Subject: Organization and Management

Topic: Evolution of Management and theories

Learning Objectives:
● Discuss and explain the evolution of management theories
● explain the behavioral management.

EVOLUTION OF MANAGEMENT THEORIES

Management as a study or discipline is rich and diverse in terms of its history. It is said that
management originated way back to the days when man started living and working in
groups. Tracing the pages of history would reveal that in the ancient past, the masses were
organized into groups according to their intelligence and physical and mental abilities. Since
then, numerous evidence of the use of well-recognized and universally accepted principles
of management can be found in various historical triumphs in the world, such as the
organization of public life in Greece, the construction of the pyramids in Egypt, the rise of the
Roman Empire, the organization of the Roman Catholic Church, the organization and
mobilization of military forces from ancient
China until the World War, the blossoming of commerce in Venice, and the like. In all
of these historical events, it is clear that management in some form or another has been
practiced in various parts of the world since the dawn of civilization.

To better appreciate the principles of management in today's contemporary setting, it is

helpful for us to look back and trace the evolution of management thought throughout
the pages of history. If we try to trace how management has evolved through the times, we
will be able to identify three distinct stages: (1) classical management; (2) behavioral
management; and (3) modem management.

CLASSICAL MANAGEMENT
The classical management era is characterized as a time period in which traditional
ways of managing were challenged, the management process was made systematic and
scientific, and the principles of management were propagated.
Classical management approaches share one common assumption: that people at work
act in a rational manner that is primarily driven by economic concerns. Management studies
under this period recognize that workers will only work to achieve the greatest personal and
monetary gain for themselves.
Classical management involves four sub-approaches: (1) scientific management,
(2) administrative management, (3) bureaucracy, and the (4) informal organization.
Figure 1.2 shows the general features and components of the classical management
approaches and the relevant personages who contributed to the study of management.
SCIENTIFIC MANAGEMENT
Frederick Winslow Taylor is regarded as the founderand "father of scientific management."
He started as an apprentice machinist in Philadelphia, USA, and rose to be the chief
engineer at the Midvale Engineering Works and later on served with the Bethlehem Works.
He was the first to recognize and emphasize the need for adopting a scientific approach to
the task of managing an enterprise by diagnosing the causes of low efficiency in industry
and came to the conclusion that much of the waste and inefficiency is due to the lack of
order and system in the methods of He therefore suggested that management should make
use of the "scientific method" for achieving higher efficiency.

Taylor identified four principles of scientific management:

1. Management should develop a precise, scientific approach for each element of
one's work to replace general guidelines.
2. Management should scientifically select, train, teach, and develop each worker so
that the right person has the right job.
3. Management should cooperate with workers to ensure that jobmatch plans and
principles.
4. Management should ensure an appropriate division of work and responsibility
between managers and workers.

The focus of scientific management was the application of scientific methods to increase
individual workers' productivity. It emphasizes careful selection and training of workers as well
as supervisory support. Scientific management proposed that "there is one best way to do
the job" and emphasized the principle of specialization which recognizes that people will
work more efficiently as tasks become better defined. However, one major drawback of
scientific management is that it limits opportunities for self-actualization and growth on the
part of the workers.

ADMINISTRATIVE MANAGEMENT THEORY

Administrative management is concerned primarily with how organizations should be
managed and structured. Henry Fayol, a French businessman, was the contributor of this
theory. He was born in 1941 at Constantinople in France. He graduated as a mining engineer
in 1860 from the National School of Mining. After his graduation, he joined a French Coal
Mining Company as an engineer. After a couple of years, he was promoted as manager. He
was appointed as General Manager of his company in 1888. At that time, the company
suffered heavy losses and was nearly bankrupt. Henry Fayol succeeded in converting his
company from near bankruptcy to one with a strong financial position and a record of
profile and dividends over a long period. Because of this, he is considered as the "father of
the modern theory of general and industrial management."

Fayol believed that "people work in a clear unity of direction" and that efficiency
will increase when a person's work is planned and directed by a supervisor. He also
believed that "management can be taught" and formulated principles to guide general
management practice.

