SCHOOL MANAGEMENT Module Management Theories: Classical Management Theory 1 Quarter 2 ORGANIZATION AND MANAGEMENT Quarter 2 – Module 1: Management Theories First Edition, 2020
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Development Team of the Module
Writer: Emerson P. Agcaoili Editors: Emerson P. Agcaoili Reviewers: Teresita P. Tagulao, Ed. D., Mathematics Layout Artist: Clifchard D. Valente Management Team: Ma. Evalou Concepcion A. Agustin OIC-Schools Division Superintendent Aurelio G. Alfonso, Ed. D. OIC-Assistant Schools Division Superintendent Victor M. Javena, Ed. D. Chief - School Governance and Operations Division OIC – Chief Curriculum Implementation Division Education Program Supervisors 1. Librada L. Agon, Ed. D., EPP/TLE 2. Liza A. Alvarez, Science 3. Bernard R. Balitao, Araling Panlipunan 4. Joselito E. Calios, English 5. Norlyn D. Conde, Ed. D., MAPEH 6. Wilma Q. Del Rosario, LRMS 7. Ma. Teresita E. Herrera, Ed. D., Filipino 8. Perlita M. Ignacio, Ph. D., ESP/SPED 9. Dulce O. Santos, Ed. D., Kinder/MTB 10. Teresita P. Tagulao, Ed. D., Mathematics
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Module
1 Quarter 2
Management Theories: Classical Management Theory Introductory Message
For the facilitator:
Welcome to the Organization and Management Module on Management Theories !
This module was collaboratively designed, developed and reviewed by educators
from Schools Division Office of Pasig City headed by its Officer-In-Charge Schools Division Superintendent, Ma. Evalou Concepcion A. Agustin in partnership with the Local Government of Pasig through its mayor, Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K to 12 Curriculum using the Most Essential Learning Competencies (MELC) while overcoming their personal, social, and economic constraints in schooling.
This learning material hopes to engage the learners into guided and independent learning activities at their own pace and time. Further, this also aims to help learners acquire the needed 21st century skills especially the 5 Cs namely: Communication, Collaboration, Creativity, Critical Thinking and Character while taking into consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of the module:
Notes to the Teacher
This contains helpful tips or strategies that will help you in guiding the learners.
As a facilitator you are expected to orient the learners on how to use this module. You also need to keep track of the learners' progress while allowing them to manage their own learning. Moreover, you are expected to encourage and assist the learners as they do the tasks included in the module. For the learner:
Welcome to the Organization and Management Module on Management Theories !
The hand is one of the most symbolized part of the human body. It is often used to depict skill, action and purpose. Through our hands we may learn, create and accomplish. Hence, the hand in this learning resource signifies that you as a learner is capable and empowered to successfully achieve the relevant competencies and skills at your own pace and time. Your academic success lies in your own hands!
This module was designed to provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time. You will be enabled to process the contents of the learning material while being an active learner.
This module has the following parts and corresponding icons:
Expectation - These are what you will be able to know after completing the lessons in the module
Pre-test - This will measure your prior knowledge and the concepts to be mastered throughout the lesson.
Recap - This section will measure what learnings and skills that you understand from the previous lesson.
Lesson- This section will discuss the topic for this module.
Activities - This is a set of activities you will perform.
Wrap Up- This section summarizes the concepts and applications of the lessons.
Valuing-this part will check the integration of values in the learning
competency.
Post-test - This will measure how much you have learned from the entire module. EXPECTATION This module is designed to familiarize the students with the basic concepts, principles, and processes related to business organization, and the functional areas of management. Particular emphasis will be given to the study of management functions like planning, organizing, leading, and controlling, and orient the students on the importance of these functions and the role of each area in entrepreneurship. At the end of the lesson, the learners will have an understanding of the significance of organization structures for effective business management. The learners will be able to design an appropriate organization structure for a specific business
PRE–TEST Direction: State if the following statements are correct by writing TRUE or FALSE.
