1.

INTRODUCTION TO
MANAGEMENT
PRINCIPLES & PROCESSES
MLS PROGRAM
LPU-Batangas
 TOPIC OUTLINE

1. Definition of management
2. Functions of management
3. Core idea of management
4. Key concepts of management
5. Major management theories
6. Evolution of management theories
What is management?

◦ It is basically defined as the function of

executive leadership of a group of
people that is directing the business
toward the attainment of company
objectives

◦ It is characterized by the process of

leading and directing all part of an
organization through the deployment
and manipulation of resources (e.g.
human, financial) to accomplish and
achieve organizational objectives
What is management?

◦Management is derived from the

French word menagement which
means the art of conducting and
directing and from the Latin manu
agere meaning to lead by hand
Why STUDY management?
◦ Management must be studied to ensure the
smooth operations of an organization

◦ It is where the success of an enterprise

depends

◦ It is significant in maintaining an orderly effort

to put up an enterprise or organization so as
to meet its goals

◦ We study management to learn new tools

and techniques which are continually being
introduced to improve the efficiency,
productivity, & profitability of any
organization
What are the basic FUNCTIONS of
management?
Basic Functions of Management:
1. Planning: Deciding what needs to happen in
the future and generating plans for action
2. Organizing: Making optimum use of the
resources required to enable the successful
carrying out of plans
◦ Staffing: Job analyzing, recruitment, and hiring individuals
for appropriate jobs
3. Leading/Directing: Determining what needs
to be done in a situation and getting people
to do it
4. Controlling/Monitoring: Checking progress
against plans
What is the CORE IDEA of management?
Core/Central Idea of Management-
“Working with and through people to
accomplish a common mission”
qFor management to succeed
the following conditions must
be present:
1. A mission or goal that the organization expects to
accomplish.
2. Leaders with authority to direct the team towards the
goal.
3. Necessary resources (people, equipment, supplies
and money)
4. Responsibility for achieving the goals assigned and
5. Accountability for using the resources established
What are the KEY CONCEPTS of
management?
Key Concepts about
Management:
1. Management is a process (a
systematic way of doing
things)
2. It utilizes resources efficiently
3. It gets things done through
and with others
4. It achieves a stated goal
What are MANAGEMENT THEORIES?

◦Management theories are

concepts surrounding
recommended management
strategies which may include
tools such as frameworks or
guidelines that can be
implemented in modern
organizations
What are the MAJOR MANAGEMENT THEORIES? Major
management
theories:
1. Scientific
management
2. Administrative
management
3. Bureaucracy
management
4. Behavioral
management
5. Systems
Approach
6. Contingency
approach
7. Quantitative
approach
The Evolution of Management Theory
Scientific
Management
◦ Frederick
Taylor (1856-
1915)

◦ Frank
Gilbreth
(1868-1924)
and Lillian
Gilbreth
(1878-1972)

◦ Henry Gantt
(1861-1919)
I. SCIENTIFIC
MANAGEMENT
THEORY
Scientific
Management
◦ This theory
attempts to apply
the scientific
method of cause-
and-effect
analysis used in
the study of
natural
phenomena to the
examination of
business
enterprises
What are the 4 PRINCIPLES OF SCIENTIFIC MANAGEMENT?
Principles to increase efficiency:
1. Study the ways jobs are
performed now and determine
new ways to do them
◦ Gather detailed time and motion
information
◦ Try different methods to see which
is best
2. Modify the new methods into rules
◦ Teach all workers the new method
3. Select workers whose skills match the rules
4. Establish fair levels of performance and pay a
premium for higher performance
◦ Workers should benefit from higher output
I. SCIENTIFIC
MANAGEMENT THEORY
Frederick Taylor
◦ Often called the ‘Father of
Scientific Management’

◦ For Taylor, Scientific

management is the
systematic study of the
relationships between
people and tasks for the
purpose of redesigning the
work process for higher
efficiency
I. SCIENTIFIC MANAGEMENT THEORY
Frederick Taylor
◦Sought to reduce the time a worker
spent on each task by optimizing
the way the task was done

◦He stated that in order to improve the

efficiency of an organization, the
manager should break down each
task into segments and designate
the key individual who will perform
the said task
I. SCIENTIFIC
MANAGEMENT
THEORY
Frank and
Lillian Gilbreth
◦ Refined
Taylor’s work
and made
many
improvements
to the
methodologies
of time and
motion
studies
I. SCIENTIFIC MANAGEMENT THEORY
Frank and Lillian Gilbreth
◦ Time and motion studies
1. Breaking up each job action into
its components
2. Finding better ways to perform the
action
3. Reorganizing each job action to
be more efficient
◦ Also studied worker-related fatigue
problems caused by lighting, heating,
and the design of tools and machines
I. SCIENTIFIC MANAGEMENT THEORY
Henry L. Gantt
◦ Emphasized the need for developing a
mutuality of interest between
management and labor - a “harmonious
cooperation.”