He divided general and industrial management into six groups of activities:

1. Technical activities- production, manufacture, adaptation
2. Commercial activities- buying, selling, exchange
3. Financial activities- search for and optimum use of capital
4. Security activities- protection of property and persons
5. Accounting activities-stock-taking, balance sheet, cost, statistics
6. Managerial activities- planning, organization, command, coordination, control

Fayol regarded the last function management - as the most important function for
upper-level managers and established a pattern for general management thought and
practice. This gave rise to Fayol's 14 administrative principles of management,
which are as follows:
1. Division of work - Division of work and specialization produces more and better
work with the same effort.
2. Authority and responsibility - Authority is the right to give orders and the power to
exact obedience. A manager has official authority because of his/ her position, as well
as personal authority based on individual personality, intelligence, and experience.
3. Discipline - Obedience and respect within an organization are absolutely essential.
Good discipline requires managers to apply sanctions whenever violations become
apparent.
4. Unity of command - An employee should receive orders from only one superior.
5. Unity of direction - Organizational activities must have one central authority and one
plan of action.
6. Subordination of personal interest - The interests of one employee or group of
employees are subordinate to the interests and goals of the organization.
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 objective of centralization is the best utilization of personnel. The

degree of centralization varies according to the dynamics of each organization.
9. Scalar chain - A chain of authority exists from the highest organizational authority to
the lowest ranks,
10. Order - Organizational order for materials and personnel is essential. The right materials
and the right employees are necessary for each organizational function and activity.
11. Equity - In organizations, equity is a combination of kindliness and justice. Both equity
and equality of treatment should be considered when dealing with employees.
12. Stability of tenure - To attain the maximum productivity of personnel, a stable
workforce is needed.
13. Initiative - Thinking out a plan and ensuring its success is an extremely strong motivator.
Zeal, energy, and initiative are desired at all levels of the organizational ladder.
14. Esprit de corps - Esprit de corps is a French phrase which means "groupe morale".
Teamwork is fundamentally important to an organization. Work teams and extensive
face-to-face verbal communication encourages teamwork.

BUREAUCRATIC MODEL
Max Weber, a German sociologist, lawyer, and social historian, showed how management
itself could be more efficient and consistent. He was concerned that people were in
positions of authority not because of their job-related capacities, but because of their social
standing or "privileged" status in German society. According to Weber, the ideal
The model for management is the bureaucracy approach.
Weber viewed bureaucracy as an ideal, intentionally rational, and very efficient form of
organization founded on principles of logic, order, and legitimate authority. It recognizes
that "people work in a clear hierarchy of authority with higher levels directing and controlling
lower levels." Weber believed bureaucratic organizations can eliminate the variability that
results when managers in the same organization have different skills, experiences, and goals.
He emphasized a structured, formal network of relationships among specialized positions in
an organization. Rules and regulations standardize behavior, and authority resides in
positions rather than in individuals.

The characteristics of bureaucracy are as follows:

1. Division of labor. Jobs are well defined, and workers become highly skilled at performing
them,
2. Hierarchy and authority. Authority and responsibility are well defined for each position,
and each position reports to a position that is of a higher level.
3. Formal rules and procedures. Written guidelines, direct behavior, and decisions in jobs,
and written files are kept for historical record.
4. Impersonality. Rules and procedures are impartially and uniformly applied, with no one
receiving preferential treatment.
5. Meritocracy. Workers are selected and promoted based on ability and performance.
and managers are career employees of the organization.

Because the bureaucratic model is seen as very rigid, it does not account for important
human elements. Therefore, a bureaucracy brings with it certain disadvantages, some
of which are as follows:
1. Excessive paperwork or "red tape"
2. Slowness in handling problems
3. Resistance to change
4. Employee apathy
5. Higher costs of monitoring and control
6. Anxiety due to pressure of conformity to rules and procedures
7. Dependence on superior
8. Workers' perception that they have little or no control over their work environments
9. Tendency to forget ultimate goals of the organization

Activity - Day 1 & 2

Instructions:
● In the table below. You will find 15 descriptions pertaining to each of the sub-
approaches of classical management. In the space provided, determine to which
sub-approach each description belongs.
● Use the following codes for your answer and explain each.
S - scientific Management , A - Administrative Management
B - Bureaucratic, I - Informal Organization ( 75 pts. )

Rubrics: 5 pts. -Able to answer and express his/her idea.

