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11/1/16

Evolution of

Management Theories

Competency Code: ABM_AOM11-Ia-b-2


ORGANIZATION AND MANAGEMENT

EVOLUTION

ORGANIZATION AND MANAGEMENT

11/1/16

Evolution as a word;
-

a process of continuous change from a lower, simpler, or


worse to a higher, more complex, or better state
(http://www.merriam-webster.com)

From early 17th century: from Latin evolutio (n-) unrolling,


from the verb evolvere (evolve)

Figuratively "to make clear, disclose; to produce, develop

ORGANIZATION AND MANAGEMENT

Evolution of Management
The driving force behind the evolution of
management theory is the search for better ways to utilize
organizational resources.

ORGANIZATION AND MANAGEMENT

11/1/16

SCIENTIFIC MANAGEMENT THEORY


Scientific
Management,
also
called Taylorism, is a theory of manageme nt
that analyzes and synt hesizes workflows. It s
main objective is improving economic
efficiency, especially labor productivity. It
was o ne of t he earliest attempts to apply
science to the e ngineering of processe s and
to management.
Frederick W. Taylor
(1856-1915)

ORGANIZATION AND MANAGEMENT

SCIENTIFIC MANAGEMENT THEORY


Themes of Scientific Management;
q
q
q
q

Frederick W. Taylor
(1856-1915)

Work Standardization
Work Simplification
Work Efficiency
Time and Motion

Pay your workers well

ORGANIZATION AND MANAGEMENT

11/1/16

HUMAN RELATIONS MANAGEMENT THEORY


Often referred to as motivational
theory, human relations management t heory
views the employee differently than the
more autocratic manageme nt t heories of
the past. The t heory assume s t hat people
want to work, that t hey're responsible and
self-motivated, t hat they want to succeed
and t hat t hey underst and their own po sition
in the company hierarchy.
George Elton Mayo
(18801949)

ORGANIZATION AND MANAGEMENT

HUMAN RELATIONS MANAGEMENT THEORY


Themes of Human Relations Management;
q
q
q
q

George Elton Mayo


(18801949)

Focuses on Relationship
Job contentment
Empowering employees
Motivating towards excellence

Treat your workers well

ORGANIZATION AND MANAGEMENT

11/1/16

THEORY X AND Y OF MCGREGOR


In 1960, Douglas McGregor
defined contrasting assumptions about
the nature of humans in the work place.
These assumptions are the basis of
Theory X and Theory Y teachings.

Douglas M. McGregor
(1906-1964)

ORGANIZATION AND MANAGEMENT

THEORY X AND THEORY Y OF MCGREGOR


Theory X

Theory Y

People do not like work


and that some kind of
direct
pressure
and
control must be exerted
to get them to work
effectively.

People are creative


and eager to work
and are motivated by
being involved in
organizational
planning.

Douglas M. McGregor
(1906-1964)

ORGANIZATION AND MANAGEMENT

11/1/16

THEORY X AND THEORY Y OF MCGREGOR


In relation to the Four Management Styles
Management Style

McGregors Theory

Autocratic (Military Type)


Custodial (Parenting Type)
Participative (gather suggestions but
decision lies on the manager)

Theory X

Theory Y

Collegial (Supreme Court Type)

ORGANIZATION AND MANAGEMENT

THEORY X AND THEORY Y OF MCGREGOR


In relation to Taylor and Mayos Theories
Management Theory

McGregors Theory

Scientific Management Theory

Theory X

Human Relations Management Theory

Theory Y

ORGANIZATION AND MANAGEMENT

11/1/16

THEORY Y OF DR. OUICHI


Often referred to as the "Japane se"
manage ment style, Theory Z offers t he notion
of a hybrid manage ment style, and deals
with t he way in which workers are perceived
by managers, as well as ho w managers are
perceived by workers

Dr. William G. Ouichi


(1943)

ORGANIZATION AND MANAGEMENT

THEORY X AND Y OF MCGREGOR AND THEORY Z OF OUICHI


In relation to the Four Management Styles
Management Style

McGregors
Theory

Autocratic (Military Type)


Custodial (Parenting Type)
Participative (gather suggestions but
decision lies on the manager)

Theory X
Theory Z
Theory Y

Collegial (Supreme Court Type)

Theory Z is also referred as contingency management


and situational leadership
ORGANIZATION AND MANAGEMENT

11/1/16

Lets Practice!

ORGANIZATION AND MANAGEMENT

What theory is applied to the following industry situations?


q ABC Car Park employs fifteen (15) employees including
valet attendants. The management d ecid ed to install a
bundy clock to make sure that all employees are
compelled to report on time. Employees with records of
tardiness are also meted with penalties such as salary
deductions, written warning and even unpaid suspension
from work. Employees performing excellently are also
rewarded with attendance bonus.

ORGANIZATION AND MANAGEMENT

11/1/16

What theory is applied to the following industry situations?


q Vergonia Cargo Forwarding Company, in keeping with its
commitment of on-time delivery, promotes strict
observance of its policies and guidelines. Although the
management involves its line employees in refining its
processes by consultation and repres entation, it also
enforce a standard process in dealing with overdue
delivery and other delivery related offenses.

ORGANIZATION AND MANAGEMENT

What theory is applied to the following industry situations?


q GoForth advertising agency, the leading modern
multimedia agency in South Cotabato, promotes quality
results from its artists and agents by constantly engaging
them in the d ecision making process of the organization.
Artists sit down with clients before story-boarding a script
and are given the freehand to decid e on closing deals
even prior to management approval. Management trust
their employees to carry out decisions that are efficient in
terms of costs and results.

ORGANIZATION AND MANAGEMENT

11/1/16

EVOLUTION OF

MANAGEMENT THEORIES
Neo-Classical
Theories
Scientific M anagement Human Relations
Bureaucratic
Management
Management
Behavioral Science
Administrative
Approach
Management
Classical Theories

Modern Management
Theories
Contingency Approach
Quantitative Approach
System Approach
Operational Approach

ORGANIZATION AND MANAGEMENT

GOD BLESS EVERYONE!

ORGANIZATION AND MANAGEMENT

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