Management Concepts &

Functions

Prof. Marlon P. Tuiza, LPT, DPA

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 Sub-topics
1. Management, Defined
2. Managers, Defined
3. Organization’s Resources
4. Organizational Performance
–Efficiency & Effectiveness

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5. Principles of Management (Henri Fayol)
6. Types of Manager
–Levels of Management
7. Managerial Roles
8. Managerial Skills
9. Functions of Management

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 1. Management, Defined
• the planning, organizing, leading, and
controlling of human and other resources to
achieve organizational goals effectively and
efficiently.

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 2. Managers, Defined
• the people responsible for supervising the use
of an organization’s resources to meet its
goals.

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 3. Organization’s Resources
• include people, skills, know-how and
experience, machinery, raw materials,
computers and IT, patents, financial capital,
loyal customers, and employees.

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 4. Organizational Performance
• A measure on how efficiently and effectively
managers are using organizational resources
to satisfy customers and achieve goals.
• Efficiency (to do things right): a measure of
how well or productive resources are used to
achieve a goal.
• Effectiveness (to get the right things done): a
measure of the appropriateness of the goals
an organization is pursuing and the degree to
which they are achieved.

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Efficiency and Effectiveness Matrix

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4 Quadrants of the Matrix
• Low effectiveness and low efficiency. If you
find your organization in this quadrant it means
that you are doing wrong things on a wrong
way. What a catastrophe! You are losing your
time on wrong organizational activities and in
addition of that you are doing those activities
on a wrong way. You must immediately stop
doing everything that you are doing and
reconsider what you really need to do.

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For example:

• This is the case when you choose wrong

services that you don’t know how to deliver
them to the customers.

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• High effectiveness and low efficiency. This
quadrant means that you are doing the right
activities in organization. These activities will
increase your organization’s potential energy, but
you are not doing them on the right way of doing
things. So, you are effective but not efficient in
the same time. You need to analyze all that
activities if you want to find the right way for
their accomplishment because they are
something that will increase the potential of your
organization.

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For example:
• This is the case when you choose the right
services that you want to deliver but you don’t
know how to deliver them or you deliver them
on a wrong way.

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• Low effectiveness and high efficiency. This
quadrant means that you’re doing the wrong
things in your organization but on right way.
Analyze immediately all your organizational
activities that are in this quadrant and stop
them.

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For example:
• This is the case when you choose wrong
services that you are delivering to them in a
right way. The customers will probably avail for
the first time but it is sure that they will not
come for more.

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• High effectiveness and high efficiency. This is
something that each organization will need if
they want big organization’s potential energy.
Your organization is doing things that increase
organization’s potential energy and those things
are done on a right way so the organization’s
potential energy is converted into kinetic
energy. These types of activities will give you
the results that will increase your performance.

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For example:

• This is the case when you choose the right

services that you deliver on right way. In such a
way, you will assure a long- term success of you
as a member and your organization.

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5. Principles of Management by Henri
Fayol
1. Division of Work: when employees are
specialized, output can increase because they
become increasingly skilled and efficient.
2. Authority: managers must have the authority
to give orders but they must also keep in mind
that with authority comes with responsibility.
3. Discipline: discipline must be upheld in the
organization.

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4. Unity of Command: employees must have only
one direct supervisor.
5. Unity of Direction: teams with one objective
should be working under the direction of one
manager, using one plan. This will ensure that the
action is properly coordinated.
6. Subordination of Individual Interest to General
Interest: the interest of one employee, including
managers, should not be allowed to become more
important than the interest of the group.
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7. Remuneration: employee satisfaction depends of
fair remuneration for everyone. This includes
financial and non-financial compensation.
8. Centralization: refers to how close employees are
to the decision making process. It is important to
aim for appropriate balance.
9. Scalar Chain: employees must be aware of where
they stand in the organization’s hierarchy or chain
of command.

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10. Order: the workplace facility must be clean,
tidy, and safe for employees. Everything should
have its place.
11. Equity: managers should be fair to all staff at all
times, both maintaining discipline as necessary and
acting with kindness when appropriate.
12. Stability of Tenure of Personnel: managers
should strive to minimize employee turnover.
Personnel planning should be a priority.

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13. Initiative: employees should be given the
necessary level of freedom to create and carry
out plans.
14. Esprit de Corps: organizations should strive
to promote team spirit and unity.

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 6. Types of Manager
• Levels of Management:
– First-line Managers: responsible for day-to-day
operations. Supervises people performing
activities required to make goods or services.
– Middle Managers: supervises first-line
managers. Responsible in finding the best way
to use departmental resources to achieve
goals.

