Management Theories

Management Theories
Our company will file bankruptcy next month due to

the inadequate productivity of employees which
greatly affected the organization's financial
performance. That means I have to start looking for
another job before I lose one.
Why study the Evolution of Management
Theories?
❑ It will help you understand the different management
approaches/styles of a certain organization.
❑ To keep an organization’s foundation, culture, practices, and
most importantly their operations alive, they must adopt the
most suitable management style or approach.
❑Choosing and selecting the best management style is
necessary for survival and staying beneficial to its stakeholders
in this ever-changing environment.
What are the Management Theories?
Scientific Management: Frederick Taylor
(1856-1915)
❑Frederick Taylor was an American mechanical engineer who

wanted to improve industrial efficiency.
❑He is considered as the father of scientific management.
❑The systematic study of the relationships between people and
tasks to redesign the work for higher efficiency.
Taylor’s Scientific Management Process
1. Develop a science for each element of the job to

replace old rule-of-thumb method.
2. Scientiﬁcally select employees and then train them to
do the job
3. Supervise employees to make sure they follow the
prescribed methods in performing their job
4. Divide work and responsibility almost equally
between management and workers.
Contributions of scientific management:
◦Pay for performance.
◦Careful examination of job tasks.
◦Importance of training and selection.
ADMINISTRATIVE MANAGEMENT THEORY
❑Henri Fayol (1841- 1925), was a French mining

engineer.
❑Mainly focuses on the managers’ duties and
responsibilities in the organization.
❑The administrative theory focuses on the different
management areas where managers’ job is vital in
achieving organizational goals.
FAYOL’S 14 MANAGEMENT PRINCIPLES
1. Division of work - Division of work into specialized tasks and assignment of
duties and responsibilities to specific individuals.
2. Authority and responsibility – Delegation of authority
3. Discipline - Obedience and respect within an organization are essential. Clarity of
expectation and punishment of violation must be observed.
4. Unity of command – assignment of an employee from only one superior.
5. Unity of direction - employees’ efforts geared toward the attainment of
organizational goals.
6. Subordination of individual interest - The individual interests of an
employee must be set aside and prioritize organizational interests.
7. Remuneration of personnel – Salaries: the price of services rendered by
employees should be fair and provide satisfaction both to the employee and
employer.
8. Centralization – the importance of superior and subordinate roles are
determined.
9. Scalar chain - A chain of authority exists from the highest organizational
authority to the lowest ranks. Communication is kept open within the chain
of command.
10. Order – Jobs and materials are organized in an orderly fashion to support
the organization’s direction.
11. Equity – fairness, and order make employee commitment intact.
12. Stability of tenure of personnel: promotion of loyalty, stability,
and longevity in the organization.
13. Initiative: encouragement of employees to act solely on their
own in support of the organization's objectives.
14. Esprit de corps – promotion of teamwork and unity of interest
between employees and management
BEHAVIORAL MANAGEMENT THEORY
❑Placed much more emphasis on individual attitudes, behaviors, group
processes, and then recognize the importance of behavioral processes in
the workplace.
❑It states that the success of the organization depends on the success of
the people within it and that the motivation, commitment, and well-being
of the people in an organization dictates the organization's success.
❑Behavioral management theory stresses that the conduct, demeanor,
and action of employees in the workplace must be considered
MANAGEMENT SCIENCE THEORY
❑This theory is also known as the Quantitative Approach to management
❑Uses mathematical model to simplify representation of a system, process,
or relationship. (Example: statistics and computer simulations)
❑With the use of quantitative approaches, organizations systematically
arrived at a conclusion which is mostly used in managerial decision
particularly in planning and controlling.
CONTINGENCY THEORY
❑Contingency theory states that universal theories (Scientific
Management Theory, Administrative Theory, etc.) cannot be applied to
all organizations because every organization is different from each other
❑It only depends upon an organization's current management issues and
situation, and then apply an appropriate management approach to solve
a specific problem.
❑Example: Good leadership can’t be defined in a single person or a
laundry list of personality traits. But we can, however, identify key skills
and traits that great leaders share.

Management Theories

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Management Theories

Our company will file bankruptcy next month due to

❑Frederick Taylor was an American mechanical engineer who

1. Develop a science for each element of the job to

❑Henri Fayol (1841- 1925), was a French mining

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