Unit 1: Nature and Concept of Management
Lesson 1.2
Evolution of Management Theories
Contents
Introduction
1
Learning Objectives
2
Let’s Connect
3
Discover
Classical Management Theories
Scientific Management Theory
Bureaucratic Management Theory
Administrative Management Theory
Behavioral Management Theories
Human Relations Theory
Theory X and Y
Quantitative Theory
Modern Management Theories
Systems Theory
Contingency Theory
4
5
5
8
9
10
10
10
11
11
11
11
Wrap-Up
12
Try This!
13
Challenge Yourself
15
Photo Credits
18
Bibliography
19
Unit 1: Nature and Concept of Management
Lesson 1.2
Evolution of Management Theories
Introduction
In the previous unit, different definitions of management by experts were presented. In this
unit, Mary Parker Follet’s 2013 definition of management as the “art of getting things done
through people” shall be highlighted.
The above definition means that all organizations—whether small, medium, or large—are
composed of people working together for a common goal. For example, a small coffee shop
has baristas who prepare and serve different flavors of coffee to its customers. A
medium-sized shop like Blue Magic has salespersons who assist in selling different gifts and
novelty items to young people. A large-sized organization like fast food chains have service
crews who cook and serve fried chicken and burgers to customers of all ages.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
In order for the above baristas, salespersons, and service crew to get the job done
efficiently, they must follow operational standards and be supervised by either the owner or
the manager.
The management is the one responsible for coordinating the employees' skills and efforts
for the employees to achieve a common goal. As discussed in the previous unit, its functions
include planning, organizing, leading, and controlling. Their role includes being a figurehead,
leader, liaison, monitor, disseminator, spokesperson, entrepreneur, problem solver,
resource allocator, and negotiator (Mintzberg, 1989).
The term may be new, but the concept of management was applied as early as prehistoric
times when the early inhabitants of the earth formed groups in order to hunt wild animals.
Management skills were also applied to mobilize people to build the Great Wall of China and
the Pyramid of Egypt.
The concept of management has undergone significant changes over the years. The
succeeding section discusses the evolution of the management theories from the classical
to the modern management theories.
Learning Objectives
In this lesson, you should be able to do the
Explain
At the end of this lesson, you should be able to
explain the various management theories
(ABM_AOM11-Ia-b-2).
following:
●
DepEd Learning Competency
the various types of
management theories.
●
Apply management theories in
solving a business case.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
Let’s Connect
Sketch it, Share it
10 minutes
Instructions
1. Recall your experience of observing an organization.
2. Illustrate or sketch your observation of the manager and the working environment in
the organization.
3. Be ready to share your sketch and its interpretation in class.
Guide Questions
1. What is the personality of the manager?
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2. How did he or she respond to problems, conflicts, or complaints of customers?
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3. How did he or she treat his or her subordinates?
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1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
4. What is your impression of the overall working environment in the organization?
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Discover
Many experts have introduced different management theories that were aimed to address
problems and concerns encountered in the workplace and make management effective.
It is important to study the evolution of management theories in order for modern and
aspiring managers to learn how to supervise people effectively and cope with different
problems in the workplace. These will also enable them to understand why and how things
happened and identify which management theories or practices are applicable at present.
This unit shall discuss the following management theories:
●
Classical Management Theory
●
Behavioral Management Theory
●
Quantitative Management Theory
●
Modern Management Theory
Fig. 1. Management theories over the years
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
Which among the different management theories are
applicable to specific business problems?
Classical Management Theories
The Classical Management Theory was introduced as a result of the industrial revolution
when there was a significant increase in population and numerous advancements in
technology. Due to population growth, organizations realized that they need to
mass-produce their goods in order to supply the increasing demand of the market. This led
to the advancement of technology in production where machines replaced manual labor
and traditional systems and processes became obsolete. As production increased, so did
the wealth and popularity of some capitalists. However, despite the favorable climate for
business, the workers’ welfare and the systems and processes were neglected. The wages of
the workers were low. Their working environment was not ideal. Efficient systems and
processes were not in place.
It is for these reasons that management theories were introduced. They focus on finding
ways to manage work more efficiently through systematic work processes and division of
labor to make an organization more productive. The welfare of the employees was also
central to some of these theories.