◦ Emphasized on importance of time, as

well as cost, in planning and controlling
work

◦ Stressed upon developing an

understanding of systems on the part of
both labor and management
Administrative
Management
◦Henry Fayol (1841-
1925)
II. ADMINISTRATIVE
MANAGEMENT THEORY
Henri Fayol (1841-
1925)
◦French Industrialist
who introduced that the
concept of
management should be
an orderly process of
tasks and duties
II. ADMINISTRATIVE MANAGEMENT
THEORY
Henri Fayol (1841-1925)
◦The manager should perform the
following functions
systematically:
1. Planning
2. Organizing
3. Directing / leading
4. Controlling
II. ADMINISTRATIVE
THEORY

◦ 14 principles
of
management
as guiding
principles for
decision
making and
other
managerial
responsibilities
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
1. Division of labor:
Assignment of
specialized jobs to
various departments
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
2. Authority and
responsibility:
Managers have the right
to give orders and the
power to encourage
subordinates for
obedience
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
3. Unity of command:
an employee should
receive orders from
only one superior/boss
or obedience
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
4. Line of Authority:
The length of the chain
of command that extends
from the top to the
bottom of an
organization
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
5. Centralization:
Extent to which
authority is
concentrated
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
6. Unity of direction:
the organization should
have a single plan of
action to guide
managers and workers
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
7. Equity: all
organizational
members are entitled to
be treated with justice
and respect
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
8. Order: the arrangement
of organizational positions
should maximize
organizational efficiency
and provide employees with
satisfying career
opportunities
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
9. Initiative: managers
should allow
employees to be
innovative and creative
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
10. Discipline:
managers need to
create a workforce that
strives to achieve
organizational goals
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
11. Remuneration of
personnel: the system that
managers use to reward
employees should be
equitable for both
employees and the
organization
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
12. Stability of tenure of
personnel: Long-term
employment is important for
the development of skills
that improve the
organization’s performance
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
13. Subordination of
individual interests to the
common interest: employees
should understand how their
performance affects the
performance of the whole
organization
II. ADMINISTRATIVE
MANAGEMENT
THEORY
Fayol’s 14 Management
Principles
14. Esprit de corps:
“In union there is
strength” emphasizes
the need for teamwork
II. ADMINISTRATIVE MANAGEMENT
THEORY
ESPRIT DE CORPS
◦ a sense of unity and of common
interests and responsibilities, as
developed among a group of persons
closely associated in a task, cause,
enterprise, etc.

◦ the common spirit existing in the

members of a group with inspiring
enthusiasm, devotion, and strong regard
for the honor of the group
III. BUREAUCRATIC MANAGEMENT
THEORY

Bureaucratic
Management
◦This theory examines the
organizational aspects of the
company and its workflow to
explain how institutions
function and how to improve
their structural process
III. BUREAUCRATIC
MANAGEMENT
THEORY
Characteristics:
1. An ideal, intentionally rational,
and very efficient form of
organization
2. Based on principles of logic,
order, and legitimate authority
3. Clear division of labor
4. Clear hierarchy of authority
5. Formal rules and procedures
6. Careers based on merit
III. BUREAUCRATIC MANAGEMENT
THEORY
Key Points of Bureaucracy
◦ Authority is the power to hold people
accountable for their actions
◦ Positions in the firm should be held based
on performance not social contacts
◦ Position duties are clearly identified.
People should know what is expected of
them
◦ Lines of authority should be clearly
identified. Workers know who reports to
who
◦ Rules, standard operating procedures
(SOPs) & norms used to determine how
the firm operates
 Elton Mayo (1880-1949)
Behavioral Management

Behavioral
◦ Elton Mayo (

◦ Mary Parker Follett (1868-1933)

Mary Parker Follett (1868-1933)

Management theory ◦ Douglas McGregor (1906-1964)

