The document outlines the evolution of management theory from the systematic approach of the late 19th century to the classical theories of scientific management, administrative management, and bureaucratic management that emerged in the early 20th century. It then discusses the human relations school and social system school that challenged aspects of the classical theories. The document provides definitions and background on key theorists and concepts within each approach to management theory.

1. Management Theory Joefil C. Jocson EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

2. Outline Learning Expectations Definition of Management Introduction Pre-Classical Theory The Systematic Approach Classical Theory Scientific Management Administrative Management Bureaucratic Management The Human Relation School The Social System School EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

3. Expectations Know the why, what, when and how of the Systematic Management and classical approaches to management – the Scientific, Administrative, and Bureaucratic. Describe how the need to increase organizational efficiency and effectiveness has guided the evolution of management theory. Explain the principle of job specialization and division of labour, and tell why the study of person–task relationships is central to the pursuit of increased efficiency. Explain why the study of the external environment and its impact on an organization has become a central issue in management thought. EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

4. What is Management? EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual The word management is derived from the Italian word , Maneggiare, which means “to train horses” or literally “to handle” the French words, Maneger, meaning “to direct a household”, i.e. “ to economize” and Menager, “ an act of guiding or leading”. Etymologically, therefore it means to handle , direct economically, guide and lead. Source: http://www.introduction-to-management.24xls.com/en128

5. What is Management? EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual �Mary Parker Follett, described management as "the art of getting things done through people." Source: http://www.introduction-to-management.24xls.com/en128

6. What is Management? EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual �Richard L. Daft: "Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources“ Source: http://www.introduction-to-management.24xls.com/en128

7. What is Management? EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual �Peter Drucker's viewpoint, managers give direction to their organizations, provide leadership, and decide how to use organizational resources to accomplish goals. Source: http://www.introduction-to-management.24xls.com/en128

9. 10/6/2011 @ 2011 NEUST Masters in Engineering Management 10

10. Evolution of Management Theory EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

12. Systematic Approach (1890-1900) Some theorists of the pre-classical period HENRY TOWNE –.a mechanical engineer and president of the Yale and Towne Manufacturing company, Towne championed the need to treat management as a separate field of systematic study at par with engineering. In a meeting in ASME in Chicago, he proposed the establishment of a science of management and the development of principles that could be applied across situations of management. One of those present was Frederick W. Taylor who subsequently came out with scientific management. EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

13. Systematic Approach (1890-1900) Goals of Systematic Management Approach To build specific procedures and processes into operation to ensure coordination; To achieve economy in operations; To provided adequate staffing ; To maintain inventories to meet consumer demands; To set-up organizational controls EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

14. Systematic Approach (1890-1900) The goals of systematic management were achieved through: Definitions of duties and responsibilities Standardized techniques for performing these duties Specific means of gathering, handling, transmitting and analyzing information Cost accounting, wage and production control systems to facilitate coordination and communication EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

15. Systematic Approach (1890-1900) Systematic Management focused on internal operation because: Problems and concerns were in the manufacturing processes; Managers were under pressure to meet explosive growth in demand Managers were free to focus on internal issues of efficiency, partly because the government did not constrain business practices significantly. Labor was poorly organized at this stage of industrial development. As a result, managers were oriented towards things and machineries, rather than people. EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

16. Systematic Approach (1890-1900) Contributions: Beginning of formal management in the US Promotions of efficient, uninterrupted production Limitations Ignored relationship between an organization and its environment Ignored differences in manager and worker’s view EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

17. Scientific Management (1900-1910) EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual sci·en·tif·icman·age·ment noun Management of a business, industry, or economy, according to principles of efficiency derived from experiments in methods of work and production, esp. from time-and-motion studies Web definitions Scientific management was a theory of management that analyzed and workflows, with the objective of improving labor productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs Shop Management (1903). ... en.wikipedia.org/wiki/Scientific_management

18. Scientific Management (1900-1910) EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual Scientific Management comes out of the body of knowledge developed by Frederick W. Taylor, Frank and LilianGilberth and Henry L. Gantt. They studied mainly the jobs of workers at lower level of organization or shop floor level factories. It stresses scientifically determined changes in management practices as the solution to improving labor productivity. It introduced “time and motion study” to find the “one best way” to perform a task; that is, it studies how a task can be structured to increase labor productivity.