Scientific Management Theory
The Scientific Management Theory emphasized the scientific study of work methods to
make the workers more efficient. The development of this theory began in the 1880s and
lasted up to the 1890s. There were five contributors to the Scientific Management Theory
namely Frederick Winslow Taylor, Frank Gilbreths, Lilian Gilbreths, Henry Gantt, and Charles
Bedaux.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
Fig. 2. Frederick Winslow Taylor
Frederick Winslow Taylor (1856–1915) published the “Principles of Scientific Management”
in 1909 which contains the following four principles:
1. Conduct a scientific study of the task to replace the rule-of-thumb method.
2. Conduct a scientific selection, training, and development of the workers instead of
allowing them to be responsible for their own development.
3. Cultivate a culture of positive cooperation between workers and the management to
ensure that they adhere to the scientifically devised methods.
4. Create an equal sharing of work between the management and workers so that the
former can apply scientific methods of planning tasks and the latter can actually
perform them.
Following the publication of the Principles of Management, Taylor promoted the scientific
management system which emphasized observation and analysis to improve work
methods.
Aside from the above contributions, Frederick Taylor was also the proponent of the financial
rewards system where workers are given financial incentives for exceeding expected
productivity.
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Unit 1: Nature and Concept of Management
Frank Gilbreths (1868–1924) and Lilian Gilbreths (1878–1972) introduced the “motion
study,” which they believe should always come first before examining a method. They also
promoted the welfare of the workers by introducing the idea that they should have definite
days of work, scheduled breaks, and lunch breaks, and protection from unsafe working
conditions.
Fig. 3. Lillian and Frank Gilbreths
Henry Gantt (1861–1919) is known to have created the “Gantt Chart” which is visual
scheduling of tasks to be done to complete a project or work. He is also attributed to the
humane working conditions which may have a positive effect on the worker’s productivity.
Lastly, Henry Gantt introduced the quota and rewards systems where a worker is given a
quota, and if he or she exceeds the quota, he or she will receive a monetary reward. This is
commonly being practiced in sales like in the real estate and automobile industries. For
example, in the real estate industry, agents are normally given a quota per quarter to
achieve. In some companies, agents are required to generate sales for three hundred
million pesos per quarter. If the agent exceeds the quota, he or she will be given one
hundred thousand pesos as an incentive.
Charles Bedaux (1887–1944) introduced the rating system to measure the productivity of a
worker. He also introduced the rest allowance for workers to prevent them from being
overworked.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
Bureaucratic Management Theory
The Bureaucratic Management Theory focused on an authoritative system wherein an
organization follows a defined set of rules and standardized operations. This approach was
developed by Max Weber in 1905 and was then deemed effective with organizations that
operate on a large scale. Weber identified five characteristics linked to this theory, namely
Task Specialization, Hierarchical Structure, Formal Selection, Rules and Requirements, and
Impersonality.
Fig. 4. Max Weber
1. Task Specialization talks about the significance of performing one’s own task in an
organization. Each of the employees has a specific responsibility to fulfill, thus
promoting order and focus on each department of the company.
2. Hierarchical Structure stresses that an organization must follow a system in which
those with lower positions are subject to the order and power of those with higher
positions.
3. Formal Selection discusses the importance of skills and credentials in choosing
someone for the position. Moreover, the compensation given to an employee is
highly dependent on their position in the company.
4. Rules and Requirements are enforced to ensure efficiency and uniformity when it
comes to completing a task. With this, the goal set by the company is easily achieved
as the employees are well-coordinated.
5. Impersonality creates a detached relationship among employees which promotes
objective and rational decision making by the management.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
Administrative Management Theory
The Administrative Management Theory is concerned with how the management effectively
organizes and directs the employees to achieve a common purpose. In 1916, Henry Fayol
proposed 14 principles that can be applied in managing and organizing the activities of the
organization.
1. Division of Work - this principle states that with the specialization of the workforce,
employees are more focused and productive with their tasks, thus making them
skilled enough to increase their output.
2. Authority - this refers to the right of a higher-up to give orders to the employees;
however, each order issued is accompanied by responsibility for the ensuing
consequences.
3. Discipline - this refers to the obedience and proper conduct that must be displayed
by the individuals in the organization to establish a good environment in the
workplace.
4. Unity of Command - this principle states that an employee must only receive orders
from one supervisor to prevent confusion and conflict with whose instructions to
follow.
5. Unity of Direction - this seeks to ensure unity and coordination among individuals
working on various tasks by following a common plan or objective.
6. Subordination of Individual Interests - a principle that emphasizes to put common
interests first over personal interests.
7. Remuneration - states that all forms of compensation to employees must be fair
and proper.
8. The Degree of Centralization - this refers to the balance on who should be making
decisions in terms of company size.
9. Scalar Chain - this principle states that an organization must have a clear
hierarchical structure that employees must be aware of. However, a hierarchy is
sometimes disregarded. This concept is called “gangplank”.
