Chapter Outline

I. Management in General

A. Management: An Introduction

1. Definition of Management

2. The Five Functions of Management

3. Management as a Science and an Art

4. Managerial Activities and Roles

5. What is a Manager?

a. Essential Managerial Skills

b. Levels of Managers

c. Types of Managers

B. Ethical Behavior and Social Responsibility

1. What is Ethical Behavior?

2. Alternative Views of Ethical Behavior

3. Social Responsibility and Governance

C. Perspectives on Management

1. Classical or Traditional Management Approach

a. Important Figures in Management

2. Quantitative or Scientific Management Approach

3. Human Relations or Humanistic Management Approach

4. Modern Management Approach

Chapter I. Management in General

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Management: An Introduction

The Definition of Management

- Management has always had several definitions. Some of which are “planning and
implementing”, “getting things done through other people”, “the driving force that will
determine the success or failure of a business” and several others.

- Management is anything we do between from where we are now until we achieve our desired
goals or objectives.

- In this regard we will define management as “The process of applying the five functions of
management, which are Planning, Organizing, Staffing, Directing and Controlling, on the Basic
Resources or the six m’s, performed to determine and efficiently accomplish stated objectives or
goals, while maintaining one’s Social Responsibility.

6 M’s: The Basic Resources

1. Man
2. Money
3. Machines
4. Materials
5. Methods
6. Markets

Universally Accepted Functions of Management

1. Planning – refers to the formulation of objectives, programs, policies, procedures, rules and
regulations, in order to achieve the goals of the business. Planning is related to decision-making.
It involves selecting the best course of action that a business will follow. Planning involves
forecasting, that is, making decisions in advance. Planning is thinking before doing.

2. Organizing- is the grouping together of people, establishing relationships between them and
defining the authority and responsibility that the personnel have in the use of the company’s
material resources to attain predetermined goals and objectives.

3. Staffing – involves filling and keeping filled the positions provided in the organization structure.
It delineates manpower requirements for the job to be done, which includes recruiting and
selecting candidates for position, compensation and training or otherwise developing both
candidates and current job holders to accomplish their tasks effectively.

4. Directing – refers to the leadership provided in the organization. Leadership implies

followership, and people tend to follow a person that they can see is a means of providing for
their own needs and wants. This area of management involves motivation, leadership styles and
approaches and communication.

5. Controlling – is the process of measuring and correcting the activities of subordinates and the
company itself to assure conformity to plans. Thus, it measures performance against goals and
plans, shows where negative deviations exists, and, by actions to correct deviations and help
assure the success of plans.

Management as a Science and an Art

- For discussion purposes, why is management considered as both a science and an art?

Managerial Activities and Roles

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 - A person put in the position of manager automatically takes on several roles as part of his job.
These are grouped into three categories as shown:

1. Interpersonal Roles
a. Figurehead
b. Liaison
c. Leader

2. Informational Roles
a. Monitor
b. Disseminator
c. Spokesperson

3. Decisional Roles
a. Entrepreneur
b. Disturbance Handler
c. Resource Allocator
d. Negotiator

What is a Manager?

- Under General Management, a manager is someone who practices the art and science of
management, while under organizational management, a manager is a person who is
responsible for people, activities or resources.

Essential Managerial Skills as depicted by Katz:

1. Conceptual Skills
2. Human Skills
3. Technical Skills

Levels of Managers
1. Top Level Managers
2. Middle Level Managers
3. Lower Level Managers

Types of Managers (Organizational Management)

1. Line Managers
2. Staff Managers
3. Functional Managers
4. General Managers
5. Administrators

Ethical Behavior and Social Responsibility

What is Ethical Behavior?

Keywords for discussion

a. Ethics: the code of moral principles
b. Ethical Behavior: actions that are “right” or “wrong”
c. Values: broad beliefs on what is appropriate behavior
d. Norms: cultural standards on what is considered as “right” or “wrong”

Four Views of Ethical Behavior

1. Utilitarian View: Does a decision or behavior do the greatest good for the most people?
2. Individualism View: Does a decision or behavior promote one’s long-term self-interests?
3. Moral – Rights View: Does a decision or behavior maintain the fundamental rights of
human beings?
4. Justice View: Does a decision or behavior show fairness and impartiality?
Cultural Issues in Ethical Behavior

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 Cultural Relativism VS Universalism
- Cultural Relativism: Ethical behavior is determined by the cultural context in the environment
- Universalism: Ethical behavior is universal
- Ethical Imperialism
Social Responsibility and Governance

Perspectives on Management

1. Classical or Traditional Management Approach

Important Figures in Management

Principles of Management by Henri Fayol.

- Henri Fayol was a French industrialist who was the first to issue a complete statement on a
theory of general management, which is used today. Fayol graduated as a mining engineer. He
started in 1860 as a janitor then rose to become the executive of a coal mining and iron foundry.
In 1888, the company was near to bankruptcy. Fayol took over as managing director and rapidly
turned the company into a financially sound organization. Upon his retirement in 1918, Fayol
lectured and popularized his theory of administration. Probably one of his most important
contributions was his discussion of the “14 Principles of Management” as shown:

1. Division of Work
2. Authority and Responsibility
3. Unity of Command
4. Subordination of Individual Interest to General Interest
5. Remuneration
6. Centralization
7. Scalar Chain
8. Stability of Tenure
9. Esprit de Corps
10. Span of Control
11. Simplicity
12. Unity of Direction
13. Order
14. Equity

Frederick Taylor’s Scientific Management

- Taylor’s first job was an apprentice with the Enterprise Hydraulic Works. Finishing his
apprenticeship in 1878, Taylor joined the Midvale Steel Company as a common laborer. In six
short years, he rose through eight positions to chief engineer. During his earlier years at
Midvale, Taylor worked with and observed production workers at all levels. It did not take him
long to figure out that many workers put forth less than 100% effort.

- Taylor quickly saw that workers had little or no reason to produce more because most wage
systems at that time was based on attendance and position. The Piece-Rate system had been
tried before but generally failed due to poor use and weak standards.

- He believed that a Piece-Rate system will work if the organization cooperates and strictly follow
an effective system. His basis for comparing standards and performance was always a
stopwatch. Because of this, Taylor was called the “father of time study”.

Gilbreths and Motion Study

- Two other researchers, Frank and Lilian Gilbreth (1912), emphasized that there are ideal
motions required to perform a job more efficiently. They studied arm and leg movements of
laborers and concluded that there are about seventeen types of arm and leg movements. They
called these elemental movements as Therbligs.

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2. Quantitative or Scientific Management Approach

The approach mentions the following characteristics of this school of thought:

1. The application of scientific approach to managerial problems

2. The main concern is for the improvement of manager’s decision-making.
3. A high regard for economic effectiveness.
4. The use of computers in decision-making and other areas of management.

3. Human Relations or Humanistic Management Approach

4. Modern Management Approach

- This school of thought states that management is an evolving form of science and art and that
one should be open to combining the other approaches in order to create the most optimal
system to use for the organization.