20. Time and task study of workers’ efforts to maximize productivity and output.

21. Systematic selection and training of workers to increase efficiency and productivity.

23. viewed workers as extensions of the machines,

24. ignores the nature of work as a social process,

25. dehumanized view of workers which defects later criticized later by the human relations school

29. Henri Fayol (1845-1924) French management theorist. Father of modern operational management theory (George, p. 146). First to ask “What is Management?” Author General and Industrial Management EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

30. EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

31. Plan "Planning reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact of change and develop appropriate responses." (Robbins, 2000, p.247) “deciding what needs to happen in the future” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

32. Organize Organization is the development of the institutions resources, including human and material resources “making optimun use of the resources to carry out the plan successfully” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

33. Command Commanding is keeping the institution’s action and process running “determining what needs to be done in a situation and getting people to do it” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

34. Coordinate Coordination is the alignment and harmonization of the group’s efforts EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

35. Control Control means that the above activities are performed according to the appropriate rules and procedures “ checking progress against plans” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

36. EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

37. 14 Principles of Management 1. Division of Work Specialization belongs to the order of things. The object of division of work is to produce more and better output with the same effort. This is accomplished by reducing the number of objects to which attention and effort must be directed. “Specialization of labor is necessary for organizational success” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

38. 14 Principles of Management 2. Authority and Responsibility Authority is the right to give orders and responsibility is its essential counterpart. Wherever authority is exerted, responsibility arises “The right to give orders must accompany responsibility” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

39. 14 Principles of Management 3. Discipline Discipline implies obedience and respect for the agreements between the firm and its employees. Establishing agreements binding a firm and its employees should be one of the chief preoccupations of industrial heads. Disciplinary formalities emanate from these agreements, and they maybe involve sanctions judiciously applied. “Obedience and respect help an organization run smoothly” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

40. 14 Principles of Management 4. Unity of command An employee should receive orders from one superior only EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

41. 14 Principles of Management 5. Unity of direction Each group of activities having one objective should be unified under one plan and one head “the efforts of everyone in the organization should be coordinated and focused in the same direction” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

42. 14 Principles of Management 6. Subordination of individual interest to the general interest The interest of one employee or group of employees should not prevail over that of the company or broader organization. “resolving the tug of war between personal and organizational interest in favor of organization is one of management’s greatest difficulties” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

43. 14 Principles of Management 7. Remuneration To maintain their loyalty and support, workers must be given a fair wage for their services rendered. “employees should be paid fairly in accordance with their contribution” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

44. 14 Principles of Management 8. Centralization Like division of work, centralization belongs to the order of things. However, the appropriate degree of centralization varies from one organization to the other. The problem is to find the measure that will give the best overall yield. “the relationship between centralization and decentralization is a matter of proportion; the optimum balance must be found for each organization” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

45. 14 Principles of Management 9. Scalar Chain The scalar chain is the chain of superiors, ranging from the ultimate authority to the lowest ranks. It is the error to depart needlessly from the line of authority, but it an even greater one to adhere to it to the detriment of the business. “subordinates should observe chain of command” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

46. 14 Principles of Management 10. Order A place for everything and everything in its place “both material things and people should be in their proper places” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

47. 14 Principles of Management 11. Equity Equity is the combination of kindness and justice “fairness that results from a combination of kindness and justice will lead to devoted and loyal service” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

48. 14 Principles of Management 12. Stability of Tenure of Personnel High turnover breed’s inefficiency. A mediocre manager who stays is infinitely preferable to an outstanding manager who comes and goes. “people need time to learn their jobs” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

49. 14 Principles of Management 13. Initiative Initiative involves thinking out a plan and ensuring out a success. This gives zeal and energy to an organization. “one of the greatest satisfaction is formulating and carrying out a plan” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

50. 14 Principles of Management 14. Esprit de Corps Union of strength, and it comes from harmony among personnel. It is an extension of the principle of unity of command, emphasizing the need for teamwork and the importance of communication “harmonious effort among individuals is the key to organizational success” EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual

51. Discussion Question? EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual Which of the following is the most important aspect of Fayol’s principles of management? Division of Labor Unity of Command Remuneration of Personnel Esprit de corps

52. Bureaucratic Management (1920-1930) EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual A group of workers (for example, civil service employees of the U. S. government), is referred to as "the bureaucracy.” “a formal system of organization based on clearly defined hierarchical levels and roles in order to maintain efficiency and effectiveness” Bureaucracy has an informal usage, as in “there‘s too much bureaucracy where I work.”

54. Weber’s Principles of Bureaucracy EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual “A continuous organization of official functions bound by rules” Authority of officials was subject to published rules and codes of practice. 2. Specialization Each office has a defined sphere of competence, involving division of labor 3. A clearly defined hierarchy of offices A firm system of supervision based on clear levels of authority. Each official knows whom to report to with specified rights of control and complaint procedures.

55. Weber’s Principles of Bureaucracy EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual 4. General Rules A stable, comprehensive system of conduct which can be learned and may require technical qualifications to understand and administer 5. Impersonality No hatred or passion with equality of treatment for all clients of the organization. 6. Free selection of appointed officials Selected that is on the basis of professional qualifications, with proof shown by a diploma gained through examinations.

