CHAPTER I

Evolution of
MANAGE
MENT
 Learning outcomes:
– Define Management

– Identify the levels of management

– Determine the skills needed to be an effective manager
– Identify the different roles of management
– Describe the basic management functions
– Explain the important contribution of evolution of management
– Identify & explain the five (5) M’s of management
 What is management ?

 is the process of managing the

resources in an effective and efficient
manner to achieve organization goals
and objectives.
Levels of MANAGEMENT
Top Level Management

Middle Level Management

Front Line Management

 Top level management

• responsible for overall operation

• they are often called strategic manager
• setting goals and objectives, planning,
rules and regulation, guidelines general policies.
 Middle level management

• they are often called tactical manager

• they are the one who translate the
general goals set by the strategic
manager in more specific manner.
 Front line manager/ first line manager

• operational manager
• responsible for training and motivating employees.
• supervise, monitor the operational activities of the
firms and report it directly to the middle manager
 Management skills

A skill is an ability or capacity that

one possesses which may translate
knowledge into action that result in
desired performance.
 Interpersonal skill

(also known as people skills) is an ability

to lead, motivate, encourage, inspire,
understand and communicate directly
with individuals or groups.
 Technical skill

 It is an ability which involves

expertise performing a specialized
task.
 Conceptual skill

This is the ability which includes

identifying, thinking in abstract,
conceptualizing analytical situations and
solving complex problems with a broader
scope.
 Decisional skill

 It involves an ability of making

decisions or resolving problems.
Management Roles
Informational
roles

Manager

Decisional Interpersonal
roles roles
Informational roles
involve managing information from receiving, collecting, and
analyzing the information.

A. Monitor
B. Disseminator
C. Spokesperson
Interpersonal roles
involve interacting within outside the organization.

A. Figurehead
B. Leader
C. Liaison
Decisional role
it involve in making use of the information in arriving
to a better solution to the problem or opportunity.

A. Entrepreneur
B. Disturbance handler
C. Resource allocator
D. Negotiator
Four Functions of Management

Planning
Organizing
Leading
controlling
Planning
• is the process of determining objectives and
organizational goals, establishing strategies, and
integrating coordinated activities in the organization to
achieve the goals and objectives.
• (anticipate the future)
Organizing
 is the process of establishing a structure by assigning tasks, assembling
and allocating, resources to achieve the organizational goals and
objectives.
Staffing
 process of selecting, training & evaluating employees)
 Leading
 is the process of influencing people to work in
achieving the organizational goal.

 must be inspire, be a good leader motivate its

employee through constant interaction in order to
stimulate their performance.
Controlling
 is the process of monitoring
performance and taking a corrective
action when necessary to ensure that
the objectives of the organization will
be achieved.
 Classical
Approaches
to
Management
 Administrative
Bureaucracy
Management

Scientific Behavioral
Management Theory

Classical
Approaches
 Scientific Management
• Frederick Winslow Taylor (1856-1915)
• a young engineer who started his working career at Midvale steel
company.
• Father of Scientific Management.
• FOCUSED ON ANALYZING THE WORK AND HOW TO ACCOMPLISH TASK
EFFEICIENTLY. BY EMPHASIZING IN MAXIMIZING THE OTPUT.
 Guidelines:
1. Management should develop a precise, scientific approach for each
element of one's work to replace a general guidelines.

2. Management should scientifically train, select, teach and develop each

worker so that the right person has the right job.

3. Management should cooperate with workers to ensure that jobs match

plans and principles.
 Motion Study
• Frank Gilbreth and his wife Lillian Gilbreth use motion studies to

simplify and develop more efficient work procedures.

• Frank Gilbreth was known as the Father of Motion Study

Lillian Gilbreth is commonly referred as First Lady of Management.

 Motion Study is the reducing or breaking a task to its basic physical

motions and eliminating unnecessary or redundant motion.

 Henry Gantt (1861-1919)

He also made an important contribution in

Scientific Management. He recognized the value of
non monetary rewards to motivate workers. He also
developed a system for Scheduling called
Gantt Chart.
 Henry Ford (1863-1947)
• Founder of Ford Company
• assembly line which had a tremendous impact on production methods in
many industries.
• mass production method.

It is a method of production in which large volumes of standardized

goods are produced by workers using highly advanced equipment.
• Division of Labor. It is the breaking up of jobs into small tasks. the tasks
were so narrow that virtually no skill was required.
 Administrative Management
The administrative management approach
emphasize the perspective of senior managers within
the organization. It also argues that management is a
profession and could be taught.
 Henry Fayol
• He is a French mining engineer.
• Father of Modern Management.
• He published a book summarizing his management experiences
wherein he identified 5 managements functions: planning,
organizing, commanding, coordinating and controlling.
• He also developed 14 principles of management.
 14 Principles of Management