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– Top Managers: responsible for the
performance of all departments and have
cross-departmental responsibility. Establishes
organizational goals and monitors middle
managers.

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7. Roles of Manager

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 a. Entrepreneur role requires the
1. Decisional Roles manager to assign resources to
develop innovative goods and
services, or to expand a business.

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b. disturbance handler corrects
unanticipated problems facing
the organization from the
internal or external environment.

c. resource allocator involves

determining which work units
will get which resources.

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d. negotiator works with
others, such as suppliers,
distributors, or labor unions, to
reach agreements regarding
products and services.

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2. Informational Roles

a. monitor- evaluates the

performance of others and takes
corrective action to improve that
performance.
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b. disseminator requires that
managers inform employees of
changes that affect them and
the organization.
• they also communicate the
company's vision and
purpose.
 c. spokesperson communicates
with the external environment,
from advertising the
organization’s goods and
services, and informing the
community about the direction
of the organization.
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 a. figurehead is typically
3. Interpersonal Roles a top of middle manager.

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 b. leader acts as an
example for other
employees to follow, gives
commands and directions
to subordinates, makes
decisions, and mobilizes
employee support.
c. liaison must coordinate the
work of others in different
work units, establish alliances
between others, and work to
share resources.

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8. Management Skills
1. Technical Skills
 involves understanding and
demonstrating proficiency in a
particular workplace activity.
 using a computer word
processing program, creating
a budget, operating a piece of
machinery, or preparing a
presentation.

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2. Interpersonal Skills
• human relations, or the
manager's ability to
interact effectively with
organizational members.

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3. Conceptual Skills
• ability to see the organization as a
whole, as a complete entity.
• understanding how organizational
units work together and how the
organization fits into its
competitive environment.

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4. Diagnostic Skills
• investigate problems, decide
on a remedy, and
implement a solution.
• involves other skills—
technical, interpersonal,
conceptual, and political.
• to determine the root of a
problem- speak with many
organizational members or
understand a variety of
informational documents.
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5. Political Skills
• involve obtaining power and
preventing other employees
from taking away one's
power.
• use power to achieve
organizational objectives,
and this skill can often reach
goals with less effort than
others who lack political
skill.

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9. Functions of Management
Four Functions of Management
PLANNING
Choose appropriate organizational
goals and causes action to best
achieve those goals.

CONTROLLING
Establish accurate measuring and
monitoring systems to evaluate
how well the organization has
achieved its goals.
ORGANIZING
Establish task and authority
relationship that allow people to
work together to achieve
organizational goals.

LEADING
Motivate, coordinate and energize
individuals and groups to work
together to achieve organizational
goals.

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Five Functions of Management
Harold Koontz (1909-1984) and Cyril O'Donnell
(1900-1976) explained five functions of
management. They have become widely
accepted functions of management everywhere.
They are: planning, organizing, staffing,
directing, and controlling
 Planning bridges the gap from where we are
to where we want to go. It makes it possible
for things to occur which would not otherwise
happen.
 Organizing is the process of identifying and
grouping of the works to be performed,
defining and delegating responsibility and
authority and establishing relationships for
the purpose of enabling people to work most
efficiently.
 Staffing is the function by which managers build
an organization through the recruitment,
selection, and development of individuals as
capable employees.
 Directing deals with the steps a manager takes to
get sub-ordinates and others to carry out plans".
 Controlling refers to the task of ensuring that
activities are producing the desired results.
Controlling in this case is limited to monitoring
the outcome of activities, reviewing feedback
information about this outcome, and if necessary,
taking corrective actions".
Eight Functions of Management
1. Planning
2. Organizing
3. Leading
4. Controlling
5. Staffing
6. Directing
7. Communication, and
8. Decision- Making

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• Management is defined here as the process of
achieving organizational goals by engaging in
the eight aforementioned functions of
management.

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 1. Planning
• deciding in advance- what to do, when to do &
how to do.
• bridges the gap from where we are & where we
want to be.
• future course of actions.
• an exercise in problem solving & decision making.
• determination of courses of action to achieve
desired goals.
• a systematic thinking about ways & means for
accomplishment of pre-determined goals.