1. ________ Management theories is a collection of ideas that recommend general rules for how to manage an organization or business. 2. ________ Modern Management Theory focuses on operations and the creation of standards to increase production output. 3. ________ Scientific Management Theory emphasizes minimizing waste and reducing production times. 4. ________ Bureaucracy Management Theory considers management as a primary business activity. This theory provides detailed guidelines for managers in managing the business. 5. ________ Administrative Theory emphasizes formal authority systems. Unity and the authority of organizational hierarchies are central to Bureaucracy Theory. REVIEW Direction: Answer the following questions in complete sentence form.
1. What is Planning? __________________________________________________
__________________________________________________________________ 2. What are the types of plans? __________________________________________ __________________________________________________________________ 3. What is the use of SWOT analysis? ____________________________________ __________________________________________________________________ 4. What is the use of PESTEL analysis? __________________________________ __________________________________________________________________ 5. What are the major types of business operation? _________________________ __________________________________________________________________ 6. What are the different forms of business ownership? _______________________ __________________________________________________________________ LESSON
Management theories have been developed and used since management first became a standard part of business practices. While older theories still hold relevant, new theories continue to be developed to keep up with current trends in business. The workplace has changed dramatically since the first management theories were conceived. Modern management is not a one-size-fits-all practice. Therefore, it is helpful to gain an understanding of management theories and their applications.
Where Did Management Theories Originate?
Mass production and the Industrial Revolution brought about new requirements for managing people and processes. As companies began to grow in size and production, business owners increasingly needed managers to run their daily operations. As a result of expanding industry, the practice of management became a major theoretical consideration in the study of business.
How Are Management Theories Classified?
There are three major classifications for management theories: Classical Management Theory, Behavioral Management Theory and Modern Management Theory. These classifications represents a different era in the evolution for management theories. 1. Classical Management Theory centers around execution and maximizing production. 2. Behavioral Management Theory focuses increasingly on human elements and viewing the workplace as a social environment. 3. Modern Management Theory builds on the previous two theories, while incorporating modern scientific methods and systems thinking. Each of the classifications above further contain multiple sub-theories.
Classical Management Theory
Classical Management Theory focuses on operations and the creation of standards to increase production output. In Classical Management Theory, compensation is considered the primary motivation for employees. A manager practicing Classical Management Theory would be focused on improving output and rewarding high-performing employees through wages or bonuses. There are three primary theories that comprise the Classical Management Theory: 1. Scientific Management Theory is a very early management theory focused on minimizing waste and reducing production times. It was developed by Frederick Taylor, who attempted using a scientific approach for improving operations. Taylor’s theory emphasizes rewarding employee performance and reducing “trial and error” practices. Taylor's approach to management can be summed up into his four principles of scientific management.
a. Management should provide employees with an accurate, scientific approach
for how to accomplish individualized tasks. b. Management should carefully select and train each employee on one specific task. c. Management should communicate with employees to ensure the method used to accomplish the task is the most productive and efficient. d. Management should design a suitable division of labor.
2. Administrative Management Theory was developed by Henri Fayol, who is
considered to be a founder of management theory. This theory considers all of the many activities that a business must conduct and considers management a primary business activity. This theory provides detailed guidelines for managers in managing business activities. Back around 1860, Henri Fayol began as a young engineer working at a coal mine in France. Fayol noticed that managing the miners was not an easy job. Managers had few resources and tools to better manage people. Unlike Taylor's scientific management theory, Fayol believed that it was more than just work and workers. Managers needed specific roles in order to manage work and workers. This became known as the administrative school of management. The administrative management theory was founded on the six functions (or roles) of managers: a. Forecasting is a technique that uses historical data as inputs to make informed estimates that are predictive in determining the direction of future trends. b. Planning is concerned with defining goals for a future direction. c. Organizing is coordinating and allocating a firm's resources in order to carry out its plans. d. Commanding is about instructing the members of the organization and ensuring that they are motivated to complete the tasks that the manager have set them. e. Coordinating is concerned with integrating activities to ensure resources of an organization are used most efficiently to succeed in achieving the set goal f. Controlling is a process which measures the actual performance against the planned goals of the organization.
