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Lesson 2
EVOLUTION OF MANAGEMENT THEORIES
Evolution - is usually defined as slow stages of growth and development, starting
from simple forms to more complex forms.
Theory - a system of ideas intended to explain something.
Productivity – an assessment of the efficiency of a worker or group of workers.
Function – an activity or purpose natural to or intended for a person or thing.
Satisfaction – fulfillment of one’s expectations or needs especially among customers.
Behavior – the conduct demeanor, or action of people at work.
Why Study the Evolution of Management Theories?
- This will help you understand the beginnings of present-day management practices; why some are still popular and why others are no longer in use; and why the expansion and development of these theories are necessary in order to adapt to the changing times.
MANAGEMENT THEORIES
1. Scientific Management Theory
o This theory was proposed by Frederick W. Taylor (1856-1915) who is also known as the “Father of Scientific Management” o Based on his observation to the inefficiencies, lack of enthusiasm and workers mistakes, he tried to identify clear guideline for the improvement of worker’s productivity. o Workers are given fixed and specific tasks according to their efficiency, thus making their work repetitive. o “The greater the efficiency, the greater the reward.” Taylor’s Scientific Management Principles (Robbins and Coulter 2009) are as follows:
1. Develop a science for each element of an individual’s work to replace the
old rule of thumb method. 2. Scientifically select and train, teach, and develop the worker. 3. Heartily cooperate wit the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers.
2. General Administrative Theory
o The administrative view was proposed by Henri Fayol (1841-1925) and Max Weber (1864-1920) o This theory concentrates on the managers functions and what makes up a good management practice or implementation. o Henri Fayol believed that management is an activity that all organization must practice and viewed it as separate from all other organizational activities such as marketing, finance, research and development and others.
Fayol’s and Weber’s Contribution to General Administrative Theory
Henri Fayol Management Principle Bureaucracy According to Max Weber 1. Work Division or Specialization 2. Authority 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of individual interest to According to Weber, bureaucracy is an general interest organizational form distinguished by the 7. Remuneration/pay following components: 8. Centralization Division of labor 9. Scalar and chain authority Hierarchical identification of job 10.Maintenance of order position 11.Equity/fairness Detailed rules and regulations 12.Stability/security of tenure of workers Impersonal connections with one 13.Employee initiative another 14.Promotion of team spirit or esprit de corps
3. Total Quality Management
o Is a management philosophy that focuses on the satisfaction of customers, their needs and expectations. o Quality experts W. Edwards Deming (1900-1993) and Joseph Juran (1904- 2008) introduced this customer-oriented idea in the 1950’s. o Deming created 14 points for Top Management while Juran created roadmap for Quality Planning.
Deming’s 14 Points for Top Management Fitness of Quality According to Juran
1. Create constancy of purpose for 1. Quality of Design-through market improvement of products and services research, product, and concept 2. Adopt the new TQM philosophy 2. Quality of Conformance-through management, manpower, and technology 3. Cease dependence on mass inspection 3. Availability-through reliability, by doing things right and doing it right maintainability, and logistic support the first time 4. End the practice of awarding business 4. Full Service-through promptness, on the basis of price tag alone competence, and integrity 5. Constantly improve the system of Juran’s Quality Planning Roadmap production and services 6. Institute training 1. Identify your customers 7. Adopt and institute leadership 2. Determine their needs 8. Drive out fear 3. Translate the into one’s language 9. Break down barriers between staff 4. Develop a product that can respond to areas needs 10. Eliminate slogans, focus on correction 5. Develop processes which are able to of defects in the system produce those product features 11.Eliminate numerical quota for the work 6. Prove that the process can produce the force product 12.Remove barriers that rob people of 7. Transfer the resulting plans to the “pride of workmanship” operating forces. 13.Encourage education and self- improvement for everyone 14.Take action to accomplish the transformation 4. Organizational Behavior Approach o The organizational behavior approach involves the study of the conduct, demeanor, or action of people at work. o Research on behavior helps manager carry out their functions – leading, team building, resolving conflicts, and others. o Robert Owen, Mary Parker Fallet, Hugo Munsterberg and Chester Barnard were the early supporters of the organizational behavior approach.
In Organizational Behavior Approach we should have right or good
behavior in order for us to achieve and to work the task that is given to us.