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Types of Plans
• Strategic Plan: designed with the entire
organization in mind and begins with an
organizational mission.
 Top level managers design and execute a strategic
plan to paint a complete picture of the desired
future and long-term goal of the organization.
 Serves as the framework for lower level planning.
 Example: BJMP aims to enhance public safety by
providing humane safekeeping and development
of inmates in all district, city, and municipal jails.
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• Tactical Plan: Supports Strategic Plans by
translating them into specific plans relevant to
a distinct area of the organization.
Concerned with the responsibility and
functionality of lower level departments to
fulfil their parts of the strategic plans.

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Strategic Plans vs. Tactical Plans
• Strategic Plan: focus on long-term, big-picture
outcomes, and reflect a general approach to
conducting business.
• For example, a local restaurateur might have a
strategy to offer the freshest food in town.
Simply saying they are the freshest doesn't
give anyone information about how they will
be the freshest. That's when tactical planning
occurs.

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Strategic Plans vs. Tactical Plans
• Tactical Plan: focused on specific outcomes, a
shorter time-frame, and stated steps.
• For the local restaurant owner that wants to
serve fresh food, tactical plans may include
entering into contracts with local growers to
ensure adequate supplies of ingredients,
modifying the menu as seasons change to reflect
the fresh food available, and developing policies
that specify when ingredients are too old to use.

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• Operational Plan: plans made by frontline or
low level managers.
Focused on specific procedures and processes
that occur in the lowest level of the
organization.

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• Types of Operational Plan
1. Single Use Operational Plan: intended to be
used only once.
2. On-going Operational Plan: built to withstand
the test of time.
Created with the intent of repeated use and
undergo modifications if necessary.

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 2. Organizing
• process of bringing together physical, financial
and human resources and developing
productive relationship amongst them for
achievement of organizational goals.
Organizational Design (Henri Fayol):
1. Division of Labor: workers are to specialize
and become proficient at a specific task.
2. Departmentalization

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3. Chain of Command: line authority extends
from the top to the bottom of the organizational
structure.
4. Span of Management (Span of Control):
refers to the number of subordinates who can
be managed efficiently by a superior.
5. Degree of Centralization: decision making
authority in an organization is highly centralized
and most decisions are made at the upper levels
of the organizational structure.

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Principles of Organizing
1. Principle of Specialization: work is divided
among subordinates on the basis of their core
competence, qualifications, and skills.
2. Principle of Functional Definition: functions are
clearly defined to managers and subordinates.
3. Principle of Span of Control/Supervision: refers
to the number of employees that can be
effectively controlled and handled by a single
manager.

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4. Principle of Scalar Chain: a chain of command
that flows from top to bottom.
5. Principle of Unity of Command: implies a one
subordinate-one superior relationship.
Every employee is accountable to one boss at
one time.

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 3. Leading
• the use of influence to motivate employees to
achieve organizational goals.
3 Components make up the leading function:
1. Motivating employees
2. Influencing employees
3. Forming effective groups

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 4. Controlling
• measurement & correction of performance
activities of subordinates in order to make
sure that the enterprise objectives and plans
desired to obtain them as being accomplished.
Four Main Steps in Controlling:
1. Establishing Standards: standards are usually
measured in terms of output.
Types of standards: Time Standard, Cost
Standard, Income Standard, Market Share,
and Productivity.

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2. Measuring Performance: involves comparison
between what is accomplished and what was
intended to be accomplished.
Performance can be measured by: Income,
Expenses, Inventory, Product Quality, and
Absenteeism.
3. Comparing Actual Performance against
Expected Performance.
4. Corrective Actions

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Primary Types of Organizational Control
1. Strategic Control: the process of evaluating strategy.
Strategic Control is practiced after strategy is
formulated and after its implementation.
2. Management Control: focuses on the accomplishment
of the objectives of the various strategies comprising
the master strategy and the accomplishment of the
intermediate plans.
Management Control System (MCS) is a system which
gathers and uses information to evaluate the performance
of different organizational resources like human, physical,
financial, and also the organization as a whole in light of the
organizational strategies pursued.
Example: Are quality control objectives being met?

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3. Operational Control: concerned with
individual and group performance as compared
with the individual and group role prescription
required by the organizational plan.
Example: Are individual sales quotas being hit?

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 5. Staffing
• involves manning the organization structure
through proper and effective selection;
appraisal & development of personnel to fill
the roles designed in the structure.
• Staffing involves:
1. Manpower Requirements: involves
forecasting and projecting the manpower
needs of an organization over a certain
period of time.
2. Recruitment
3. Selection
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4. Orientation and Placement
5. Training and Development
Benefits of training:
-Improves employee morale, sense of job
security and job satisfaction.
-Less Supervision
-Fewer Accidents
-Opportunities for Promotion
-Increase Productivity

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6. Remuneration:
Remuneration Methods: Time Rate Method and
Piece Rate Method
7. Performance Evaluation
8. Promotion and Transfer

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 6. Directing
• interpersonal aspect of management which
deals directly with influencing, guiding,
supervising, motivating sub-ordinate for the
achievement of organizational goals.