56. Weber’s Principles of Bureaucracy EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual 7. Full-time paid officials Usually paid on the basis of hierarchical rank, the office being their sole or major concern. 8. Career officials There is a career structure and a system of promotion based on seniority or merit based on the judgment of superiors 9. Private / Public Split Separates business and private life. The official works in a detached fashion from the ownership of the organization. 10. There is a strict, systematic discipline and control of the official's work

57. Key Characteristics of Bureaucratic Management EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual RULES This are formal guideline for the behavior of employees while they are on the job. Rules can provide the discipline for the organization to achieve it’s goals. 2. IMPERSONALITY Reliance on the rules leads to impersonality. Members and managers are selected on the basis of their qualifications either by examination or on the basis of their education or training. 3. DIVISION OF LABOR This is the process of dividing duties and functions into simpler, more specialized task.

58. Key Characteristics of Bureaucratic Management EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual 4. HIERARCHICAL STRUCTURE This ranks jobs according to the amount of power and authority (right to decide) given to each manager or employee. The authority and responsibility are clearly legitimized. 5. AUTHORITY STRUCTURE This is the organizational structure that determines the right to make decisions of varying importance at different levels within the organization. 6. LIFELONG CAREER COMMITMENT This means job security is guaranteed as long as the manager or employee is technically qualified, competent and performs satisfactorily.

59. Key Characteristics of Bureaucratic Management EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual 7. RATIONALITY It is the use of the most efficient possible means to achieve the organization’s objectives. Rationality requires general organization’s goals or purpose to be broken down into more specific objectives for each part of organization.

60. Criticism of Bureaucratic Management EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual Too much emphasis on rules and regulations. The rules are and regulations are rigid and inflexible. No importance is given to informal groups. Nowadays, informal groups play an important role in all business organizations. Bureaucracy involves a lot of paper work. This results in lot of wastage of time effort and money There will be unnecessary delay in decision-making due to formalities and rules. Bureaucratic model maybe suitable for government organizations. But it won’t be suitable for business organizations because business organizations believe in quick decision making and flexibility in procedures.

61. Criticism of Bureaucratic Management EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual Too much importance is given to the technical qualifications of the employees for promotions and transfers. Dedication and commitment of the employee is not considered. There is difficulty in coordination and communication There is limited scope for Human Resource.

62. Human Relation Theory EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual Human relations movement refers to the researchers of organizational development who study the behavior of people in groups, in particular workplace groups. It originated in the 1930s' Hawthorne studies, which examined the effects of social relations, motivation and employee satisfaction on factory productivity. The movement viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts.

64. Arose out the influence of

65. The threat of unionization

66. The Hawthorne studies

69. Believed emotional factors were more important determinants of productive efficiency than were physical and logical factors.

70. Mary Parker Follett

71. Advocated that managers become aware of how complex each employee is and how to motivate employees to cooperate rather than to demand performance from them.

72. Concerned that Taylor ignored the human side of the organization. Suggested workers help in analyzing their jobsIf workers have relevant knowledge of the task, then they should control the task

73. The threat of unionization EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual The Wagner Act of 1935 legalized union-management collective bargaining, promoting the growth of unions and union avoidance by firms.

74. The Hawthorne Studies (1924) EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual The study’s results that productivity was strongly affected by workers’ attitudes turned management toward the humanistic and realistic viewpoint of the “social man” model Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932. Worker productivity was measured at various levels of light illumination. Researchers found that regardless of whether the light levels were raised or lowered, worker productivity increased

75. The Hawthorne Studies (1924) EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual Human Relations Implications Hawthorne effect— workers’ attitudes toward their managers affect the level of workers’ performance Human relations movement – advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity

76. Question? EnM 211 - Organizational Communication and Records Management: Prof. Ronaldo F. Pascual What theory assumes the average worker is lazy, dislikes work and will do as little as possible? Theory X Theory Y Theory Z Theory QZ

78. Developed Theory X and Theory Y

79. Theory X: management’s traditionally negative view of employees as unmotivated and unwilling workers.

80. Workers have little ambition and wish to avoid responsibility

81. Managers must closely supervise and control through reward and punishment.

82. Theory Y: the positive view of employees as energetic, creative, and willing workers.

85. A collection of parts that operate interdependently to achieve a common purpose.

86. Systems Approach

87. Posits that the performance of the whole is greater that the sum of the performance of its parts.

88. Analytic versus synthetic thinking: outside-in thinking versus inside-out thinking.

89. Seeks to identify all parts of an organized activity and how they interact.