ORGANIZATION AND MANAGEMENT He applied scientific principles in improving the process of assembling parts for the Model T.

entific principles in improving the process of assembling parts for the Model T. he Two main branches: management science and operations management
Lesson 2: The Evolution of Management Theories installed a moving assembly line where workers could concentrate on one task such as the
installation of a specific automobile part. This innovation greatly improved production time and Management science
Managers today are wrestling with the same problems and issues that confronted resulted in an increased production of automobiles. His technique was so effective that it -uses mathematics in problem solving and decision making
businesspeople and leaders many years ago. Management skills have been utilized since reduced the assembly time for the Model T from 13 hours to 1½ hours. -create ideal models that will be the basis for improved business operations and processes
ancient times, when tribal leaders organized hunting and gathering groups to acquire resources
from nature. The rise of civilizations have led leaders to organize communities and implement HOWEVER, some businesspeople and managers soon noticed some limitations: Operation management
more complex tasks such as the construction of infrastructures, the administration of 1. operations became routinary which led to boredom -apply ideas and models from management science to the actual workplace in dealing with
governments, and even the conduct of war. The emergence of capitalism during the 17th 2. money became the sole incentive for workers, ignoring other aspects of welfare managerial situations
century inspired entrepreneurs to establish guiding principles and develop means to ensure 3. workers felt that the piece-rate technique, where they were paid only for the unit they
success of any business venture. Theori es and views regarding management soon developed produced regardless of time, might lead managers to abuse power and exploit them Management information system is a most recent subfield of quantitative management. It
and grew into an organized field of study whose ideas are applied not only in business but also gathers past, present, and projected data from external and internal sources and transforms
in other aspects of life. Administrative Management Theory them into usable information which managers use to select the best alternatives and make
-focuses on the overall management of an organization, emphasizing the role of managers as decisions easily. This information is usually provided in easily accessible formats such as
The Development of Management administrators of the organization spreadsheets.
-introduced in the 20th century by Henri Fayol, a French industrialist
400-350 Medieval Early 20th
20th -Fayol identified five functions and fourteen principles of management Systems Theory
1100 BC 1780-1840
Century
Century to
BC Period Present -explains how interrelated parts operate together to achieve a common purpose
FIVE FUNCTIONS: planning, organizing, communicating, coordinating, controlling -with the advent of Industrial Revolution and the increasing requirements for increased
FOURTEEN PRINCIPLES OF MANAGEMENT: efficiency and greater precision in production and operations, the systems approach became
Practice of Development of Venetians Emergence of Business school US
a scientific improved economies of flourished. Some companies 1. division of work into specialized task with specific duties and responsibilities the preferred model of business organization and development
the four
approach to production by scale which notable schools engage in 2. authority - managers delegate tasks to the employees
managerial work by the standardizing reduced established at manufacturing
functions by
3. discipline - violators of rules must be punished defines an organization as a system which composed of four elements:
Greeks assembly lines, manufacturing that time were as the core
the Chinese using an costs during the the Wharton business.
4. unity of command - an employee should only report to one supervisor 1. Inputs (materials/human resources)
Practice of inventory Industrial School and 5. unity of direction - efforts of the employees are guided toward the attainment of 2. Transformation processes (technology/managerial operations)
management system, and Revolution Amos Truck organizational objectives 3. Outputs (products/services)
building School.
decentralization 6. predominance of the general interest of the organization over individual interests 4. Feedback (reactions from the environment)
by the Romans warehouses.
7. remuneration
Figure 1. Flowchart of the development of management through the centuries 8. centralization - the roles of all employees are clarified Contemporary systems theory analyzes an organization according to the degree to which it is
9. scalar chain - communication should be open within the chain of command open or not. An open system refers to an organization that interacts closely with its
10. order - organization of jobs and materials must be done in an orderly fashion environment and is fully aware of what is going in the environment as well as the changes it
Ancient civilizations practiced management in organizing and implementing various activities
11. equity – fairness and order must be practiced to maintain employee commitment experiences. A close system does not interact with its environment and pays little attention to
vital to their communities.
12. stability and tenure of personnel – actively promote employee loyalty changes in its surroundings.
13. initiative – encourage employees to act on their own
The Industrial Revolution of the 18th century introduced great changes in management
