EVOLUTION OF

MANAGENT THEORIES
Walk an extra
mile with your
customer
Customer is
always right.
 THE EVOLUTION OF MANAGEMENT
THEORIES FOR ORGANIZATION
ORGANIZATIONAL
THEORY
MANAGEMENT
SCIENCE THEORY
BEHAVIORAL
MANAGEMENT THEORY
ADMINISTRATIVE
MANAGEMENT THEORY
SCIENTIFIC MANAGEMENT
THEORY

1800 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Management is universal and
dynamic.
Any period in the evolution of
management involves an
interface of segments that
cannot be divided.
Each period is a part of the


development and evolution

of the other.
Organization and


management have existed

over thousands of years
ago.
 Earliest forms of civilization during
ancient times were able to build
structures, shelters, bridges, and
tools by a group of people out of
available resources and led by
good management.
5-MANAGEMENT THEORIES
 5-MANAGEMENT THEORIES

1) Scientific Management
2) Administrative Management Theory
3) Behavioral Management Theory
4) Management Science Theory
5) Organizational Environment Theory
5-MANAGEMENT THEORIES

1.SCIENTIFIC MANAGEMENT
- Theuse of scientific method
to determine the best way
for a job to be done
5-MANAGEMENT THEORIES

1.SCIENTIFIC MANAGEMENT
- The most significant contributor
is Frederick W. Taylor.
- He made a scientific study of workers,
machines, and workplace by using the
method of standardization of parts,
uniformity of work structure and the
assemlbly line.
5-MANAGEMENT THEORIES

2. ADMINISTRATIVE MANAGEMENT
THEORY
- The theorists focused more on the
entire organization.
- They developed general theories of
what managers do and what
comprised well management
practices.
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT THEORY
Fayol’s 14- Principles of Management:
1. Division of work –produce more
and better output with the same
effort
2. Authority- the right to give
orders
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT THEORY
Fayol’s 14- Principles of Management:
3. Discipline – obedience and respect
between the firm and its employees
4. Unity of command- an employee should
receive orders from one superior only
5. Unity of Direction – each group of
activities having one objective should
be unified under one head
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT THEORY
Fayol’s 14- Principles of Management:
6. Subordination of individual interest
to a group of interest – the interest
of one employee should not prevail
over that of the company
7. Remuneration – to maintain loyalty
and support, workers must be given
of fair wage
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT THEORY
Fayol’s 14- Principles of Management:
8. Centralization – natural order of
things
9. Scalar chain – chain of superiors
ranging from the ultimate authority
to the lowest ranks
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT
THEORY

Fayol’s 14- Principles of Management:

10. Order – everything in its place
11. Equity – combination of
kindliness and justice
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT THEORY

Fayol’s 14- Principles of Management:

12. Stability of Tenure-an average
manager who stays is preferable
to an outstanding manager who
comes and goes
13. Initiative- thinking out a plan and
ensuring its success
5-MANAGEMENT THEORIES

2. ADMINISTRATIVE MANAGEMENT
THEORY
Fayol’s 14- Principles of
Management:
14. Esprit de Corps – union is
strength, and it comes from
harmony among personnel
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT THEORY
- Another proponent is Max Weber, a German
sociologist and considered to be the Father of
Bureaucracy
- Focus on division of labor, clearly defined

hierarchy, career advancement, rules and

decisions based on written format and
impersonal relationships
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT THEORY
- According to Weber, bureaucracy
is the ideal pure form of
organization
5-MANAGEMENT THEORIES
2. ADMINISTRATIVE MANAGEMENT THEORY
- Bureaucracy is a model of
organization based on defined
positions, formal authority, and a
regulated environment that
includes well documented rules,
policies and procedures.
5-MANAGEMENT THEORIES
3. BEHAVIORAL MANAGEMENT THEORY
- Often called human relations movement
- Theorists then believed that a better
understanding of human behavior while
at work , improved productivity and that
employees are not machine but are
considered to be valauble asset in the
organization.
5-MANAGEMENT THEORIES
3. BEHAVIORAL MANAGEMENT THEORY
- Abraham Maslow (1908- 1970), an American
psychologist created the Maslows Hierarchy
of Needs. His assumption of the human needs:
 Human needs are never completely satisfied.
 Human behavior is purposeful and is motivated by the
need for satisfaction.
 Needs can be classified according to hierarchical
structures of importance from lowest to highest.
 5-MANAGEMENT THEORIES
3. BEHAVIORAL MANAGEMENT THEORY
- Maslow’s Hierarchy of Needs helped managers
to understand, visualize and create employee
motivation.
 Physiological needs – All physical needs
 Safety needs- basic security and protection
 Belonging and love needs-
 Esteem needs- achievement, confidence, respect, fame
 self actualization needs- after all the needs have been
satisfied
Fugure1. Maslow’s Hierarchy of Needs
5-MANAGEMENT THEORIES
4. MANAGEMENT SCIENCE THEORY
- Quantitative approach to management
- includes application of statistics,
optimization models, information models,
and computer simulations
- Contributes to managerial decision
making particularly in planning and
controlling
5-MANAGEMENT THEORIES
5. ORGANIZATIONAL ENVIRONMENT THEORY
- Theorists recognized that human factor alone is
not a consideration to achieve organizational
effectiveness.
- Organization is a part of a larger environment

outside its boundaries.

- The organization is affected by social,
technical, and economic factors.
5-MANAGEMENT THEORIES
5. ORGANIZATIONAL ENVIRONMENT THEORY
- 2-Types of System:

 Open system

 Closed system
5-MANAGEMENT THEORIES
5. ORGANIZATIONAL ENVIRONMENT THEORY
- 2-Types of System:

- An open system interacts with its

environment through giving and receiving
information.
- Example: a public relations department is
an example of an open system that must
interact with the outside environment on a
regular basis
5-MANAGEMENT THEORIES
5. ORGANIZATIONAL ENVIRONMENT THEORY
- 2-Types of System:

- Closed systems are closed off from the

outside environment, and all interaction
and knowledge is transmitted within the
closed system only.
- Closed systems can hamper growth since
the flow of information stays within the
system and has no chance to interact with
or build on knowledge from the outer
environment.
5-MANAGEMENT THEORIES
5. ORGANIZATIONAL ENVIRONMENT THEORY
- 2-Types of System:

- Example: a research-and-development
(R&D;) department within a computer
organization may be set up as a closed
system with no interaction outside of the
division; the purpose is to protect trade
secrets and inventions that are being
produced inside. An R&D;
5-MANAGEMENT THEORIES
5. ORGANIZATIONAL ENVIRONMENT THEORY
- 2-Types of System:
- A corporate messaging system can be an example
of a closed system depending on how it is set up
within an organization. While email systems are
open systems, corporate instant messaging systems
are closed systems in which you establish with
whom you want to communicate. Unlike email
systems, which allow you to include more than one
person on a note, many corporate messaging
systems allow you to converse only with one
person at a time.
QUIZ TIME