Management

Theories

Jezreel L. Albaran, DBA©

Objectives
At the end of the lesson, the
students should be able to:

1. Identify various types of management

theories.
2. Examine the various types of
management theories.
3.Value the importance of management
theories to business.
What is Management Theory?

Theory
1. Idea
2. Philosophy
3. Model
4. Principle
5. Scheme
6. System
7. Notion
What are the Management
Theories?

1. Scientific Management Theory

2. General Administrative Theory
3. Total Quality Management
Theory
4. Organizational Behavior
Approach Theory
Scientific Management Theory

Theorized by Frederick W.
Taylor (Father of Scientific
Management) that management
must have a scientific method for
finding the best way for doing a
job.
4 Principles of the Scientific
Management Theory
1. Develop a science for each
element of a man’s work, to
replace the old rule of thumb
method.
2. Scientifically select and train
the worker.
4 Principles of the Scientific
Management Theory
3. Heartily cooperate with men to
ensure that all work done is in
the accordance with the
principles of the science
develop for the work.
4. Divide the work and the
responsibility equally between
management and worker.
General Administrative Theory

Theorized by Henri Fayol and

and Max Weber concentrating on
the manager’s function and what
makes up a good management
practice.
14 Henri Fayol’s Management
Principles
1. Work Division (Specialization)
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to general interest
7. Remuneration/pay
8. Centralization
9. Scalar chain of authority
10.Maintenance of order
11.Equity/fairness
12.Stability/Security of tenure
13.Employee initiative
14.Promotion of team spirit (esprit de corps)
Division of Work
This is the assignment of
specialized jobs to various
department or position.

If people’s work is specialized,

people learn the task more easily
and perform it efficiently and
effectively.
Authority
It is the power (right) entrusted
to make the work assigned to a
particular position possible.
Discipline
It is imposing proper decorum
(appropriates, dignity, modesty) to
all human resources and follow
strictly the rules and regulation of
the organization to achieve
organizational goals.
Unity of Command
All employees should receive
order from one superior or manager
only.

Thus, avoiding confusion.

Subordination of Individual
Interest to General Interest
The interest of one employee
or group of employee should not
prevail over the interest of the
business.
Remuneration/Pay
It is also called compensation, it
is a method of payment that should
be fair and afford the maximum
possible satisfaction to both
employee and employer.

This principle is based on

“equal work for equal pay.”
Centralization
It is a system of management
wherein major policies are made
only by the top management.
Scalar chain of authority
It is the “chain of superiors”
from the highest to the lowest rank.

Authority rests from the highest

rank and is passed from the highest
to the lowest rank.
Maintenance of order

There should be a good

working environment (a place for
everything like office facilities,
supply, fixture and, equipment,
harmonious relationship between
human resources).
Equity/Fairness

It is the application of rules and

regulations to all human resources
without prejudice to religion,
educational attainment, race
(ethnicity), age, gender preference
(LGBTQ+), etc.
.
Stability/Security of Tenure of
workers
Employees should be given
enough time and period to prove his
worth to the company.

Probationary/Provisional status
(maximum of 6 months, as provided
by the law)
.
Employee initiative

Employees are given leeway to

exercise freedom and make
innovation on the processes
he/she see fit to achieve the
organizational goals as long as
he/she is still aligned to
organizational rules and
regulations.
Promotion of team spirit /Esprit
de Corps(is-pre-de-kor)-

It emphasizes the need for

teamwork (“in union there is
strength”) and the importance of
communication in obtaining it.
4 Components that distinguishes
bureaucracy as an organizational
form according to Max Weber’s
Management Principles
1.Division of labor
2.Hierarchical identification of job
positions
3.Detailed rules and regulations
4.Impersonal connections with one
another
Total Quality Management

Theorized by W. Edward Deming

and Joseph M. Juran the idea of
customer orientation where it focuses
on the satisfaction of the customers
need, want, and demands.
Joseph M. Juran’s Total Quality
Management

1. Quality of design
2. Quality of Conformance
3. Availability
4. Full Service
Quality of design

Can be obtained through

market research, product, and
concept.
Quality of conformance

Can be obtained through

management, manpower, and
technology.
Availability

Can be obtained through ability,

maintainability, and logistic support.
Full service

Can be obtained through

promptness, competence, and
integrity.
Organizational Behavior Approach
Theory

Theorized by Robert Owens,

Mary Parker Follett, Hugo
Munsterberg, and Chester Bernard
involves the study of conduct,
demeanor , and actions of human
resource at work.
What are the Management Theories?

1. Scientific Management Theory

focuses on process
2. General Administrative Theory
focuses on managers
3. Total Quality Management Theory
focuses on customers
4. Organizational Behavior Approach
Theory
focuses on employee behavior
Why is there a need to study the
different Management Theories?

These Management Theories helps

improve the management process.

Improvement is a continuous
process.