The roles enumerated above are used together as a process. It focused on
the entire organization rather than just the work. Once broken down into smaller parts, the six functions evolved into Fayol's 14 Principles of Management. In this lesson, we will focus on the first seven Principles of Management: a. Division of Labor is the separation of tasks in an organization so that employees may develop and use their specialization to increase productivity. b. Authority is the power or right to give orders, make decisions, and enforce obedience among employees. c. Discipline is the practice of training employees to obey rules or a code of behavior. d. Unity of Command is getting orders/ command from only one supervisor. e. Unity of Direction is making all team members involved in the same activities share the same objective. f. Subordination of Individual Interests to the General Interest means that any individual interests that antagonize the organizational interest must be subordinate to the interests of the organization. g. Remuneration is the payment or compensation received for services or employment. 3. Bureaucracy Theory promotes reason to guide management decisions, rather than charisma or nepotism. Developed by sociologist Max Weber, this theory emphasizes formal authority systems. Unity and the authority of organizational hierarchies are central to Bureaucracy Theory. Characteristics of Bureaucratic Organizations a. Well-defined formal hierarchy and chain of command - distinguishes the level of authority within an organization. b. Management by rules and regulations - provides a set of standard operating procedures that facilitate consistency in both organizational and management practices. c. Division of labor and work specialization - are used to align employees with their organizational tasks.
ACTIVITIES Read carefully the items below and answer in complete sentence what are being asked. 1. What are the three major classifications of Management Theories? ______________________________________________________________________ 2. How can management theories help managers in achieving business goals? ______________________________________________________________________ 3. What is the focus of Classical Management Theory? ______________________________________________________________________ 4. What Classical Management Theory focuses on how the manager will perform his duties? ______________________________________________________________________ 5. What Classical Management Theory focuses on increasing productivity by reducing waste of time and materials? ______________________________________________________________________ 6. What Classical Management Theory focuses on the exercise of authority in the organizational system? ______________________________________________________________________ Observe a Jollibee branch near you. Describe how they practice the following management principles: 7. Division of Labor : _______________________________________________________ ______________________________________________________________________ 8. Discipline : ____________________________________________________________ ______________________________________________________________________ 9. Unity of Command : _____________________________________________________ ______________________________________________________________________ 10. Briefly explain how important is an organizational chart in laying out a well-defined formal hierarchy and chain of command. ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
WRAP–UP
⚫ Management theories is a collection of ideas that recommend general rules for how to manage an organization or business whether in motivating employees, making decisions, allocating resources or negotiating deals. ⚫ There are three major classifications for management theories: Classical Management Theory, Behavioral Management Theory and Modern Management Theory. ⚫ Classical Management Theory centers around execution and maximizing production. ⚫ The three primary theories that comprise the Classical Management Theory are: a. Scientific Management Theory is a very early management theory focused on minimizing waste and reducing production times. b. Administrative Management Theory considers managing as a primary business activity and this theory provides detailed guidelines for managers. c. Bureaucracy Theory emphasizes formal authority systems. This theory focuses on unity and the authority of organizational hierarchies. VALUING
MAKAKALIKASAN - Scientific Management Theory is a very early management
theory focused on minimizing waste and reducing production times. Minimizing waste shows respect for the environment. Give 3 concrete situations as to how we can minimize waste at home by completing the sentences below: 1. I can help reducing kitchen wastes at home by _________________________________ __________________________________________________________________. 2. I can help conserving electricity at home by ___________________________________ __________________________________________________________________. 3. I can help conserving water at home by ______________________________________ __________________________________________________________________.
POST TEST Direction: Read and understand the following statements. Encircle the word that made the statement wrong then write the correct word on the space provided. 1. Classical Management Theory focuses on operations and the creation of standards to increase production output. A manager practicing Classical Management Theory would be focused on increasing input and rewarding high-performing employees through wages or bonuses. _____________________ 2. Bureaucracy Management Theory focuses on minimizing waste and reducing production times. This theory states that management should communicate with employees to ensure the method used to accomplish the task is the most productive and efficient.__________________________ 3. Fayol’s behavioral management theory states that managers needed specific roles in order to manage work and workers. The administrative management theory was founded on the six functions (or roles) of managers. ______________________ 4. Scientific Management Theory, developed by sociologist Max Weber, promotes reason to guide management decisions, rather than charisma or nepotism. This theory emphasizes formal authority systems. ________________________ KEY TO CORRECTION R E F E R E N CE S
