1. MANAGEMENT THOUGHT
ERWIN ABAD
DEPARTMENT OF HEALTH – FINANCE SERVICE

2. SCHOOLS OF MANAGEMENT
THOUGHT
Classical School
Behavioral School
Modern Management School

3. Classical School
a. Scientific Management – focused on matching
people and tasks to maximize efficiency.
b. Bureaucratic Management - ocused on the ideal
form of organization
c. Administrative Management – focused on
identifying principles that will lead to the
creation of the most efficient system of
organization and management

4. Scientific Management
 arose because of the need to increase
productivity and efficiency. The emphasis was
on trying to find the best way to get the most
work done by examining how the work
process was actually accomplished and by
scrutinizing the skills of the workforce.

5. Taylor & Scientific
Management
 Experiment in Iron Foundry
 Shoveling Coal
 Standard Operating Procedure:
Hire the man with the
shovel
 New Idea: Use
 standardized shovels!!!

6. General Principles of Scientific Management
1) There is one best way to perform a task
2) Selection and training of workers
3) Incentives should be provided for workers
to use the "one best way"
4) Managers and labor share work and
responsibility.

7. Bureaucratic Management
 MAX WEBER (1864-1920)
a German sociologist, was a teacher at Berlin
University. He was a chief exponent of a
bureaucratic model. Bureaucratic
organization, in Weber’s views, is the most
efficient form of organization.

8. According to Weber the major
characteristics of bureaucracy
are:
 A well defined hierarchy
 Division of labor and specialization
 Rules and regulations
 Impersonal relationships between managers
and employees
 Records
 Competence

9. PRINCIPLE OF BUREAUCRACY
1. a manager’s formal authority derives from the position held within
the organization.
2. people should occupy position because of their performance, not
because of their personal contact.
3. The extent of each position’s formal authority and task
responsibilities, and its relationship to other positions in an
organization, should be clearly specified.
4. So that authority can be exercised effectively in an organization,
5. Manager must create a well-defined system of rules, standard
operating procedures, and norm

10. BENEFITS OF BUREAUCRACY
1. The rules and procedure are decided for every work. It lead to
consistency in employee behavior.
2. overlapping or conflicting job duties are eliminated.
3. The selection process and promotion procedure are based on
merit and expertise.
4. The division of labor help workers in becoming experts in their
job.
5. The organization does not suffer when some person leave it. If
one person goes then some other occupies that place and the
work does not suffer.

11. Administrative Management
Henri Fayol (1841-1925)
Functions of management
1. to forecast and plan
2.to organize
3. to command
4.to coordinate
5.to control

12. Principles of Management
1. Division of Work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of Individual Interests to
General Interest
7. Remuneration of Personnel

13. Principles of Management
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps

14. Limitations of the Classical
School of Management
 Reliance on Experience
 Untested assumptions
 Failure to Consider The Informal Organization
 Unintended Consequences
 Human Machinery
 Static Conditions

15. DISADVANTAGES OF BUREAUCRACY
1. The system suffers from too much
of red tape and paper work.
2. The employees do not develop
belongingness to the organization.
3. The excessive reliance on rules
and regulation and adherence to
these policies inhibit initiative and
growth of the employee. They are
treated like machine and not like
individuals.
4. The employees become so used
to the system, they resist to any
change and introduction of new
techniques of operations.

16. Behavioral School
• Neo-classical theory deals with the human factor. Elton Mayo
pioneered the human relations to improve levels of
productivity and satisfaction.
•
This approach was first highlighted by the improvements
known as ‘ Hawthrone Experiments’ conducted at Illionois
plant of western electric company between 1927 and 1932.
• Neo-classical approach also causes ‘Behavioural Science
Management’ which is a further refinement of human
relations approach

18. Behavioral Era
PEOPLE SIDE OF
ORGANIZATIONS
BIRTH OF THE
PERSONNEL OFFICE
INDUSTRIAL
PSYCHOLOGY
MAGNA CARTA OF
LABOR
HUMAN RELATIONS
BEHAVIORAL SCIENCE
THEORISTS

19. •
ABRAHAM MASLOW
– Father of Humanistic
Psychology
– Theory of Motivation/ Hierarchy
of needs: physiological, safety,
social esteem, and self
actualization
– Each step of the hierarchy must
be satisfied before the next can
be activated, and that once a
need was substantially satisfied,
it no longer motivated behavior.
– Self actualization, achieving
one’s full potential, summit of a
human being’s existence

21. Free up
employees to
unleash their
full creative
and productive
potential

22. DOUGLAS McGREGOR

23. THE MODERN MANAGEMENT SCHOOL
 Modern management thought has evolved from
older theories of management and years of
management experience. Additionally,
supporting and conflicting theories have been
offered over the years leading to more
confusion.

24. Decision theory approach
 The decision theory school focused on the
managerial decision making which, in its view, is
the core management task, pervading all
management functions.
Management science theory
 is an approach to management that focuses on
the use of rigorous quantitative techniques to
help managers make maximum use of
organizational resources to produce goods and
services.

25. PRODUCTION AND OPERATIONS
MANAGEMENT
 This school focuses on the operation and
control of the production process that
transforms resources into finished goods and
services. It has its roots in scientific
management but became an identifiable area
of management study after World War II. It
uses many of the tools of management
science.

26. Systems Approach

Views organization as a system composed of
interconnected-and thus mutually dependentsub-systems.

Sub-systems can have their own sub-subsystems.

A system can be perceived as composed of
some components, functions and processes
(Albrecht, 1983)

27. Characteristics of Systems
Systems have structure, defined by
components/elements and their
composition;
Systems have behavior, which involves
inputs, processing and outputs of material,
energy, information, or data;

28. Characteristics of Systems
Systems have interconnectivity: the various
parts of a system have functional as well as
structural relationships to each other.
Systems may have some functions or
groups of functions

29. Open versus closed systems. According to
Ludwig von Bertlanffy, there are two basic
types of systems: closed systems and open
systems. Closed system are not influenced by
and do not interact with their environments.
Open systems interact with their
environment. All organizations are open
systems, although the degree of interaction
may vary.

30. Contingency Approach
Based on the belief that there cannot be universal
guidelines which are suitable for all situations.
(Selznick, 1949; Burns and Lorsch, 1967)
Suggests that different environments require different
organizational
relationships
for
optimum
effectiveness, taking consideration various social,
legal, political, technical and economic factors.
(
Hellriegel and Slocum, 1973)

31. Contingency Approach
Based on the belief that there cannot be universal
guidelines which are suitable for all situations.
(Selznick, 1949; Burns and Lorsch, 1967)
Suggests that different environments require different
organizational
relationships
for
optimum
effectiveness, taking consideration various social,
legal, political, technical and economic factors.
(
Hellriegel and Slocum, 1973)

32. Contingency Approach
Four important ideas of Contingency are:
1. There is no universal or one best way to manage
2. The design of an organization and its subsystems must
'fit' with the environment
3. Effective organizations not only have a proper 'fit' with
the environment but also between its subsystems
4. The needs of an organization are better satisfied when
it is properly designed and the management style is
appropriate both to the tasks undertaken and the nature
of the work group.

33. Thank You