Perspective of Management Theory
1. Historical
2. Contemporary
HISTORICAL VIEW
Based on the management theories that
were uncovered at the early stage of management.
CLASSICAL VIEWPOINT
 Efficiency of managing jobs
 Birth of organizations and
departmentalization
1. SCIENTIFIC MANAGEMENT
- Frederick Taylor – father
- Job efficiency through the development of
technical skills of individual workers
Four Principles of Efficiency
1. Study the way workers perform.
2. Codify new methods of performing tasks.
3. Carefully select workers so that they
possess skills and abilities matching the
task.
4. Establish a fair or acceptable level of
performance and pay system that provides
a reward.
Motion studies – breaking down worker’s job and
training them based on work approach.
Wage differential rate system – incentive – the
more efficient workers earned higher wages.
Frank Gilbreth and Lilian Gilbreth
- Industrial engineers
- Time and motion studies to develop more
efficient work procedures by using
cameras.
- First Lady of Management
Henry Gantt
- Gantt Chart
- Scheduling work over period
2. ADMINISTRATIVE MANAGEMENT
- Henry Payol
- Pioneer of the Principles and Management
- First to systemize management
- 5 major functions of management
- 14 management principles
14 Management Principles

Division of work – worker’s experience
and improve his skills.
 Authority – right to issue commands.
 Discipline – employees obey orders;
management provide good leadership.
 Unity of command – only one boss with
no other conflicting lines of command.
 Unity of direction – engaged in the same
kind of activities must have the same
objectives in a single plan. (unity and
coordination)
 Subordination of individual interest –
see goals of the firms.
 Remuneration – payment is an important
motivator.
 Centralization – matter of degree
depending on the condition of business
and its personnel.
 Line of authority – hierarchy for unit of
direction.
 Order
o Material – minimize lost time and
useless handling.
o Social – organization and
selection.
 Equity – justice and kindliness
 Stability of Tenure of personnel – job
security and career programs.
 Initiative – source of strength for
organization.
 Espirit de Corps – foster the morale of
employees.
Max Weber and Chester Bernard
- Bureaucracy concept which does not
encourage red tape and efficiency.
- Employees were treated fairly and
equitably.
Rules – formal written instructions that specify
actions to be taken.
Standard operating procedures – specific set of
written instructions.
Norms – unwritten, informal codes of conduct
PROBLEM: too mechanistic, view humans as
device within a machine, not taking importance of
human needs.
BEHAVIORAL VIEWPOINT
 Understanding human behavior and
motivating workers to be more productive.
1. Early behaviorism
2. Human relations
3. Behavioral science
EARLY BEHAVIORIST
1. Hugo Munsterberg
 Father of Industrial Psychology
 Psychology in management
 Led to study of human behavior in
workplace.
2. Mary Parker Follet
 Mother of Management
 Management should be more
democratic.
 Horizontal view of power and authority
3. Elton Mayo
 People as special and meeting their
needs results in increased
performance.
4. Hawthorne Works
 The attitudes of workers towards their
managers affect the level of work
performance.
HUMAN RELATIONS MOVEMENT
1. Abraham Maslow
 Hierarchy of needs
 Food, security, love, recognition, and
self-fulfillment.
2. Douglas McGregor
 Two sets of assumptions about work
attitudes and workers.
 X – pessimistic; Y -optimistic.
BEHAVIORAL SCIENCE APPROACH
- Most recent approach in studying people
for management purposes.
- Uses scientific research for developing
theories about human behavior.
QUANTITATIVE VIEWPOINT
1. MANAGEMENT SCIENCE
 Operations research


Use of mathematics to aid in problem
solving and decision making.
Closely aligned with classical
management.
2. OPERATIONS MANAGEMENT
 Efficient production and delivery.
 Production planning and scheduling,
location and design, optimum levels of
inventory.
CONTEMPORARY VIEWPOINT
SYSTEMS VIEWPOINT
- System – interrelated parts that operate
together to achieve a common purpose.
- Organization is collection of subsystem
and part of larger environment that operate
together.
Four parts of system
1. Input
2. Transformational process
3. Outputs
4. Feedback
SOCIOTECHNICAL VIEWPOINT
- Integrates people and technology with
equal importance to maximize
organizational performance.
CONTINGENCY VIEWPOINT
- Situational approach
- Determination of best management
approach for a given situation
- Dependent on the need based on given
individual and the environment situation.
Situational Management Models
1. Directive behavior – directing and
controlling behaviors or actions of workers.
2. Supportive behavior – encouraging and
motivating behaviors without telling
employees what to do.
Four Management Styles
1. Autocratic
 High directive, low supportive.
 Management directs employees in
every detail and makes decisions
without employee input.
2. Consultative
 High directive, high supportive
 Manager convinces employees for
benefits and gives instructions.
 Used when employees have moderate
ability and are motivated to do tasks
without direction.
3. Participative
 Low directive, high supportive
 Used when employees can do tasks
but need motivation.
4. Empowerment
 Low directive, low supportive
 Employees have the ability and
motivation to perform the task without
direction and support.
 Laisses fair or hand off management.
QUALITY MANAGEMENT VIEWPOINT
- Quality control, assurance, and TQM.
Quality control – minimizing errors by managing
each stage of production.
Walter Shewart – used statistical sampling to
locate errors by testing just some of items in
particular production run.
Quality assurance – focus on workers urging
employees to have zero defects production.
TOTAL QUALITY MANAGEMENT
- Continuous quality improvement, training,
and customer satisfaction.
Four components
1. continuous improvement is top priority
(kaizen).
2. Teamwork and trust is indispensable.
3. Accept feedback and learn form customers
and employees.
4. Identify and eliminate problems through
the use of accurate standards.
Proponents of TQM
Edwards Deming
- believed that true value stemmed from
constancy of purpose.
- Importance of human side of management.
- Should value teamwork rather than giving
orders.
Joseph Juran
- Quality is equal to fitness for use.
-
Product must be made primarily to satisfy
customer needs.
LEARNING ORGANIZATION
1. Acquiring and creating knowledge
2. Transferring knowledge
3. Modifying behavior
Peter Senge
- Coined term learning organization
- An organization that is actively creates,
acquires, and transfers knowledge within
itself and can modify its behavior and
reflect to new knowledge.
Trends and Issues in Management
1. Global competition.
2. Technology
3. Continuous improvement
4. Create learning cultures and learning
organizations.
5. Ethics and social responsibility.