LESSON MANUSCRIPT

Management

1. Definition of Management
 The planning, organizing, leading and controlling of human and other resources
to achieve organizational goals effectively and efficiently.

2. Definition of Managers
 The people responsible for supervising the use of an organization’s resources to
meet its goals.

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

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

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. This is the case when you choose wrong services that you
don’t know how to deliver them to the customers.
 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.
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.
 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. 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.
 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. 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.

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.
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.
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.
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.

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 12. Stability of Tenure of Personnel: managers should strive to minimize
employee turnover. Personnel planning should be a priority.
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.

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

7. Roles of Manager

1. Decisional Roles
a. Entrepreneur role requires the manager to assign resources to develop
innovative goods and services, or to expand a business.
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.
d. negotiator works with others, such as suppliers, distributors, or labor unions,
to reach agreements regarding products and services.
2. Informational Roles
a. monitor- evaluates the performance of others and takes corrective action to
improve that performance.
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.
3. Interpersonal Roles
a. figurehead is typically a top of middle manager.
b. leader acts as an example for other employees to follow, gives commands
and directions to subordinates, makes decisions, and mobilizes employee
support.

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 c. liaison must coordinate the work of others in different work units, establish
alliances between others, and work to share resources.

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

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

Four Functions of Management

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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
1. 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.
2. 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.
3. Staffing is the function by which managers build an organization through the
recruitment, selection, and development of individuals as capable employees.
4. Directing deals with the steps a manager takes to get sub-ordinates and others to
carry out plans".
5. 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
 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.

Types of Plan
1. 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.
2. 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.
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.
 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.
3. Operational Plan: plans made by frontline or low level managers.

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  Focused on specific procedures and processes that occur in the lowest level of
the organization.
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.

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
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.

Principles organization
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.
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.

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

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.
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.
Example: Are quality control objectives being met?
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.
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?

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

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

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.
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.

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 Without this function, people become inactive and physical resources are
meaningless.
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.

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 brings effectiveness and stability.
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.
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.

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

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.
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.

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.
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.

8. Decision- Making
 Decision: course of action chosen from a set of alternatives to achieve
organizational or managerial objectives or goals.

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  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.

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
*****the END*****

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

Prepared by:

Prof. Marlon P. Tuiza, LPT, DPA