Module 4

1. Module 4 Evolution of Management Theory and Practice Management / Human Resource Area Time Frame: 3rd & 4th Week – 6 hours Colegio de San Juan de Letran

2. 4 Evolution of Management Theory & Practice Management / Human Resource Area Colegio de San Juan de Letran

3. 4 Evolution of Management Theory & Practice Module Outline: • This module will discuss the following topics: • A. Historical Background of Management • 1Ancient times • 2Modern Era • 3Industrial Revolution: Adam Smith’s Wealth of Nations • B. Development of Management Thought • 1The Scientific Management Theory / Approach • 2The General Administrative Theory / Approach • 3The Management Science / Quantitative • Approach • 4 The Behavioral Theory / Approach Management / Human Resource Area Colegio de San Juan de Letran

4. 4 Evolution of Management Theory & Practice Objectives: • At the end of this lesson students are expected to: • Explain the value of studying management history • Identify some major pre-twentieth-century contributions to management • Summarize the contributions of the scientific management advocates • Describe the contributions of the general administrative theorists • Summarize the quantitative approach to management • Describe the contributions of the early organizational behavior advocates • Explain the importance of the Hawthorne Studies to management • Describe the effects of: globalization, workforce diversity, entrepreneurship, e-business, • flexibility and innovation, quality management, learning organizations, and workplace spirituality Management / Human Resource Area Colegio de San Juan de Letran

5. 4 Evolution of Management Theory & Practice Food for the BRAIN • "My experiences have convinced me beyond a shadow of doubt that the effectiveness of training can increase dramatically if, above all, we help participants to examine and reappraise their conceptual worlds, and thus make them more receptive to alternatives" – Klas Mellander Management / Human Resource Area Colegio de San Juan de Letran

6. 4 Evolution of Management Theory & Practice Introduction Management with its complexities is, by and large, a people-oriented discipline and as such resolves around people and business organization. Changes that affect people in business organization is its deep concern. Our next topic is about the historical background of management. Its been explained by different authors of business management that organization have existed for thousand of years. Management / Human Resource Area Colegio de San Juan de Letran

7. 4 Evolution of Management Theory & Practice LOOK Ahead • The facilitator will provide a power point presentation about the pyramid and the great walls of China. Each student will be required to observe the presentation and must jot down the significant aspects of the presentations. They must answer the following questions that would lead to the next topic: • 1. How do you think people were able to construct the pyramid and the great walls of China? • 2. Who do you think have told them to build those structures? • 3. Do you believe, planning was part of this action? Why? Why not? Management / Human Resource Area Colegio de San Juan de Letran

8. 4 Evolution of Management Theory & Practice Lesson Contents Management Theories Historical Background Scientific Management General Administrative Theorists Quantitative Approach Organizational Behavior Early Examples of Management Early Advocates Adam Smith Management / Human Resource Area Hawthorne Studies Industrial Revolution Colegio de San Juan de Letran

9. 4 Evolution of Management Theory & Practice Lesson Contents • Historical Background Of Management Significant Pre-Twentieth-Century Event Adam Smith’s Wealth of Nations Management / Human Resource Area Industrial Revolution -Substitution of machine power for human power -Large organizations required formal management Adam Smith’s invisible hand Colegio de San Juan de Letran

10. 4 Evolution of Management Theory & Practice Lesson Contents Classical School Scientific Management • F.W. Taylor – proponent of the Principles of Scientific Management which is characterized by: • use of scientific methods to define the “one best way” for a job to be done • perspective of improving the productivity and efficiency of manual workers • applied the scientific method to shop floor jobs Management / Human Resource Area Frederick Taylor (1856-1915) Colegio de San Juan de Letran

11. 4 Evolution of Management Theory & Practice Lesson Contents Classical School Time and Motion Studies • Frank and Lillian Gilbreth experimented on the use of motion pictures to study hand-and-body movements, which they termed as: • Microchronometer • therbligs - classification system for 17 basic hand motions Management / Human Resource Area Frank and Lillian Gilbreth Colegio de San Juan de Letran

12. 4 Evolution of Management Theory & Practice Lesson Contents General Administrative Theorists Administrative Management • H. Fayol had focused on the following issues: • concerned with making the overall organization more effective • developed theories of what constituted good management practice • proposed a universal set of management functions • published principles of management • fundamental, teachable rules of management Management / Human Resource Area Henri Fayol Colegio de San Juan de Letran

