying Mathematical and b.Operations Management is the function, of field of
Statistical models and processes expertise, that is primarily responsible for managing
to management situations the production and delivery of an organization’s
products or services.
c.Management Information System (MIS) is the
field of management that focuses on designing and
implementing computer-based information systems for
use by management.” Large amount of information is
quickly processed (conversion of raw data into useful
information) to make useful business decisions.
REFERENCES
https://www.business.com/articles/popular-management-theories-decoded/
toppr.com/guides/business-management-and-entrepreneurship/nature-of-management-and-its-process/development-of-management-theory/
https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/scientific-management/
https://courses.lumenlearning.com/baycollege-introbusiness/chapter/video-hawthorne-studies-at-att/#:~:text=The%20Hawthorne%20studies
%20were%20conducted,of%20human%20behavior%20in%20organizations.
https://www.managementstudyguide.com/theory-x-y-motivation.htm
https://www.business.com/articles/management-theory-of-mary-parker-follett/
https://management-chandrasekhar.blogspot.com/2011/05/personnel-management-1.html
https://www.mindtools.com/pages/article/human-motivation-theory.htm
https://www.businessmanagementideas.com/management/quantitative-theory-of-management-branches-evaluation-and-limitations/4715
https://study.com/academy/lesson/contingency-approach-of-management-definition-example-quiz.html