3-4 pts.- able to answer but his/her ideas were not clear.
1-2 pts.- students tried to answer but had difficulty expressing his/her idea

Your Your explanation Correct

answer answer

1. Management can be taught to

others.

2. There is only one best way to do a

 job.

3. Exclusive groups of people form

within an organization.

4. Managers have authority only if

employees recognize it.

5. Training is necessary so that a

person is fit for the job.

6. Rules and procedures are

impartially and uniformly applied.

7. Cliques naturally form within a

particular organization.

8. Eliminating wasted motions

improves performance.

9. Excessive paperwork or "red tape"

might occur.

10. People should work in a clear

unity of direction.

11. Higher levels should direct and

control lower levels.

12. Teamwork is fundamentally

important to an organization.

13. Management should use

scientific approaches for
efficiency.

14. Rules and regulations should

standardize behavior.

15. Salaries should be fair to both

employee and employer.

Day 3

BEHAVIORAL MANAGEMENT
The behavioral management era emphasized improving management through the
psychological makeup of people. In contrast to the largely technical emphasis of classical
management and scientific management, the behavioral approach focuses on the need to
understand people. This is why it is also sometimes referred to as the human relations
approach because it focuses on making optimum use of workers in a positive way.

Whereas classical theory concentrated on job content and management of physical

resources, behavioral management theories gave greater emphasis to individual and group
relationships in the workplace. They pointed out the role of psychology and sociology in the
understanding of individual and group behavior in an organization.
The behavioral management approaches share one common assumption: people are
social and self-actualizing. People at work are assumed to seek satisfying social
relationships, respond to group pressures, and search for personal fulfillment.

Behavioral theories share three common elements:

1. The individual. Behavioral management theories emphasize that every pers

is unique and that individual differences must be recognized. An individual's feelings,
emotions, perception, and attitude. He brings to the job situation cer attitudes, beliefs, and
ways of life, as well as skills. Therefore, the inner work of the worker is more important than the
external reality in the determination of productivity.
2. Work groups. Workers are not isolated. They are social beings and should be treated as
such by management. Also, workers have a need to socialize and relate with others.
Therefore, the vital effects of group psychology and behavior On motivation and
productivity of workers should be considered.
3. Participative management. Management should welcome worker participation in
the organization. Allowing employees to participate in decision-making increases
productivity as a new form of supervision and satisfies the personal security anu social needs
of workers.

MASLOW'S THEORY OF HUMAN NEEDS

Abraham Maslow was American clinical psychologist and a psychology professor who
proposed a theory of psychological health predicated on fulfilling human needs in priority
and also developed a comprehensive view of human motivation. A need, according to
Maslow, is a "physiological or psychological deficiency a person feels compelled to satisfy."
These needs, therefore, create tensions that can influence a person's work attitudes and
behaviors.
Maslow's hierarchy of human needs arranges human needs according to five levels
with basic physiological needs at the bottom and self-actualization needs at the top
This theory is based on two underlying principles.

1. Deficit principle. This indicates that a satisfied need is no longer a motivator of behavior.
When a need is already satisfied, the person no longer feels compelled to look for it. Here,
Maslow shows why people are difficult to satisfy- as one need is satisfied, people want to
satisfy other needs or different forms of the same need.
2. Progression principle. Human needs exist in a hierarchy. Lower-order needs
(deficiency needs, which pertain to a person's existence, security, and requirements for
human contact) must be satisfied first before higher-order needs (growth needs, which are
concerned with personal development and reaching one's potential) are activated.

In addition, both of the above principles cease to operate at the self-actualization level
which, according to Maslow, is the highest level of human needs.
Maslow's hierarchy of human needs which consists of the following:
1. Physiological needs. These refer to basic bodily requirements and are considered as the
most basic of all human needs.
2. Safety needs. These include the desire to be safe from both physical and emotional injury.
3. Social needs. These are the needs for love, belongingness, and affiliation with people.
4. Esteem needs. These reflect people's desire to be seen by themselves and others as a
person of worth.
5. Self-actualization needs. These relate to the desire to reach one's potential.