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• the heart of the management process.
• some philosophers call it the “spark of an
enterprise” because it is DIRECTION and is the
actual start of operations of an enterprise.

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Characteristics of Directing:
1. Pervasive Function: directing is required at
all levels of organization.
Every manager provides guidance and
inspiration to his subordinates.
2. Continuous Activity: direction is a continuous
activity as it exists throughout the existence of
the organization.

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3. Human Factor: related to subordinates and
therefore related to human factor.
Since human factor is complex and behavior is
unpredictable, directing function becomes
important.
4. Creative Activity: helps in converting plans
into performance.
Without this function, people become inactive
and physical resources are meaningless.

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5. Executive Function: carried out by all
managers and executives at all levels throughout
the workings of an enterprise, subordinates
receive from his superior only.
6. Delegates Function: function in dealing with
human beings.
The executive conditions the behavior towards
the goals in this function.

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Importance of Directing
1. Initiates Action: directing is the starting point of
performance of subordinates.
 Subordinates understand their jobs and works
according to the instructions given.
2. Integrate Efforts: superiors are able to guide,
inspire, and instruct the subordinates to work.
 The efforts of every department can be related and
integrated with each other.
 Integration of efforts bring effectiveness and
stability.

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3. Means of Motivation: can be done by
providing incentives or compensation, whether
monetary or non-monetary that serves as
“morale booster” to subordinates.
4. Coping with Changes: humans, by nature,
show resistance to change. One role of a
manager is to effectively communicate the
nature and content of changes clearly to the
subordinates.

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5. Efficient Utilization of Resources: resources
can be utilized properly when wastage,
duplication of efforts and overlapping of
performance is lessened.
The roles of the subordinates become clear as
managers use their supervision, guidance,
instructional and motivational skills to inspire
subordinates.

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 7. Communication
• process of transmitting information, ideas,
thoughts, opinions and plans between various
parts of an organization.

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• Importance of Communicating
1. Manager- Employee Relations: manager
cannot get the work done from employees
unless what he wants is communicated
effectively.
2. Motivation and Employee Morale:
inappropriate or faulty communication among
employees or between managers and
employees is the major cause of conflict and low
morale at work.

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3. Increased Productivity: effective
communication can maintain good human
relations in the organization by encouraging
ideas or suggestions from workers and
implement them whenever possible.

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Roles of Communication
1. Planning: communication links the
organization with its external environment.
Customers, for example, are the main reason
for the existence of a company/organization
and it is through communication that
identifies their needs enabling the
organization to provide these customers
products or service at a profit.

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2. Organizing and Controlling: communication
reduces duplicity of work.
Each employee must keep abreast of the latest
developments within an organization and this
is possible when every employee coordinates
with other people in the organization.
3. Leading: Through effective communication,
leader leads.

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 8. Decision Making
Decision: course of action chosen from a set of
alternatives to achieve organizational or
managerial objectives or goals.
Decision Making: process of deciding about
something important especially in a group of
people or within an organization.
Involves the selection of a course of action
from among two or more possible alternatives
in order to arrive at a solution of a given
problem.

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Steps in Decision Making:
1. Defining the Problem
2. Gathering Information and Collecting Data
3. Developing and Weighing the Options
4. Choosing the Best Possible Option
5. Plan and Execute
6. Take Follow-up Action

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 References
• Essentials of Contemporary Management 5th Edition., 2008., Gareth Jones and
Jennifer George
• Henri Fayol's Principles of Management @
https://www.mindtools.com/pages/article/henri-fayol.htm
• https://www.crunchbase.com/organization/management-study-guide#/entity
• http://study.com/academy/lesson/tactical-plans-examples-lesson-quiz.html
• http://www.referenceforbusiness.com/management/Log-Mar/Management-
Levels.html
• https://www.provenmodels.com/88/ten-managerial-roles/henry-mintzberg/
• https://hubpages.com/business/The-Five-Functions-of-Management
• Personnel Management in the 21st Century, 2003, Payos, Romula P..LL.B.,FPM and
Zorilla, Orlando S.,BSC,.FPM
• Strategic Management: Formulation and Implementation by Ryszard Barnat @
http://www.introduction-to-management.24xls.com/en110

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