Philippine companies use different types of management theories to manage their employees. These theories can have a significant impact on organizational culture. They determine how employees are led and motivated and decisions are made.
Filipino job seekers who understand theories of management have a competitive advantage. They can identify employers that align with their values and goals. This can boost their career growth and reach their full potential. This article looks at seven management theories and how you can use them to boost your job search.
We’ll cover the following topics:
- What are management theories?
- 1. Scientific management theory
- 2. Administrative management theory
- 3. Bureaucratic management theory
- 4. Human relations theory
- 5. Systems management theory
- 6. Contingency management theory
- 7. Theory X and Theory Y
- Applying management theories to your job search
- Conclusion: Leveraging management theories for career success in the Philippines
- FAQs
What are management theories?
Management theories are concepts that influence how an organization is guided and managed. They’re implemented in workplaces to bring out the best in employees. Theories of management focus on supervision, organization, and team performance.
Management theories have been around for centuries. Traditional management theories place a strong emphasis on productivity and efficiency. In contrast, modern management theories prioritize employee engagement and satisfaction.
Philippine companies use a mix of traditional and modern management theories. Effective application of these theories can boost employee retention and attraction. It can also contribute to organizational success and growth.
Understanding the different types of management theories is important for job seekers. It can help you stand out during interviews and improve your job chances. It also prepares you for a leadership role in the future.
1. Scientific management theory
The scientific management theory is one of the best traditional management theory examples. Frederick Taylor developed this theory in the late 19th century. He recommended using a scientific method to make work more efficient.
The scientific management theory suggests simplifying tasks to increase productivity. Leaders should match employees with jobs that align with their abilities. They also have to closely monitor each worker to ensure they follow best practices. Additionally, they should thoroughly train employees and plan for future needs.
The centuries-old scientific management theory is still relevant today. It has been proven to be true in a study in the Philippines. The study explores Total Quality Management (TQM) practices in manufacturing companies. It found that continuous improvement has a significant impact on company solvency.
2. Administrative management theory
Henri Fayol studied an organization from the perspective of a manager. He sought to understand the situations managers might face when managing their teams. This led to the creation of the administrative management theory.
Fayol believed that managers serve six primary functions. These functions include:
- Forecasting
- Planning
- Organizing
- Coordinating
- Commanding
- Controlling
Additionally, he developed 14 principles that outline how managers should organize their teams. The principles are as follow:
- Division of work: Employees should have skill sets for performing specialized tasks.
- Authority: Managers need authority to give orders. Employees must agree to the authority.
- Discipline: Employees must follow their managers’ commands. They should also be disciplined in completing their tasks.
- Unity of command: Employees receive orders from one manager and answer to them alone.
- Unity of direction: Employees should work toward common goals.
- Subordination of individual interests: Team interests are the main priority.
- Remuneration: Employees should receive monetary and non-monetary remuneration. Both are needed to keep employees motivated.
- Centralization: Decision-making powers must be balanced. The board of directors has the right to influence decisions. However, they shouldn’t overpower managers.
- Scalar chain: The company should have a clear hierarchical structure.
- Order: Employees should be assigned to the right positions. They must have every material they need to perform their tasks.
- Equity: Employees must be treated equally.
- Stability of tenure: The company should try to minimize employee turnover. Employees with job security can contribute more to the organization.
- Initiative: Employees should be encouraged to share ideas and take on new tasks.
- Esprit de corps: Employees should be motivated and proud to be a part of the organization.
This theory is similar to the traditional management style of many Philippine companies. These include a formalized administrative structure and a clear chain of command. The theory is relevant to management roles in government agencies and large corporations.
3. Bureaucratic management theory
Max Weber believed that a bureaucratic structure can improve organizational efficiency. Businesses should adopt a hierarchical structure to set clear rules of governance. The bureaucratic management theory includes five principles, which are:
- Hierarchy: Every organization should have a clear hierarchy of authority.
- Task specialization: Each employee should fulfill a specific role within an organization.
- Formal selection: Companies should appoint leaders to certain roles based on their qualifications.
- Rules and requirements: Rules and requirements must be imposed to achieve uniform standards.
- Impersonality: Companies must have an impersonal business structure. Promotions should be based on performance rather than personal ties.
Weber’s theory established rules and procedures that are still being used today. Its principle of hierarchy has been widely adopted in the Philippines. About 78% of Philippine organizations use a top-down approach to decision-making.
For instance, the Philippine Administration System (PAS) operates with a hierarchical structure. Constitution bodies are the main source of authority. Orders are disseminated to executive departments, government-owned corporations, and local government units.
4. Human relations theory
Developed by Elton Mayo, the human relations theory focuses on team relationships. Mayo conducted various experiments to improve productivity in the workplace. He concluded that employees may perform better if they receive enough personal attention.
Mayo suggested that money may not be the main motivator for employees. Instead, employees tend to be more motivated when they’re part of a group. They also feel valued when they get more attention.