Activity - Day 3
Instructions:
● In the table below. You will find 15 statements. In the space provided, determine to
which of Maslow's Hierarchy of needs each need statement belongs.
● Use the following codes for your answer and explain each.
P - Physiological Needs , E -Esteem Needs, SA - Self - actualization Needs
SO - Social Needs, SF - Safety Needs ( 75 pts. )

Rubrics: 5 pts. -Able to answer and express his/her idea.

3-4 pts.- able to answer but his/her ideas were not clear.
1-2 pts.- students tried to answer but had difficulty expressing his/her idea

Your Your explanation Correct

answer answer

1. I need to belong to a certain

group I amco fortable with.

2. I need to make sure that my

working environment is secure.

3. I need people to recognize my

talents.

4. I need proper shelter

5. I need to find passion in life

6. I need to feel protected in the

places I go

7. I need the world to look up to me

8. I need to ensure my health is
always in check

9. I need to reciprocate the feeling I

gave them.

10. I need to discover my life mission

11. I need to know if my tenure as an

employee is stable

12. I need to access to clean and

sanitary natural resources

13. I need to know how to share my

gifts to others

14. I need friends and companions

15. I need to know my worth as a

person in the eye of others.

Activity 2 - Reflection Essay

Questions:
● Write an essay that assesses yourself as “MANAGER” and as an “EMPLOYEE”.
● What particular theory do you think you belong and why?
● Based on Maslow’s Hierarchy of Needs, what particular stage do you belong to right
now and why do you say so? ( 30 pts. )

Rubrics: 10 pts. -Able to answer and express his/her idea.

5-8 pts.- able to answer but his/her ideas were not clear.
1-4 pts.- students tried to answer but had difficulty expressing his/her idea

Day 4-5
MODERN MANAGEMENT
Modern management considers the organization as an adaptive system that has to adjust
to changes in the environment. It views the organization as a system and defines it as a
structured process in which individuals interact for attaining objectives .
A system is a set of interconnected and interrelated elements or component parts that
achieve certain goals. Figure 1.15 shows the systems approach to management.
The following are the characteristics of modern management:
1. Management is viewed as a system composed of five basic parts: (1) input, (2)
process, (3) output, (4) feedback, and (5) environment.
2 It is a dynamic process of interaction occurring within the structure of an
organization.
3. It is multilevel and multidimensional.
4. It is multi-motivated.
5. It is multidisciplinary.
6. It is multivariable.
7. It is adaptive and continuously adjusts to changing conditions.
8. It is probabilistic.
Some of the contemporary approaches to management in this modern age are:
● Contingency Thinking - no one best way to do the job
● Total Quality Management (TQM) – commitment to quality and performance
● Learning Organizations and Continuous Improvement
● Management Science or Operations Management forecasting, inventory modeling,
linear programming, and network models
● International Organization for Standardization or ISO Certification includes
mathematical

MANAGERIAL ROLES
For us to fully understand the job of a manager, it is important to examine the various roles
managers play in an organization. A role is defined as an expected set of activities of
behaviors stemming from a job. Henry Mintzberg, an internationally renowned academic
and author on business and management and also a Professor of Management Studies at
the University of Montreal in Quebec, Canada, pioneered studies on the identification of
managerial roles. There were 10 initially identified managerial roles divided into three
categories:
1. Interpersonal roles – involve interactions with persons inside and outside of the work unit
2. Informational roles – involve giving, receiving, and analyzing of information
3. Decisional roles – involve using information to make decisions to solve problems or address
opportunities.

PLANNING
1. Strategic Planner - Sets a direction for the organization, helps the firm deal with the
environment, develops corporate policies.
2. Operational Planner - Monitors daily operations of the company, formulates
operating budgets, develops work schedules

ORGANIZING AND STAFFING

3. Organizer - Designs jobs of group members, clarifies group members' assignments,
coordinates flow of work
4. Liaison - Develops and maintains a network of work-related contacts with people,
cultivates relationships with clients and suppliers.
5. Staffing Coordinator - Ensures that competent people fill positions, recruits and hires staff
6. Resource Allocator - Divides resources in a manner that best helps the organization.
7. Task Delegator - Assigns projects or tasks to group members, clarifies priorities and
performance standards, empowers group members.