14. Esprit de corps – promote teamwork and the unity of interest between employees and Contingency Theory
practices. The emphasis on production brought about by improved industry generated a
management -argues that universal theories cannot be applied to organizations because each organization
demand for new ways of ensuring efficiency and effectiveness in factories and workplaces.
has unique characteristics and is confronted by varied problems or challenges
ANOTHER CONTRIBUTOR: -the personality of the leader determines how well he or she addresses situations in the
Scientific Management Theory
Max Weber workplace
-studies the application of scientific methods and principles for the purpose of redesigning the -German sociologist -other experts suggested that previous theories such as Weber’s bureaucracy and Taylor’s
work process to increase efficiency -his contribution is through his studies on public administration and bureaucracy scientific management failed because they overlooked the fact that management style and
-emphasizes the importance of labor in the production process and focuses on improving the -emergence of bureaucracy is an indication of people adopting a more rational and law-based organizational structure are influenced by various aspects of the environment, which are the
efficiency of workers in production view on leadership; bureaucratic structures allow for specialization of skills and enable workers contingency factors that define business situations
with different traits, skills, and goals to work together
Advocates: Frederick W. Taylor, Henry Gantt, Frank and Lillian Gilbreth
Fred Fiedler
Human Relations Theory -industrial and organizational psychologist
Frederick W. Taylor
-grew out of the human relations movement in the 1930s -studied the relationship between leadership and group effectiveness
- American engineer
-focuses on the social element in the workplace & considers the influence of interpersonal
- first to advocate scientific management
relationships, social conditioning, & group norms to determine the performance of workers Quality Management Theory
- book: The Principles of Scientific Management
- introduced four principles of management: (1) replace rule-of-thumb methods with those -emphasizes consistency in an organization & minimal to no errors or defects in production
Elton Mayo -ensures quality products and services that result to high customer satisfaction and increased
that are scientifically proven, (2) select, train, and develop each worker based on scientific
-Australian psychologist revenue
methods, (3) cooperate with the workers to ensure that scientific methods are being observed
-he and his colleagues embarked on a series of studies on workers in the Hawthorne Works -emerged after World War II through the work of William Edwards Deming
and implemented in their work, (4) divide work between managers and workers to ensure that
factory of the Western Electric Company: Hawthorne Studies
the managers apply the scientific management principles in planning the tasks and the workers
apply the principles while performing these tasks William Edwards Deming
Hawthorne Studies outcomes: set number of work hours, break times for workers,
- “Father of Scientific Management” -conducted his work in the 1950s in post-war Japan as he helped Japanese industries improve
improvements in lighting in work areas, close supervision by managers production
-his ideas were considered an important cornerstone of the Efficiency Movement
-his methods involved statistical process control (SPC) and problem-solving techniques
Managers were encouraged to be supportive of their workers and to actively involve them in
time and motion study
management decisions. Mayo observed that these changes resulted in increased significant principles: improved product design for improved service, uniform product quality,
- Taylor’s work combined with the research of Frank and Lillian Gilbreth on the same topic led
satisfaction among workers which also resulted in increased overall productivity. improved product testing, and increased market sales
to the development of this study
- a technique wherein a job is divided into component parts and the time consumed in
ANOTHER CONTRIBUTOR: Joseph Moses Juran
performing each task is measured
Abraham Maslow -also worked with Japanese businesses and introduced his concept of quality management
-he argued that individual behavior is primarily influenced by certain needs which emphasized training for top and middle managers
-he described these needs according to a hierarchy where people try to satisfy first their lower- -in 1979, he established the Juran Institute which guided organizations in improving the of their
ANOTHER EXAMPLE: Henry Ford’s improvement of the assembly line
level then to the higher-level needs: Physiological, Safety, Love/Belonging, Self-esteem, products and services
Henry Ford
Self-actualization -these efforts contributed toward making Japan an industrial power in Asia within a decade after
-industrialist who established Ford Motor Company and sold the first commercially available
automobile: the Ford Model T. the World War II
Quantitative Management Theory
-great improvements in operations and production
Quantitative management uses quantitative approaches such as statistical analyses and The Japanese concept, Kaizen, introduced in 1986, focuses on the continuous improvement of
WHAT DID HE DO? computer simulations to arrive at a management decision. people, processes, and products. Kaizen is a Japanese word which means “change for the
better” and requires implementation of gradual changes in an industry or organization over a
certain period.

The Japanese automotive manufacturer, Toyota, has been using Kaizen to implement small
improvements geared toward overall improvement in production and operations.

Lesson 3: The Manager