1. DIVISION OF WORK – divide work into specialized tasks and assign responsibilities to
specific individuals.
2. AUTHORITY – delegate authority along with responsibility.
3. DISCIPLINE – make expectations clear and punish violation.
4. UNITY OF COMMAND – each employee should be assign to only one supervisor.
5. UNITY OF DIRECTION – employee’s efforts should be focused on achieving
organizational objectives.
6. SUBORDINATION OF INDIVIDUAL – interest to the general interest
– general interest must predominate.
7. RENUMERATION – systematically rewards efforts that support the organization’s direction.
8. CENTRALIZATION – determines the relative importance of superior and subordinates roles.
9. SCALAR CHAIN – keep communication within the chain of command.
10. ORDER – order jobs and material so they support the organization’s direction.
11. EQUITY – fair discipline and order enhance employee commitment.
12. STABILITY AND TENURE OF PERSONNEL – promote employee loyalty and longevity.
13. INITIATIVE – encourage employees to act on their own support of the organization’s direction.
14. ESPIRIT DE CORPS – promote a unity of interests between employees and management.
 BUREAUCRACY
It can be defined as a rational and efficient
form of organization founded on logic, order
and legitimate authority. (Schermerhorn, 1999)
 Max Weber (1864-1920)
He is a German sociologist who introduced the
idea of bureaucratic organization. The aim of this
concept is to create an organization that has
authority structures with a clear procedure of rules
and regulations.
 BEHAVIORAL THEORY
Human Relations Management
It is an approach in management that emphasize the understanding of the
importance of human element in a workplace. In today settings this is
known as Organizational Behavior which can be defined as the study of
human behavior in organizational settings, of the interface between
human behavior and the organization and of the organization itself.
 Elton Mayo (1880-1949)
• He is a researcher who conducted studies at

• Hawthorne Works Plant of Western Electric in Chicago. He led

a team who developed a research project known as
Hawthorne Studies. The researchers concluded that workers
performed well when they know that they are part of the
experiment and when they are being observed by the
researchers. This effect is known as the “Hawthorne effect”.
 Abraham Maslow (1908-1970)
He is a professor and psychologist who developed a motivational
theory in which it is considered to be the best-known theory of
motivation. Motivation is the inner desire to satisfy an unsatisfied need
(Lussier, 2006). This theory is known as “Maslow’s Hierarchy of needs”.
NEED refers to the deficiencies that energize or trigger behaviors to
satisfy those needs.
 Maslow Hierarchy of needs
1. Physiological needs – it also known as the basic needs.
2. Safety needs – a need which involves need for security and protection from physical and
emotional needs.
3. Social needs – this level is also known as Belongingness needs. It includes need for love
and affection, acceptance and friendship.

4. Esteem needs – it involves self-respect, recognition and achievement.

5. Self-actualization needs – the highest level in hierarchy. It is also known as self-
fulfillment; it involves a person realizing his/her full potential and abilities.
 Frederick Herzberg (1923-2000)
He is a psychologist who develop the Two-Factor theory or
better known as Motivation-Hygiene Theory.
• Employees are motivated by intrinsic factor rather than extrinsic factor

Intrinsic or Motivation Factors

Extrinsic or Hygiene Factors

 Herzberg’s Two-Factor Theory
Motivation Factors related to job satisfaction such as achievements and recognition

Hygiene Factors related to job dissatisfaction such as working condition,

Company policies, pay and job security
 Douglas McGregor (1906-1964)

• Psychologist

• Theory X and Theory Y.

Theory X represents a negative end or view of people they avoid work
responsibility, relatively have little ambition and need to be controlled (reward
and punish) and supervised.

Theory Y represents a positive end or view of workers they usually accept and
seek responsibility. They enjoy the physical and mental aspect of work and
more committed to work. They exercise self-control and self-direction towards
organization objectives.
Contemporary Theory
of Management
 Classification of Contemporary Theory of Management

QUANTITATIVE THEORY
1
SYSTEM THOERY 2
CONTINGENCY THEORY
3
QUANTITATIVE THEORY

• During World War II, mathematicians, physicists,

and other scientists joined together to solve military
problems.

45
 Definition

• The quantitative approach involves the use of quantitative

techniques to improve decision making.

• This approach has also been labeled operations research of

management science. It includes applications of statistics,
optimization models, information models, and computer
simulations

46
BRANCHES OF Quantitative Theory of Management

• management science
• operations management
• management information systems

47
 MANAGEMENT SCIENCE

It is an approach that emphasizes the use of

mathematics or quantitative techniques to
analyze and support management decisions and
problems.

48
 MANAGEMENT SCIENCE

Mathematical forecasting
help make projection in planning process.

Inventory modeling
helps control inventories by mathematically establishing how and when
to order the product

Queuing theory
help allocate service prsonnel or workstation to minimize customer waiting and
service cost.

49
 Operations management

• It focuses on managing the process of

transforming materials, labor, and
capital into useful goods and/or
services

50
Management information systems

• It is the name often given to the field

of management that focuses on
designing and implementing
computer-based information systems
for use by management

51
 THE SYSTEM THEORY

The system theory focuses on viewing the

organization as a whole and the interrelationship of its
parts.

System is a collection of interrelated elements that

function as a whole.
52
 ENVIRONMENT

SYSTEM
TRANSFORMATION
TRANSFORMATION
UTT
NPPU OUTPUT
OUTPUT
IIN
PHYSICAL
PHYSICAL WORKERS ACTIVITY PRODUCT & SERVICES
HUMAN
HUMAN PRODUCT & SERVICES
TECHNOLOGY FINANCIAL
FINANCIAL
FINANCIAL FINANCIAL
ADMINSTRATION SYSTEM HUMAN RESULTS
INFORMATION
INFORMATION HUMAN RESULTS
CONTROL SYSTEM

FEEDBACK

ENVIRONMENT 53
 CLASSIFICATION OF SYSTEM THEORY
54

Open Systems actively interacts with in its environment.

Closed System it is non adaptive system. It does not receive inputs from
other system and does not trade with the outside world.

Subsystem are small units of a larger system

 Contingency Theory

• There is no best way to manage

and organize firms.
• It is all depends on situation

55
FIVE (5) M’s
OF
MANAGEME
• MAN
• MATERIALS
• MONEY
• MACHINES
• METHODS