Douglas McGregor (1906-1964)

IV. BEHAVIORAL MANAGEMENT
THEORY
Behavioral Management
◦ AKA ‘Human relations movement’
◦ This theory focuses on the performance and
interaction of people within the
organizations
◦ The study of how managers should behave to
motivate employees and encourage them to
perform at high levels and be committed to the
achievement of organizational goals
◦ People at work are assumed to seek satisfying
social relationships, respond to group
pressures and search for personal
fulfillment
IV. BEHAVIORAL
MANAGEMENT THEORY
Elton Mayo
◦ Helped lay the foundation for
the ‘Human Relations
Movement’ where social
aspects are considered very
important to worker
productivity

◦ Was known for his industrial

research, the Hawthorne
studies
IV. BEHAVIORAL MANAGEMENT
THEORY
Hawthorne Studies (Elton Mayo)
◦An experiment conducted on workers
at the Hawthorne plant of the Western
Electric Co in the 1920s
◦Initial study examined how economic
incentives and physical conditions
affected worker output ------ no
consistent relationship found
◦“Psychological factors” influenced
results
IV. BEHAVIORAL
MANAGEMENT THEORY
Hawthorne effect
◦ Occurs when individuals
adjust their behavior as a
result of being watched or
observed

◦ E.g. Employees may work

harder and more diligently
knowing their manager is
closely watching
IV. BEHAVIORAL
MANAGEMENT
THEORY
Mary Parker
Follett
◦ Mother of
Modern
Management’

◦ An influential
leader in early
managerial
theory
IV. BEHAVIORAL
MANAGEMENT THEORY
Mary Parker Follett
◦ Held a horizontal view of
power and authority in
organizations
◦ Suggested workers help in
analyzing their jobs for
improvements—the worker
knows the best way to improve
the job
◦ If workers have relevant
knowledge of the task, then
they should control the task
IV. BEHAVIORAL MANAGEMENT
THEORY
Douglas McGregor
◦Wrote about Theory X and Theory Y
in the late 1950s and early 1960s

◦McGregor’s Theory X and Y describe

divergent managerial beliefs about
what motivated employees and has
had a profound influence on fields like
management, organizational studies
IV. BEHAVIORAL MANAGEMENT
Contemporary /
modern management
theories
V. Systems theory
VI. Contingency
theory
VII. Management
science /Systems
Analysis /
Quantitative
approach
 SYSTEMS THEORY
MODERN MANAGEMENT
THEORY ◦ The foundation of
‘organizational development’

◦ Views the organization as a

open system made up of
interrelated and inter-
dependent parts that interact
as sub-systems (e.g.
production, marketing, finance)

◦ The system as a whole is

affected by internal elements
and external elements
(environment)
 SYSTEMS THEORY
MODERN
MANAGEMENT THEORY ◦ By Ludwing Von Bertalanffy (1901-1972)

◦ He recognized the need of any

organization to interact with its
external environment (open system) in
order to survive (e.g. technology, social
and economic phenomena)
◦ It is through interaction with its external
environment the organization gets its
inputs (raw material, labor), process
them and lastly emits as output for
selling to the same environment
MODERN MANAGEMENT THEORY Systems Theory
◦ Management of
an organization
as a system
involves
monitoring
inputs,
throughputs
and outputs
and feedback
loops and
making changes
to increase
organizational
effectiveness or
goal
achievement
 CONTINGENCY THEORY
MODERN MANAGEMENT
THEORY ◦ By Fred Fiedler (1922-2017)

◦ The basic premise is that

there is no one best way to
lead an organization

◦ There are too many external

and internal constraints that
will alter what really is the
best way to lead in a given
situation ---- depends upon
the situation at hand as to
what will be the best
course of action
MODERN MANAGEMENT QUANTITATIVE APPROACH
THEORY ◦ An approach to management
that uses rigorous
quantitative techniques to
maximize the use of
organizational resources

◦ Central to quantitative
approach is the principle that
organizations are decision-
making units that use
mathematical models that
place relevant factors into
numerical terms
BRANCHES OF QUANTITATIVE
MANAGEMENT TECHNIQUES:
1. Operations management—techniques
to analyze all aspects of the production
system
2. Total Quality Management (TQM) —
focuses on improving quality throughout
an organization
3. Management Information Systems
(MIS) —field of management that
focuses on designing and implementing
computer-based information systems
for use by management