This theory is ideal for businesses that prioritize teamwork and employee satisfaction. Examples include hospitality, healthcare, and education. The theory was proven right in a hotel industry study in the Philippines. Findings showed that changes in human resources management practices can improve employee engagement.
5. Systems management theory
Ludwig von Bertalanffy’s systems management theory views organizations as interconnected systems. All components must work harmoniously together for the entire system to function optimally. The success of an organization depends on the synergy and interrelations between subsystems.
The PAS is also a good example of how systems management works. It comprises multiple organizations with specific structures, resources, and goals. These organizations have their own internal processes. But they also interact with each other to implement effective public policies.
The systems management theory is applicable in a wide range of Philippine industries. It’s best suited for companies with complex structures and interdependent components. Examples include manufacturing firms, tech companies, and educational institutions.
6. Contingency management theory
Fred Fielder devised the contingency management theory. This theory purports that there’s no one-size-fits-all management approach. External and internal factors can affect how a company manages its employees. Fielder believed the three following variables that can influence an organization’s structure:
- Size of the organization
- Leadership style
- Technology being implemented
This theory proposes that a leader’s traits have a direct impact on how well they lead. Leaders should have a set of leadership traits for every situation. They must be flexible and adaptive enough to guide their teams through change.
Contingency management is suitable for Philippine organizations where adaptability is crucial. Such organizations include tech startups, healthcare providers, and multinational corporations.
7. Theory X and Theory Y
Created by Douglas McGregor, Theory X and Theory Y are two distinct management styles. Theory X is an authoritarian approach and holds a pessimistic opinion of employees. It believes that employees will refuse to work in the absence of incentives. Leaders will likely apply this theory when employees show a lack of passion for their work.
Theory Y is a participative approach that holds an optimistic view of employees. It suggests that managers and employees can develop trust-based and collaborative relationships. This theory is often used when employees are enthusiastic about their work.
Theory X works well in Philippine industries with strict regulations and task-oriented jobs. Such industries include manufacturing, legal, and finance. Theory Y is better suited for sectors that focus on creativity and innovation. Marketing, software development, and design are a few examples.
Applying management theories in your job search
Knowledge of theories of management can help you land your desired job. It enables you to make a strong impression in your job applications and interviews. This can set you apart from other job seekers.
Use your understanding of management theories to craft a more impactful resumé. Provide management theory examples when highlighting relevant skills and experiences. For instance, you can describe how you used scientific management to delegate tasks. Or maybe the human relations theory has helped you keep your team motivated.
An interviewer may ask you questions about management styles or organizational behavior. Use your knowledge of management theories to prepare for these questions. Suppose the interviewer wants to know how you handle underperforming employees. You can talk about the principles of Theory X, such as strict rules and a reward and punishment system.
Knowing the different types of management theories can also help you in your job search. It allows you to identify companies that align with your preferred management approaches. Visit the companies’ websites to find out about their management practices and cultures.
Conclusion: Leveraging management theories for career success in the Philippines
Understanding theories of management can give you an advantage over other job seekers. Such knowledge helps you craft a stronger resumé and perform better in interviews. It also shows your leadership potential.
Use the valuable insights you gain from management theories to advance your career. Apply both traditional and modern management theories to adapt to different situations. This can help you thrive and succeed in today’s dynamic business landscape.
FAQs
Here’s a list of frequently asked questions about theories of management:
What are the current trends in management practices in the Philippines?
Many Philippine companies still use traditional management approaches. These organizations have a hierarchical structure and a clear chain of command. However, modern management styles are becoming more widely used across the country. This is due to the rapid growth of the tech and service industries.
How do management theories impact job performance and career growth in the Philippines?
Theories of management can improve Filipinos’ job performance in different ways. These include increasing their productivity, motivation, and job satisfaction levels. Some management theories emphasize the importance of training and development. This can help employees develop and grow their careers.
How do Philippine companies implement the administrative management theory in their organizational structures?
Administrative management is commonly implemented in Philippine government agencies and large corporations. Such organizations use administrative management principles to perform a wide variety of tasks. These include organizing resources, directing employees, delegating tasks, and boosting morale.
How has the human relations theory influenced employee engagement practices in Philippine companies?
The human relations theory is prevalent in industries such as hospitality and healthcare. It enhances employee engagement by fostering teamwork and making employees feel appreciated.
What are some styles in Philippine companies based on Theory X and Theory Y?
Philippine companies with traditional hierarchical structures take a more authoritarian approach to management. They adopt leadership styles based on Theory X, such as autocratic and bureaucratic. Creative, tech, and service-based companies prefer the democratic, laissez-faire, or people-oriented leadership style. These approaches share many similarities with Theory Y.
What are some common interview questions related to management theories asked by employers?
Examples of common interview questions related to management theories include:
- “Explain your management style and the theories that influence it.”
- “How do you apply delegation principles in your work?”
- “What management theories do you use to improve team motivation?”
- “How do you handle conflict between team members?”
How can Filipinos showcase their knowledge of management theories in their resumés?
Mention principles of management theories when highlighting your skills and experiences. For example, describe how you used contingency management to handle an unexpected challenge.
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