13. 4 Evolution of Management Theory & Practice Lesson Contents General Administrative Theorists Max Weber’s Bureaucracy • Bureaucracy - ideal type of organization, characterized by: • - division of labor • - clearly defined hierarchy • - formal selection • - impersonal relationships • - career orientation • - impersonal relationships Management / Human Resource Area Max Weber Colegio de San Juan de Letran

14. 4 Evolution of Management Theory & Practice Lesson Contents Max Weber’s Bureaucracy Jobs broken down into simple, routine, and well defined tasks. Managers are career professionals, not owners the units they manage Positions organized based on a hierarchy with a clear chain of command. Division of Labor Career Orientation Authority Hierarchy A Bureaucracy should have Impersonality Formal Selection Formal Rules and Regulations Management / Human Resource Area People selected for jobs based on technical qualifications Uniform applications of rules and controls, not according to personalities. System of written rules and standard operating procedures Colegio de San Juan de Letran

15. 4 Evolution of Management Theory & Practice Lesson Contents Quantitative Approach To Management Operations Research (Management Science) The following tools and models such as applications of statistics, optimization models, computer simulations of management activities has been available and maximized to come up with a sound decisions. Linear programmingwas used to improve company resource allocation decisions. While the Critical-path scheduling analysishelped business organizations to improve their work scheduling activities. Management / Human Resource Area An inventory System in a big company downloaded from: http://www.thelangroup.net Colegio de San Juan de Letran

16. 4 Evolution of Management Theory & Practice Lesson Contents Toward Understanding Organizational Behavior Human Relations School / Organizational Behavior The Hawthorne Studies • Elton Mayo initiated the studies of job designing and organization. • He revealed the importance of social norms as determinants of individual work behavior • He changed the dominant view that employees were no different from any other machines Management / Human Resource Area Elton Mayo Colegio de San Juan de Letran

17. 4 Evolution of Management Theory & Practice Lesson Contents Toward Understanding Organizational Behavior Human Resources School Integrating the Management Theories Systems Theory Contingency View Emerging Management Positions Management / Human Resource Area Colegio de San Juan de Letran

18. 4 Evolution of Management Theory & Practice Flash Review • Management Management practices have been existing even before the actual studies on the field were conducted. The ability of the people to construct structures such as the great walls of China and the pyramid in Egypt testifies to the existence of early management practices. Adam Smith, on the other hand, provided us with a better understanding about the idea and concept of division of labor, which is very important in management. After this development, people have introduced ideas on mass production and transportation through the substitution of human power by machine power, wherein large organizations required formal management. Management / Human Resource Area Colegio de San Juan de Letran

19. 4 Evolution of Management Theory & Practice Mental Flex • The Virtual Business Organization Students must form a group of five to create a virtual business organization. Ask them to apply the functions of management. Each group will make a narrative report on the outcome of their deliberation. Each group must choose a secretary, leader, and a reporter. The secretary will write the proceedings, the leader will facilitate the discussion, and the reporter will discuss the result of their deliberations to the class. Management / Human Resource Area Colegio de San Juan de Letran

20. 4 Evolution of Management Theory & Practice Assignment • To encourage participation in classroom discussions, • students must be given assignment on the following • topics: • Management Theories and Practices- • Scientific Management • General Administrative Theory • Quantitative Approach • Organizational Behavior • The assignment could be submitted via email of the facilitator or handwritten, depending on the professor. Management / Human Resource Area Colegio de San Juan de Letran

21. 4 Evolution of Management Theory & Practice Looking Back (the final test) • Review Questions: (10 points each) • (Answer the following questions in two and three paragraphs by citing examples based • in real life situation.) • What are the contributions of the pre-twentieth century to the field of management? Explain their importance to the practice of management? • Describe the contributions of the general • Describe the effects of motivation to the performance of employees in an organizations. Cite concrete examples to support your answer. Management / Human Resource Area Colegio de San Juan de Letran

22. 4 Evolution of Management Theory & Practice Cases • A based-on-reality cases reflect the major theme of this module-lesson and help students refine their decision-making skills. The facilitator is expected to guide his students through out the case analysis. • Suggested Cases: • Applying management to baseball: The Dodger Tradition Managing • (Management by Jerry Kinard, Western Kentucky University) • b. Volvo Eliminates the Assembly Line • (Management by Jerry Kinard, Western Kentucky University) Management / Human Resource Area Colegio de San Juan de Letran

23. 4 Evolution of Management Theory & Practice End of Module 3 Thank You very much! Management / Human Resource Area You finished it on time. Congratulations! Colegio de San Juan de Letran