10. Order - this principle is concerned with the cleanliness and tidiness in the workplace
to ensure the safety and peace of mind of employees.
11. Equity - this emphasizes that all employees must be treated fairly and kindly.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
12. Stability of Tenure of Personnel - this suggests that employee replacement must
be limited and should instead give employees more time to familiarize their work
and improve their skills.
13. Initiative - this principle suggests that superiors must encourage their subordinates
to give new ideas and take initiative.
14. Esprit de Corps - this states that managers must boost employees’ morale and
promote team spirit.
Behavioral Management Theories
Unlike the classical theories, the Behavioral Management Theory is more focused on the
interests and needs of individuals working in an organization. This approach gives
importance to the understanding of human and behavioral factors as it may strengthen the
unity and teamwork of employees in achieving a common goal.
Human Relations Theory
The Human Relations Theory highlighted the idea that individuals are motivated to perform
better when they feel that they belong to and are valued in the team. Moreover, money is
not the sole motivator of the employees; the relationships formed with their colleagues are
equally important. Between 1924 and 1933, Elton Mayo further developed this approach
with Fritz Roethlisberger and William Dickinson by conducting a social experiment at
Western Electric Company’s Hawthorne Plant in Chicago which led them to the result called
the “Hawthorne Effect.” The Hawthorne Effect gave them the finding that workers
collaborate with others and do better in their tasks when they are given special attention.
Theory X and Y
Theory X and Y, proposed by Douglas McGregor in the 1950s, assumed that there are two
distinct types of workers in an organization. Theory X believes that most workers need to
be controlled and reprimanded as most workers are lazy and do not exert effort in their
assigned tasks. On the other hand, Theory Y is on the positive outlook on human behavior
as it assumes that most workers do not need to be ordered around because some have the
natural drive to do their tasks and enjoy contributing to the organization.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
Quantitative Theory
Quantitative
Theory
was
introduced out of the need to improve management
decision-making during World War II by using sophisticated mathematical models and
statistical tools and employing computers to manage information. Aside from its use in the
military, this theory was also helpful in managing the production and delivery of the goods
and services of an organization.
Modern Management Theories
Modern Management Theories took advantage of technology and incorporated it with
classical theories. This approach also made use of statistical techniques to analyze,
understand, and compare the relationship between the employees and the management.
Systems Theory
This theory developed by Ludwig von Bertalanffy promotes the idea that management is
an interrelated component of an organization. Rather than viewing each department as a
separate entity, this theory believes that all departments are parts of an open system that
need to interact with each other.
Just like our existence on Earth where we freely interact with other organisms and the
environment, an open system in an organization works the same. This means that the
managers and workers may freely interact with each other and external stakeholders such
as the customers, the competitors, and other people who may have an interest in the
company.
Contingency Theory
This theory was introduced by Fred Fiedler. It promotes the concept that managers must be
able to adapt to the changing environments of their organizations, and that they must make
better decisions depending on the given situation.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
Check Your Progress
What management theory introduced the use of hierarchy in an
organization?
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Wrap-Up
_____________________________________________________________________________________________
●
The evolution of the Management Theories started during the industrial revolution.
There are four main categories of management theories.
○
Classical Management Theories
■
Scientific Management Theory - emphasized the scientific study of
work methods in order to make the worker more efficient.
■
Bureaucratic Management Theory - focused on an authoritative
system wherein an organization follows a defined set of rules and
standards.
■
Administrative Management Theory - concerned with how the
management effectively organizes and directs the employees to achieve
a common purpose.
○
Behavioral Management Theories
■
Human Relations Theory - highlighted the idea that individuals are
motivated to perform better when they feel that they belong and that
they are valued in the team.
■
Theory X and Y - assumed that there are two distinct types of workers
in an organization. One is the lazy type who needs to be controlled and
reprimanded while the other is the one who does his work willingly and
does not need to be controlled.
○
Quantitative Management Theory - promotes the use of sophisticated
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
mathematical models and statistical tools in enhancing management skills.
○
Modern Management Theory - integrates technology with management
techniques. It also promotes the open system where it emphasizes that there
must be open communication and a relationship between the managers and
the worker.
■
Systems Theory - promotes that management is an interrelated
component of an organization.
■
Contingency Theory - asserts that the management must be
adaptable.
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Try This!
A. Short Essay. Read each question carefully, and then answer concisely.
1. What are the four major categories of management theories?
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2. What is Classical Management Theory?
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3. What is Behavioral Theory?