LEADING
8. Motivator/Coach - recognizes employees achievements, offers encouragement and
reassurance, provides feedback to employees.
9. Figurehead - Engages in ceremonial activities, entertains clients or customers, serves as
official representative of the organization
10. Spokesperson - Answers inquiries and provides formal statements to individuals and
groups on behalf of the organization
11. Negotiator - Makes deals with others for needed resources, bargains with supervisors,
suppliers, and customers
12. Team Builder - Builds effective teams, improves group morale, conducts activities for
encouragement
13. Team Player - Displays appropriate personal conduct, cooperates with other units,
displays loyalty to superiors
14. Technical Problem Solver - Serves as technical expert or advisor
15. Entrepreneur - Suggests innovative ideas for furthering the business aspects of the firm

CONTROLLING
16. Monitor - Develops systems that measure performance, measures productivity and cost
or monitor
17. Disturbance Handler - Resolves grievances, complaints from customers and superiors,
and conflicts among group members.

Activity - Day 4
Instructions :
● The table below enumerates various managerial roles. Each role is listed with a
few-word reminder as an example of its key aspects.
● For each example of managerial activity, identify which among the 17 managerial
roles it is an example of. Write your answer in the Managerial Role column. ( 20 pts. )

Specific Activity Managerial Role

1. Answers inquiries and reports information to outsiders

2. Sets direction for others based on external environment

3. Assigns tasks to group members

Recruits, trains, evaluates, and fires group members

4. Helps group members solve technical problems

5. Makes deals with others for needed resources

6. Plans for running the organization or unit

7. Measures performance and reviews progress on tasks

8. Cooperates with others and encourages loyalty

9. Represents the group to outsiders

10. Develops and maintains network of work contacts

11. Suggests innovative ideas and new undertakings

12. Recognizes achievements, encourages, gives feedback

13. Resolves problems and complaints

14. Designs jobs for group members and clarifies tasks

15. Contributes to group morale and encourages members

16. Divides resources to help get job done

17. Recruits, trains, evaluates, and fires group members

MANAGERIAL SKILLS
To be effective, managers must possess certain essential skills to carry out their functions well.
A skill is an ability coming from someone's knowledge, practice, and aptitude to do
something well, as well as to translate that something into action that Results in desired
performance. By contrast, a talent is a specific natural ability or aptitude. It is a power of
mind and body considered as given to a person.

How then is a skill different from talent? We can say that a skill can be learned, whereas a
talent is honed.

Managers need to master three essential skills to perform their functions effectively: (1).
technical skills, (2) human and interpersonal skills, and (3) conceptual and analytical skills.

Technical skills refer to the ability to apply a special proficiency or expertise to perform
particular tasks. It involves an understanding of and proficiency in a specific activity that
involves methods, processes, procedures, or techniques. It also involves an intricate
knowledge of the business. Because of these, they are also referred to as "hard skills".

Interpersonal skills, also called "human skills" or "human relations skills," refer to the ability to
work well in cooperation with others. It is the manager's ability to work effectively as a team
member and to build cooperative effort in the unit. Communication skills are an important
component of interpersonal skills. Studies in organizational behavior state that interpersonal
skills are more important than technical skills in getting to the top and providing leadership to
people. These skills also are closely related to a person's emotional intelligence, which is the
ability to manage ourselves and relationships effectively. Interpersonal skills are also
frequently called "soft skills".

Conceptual and analytical skills refer to the ability to think critically and analytically to solve
complex problems. It also refers to the ability to "simplify" technical information and make it
more understandable to others. It also includes being able to do business to the industry.
Activity - Day 5

Instruction: Discuss and explain each question. Words must be minimum of at least 100
words - maximum of 150. ( 50 pts. )

Rubrics: 10 pts. -Able to answer and express his/her idea.

5-8 pts.- able to answer but his/her ideas were not clear.
1-4 pts.- students tried to answer but had difficulty expressing his/her idea

1. How can a person develop managerial experience?

2. What advantages do you think will the study of management give you when you
eventually look for a job?
3. In what ways can one become an effective manager?
4. Should companies hire managers based on “attitude” or “aptitude” ? why?
5. Why is “management “ usually regarded as an essential life skill?