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1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
4. What is Quantitative Theory?
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5. What is Contingency Theory?
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6. What are the different Classical Management Theories?
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7. What are the two Behavioral Management Theories?
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8. What are the two Contingency Theories?
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1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
9. Who published the Principles of Scientific Management?
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10. What is the purpose of the GANTT Chart?
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B. True or False. Read each statement carefully. Write True if the statement is correct.
Otherwise, write False.
________________
1. The industrial revolution marked the beginning of the
evolution of management theories.
________________
2. The systems and processes used by the organizations before
the industrial revolution were also used after.
________________
3. The welfare of the workers was promoted in the classical
management theory.
________________
4. The bureaucratic management theory is focused on the
authoritative system.
________________
5. The behavioral management theory is more focused on the
interest of the organization.
1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
Challenge Yourself
Read and analyze the case and answer the questions briefly but concisely.
KW Motors is a large manufacturing company located in Alabang. The company has
consistently been recognized for the excellent quality of its cars, which may be attributed to
its efficient manufacturing process. Its assembly line is well-planned, so each step in the
process is handled by a worker with specialized skills. Workers are trained extensively for
them to master their tasks. However, in the past few months, these workers have
consistently been tardy and absent, often on purpose, due to dissatisfaction with KW
Motors. They claim that the company does not provide them with a safe work environment,
sufficient compensation and benefits, and a positive working relationship with the
management. They say that they will not return to work unless their concerns are
addressed. This problem has negatively affected the business of KW Motors. Due to the
absences and tardiness of the workers, the company has fallen behind its production
schedule. Dealers and customers have lodged complaints due to the delays in delivering
purchased vehicles.
You have been hired by KW Motors to help them resolve the problem. How will you do so?
The questions below will serve as your guide.
1. Which theory does the management implement? Explain your answer.
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2. What is the root cause of the company’s problem?
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1.2. Evolution of Management Theories
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Unit 1: Nature and Concept of Management
3. Which management theory would you recommend to help the company address the
workers’ concerns? Explain your answer.
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Suggested Rubric for Grading
The rubric below is a suggested one. Your teacher may modify the rubrics based on your
needs. Consult your teacher for the final rubric.
Performance Levels
Criteria
1
2
3
Suggested
Beginning
Proficient
Advanced
Weight
Proficiency
Content
Organization
Conventions
Proficiency
Less than half of the
answers show
application of the
concepts learned
from the lesson.
Half of the answers
show application of
the concepts learned
from the lesson.
More than half of
the answers show
application of the
concepts learned
from the lesson.
×3
Less than half of the
answers are logically
organized, and show
cohesiveness of
thoughts and ideas.
Half of the answers
are logically
organized, and show
cohesiveness of
thoughts and ideas.
More than half of
the answers are
logically organized,
and show
cohesiveness of
thoughts and ideas.
×2
Less than half of the
answers are
grammatically correct,
and free from errors
in spelling,
punctuation,
capitalization, word
selection, and use.
Half of the answers
are grammatically
correct, and free from
errors in spelling,
punctuation,
capitalization, word
selection, and use.
More than half of
the answers are
grammatically
correct, and free
from errors in
spelling,
punctuation,
capitalization, word
selection, and use.
×1
Total Possible Score
18
1.2. Evolution of Management Theories
Score
17
Unit 1: Nature and Concept of Management
Photo Credits
Frederick Winslow Taylor by Beyond My Ken is licensed under Wikipedia via Wikimedia
Commons
Lilian Gilbreths by Smithsonian Institution is licensed under Commons:Licensing via
Wikimedia Commons
Frank Gilbreths by Verne Equinox is licensed under Wikipedia via Wikimedia Commons
Max Weber by Unknown is licensed under Wikipedia via Wikimedia Commons
Bibliography
Angos, Kwok C.P. 2014. The Evolution of Management Theories: A Literature Review. Accessed on
August 18, 2020, Retrieved at:
https://www.researchgate.net/publication/307760441_The_Evolution_of_Management_Th
eories_A_Literature_Review
Follett, Mary P. Dynamic Administration: The Collected Papers of Mary Parker Follet. UK:Martino
Fine Books, 2013.
Mintzberg, Henry. Mintzberg on Management: Inside our Strange World of Organizations. New
York: Free Press, 1989.
Payos, Ranulfo P., et. al. Organization and Management. Sta. Mesa Heights, QC: Rex
Bookstore, 2016.
Wren, Daniel, et. al. The Evolution of Management Thought. Eighth Edition. Hoboken:Wiley,
2020.
1.2. Evolution of Management Theories
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